MPs frown on federal budget, city’s mayor says there is plenty to like

MP Bruce Hyer gives the federal budget a D-.

The former NDP representative, who last year crossed the floor to sit as an independent, says while he’s happy with support of junior mining companies in the Conservative financial plan, there’s too much missing for him to throw his support behind it.

The Thunder Bay-Superior North MP said on Thursday he’s disappointed there is nothing in the budget to strengthen the Canada Pension Plan. Employment insurance reforms appear to make it harder for people to collect and small businesses will be negatively affected by changes to their tax plan.

Hyer is also doubtful billions of dollars in infrastructure spending laid out in the budget will find its way to Northern Ontario.

“The bad news is that almost all of it so far seems to be aimed at the bigger cities, where the votes are and the big expensive transit systems are,” Hyer said Thursday, reached by phone at his Ottawa office.

“It seems aimed mostly at Vancouver and Toronto and Montreal, etc.”

A huge supporter of improved passenger rail service and a proponent of putting Thunder Bay back on the Via Rail track, the 66-year-old Hyer said cuts to the service fly in the face of what other industrialized countries around the world are doing.

“We need passenger rail. People want it,” Hyer said, also displeased with a continuation of government subsidies to oil companies, which he termed a "$1.3-billion waste."

“This is the most profitable industry in Canada.”

No discussion on climate change and a refusal to rein in bank and credit-card charges, not to mention revoking special tax status to non-profit credit unions, as well as the continued subsidization of foreign workers, who can be paid 15 per cent less than Canadians, are other disappointments.

The latter is particularly concerning, he said.

“This is worrisome for the Ring of Fire,” Hyer explained.

NDP MP John Rafferty (Thunder Bay-Rainy River), said there weren’t too many surprises in the budget. Politicians knew many departments would face steep cuts, including FedNor, which he said will see a 10 per cent drop in funding.

“It’s really a shell game, money being moved around, some of it being announced as new money or new programs. But it’s really old money. A good example is billions of dollars going to the provinces for job skills training,” Rafferty said.

The veteran MP said since 2006, when the Conservatives under Stephen Harper took over the country, Canada’s debt has grown by $150 billion, with little to show for it.

“There are fewer services for seniors, less for veterans and certainly less front-line services for those seeking EI. It’s really unfortunate,” said Rafferty, coming out against what he termed draconian cuts in many key areas.

He was happy to see more money put into a funeral and burial service for needy veterans. He’s also glad the government has extended the hiring tax credit for businesses.

While the city’s two MPs had plenty to complain about from Thursday’s announcement, Thunder Bay Mayor Keith Hobbs said from a municipal standpoint, there are lots of things to like about the Conservative budget. Unlike Hyer, he’s confident the city will get its fair share.

Hobbs said a $14-billion addition to the Building Canada Fund could work well for Thunder Bay, although the FCM had asked for an extension that would last another decade, not the 10 years delivered by the Conservatives.

“This is going to be for large project (like expanding) the Golf Links/Junot corridor and the event centre, hopefully those type of projects, big legacy projects,” Hobbs said.

Hobbs is also pleased with the inclusion of an additional $7 billion for infrastructure in the North, including roads and bridges which he said are sorely needed with the expected mining boom to come.

He’s also glad to see energy being seriously discussed for the North, a must if those mines are to come on board.

The budget also includes $155 million over 10 years, over and above the gas-tax allocation, to help First Nations improve infrastructure, including roads, bridges and energy systems, plus a promise of $7 billion over the next decade to build, operate and maintain on-reserve infrastructure.