CALGARY, AB Feb. 11, 2014 – The federal budget, released Tuesday, is fiscally prudent but does not push Canada’s economy to reach its potential.
Spending discipline has put the country on track to a projected surplus of $6.4 billion for the 2015-16 fiscal year. But while this sound financial management has created an opportunity to pull ahead of other countries’ economies, federal Finance Minister Jim Flaherty’s tinkering fails to seize the moment.
Flaherty failed to take bold steps that would enhance our country’s competitiveness on the world stage, and improve access to emerging markets, particularly in Asia. Canadians are able to create wealth when they have access to new markets.
Only two infrastructure projects, for example, directly improve access to the U.S. market – a planned new bridge at the Detroit-Windsor crossing and Montreal’s Champlain Bridge. Although the other infrastructure projects will deliver economic stimulus, there is nothing in them that will get us closer to world markets, such as Asia.
Youth unemployment, which sits at 13.9 per cent, according to Statistics Canada, got a nod. The Economic Action Plan 2014 will offer $100 million in loans for apprentices, and a pilot program to apprentice technical training. It also offers $40 million in funding for apprenticeships skilled trades or internships in science, technology, engineering and mathematics. These are useful measures, but small relative to the challenge.
The $1.9-billion Aboriginal education reform package brings with it new minimum quality standards for reserve classrooms while leaving aboriginal schooling under First Nations control. The plan also requires that teachers on reserves acquire provincial certification, calls for minimum education standards and allows for the establishment of First Nation education authorities that will act like school boards.
Aboriginal education is absolutely essential. This is a good and important priority. Canada’s economy won’t reach its potential until all its people do. Half of the students entering Saskatchewan’s education system next year will be Aboriginal. However, this will be a difficult file to advance and careful attention will be required.
The $305 million earmarked over five years to extend broadband Internet service to 280,000 more households in rural and northern communities is an investment that has the potential to pay back through increased productivity and improved employment opportunities.
Of particular interest to the West would have been action that restores public confidence in regulation. While there is a positive signal on restoring food inspectors, in general, the overall theme is not a focus of this budget.
It is also hard to understand how a government committed to building jobs has not touched one of the most job-killing taxes – the Employment Insurance payroll deduction. The government argues it is keeping rates at current levels to provide certainty and flexibility to employers. The only certainty is unnecessary financial burden.
The Canada West Foundation exclusively focuses on the policies that shape the West’s quality of life. Through our evidence-based research and commentary, we provide the objective, practical solutions that governments need. For over 40 years, we have been a passionate advocate for western Canada. Visit us at www.cwf.ca.