News from the Greater Innisfil Chamber of Commerce

On March 19, Minister of Finance Jim Flaherty tabled the Conservative government's second budget.

Key Messages

- Ontario will benefit from an increase of 2.7 Billion in federal transfers over three years

- Ontario will benefit from increased funding in health, post-secondary education, infrastructure and social programs

- By 2014/2015 the federal transfer system will achieve equal per capita cash support for social and health transfers

- Budget 2007 does not completely address the fiscal imbalance or meet Ontario's full requirements but is a step in the right direction

- The Ontario Chamber of Commerce had hoped to see a method of program evaluation for the fiscal transfers, as one of the largest wealth transfers in the world

- The Ontario Chamber of Commerce will work with the federal government to develop such a measurement tool

Other measures

- The Government has taken a prudent approach to spending increases by limiting growth in program spending, on average, to below the rate of growth in the economy

- The government has shown support for the investment in human capital through a new labour market strategy which will provide funding on an equal per capita basis

- The government has acknowledged the importance of Canada-US trade with the recommitment to the new border crossing at Windsor- Detroit and additional infrastructure funding

- The federal government addressed in part the concerns of manufacturers by enabling them to write off capital investments over two years - however this is only a temporary measure until 2009.