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Federal budget holds 'no surprises'

Mike W. Bryant
Northern News Services

Yellowknife (Feb 28/05) - Finance Minister Floyd Roland sees nothing shocking in this year's federal budget, and that's just as well.

Most of the goodies promised to the territories by Ottawa had already been announced over the last several months.

"What we see initially is a confirmation of the announcements the ministers have made," said Roland, who announced a surplus budget of his own earlier this month - flush with $110 million in extra federal cash.

"I'm pleased that it makes an absolute commitment to the dollars we talked about over the year."

Roland pointed to the $120 million Northern Strategy fund announced last December, and the $37.5 million in gas tax revenue identified for the NWT to fund infrastructure development.

This year's federal budget includes a $735 million investment in aboriginal communities, but Roland doubts much of that will end up in the NWT. Some of the budget highlights earmarked for the North include $65 million towards long-term reform of the three territories' health care systems, $4.7 billion over 10 years for formula financing, $75 million to assist with medical travel, and $150 million over four years to promote sustainable energy development.

The budget also promises to raise the tax exemption for Canadian taxpayers to $10,000 by 2009.

The Liberal government's budget, handed down by Finance Minister Ralph Goodale, Wednesday, calls for $41.8 billion in spending over five years, with a $4 billion surplus for 2005/2006. It's the eighth straight balanced budget from the Liberals.

Despite repeated attempts, Western Arctic MP Ethel Blondin-Andrew could be reached for comment.

She was quoted in a press release, saying: "The constant attention we are getting is extraordinary. "This budget once again shows the government's commitment to our territory and speaks to the priorities and needs of Northerners."

Of course, not everybody was happy with the budget.

Alternatives North spokesperson Ben McDonald said the Liberal government ignored campaign promises to address social issues, and focused on giving higher income earners a break instead.

The budget calls for a two per cent cut to the corporate tax rate - down to 19 per cent - by 2010, and dropping a 30 per cent cap on foreign property limits on RRSPs and retirement plans.

"They campaigned on a, 'vote for us or you'll get Stephen Harper,'" said McDonald. "Well, this is very much a Stephen Harper budget."