Mixed local reaction to budget
January 28, 2009

Posted By Kyle Rea, TIMES-JOURNAL STAFF

Local reaction was mixed for a federal budget promising billions of dollars in economic stimulus but requiring the country to go deep into debt to pay for them.

Tuesday afternoon, Conservative Finance Minister Jim Flaherty handed down his budget promising $30 billion to support the economy. A $20 billion tax cut over six years and a two-year $12 billion infrastructure investment, among others, were part of the budget that will also see an $85 billion deficit over five years.

"I'm pleased with it not just because it's got some fantastic stuff in it but I'm also pleased that Canadians will think this is the right budget for the times," said Conservative Elgin-Middlesex-London MP Joe Preston.

A key element of the budget was a five-year, $1 billion Southwestern Ontario Economic Development fund. St. Thomas and Elgin County are expected to benefit from this.

"We've been lobbying for this," said Preston. "We think that this is a good thing for us to be able to tap into."

That sentiment was shared by Bob Hammersley, president and CEO of the St. Thomas and District Chamber of Commerce.

"I believe we should be (part of this)," he said. "I believe that's a very solid initiative that deserves solid support."

While disappointed at a lack of help for seniors, Hammersley praised it as one of the "most unique" budgets he's ever seen.

"It covers so many things and touches so many different concerns."

But others had mixed reactions.

"I think it's a half-hearted budget for a half-hearted Harper. There just wasn't enough stimulus for working families," said Ryan Dolby, NDP candidate for Elgin-Middlesex-London. In particular, he said a five week extension for Employment Insurance benefits doesn't do anything for people laid off in St. Thomas.

He urged all members of Parliament, including Preston, to vote against the budget on Thursday.
 
"It doesn't go anywhere near far enough," Dave Kerr, president of the St. Thomas and District Labour Council said in his reaction.

When it comes to infrastructure funds, $4 billion of which will require a three-way split between all levels of government, "Where are the municipalities going to come up with the money?" Kerr queried.

That's also a concern for Mayor Cliff Barwick who said the devil is in the details when it comes to announced infrastructure spending.
He's worried about bureaucratic hold ups and political red tape.

"If we have to bury ourselves in paper work for six months (to apply), this money isn't going to main street."

Barwick hopes the government will fast track Build Canada dollars -- they've applied for some to build a new police headquarters.

"You have to get the money out for these projects as fast as possible. I'm not so sure this does that, but hopefully it will."

Suzanne van Bommel, Liberal candidate for Elgin-Middlesex-London noted, by cutting taxes the government is starving themselves for cash.

"I do not believe that, should all those dollars flow, that we are going to see a return to non deficit financing in the five years projected," she said. As for defeating the government on Tuesday?

"We're going to have a good look," van Bommel said.