A commitment to share the costs of municipal infrastructure projects and money for job and skills retraining marked the highlights of the federal government’s 2013 budget on Thursday, March 21.
Among the measures announced by Finance Minister Jim Flaherty is the promise of a $32 billion 10-year “Building Canada” program to support spending on roads, recreation facilities and public transit, starting in 2014, as well as a further $14 billion for major projects.
The government also announced its decision to index the gas tax transfer at two per cent annually beginning in 2014-2015. As the first indexing of a municipal transfer, the initiative ensures the fund keeps pace with inflation. It will add another $9 billion to the permanent gas tax fund over 20 years.
“By protecting the purchasing power of the gas tax transfer and by extending program funding for 10 years, this budget entrenches the principle of long-term sustainable infrastructure funding for Powell River,” said Mayor Dave Formosa. “The budget goes further by renewing critical housing programs and reaffirming the federal role in addressing the challenges of housing affordability and homelessness. This adds up to about $1.8 billion over five years.”
The budget didn’t contain a definitive roadmap to erasing the infrastructure deficit, Formosa added. “However, it does lay the foundation for continued intergovernmental collaboration as economic conditions improve to meet the challenges that need to be addressed in Powell River,” he said. “Whether it is wastewater upgrades, roads or transit and transportation, we all need to work together to meet our residents’ needs. The addition of projects eligible through the gas tax fund to include highways, local and regional airports, broadband and connectivity, brownfield redevelopment, culture, tourism, sport and recreation is a meaningful evolution in the use of these funds.”
Although the new budget only encourages, rather than requires, life-cycle assessments and asset management plans, the city will be in a strong position to obtain gas tax funding when its asset management plan is completed in December 2013, Formosa added.
Another key theme of the budget was the need to match future skills training with areas of future employment and current labour shortages. Currently there is a mismatch in training and available jobs.
Among the measures announced in the budget is a new Canada Job Grant, which would provide up to $15,000 toward skills training with $5,000 from the federal government being matched by the provinces and employers.
The government also promised to promote education in fields where there is higher demand from employers, including science, technology, engineering and skilled trades. It also promised $70 million over three years to support 5,000 paid internships for recent post-secondary graduates.
West Vancouver-Sunshine Coast-Sea to Sky Country MP John Weston said he was pleased to see measures supporting small businesses in the budget, including the extension of the hiring credit.
-with files from North Shore News
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