Positive local reaction to last week's federal budget
By Bill Rea

Many observers are saying the federal budget brought down last week by Finance Minister Jim Flaherty wasn't very exciting, but many local officials are singing its praises.

Dufferin - Caledon MP David Tilson was enthused with the budget, stating he was particularly impressed with how little it contained.

"There weren't a lot of goodies in the budget," he remarked. "There weren't meant to be a lot of goodies in the budget."

He also pointed out the economy might be headed for a down turn, so it made sense to have a more frugal budget to this time.

Tilson said he was pleased to see the national debt is being reduced, pointing out $10.2 billion is to come off this year, meaning the debt has been cut by some $37 billion since the Conservatives came to power.

"Canadian will save $2 billion in interest per year," he observed. "That's part of how we we're making our tax cuts."

The national debt remains at some $454.8 billion, a figure Tilson called "just awful."

He also commented that seniors should like the budget, as it calls for an increase in the Guaranteed Income Supplement from $500 to $3,500.

There might be contributions to infrastructure that appear to be lacking, Tilson said, but in Ontario's case, he said the province has to sign agreements to get the federal money to flow.

The budget also calls for $400 million over five years to go to the provinces to pay for more front-line police officers. Tilson said Ontario's share of that will be $156 million.

A lot of interest has been generated by the plan to let people contribute up to $5,000 annually in new taxfree savings accounts.

This will be starting next year, and people contributing to them will not pay tax on the investment income or interest they generate. Tilson also pointed out people who don't make full contributions one year will be able to make them up in subsequent years. The money can also be withdrawn at any time, without penalty, and those funds can be returned to the account later, with the same conditions applying. In addition, he said there are no restrictions on what the money can be use for, unlike RRSPs. "It's for everything else in your life," he remarked.

As well, Tilson said municipalities should like what the budget contains. Provisions for the feds to share gas tax revenues have now been made permanent, meaning municipalities throughout the country will be benefitting from about $2 billion per year "for ever."

Mayor Marolyn Morrison said Caledon's share last year was about $1.2 million, and they are expecting roughly the same figure this year. And Town officials are looking at ways they can spend it.

"We're doing all kinds of things," Morrison commented, adding that includes fixing up gravel roads, as well as road work in Albion and Bolton, and they are looking at repair work on the Sneath Road bridge, just east on Bolton.

Tilson said the budget contained few surprises, with the possible exception of the fact that Liberal Leader Stéphane Dion has stated he and his party will support it. "In the immediate future, there's no election," he observed.

He also had few criticisms, pointing out he doesn't want to see the government spending more or increasing taxes, and he got his wish on both counts.

There had been hopes from some that there would be a carbon tacx imposed. Tilson said there will be $250 million going into an automotive innovation fund, with an eye to encouraging those in the industry to support strategic research to develop greener vehicles.

"Our government believes you shouldn't increase taxes," he explained. "You think of other ways to decrease global warming and emissions."

Dufferin - Caledon MPP Sylvia Jones said she had been in contact with a number of municipal officials, and agreed the announcement of making the gas tax share permanent was "great news for municipalities."

She was also pleased to see a registered disability saving plan called for in the budget. That ties in with her role at Queen's Park as Progressive Conservative critic for community and social services. Jones said she's heard from a number of families who are pleased with this provision. Many of these people worry about what's going to happen to their disabled children after they're gone. This will enable them to plan for that, the way people plan for their retirement.