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Rafferty slams Conservatives over FedNor spending cuts

Thunder Bay-Rainy River NDP MP John Rafferty says the federal government’s decision to slash funding to FedNor is punishing the economy and hurting growth in Northwestern Ontario.
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MP John Rafferty (NDP) says the Conservatives have consistently cut FedNor's budget each year since 2008 and also have not spent all the money they have allocated.

Thunder Bay-Rainy River NDP MP John Rafferty says the federal government’s decision to slash funding to FedNor is punishing the economy and hurting growth in Northwestern Ontario.

According to Rafferty, the regional economic development agency isn’t even spending the little money it has its coffers.

“FedNor Minister Greg Rickford and his Conservative government have slashed economic development spending for Northern Ontario and for 2013-14 have left $8.5 million unspent,” Rafferty said Thursday in a release issued following a news conference held in Thunder Bay.

“It is a sad truth and we are not talking about bureaucratic efficiencies. This cut has come directly from program spending and it is shameful.”

Rafferty went on to say that according to information received in a research not from the Library of Parliament, the projected budget for FedNor has been slashed every year since 2008-09. Much of the money is still unspent.

“Last year, the Conservative budget for FedNor was only $45.5 million, which is down from $76.8 million in 2005-06 – the year this government came to power,” Rafferty said.

“These cuts are even worse when you consider that of the $45.5 million budgeted for program spending at FedNor last year,  $8.5 million was left unspent. That is $8.5 million which could have funded job growth for Northern Ontarians.”

Rafferty, who announced last week he plans to seek office again this fall, said he’s demanding a response, pointing to 30,000 jobs lost in the forest sector alone, while saying Rickford, who represents the Kenora riding, is failing his constituents.

“Northern Ontarians deserve better – and they can trust that in the upcoming election, only the NDP will stand behind the needs of Canadians.”

Rickford told Thunder Bay Television Rafferty's claims are baseless, adding the money not spent was rolled over into the next year's budget. 

FedNor is not alone. The Atlantic Canada Opportunity Agency saw its budgetary spending dropt from $315 million to an estimated $299 million from 2012-13 to 2013-14. Expenses for the Economic Development Agency of Canada for the Regions of Quebec fell from $296 million to $254 million over the same time frame, while the Federal Economic Development Agency for Southern Ontario's spending dropped from $241 million to $222.8 million. 

FEDNOR program funding
Fiscal year Appropriations Expenses Diff. %
2001-02 $78,209,957 $78,209,957 $0 0.00%
2002-03 $67,809,987 $67,809,987 $0 0.00%
2003-04 $67,809,987 $67,809,987 $0 0.00%
2004-05 $67,809,987 $67,809,987 $0 0.00%
2005-06 $76,753,461 $76,753,261 $200 0.00%
2006-07 $66,719,800 $65,719,787 $13 0.00%
2007-08 $67,399,987 $67,399,987 $0 0.00%
2008-09 $71,851,687 $71,851,687 $0 0.00%
2009-10 $71,260,000 $70,204,520 $1,055,480 1.48%
2010-11 $67,487,140 $64,216,441 $3,270,699 4.85%
2011-12 $49,248,008 $43,638,731 $5,609,277 11.39%
2012-13 $42,565,928 $41,565,927 $1,000,001 2.35%
2013-14 $45,460,008 $39,936,229 $8,523,779 18.75%

 



Leith Dunick

About the Author: Leith Dunick

A proud Nova Scotian who has called Thunder Bay home since 2002, Leith is Dougall Media's director of news, but still likes to tell your stories too. Wants his Expos back and to see Neil Young at least one more time. Twitter: @LeithDunick
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