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Balanced budget gets business thumbs up
What’s missing most in yesterday’s federal budget is most telling point out Official Opposition
Business leaders, local and farther afield, are applauding the Conservative Government on meeting its 2011 election promise to balance Canada’s budget by 2015; a feat it unveiled during yesterday’s budget announcement by Finance Minister Joe Oliver.
“The BC Chamber applauds the federal government for achieving a balanced budget; this was certainly not an easy endeavour, with dropping oil-prices and on-going global economic uncertainty,” said John Winter, the outgoing president and CEO of the BC Chamber. “Canada is in an enviable position, being one of only a few nations to announce a balanced budget.”
Winter also commends the budget’s focus on funding for major infrastructure projects. The budget outlines $5.8 billion in funds for new infrastructure to be spent over the next three years.
Canada’s priority must be investments that will position us as a top-tier international competitor, added Canadian Chamber of Commerce President and CEO
. “As a nation, we have the potential to win internationally against strong, aggressive business rivals, but we need the right tools. This budget is a good starting point, but more needs to be done.”
“We salute the fact that the government presented a balanced budget. But this only serves to bring us to base camp; we still have a mountain to climb. To keep the budget balanced in the future and give us a fighting chance against international competitors, the government’s priority must now shift to economic growth and global competitiveness. Our prosperity depends on Canadian business winning in the global marketplace,” said Beatty.
The Cranbrook Chamber of Commerce applauded support for small business in the budget.
“We appreciate the fact that the government took the needs of small business into account in this budget,” said Cranbrook Chamber president Dave Struthers.
He particularly welcomes initiatives to improve Canada’s skilled workforce. “Measures to improve skills – such as better and more apprenticeship training – can create a new generation of capable workers. For many businesses, the skills gap is the number one barrier to growth.”
Access to reliable labour market information will also allow students, businesses and governments alike to focus their energies and resources on the right training programs and incentives.
“Right now, Canadians are choosing career paths and investment opportunities in the dark,” said Struthers. “Having more and better information will paint a clear picture of different aspects of Canada’s labour market, allowing people to make smarter, enhanced and better informed decisions.”
Efforts to improve access to capital are also welcome. Access to capital is often the difference between life and death for start-ups and companies moving from innovation to commercialization, and Canada’s venture capital industry is small and difficult to access, the chamber stated.
The Fernie Chamber of Commerce noted a big highlight in the budget is the small business tax rate being reduced from 11% to nine per cent by 2019.
“This is good news for our local economy,” states board president, “as any relief in tax burden for our business members will only strengthen them.”
The Canada Small Business Financing Program will see expansion under the new budget. The maximum loan amount available will increase to $1 million from $500 thousand.
Chamber Executive Director Patty Vadnais stated, “the federal budget shows the governments continued support to small business and that they are a vital piece in the Canadian economy. The Fernie Chamber will be identifying the programs applicable to its membership and sharing those details with its members.”
On the tourism front, the budget is proposing support to the Canadian Tourism Commission, but no details were given. The Canadian Chamber of Commerce will be monitoring this closely.
The budget included some previously announced programs to support Canada’s natural gas and mining sectors through tax breaks and funding for environmental assessments. The Fernie Chamber of Commerce welcomes this news on behalf of its members impacted by the coal industry, it stated in a press release.
The Canadian Chamber also saluted the creation of a national Development Finance Institution. This institution will help fund business projects in impoverished countries, turning them into tomorrow’s business partners.
“By recognizing that Canadian businesses need improved access to skilled workers, international markets and capital, the government is setting the building blocks for a more competitive Canada. However, there are still many steps to take,” Beatty stated.
Access to game-changing technology must also be improved, and more can still be done to link skills training to the needs of the market. “This budget is an important starting point, but we still have a long way to go,” he concluded.
Not all reactions to the budget are supportive.
“The Harper Conservatives have tabled a budget that continues the pattern they’ve followed from the start, ignoring the needs of the middle class while giving tax breaks to the wealthy,” said Wayne Stetski, NDP candidate for the Kootenay-Columbia Riding.
“I believe that voters will judge the Harper Conservatives on their record: the highest deficit budget in Canada’s history at $58.2 billion, and seven straight deficit budgets. With that record, saying they’ll balance the budget now, right before an election, is going to be pretty tough for most Canadians to believe,” he predicts.
“Instead of making budget decisions that constitute good government, the Harper Conservatives have focused on giving tax breaks to their core supporters. This is a budget written out of desperation to maintain a majority, rather than to serve the needs of people,” said Stetski, adding that it’s what not in the budget is telling.
“What is important to the people of Kootenay-Columbia, that is not present in this budget, is affordable day care, increasing the Guaranteed Income Supplement for seniors, and enhanced infrastructure funding to rebuild our communities and provide good local jobs. Those are my priorities.”
Alex Atamanenko, MP (BC Southern Interior) – is disappointed but not surprised by the Conservative Government’s continuing tax breaks for big corporations and Canada’s wealthiest few.
“This budget has nothing that will assist the middle class who are the driving force of our economy, nor does it assist those falling below the poverty line,” stated the BC NDP MP in the riding adjacent to Kootenay-Columbia. “It is disheartening to know that very little has been done to help those in need. Instead, this government has deemed it more important to maintain the wealth and income inequality it has established over the last decade on the backs of the middle class.”
According to Opposition Leader Tom Mulcair, “The only ideas to create jobs in this budget come from recommendations of the NDP, which is committed to improving the lives of those who need a helping hand. Conservatives have missed their chance to make smart investments that create stable full-time jobs, actual childcare spaces and affordable housing.”
The BC Southern Interior MP said he is also concerned that the budget fails to improve access to Employment Insurance, does not reverse the raising of the age of retirement from 65 to 67 and has no mention of an increase in CPP benefits.
Climate change is also not a priority with no plan to live up to our international commitments to reduce greenhouse gas emission.
“However, there is hope. As Tom Mulcair stated, we are only just one election away from easing the burden that most Canadians are facing,” concluded Atamanenko.
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