by Chris Meyers Almey
Northern News Services

NNSL (Feb 19/97) - Paul Martin is glowing over his budget and Western Arctic MP Ethel Blondin-Andrew is ecstatic.

But Ben McDonald is glowering.He is exasperated.

Martin (left), the federal finance minister, took 80 minutes yesterday to deliver his no-tax-increase budget.It's expected to be the last from this government this term.

McDonald, a member of Alternatives North, was the group's spokesman for a quick reaction to the budget.

"I have a hard time to say anything good about it," McDonald said yesterday, adding there will be $3 billion more in cuts to spending so the pain and suffering will continue.

A week ago Alternatives North hosted the Northern launch of the Alternative Federal Budget, a launch also held in 30 other Canadian cities. The alternative budget was hammered out by 50 economists.

McDonald said the real budget continues to show this government's concern with wealthier Canadians rather than those less fortunate.

"It is a budget for corporate bond holders," said McDonald. Basically, the government philosophy is to get the fundamentals in order and then the market will take care of things, he said.

"But that's a bunch of crap and we've got 15 years to prove that since 700,000 more Canadians are living in poverty now than when they held the election," said McDonald.

However, the government believes more of the same cost-cutting is exactly what the country needs, North included.

The Western Arctic MP said the budget will do whatever Northeners want it to do.

There are great opportunities with the enhanced infrastructure program so it is up to territorial leaders to negotiate with the federal government to tap into that funding, said Blondin-Andrew.

With the government focusing on tourism, it provides greater opportunity for the North, she added.

There was good news for low-income families, of which there are many in the North. There are many children and a high birth rate, so Northeners need to access the higher funding, she said.

Child tax benefits for families earning less than $26,000 are also increasing.

That will be an incentive for people to keep working, said Blondin-Andrew. Before there was a disincentive to leave social assistance, due to lost benefits.

And the $230 million in the budget for people with disabilities is "fantastic," she added. "It's not like we're going crazy and throwing things out," she said. "This budget is very sensible. If people want to be cynical, let them be."

Martin said there would be no new tax increases and in selected areas there would be reduced taxes.

In 1994 the deficit sat at $42 billion. It is now projected to come in around $19 billion, he said.

With a rising level of confidence in world financial markets, there is reason to stick with the present course, said Martin.

He predicted there would be no foreign borrowing with a $9-billion deficit forecast for 1998-99, calling it "a turnaround of unprecedented proportion."

The private sector created 85,000 new jobs last year, mostly full-time, Martin pointed out. He handed business a real plum by cutting employment insurance premiums by $7 billion this year alone.

And by pumping up the $3-billion Canada infrastructure program by an extra $600 million, small business will get another shot in the arm.

Trade missions have been successful, helping the value of exports soar 50 per cent since 1992 and tourism could grow by another 125,000 jobs aided by an infusion of $65 million in promotions here and abroad.

Martin said if the government failed to invest in education, the next generation would be shortchanged.

So student loans repayments can be deferred 30 months instead of 18 along with tax breaks being hiked from $900 to $1,200.

Hospitals and universities are getting $800 million to spend on research and the Canada Pension Plan will be reformed.

Medicare will be enforced across the land with cash transfers to grow, Martin said. There is money for food for children up to age 6 and for prenatal mothers.

"The worst is behind us and there are bright days ahead. The era of cuts is ending. The financing of the nation is finally being brought under control. Now we must seek a new destiny for ourselves," he said.