Conservatives unveil 'prudent' federal budget
By Bill Rea and Chris Simon

Last week's federal budget gives local residents plenty to be thankful for, says Simcoe-York Conservative MP Peter Van Loan.

The proposed budget, which was introduced into the House of Commons last Tuesday, aims to reduce debt and taxes, while providing funding for struggling sectors of the economy. And items that should please most Canadians, like the new Tax Free Savings Account, support for the automotive sector, the hiring of police officers and increased transit funding, could impact local communities, said Van Loan.

"There are challenges on the horizon," he said. "Some would have us go down the path to higher spending, higher interest payments and higher taxes. That approach is misguided. Our government is taking the path that requires focus, prudence and discipline."

Among the budget highlights, the government plans to create the tax free, general purpose savings account, and allocate $10.2 billion towards paying down the national debt. The government would also allocate a total of $1.6 billion in benefits to the auto industry in 2008 and each of the following five years, including $250 million for an Automotive Innovation Fund.

And Ontario will receive millions of dollars in funding through the budget. Over $358 million would be spent through the Community Development Trust, to help vulnerable communities adjust to global economic uncertainty, and $195 million over two years through the Public Transit Capital Trust. The province will also receive $515 million for infrastructure initiatives, $195 million for labour market training, $13.4 million to alleviate financial pressures in the hog industry, and $303 million through the Clean Air and Climate Change, HPV Immunization and Patient Wait Times Guarantee trusts.

"The Tax Free Savings Account is the first of its kind in Canadian history," said Van Loan. "It will provide all Canadians with a powerful incentive to save. An RRSP is primarily intended for retirement, but the Tax-Free Savings Account is like an RRSP for everything else in your life."

The Liberals have already suggested they will support the budget. Failure to support it would trigger an election.

"This budget does not go as far as we would like in some areas, but it does not warrant an election that Canadians don't want, at a time when so much remains to be done in this parliament," said Liberal leader Stephane Dion in a press release. "With this budget, the Conservative government has begun to move in the direction that the Liberal opposition has been pushing. This government is obviously lacking its own ideas, which is why it has adopted so many of ours from funding infrastructure and manufacturing."

According to the budget, Ontario will also receive $156 million over the next five years, to hire front line police officers. About $110 million will also be allocated to support mental health issues, and $660 million for Aboriginal communities.

Ontario would also receive $13.9 billion to address the fiscal imbalance.

York-Simcoe MPP Julia Munro agrees with several aspects of the budget.

"I actually thought there were a couple of things that were really good,"she said.

Munro likes the idea of the tax-free savings accounts.

"Anything that encourages people to be looking at saving is a good thing," she said. "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.

Van Loan says the budget is balanced and accurately depicts the current economic climate.

"Our government is taking the path that requires focus, prudence and discipline," he said. "This budget builds on our long-term economic plan Advantage Canada, a plan that is a realistic and responsible way forward."