Budget acknowledges the North: Todd
Feds to balance three consecutive budgets
by Doug Ashbury
NNSL (Feb 27/98) - Ottawa is taking note of the changing Northern economy. And that's good news for Northerners, says GNWT Finance Minister John Todd.
Overall, Todd said he is generally pleased with Finance Minister Paul
Martin's fifth federal budget.
Martin, in the budget released Tuesday, acknowledges the
North is pursuing economic diversification through "traditional economic
activities, knowledge-based industries and a new diamond industry."
Martin also said the federal government is committed to
working with the North on economic development and its attempts to
diversify its economy.
It may only be a few paragraphs, way back on page 61, but
Todd said it's significant. He said it means the federal government
recognizes the North's economy is changing.
"It's important that we work in partnership" with the
federal government, he said.
As for tax relief, Todd said it was nice to see some movement.
Some tax relief will come from eliminating the three per
cent surtax on income tax introduced in 1986. Canadians earning under
$50,000 will see the surtax disappear.
In all, there's $7 billion in tax relief.
"This budget has tax relief those most in need, low- and
middle-income Canadians," said Ethel Blondin-Andrew, MP for the Western
Arctic and a secretary of state in the Chretien government.
The budget will also benefit Northern youth through Youth
Services Canada by expanding funding to the program, she said.
Federal funding for education is another benefit
Northerners will be able to take advantage she added.
New funding may help the North address its lack of skilled
workers, she said.
For the first time in about three decades, the federal
government balanced the budget.
In fact, said Martin, it not been for several spending
initiatives in the past year, there would have been a fiscal 1996/97
surplus.
To pay down the almost $600-billion debt, Martin has set up
a contingency fund of only $3 billion in each of the next two fiscal years.
But a year from now, Martin may announce a $5-billion
surplus. Two years on it could be as much as $10 billion, according to
economist Jeff Rubin of CIBC Wood Gundy. |