Local reaction to the Provincial Budget

Ontario’s Liberal government has introduced a budget that provides minor funding increases in health, education and justice without raising personal or corporate taxes.

But, there will be spending cuts to a host of tax credits and other programs.

Finance Minister Charles Sousa says the province’s 10.9-billion-dollar deficit will be wiped out by 2018.

Nipissing MPP Vic Fedeli says there are job cuts to health care and education, as well as seeing hydro bills increase.

Mayor Al McDonald says he was looking for key areas of investment; including spending on infrastructure.

McDonald says one thing he heard was the government creating a commitment to see businesses in northern Ontario to succeed.

The Mayor of North Bay further says he liked hearing the province admit they need to step up the efforts on the health care side when it comes to the number of physicians.

Fedeli says the budget did not predict a lot of good news, even though the Liberals says they have a plan to reduce the deficit and balance the budget.

President of the North Bay and District Chamber of Commerce Jake Lacourse says the sale of Hydro One is still a concern.

Fedeli says he’s not a fan of selling off Hydro One.

The President of CUPE Ontario Fred Hahn says he can’t believe the government is planning to sell off up to 60% of Hydro One. He says the results will mean higher bills

Lacourse says he doesn’t like the continuation of the Ontario Registered Pension Plan.

He says it needs to include more pension plans, instead of just one defined plan which will create a cost burden for employers.

Hahn says the government says they spend less per capita across the country on public services than any other government.

And that, he says, is increasing corporate taxes.

Here are the budget highlights:

– Ontario’s deficit will be reduced from $10.9 billion to $8.5 billion in 2015-16, falling to $4.8 billion in 2016-17 and return to balance by 2017-18.

– The $131.9-billion budget includes $120.5 billion in program spending plus $11.4 billion in interest on the province’s debt, which is projected to hit $298.9 billion next year.

– $11.9 billion in 2015-16 for infrastructure projects such as highway improvements in northern Ontario and rapid transit _ part of a $130-billion, 10-year plan announced in last year’s budget.

– An additional $200 million for a 10-year jobs fund announced last year, with a total of $2.7 billion for the program that provides corporate grants in return for jobs.

– Insurance companies will be required to give drivers a discount for using winter tires on their vehicles. However, the standard duration of medical and rehabilitation benefits will be reduced from 10 years to five years for all claimants except children.

– 9 billion expected to be raised from the sale of 60 per cent of Hydro One, the giant electricity transmission utility, $4 billion of which will be devoted to public transit.

– $100 million a year will be raised with a new tax on all beer sold in Ontario as part of modernization plan that will allow some grocery stores to sell six-packs of beer.

– $50.8 billion for health care, the single largest government expenditure, which is projected to grow an average of 1.9 per cent a year over three years.

– $25.2 billion for education, which will grow by two per cent a year, while funding for post-secondary education and training will hold steady at $7.8 billion.

– All other areas will face average decreases of 5.5 per cent a year until the deficit is eliminated, but they represent only 16 per cent of government’s total program spending.

(With files from The Canadian Press)

Local reaction to Tuesday’s Federal Budget

The Harper government has snapped a string of seven consecutive deficit budgets.

The document tabled by Finance Minister Joe Oliver predicts a surplus of 1.4-billion dollars in the current fiscal year.

However, NDP Leader Tom Mulcair says Oliver turned red ink into black in part by pulling two-billion dollars from the government’s rainy-day fund.

MP Jay Aspin is pleased with his governments budget. He says they’ve worked awfully hard to achieve a balanced budget.

He was also pleased with incentives in the budget to grow the aerospace industry.

North Bay and District Chamber of Commerce president Jake Lacourse says there’s a couple of things in the budget that will attract the attention of small business.

As well, he says it’s nice to see the government put more dollars aside for infrastructure, even though it’s coming down the road.

Meantime, Tobin Lambie is with Chartered Professional Accountants of Canada.

He says the government gets a “B” for this budget.

Lambie gives Ottawa credit for the reduction of the small business tax rate. But, he says the grade is not higher because there’s not much about tax reform.

Canada’s Minister for FedNor says there’s a lot for people in Northern Ontario to like in the federal budget.

Greg Rickford says core funding for FedNor is the same and they’ve allocated funds for the Community 150 infrastructure program.

He says details will be unveiled in the next month but essentially  community buildings be they arenas or municipal halls can be refurbished through this program.  Meantime, Rickford says they’re also launched a technology fund which will benefit the Ring Of Fire as they hope to separate the Chromite there.

He says that’s an expensive process right now and he hopes this fund can help.

Rickford says the other mining benefit is that the mining exploration tax credit has been extended for another year.

Written by: bob.coles@northbayradio.rogers.com (with files from The Canadian Press)