National Budget Consultations Necessary, says MP Allen

December 23, 2008

TOBIQUE-MACTAQUAC – Consulting provincial and territorial leaders, opposition parties and the general public is an important step in formulating a federal budget during these tough economic times, says Tobique-Mactaquac member of Parliament Mike Allen.

Finance Minister Jim Flaherty has a national consultation process underway, leading into the Conservative Government’s fourth budget, to be tabled on January 27.

“This consultation gives all Canadians a voice in how to protect Canada’s economy and move us forward with as little negative impact as possible,” Mr. Allen said. “Our government is developing our next budget to respond to the economic downturn and to build on the progress we’ve made to keep our economy among the strongest in the industrialized world.”

At the same time, the government wants to bring forward the measures we need to stimulate economic activity here in Canada, while avoiding a return to long-term structural deficits.

“The Government is open to innovative new ideas that would help shape the plan for economic recovery in the 2009 budget,” said Minister Flaherty.

The following ideas have been proposed as ways of providing stimulus in Budget 2009.

• Investing in housing
• Expediting infrastructure spending
• Building strong and sustainable labour markets and training incentives
• Supporting traditional and emerging industrial sectors
• Improving access to credit 

The Government is asking Canadians for their views on these priorities as well as any other ideas they care to submit at http://www.fin.gc.ca/scripts/prebudgetsurvey/selectMainPriorities_e.asp. The Web page also features links to a presentation called Fiscal Stimulus. The online consultations will end at midnight, January 9, 2009.

As well as online consultations, the Minister is meeting with individuals and groups, and is hosting roundtable discussions with invited stakeholders in five cities across Canada. This include Saint John, NB; Saskatoon, SK; Montreal, PQ; Thornhill, ON; and Victoria, B.C.

In addition, Minister Flaherty met with provincial and territorial finance ministers on December 17 to discuss the upcoming budget.

“It’s so important that we hear the views of as many Canadians as possible on how to build on the actions our Government has already taken to help Canada weather the economic storm,” said Mr. Allen. 

These actions have included:

• Reducing the federal debt by $37 billion;
  
• Reducing taxes by almost $200 billion over 2007–08 and the following five years;
  
• Reducing the tax rate on new business investment to the lowest level in the G7 by 2010; and
  
• Making historic investments in job-creating infrastructure and investing in science and technology, education and training. 

As a result of tax reductions implemented by the Government since 2006, Canadians and Canadian businesses will pay $31 billion less in taxes in 2009—fiscal stimulus of almost 2 per cent of gross domestic product. On the monetary side, the Bank of Canada has continued to aggressively reduce interest rates to ease borrowing costs.

“This is a pivotal time for our economy,” Mr. Allen said. “That’s why it’s so important for us to look to stakeholders and members of the general public to help us build on our plan to protect our future.”