Federal budget draws praise from many quarters
By Bill Rea

Local reaction was basically positive to the budget that federal Finance Minister Jim Flaherty brought down last week.

"It's a responsible budget for challenging times," was the reaction of York - Simcoe MP Peter Van Loan, who called it "a balanced, prudent and responsible approach to handling uncertain economic times."

Van Loan observed the budget builds on tax cuts, including reduction to income taxes and the GST that the government announced in its economic stimulus package in the fall, and he expressed the hope it will continue the trend, which has seen Canada with the lowest unemployment rate in 33 years.

"The current budget targets help where it's needed," he added. For example, he said seniors will benefit from the increase in the exemption to the Guaranteed Income Supplement from $500 to $3,500. That will enable more low-income seniors to work without losing benefits.

As well, Van Loan pointed out that some $10.2 billion will be coming off the national debt, meaning it's been reduced by about $37 billion since the Conservatives of Prime Minister Stephen Harper took office.

"We're saving billions of dollars in interest, which is then converted into further tax reductions for Canadians,"' he observed.

But Oak Ridges - Markham MP Lui Temelkovski wasn't as enthused.

He cited the example of the plan that will allow Canadians, starting next year, to contribute up to $5,000 annually in tax-free savings accounts, commenting that it "looks very, very fancy, but when you take the paint off the package, it looks very bare."

Temelkovski pointed out that not many people will be able to scrape together $5,000 to put into such an account, and those who do will probably only come out about $50 ahead. "It's insignificant," he remarked.

Despite the problems with the budget, Temelkovski agreed it wasn't worth toppling the minority Harper government over. He said Canadians don't want an election that's likely to cost some $350 million.

And he wasn't all negative about the budget. He liked the fact that the share of the gas tax gong to municipalities will be permanent. "That was one of the things we had been proposing," he remarked.

Temelkovski said he's in favour of reducing the national debt, but thought Flaherty might have gone a bit too far, especially since an economic slow-down might be coming soon. "You had better keep a few bucks in your kitty," he commented.

"I think it was very disappointing there wasn't enough emphasis on Ontario's needs," observed Oak Ridges - Markham MPP Dr. Helena Jaczek.

She said Premier Dalton McGuinty had made Ontario's needs known to Flaherty.. "For the most part, we were ignored," she said.

Jaczek said $250 million over five years going to the auto industry "is really trivial," adding Ontario has put up $500 million to support innovative technology. She pointed to deteriorating roads, bridges and water systems. "We need the federal level to come to the table," she said.

On the positive side, Jaczek agreed the tax-free savings accounts will benefit some people, but mainly they will favour those who have the money to put into such accounts.

"I actually thought there were a couple of things that were really good," remarked York - Simcoe MPP Julia Munro.

She liked the idea of the tax-free savings accounts. "Anything that encourages people to be looking at saving is a good thing," she declared. "I think it's a really good incentive for people."

She also liked the idea of the money going to research and development in the auto industry, pointing out that will do more to make the industry innovative and competitive.

In terms of flaws, Munro, who is the Progressive Conservatives' culture critic at Queen's Park, thought some more could have been done in that area, especially when it comes to preserving heritage. She pointed out it's hard for some local groups to afford insurance for some of their buildings, and she added some initiatives to assist museums would have been nice.

Mayor Margaret Black saw a couple of things to like in the budget, although she had some practical reaction too.

"It's obviously a budget to avoid an election," she commented.

She was glad to see the municipal share of gas taxes being made permanent, along with money for infrastructure.

"All these things are good," she said. "There's nothing bad in the budget."