B.C. endorses Ottawa’s balanced budget

Ottawa's tax cuts cost B.C. treasury too; Industry Minister James Moore defends Coast Guard changes for West Coast

Industry Minister James Moore (left) and B.C. Finance Minister Mike de Jong

VICTORIA – The federal government has joined B.C. in the balanced budget club, but it comes at a cost to provincial revenues.

Federal Finance Minister Joe Oliver delivered his first budget Tuesday, featuring increased defence spending and a new public transit fund that wouldn’t take effect until after the federal election scheduled for this fall.

B.C. Finance Minister Mike de Jong said changes in the federal budget such as reducing small business tax and allowing personal income splitting for couples have a flow-through effect on provincial revenues. That could be between $18 million and $30 million to B.C., he said.

De Jong said the B.C. government supports the reduction in federal small business tax rate, which is to decline from 11 to nine per cent by 2019.

A new federal fund to help pay for transit doesn’t take effect until 2017, but de Jong said he expects current federal infrastructure programs to continue until then.

Federal Industry Minister James Moore said the Conservative government is still distributing funds from the $70 billion infrastructure fund that was included in last year’s budget, and the new fund is in response to cities’ demands.

The mayors of Vancouver, Toronto, Montreal and the national and provincial municipal associations have all endorsed the budget, Moore said.

B.C. NDP finance critic Carole James said the federal budget seems to have missed B.C. priorities, and it was frustrating to see Ottawa balance its books on the same day as the Canadian Coast Guard closed another West Coast facility.

The Coast Guard’s marine communications and traffic centre at Ucluelet is closed, with the function transferred to Prince Rupert. A similar station in Vancouver is to close May 6, with traffic monitored from Victoria, and another monitoring station at Comox is set to close this year, according to Unifor, the union representing Coast Guard employees.

Moore said the rationalization and modernization of ship tracking systems on the West Coast will improve safety, and has already been done on the East Coast.

Business Council of B.C. president Greg D’Avignon said balancing the national budget, investing in transit and providing investment incentives for industries such as liquefied natural gas and forestry will help offset the effects of a slump in oil prices and weak commodity markets.

 

Just Posted

UPDATED: Evacuation alert issued due to Dog Creek Trail Wildfire

UPDATED: The Dog Creek wildfire has grown substantially over the past two… Continue reading

Locals converge for Cannabis Community Consultation meeting

Public feedback taken into account as DOV moves forward

Holi Festival of Colours celebrated in Vanderhoof

Last weekend, around 20 Vanderhoof residents took part in Holi, a Hindu… Continue reading

College of New Caledonia announces early childhood educator training

Vanderhoof students may benefit from the program expansion

Vulnerable B.C. communities receive funds for structural flood mitigation

Communities throughout British Columbia that have been partial to flood risks in… Continue reading

BC Games: Day 3 wrap and closing ceremonies

The torch in the Cowichan Valley has been extinguished as Fort St. John gets ready to host the 2020 BC Winter Games

Police confirm girl, 8 others injured in Toronto shooting; shooter dead

Paramedics said many of the victims in Danforth, including a child, were rushed to trauma centres

Why do they do it? Coaches guide kids to wins, personal bests at the BC Games

Behind the 2,300 B.C. athletes are the 450 coaches who dedicate time to help train, compete

Government sets full-time salary range for Justin Trudeau’s nanny

At its top range, the order works out to a rate of $21.79 per hour, assuming a 40-hour work week

Lower Mainland teams battle for baseball gold at BC Games

Vancouver Coastal squeaked out a 3-2 win against Fraser Valley

The Northern Secwepemc te Qelmucw people signed an agreement-in-principle with the B.C. government

The signing ceremony, at the Eliza Archie Memorial School, was 25 years in the making

ZONE 8: Williams Lake’s Gabby Knox is a 2nd-generation BC Games competitor

Both parents competed in softball, but Knox is making waves in the pool

Canada to resettle dozens of White Helmets and their families from Syria

There are fears the volunteers would become a target for government troops

Francesco Molinari wins British Open at Carnoustie

It is his first win at a major and the first by an Italian

Most Read