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

Inspirational Parksville youngster Kaiden Finley dies after cancer battle

‘He was seriously the strongest 11-year-old’

Development cost charges considered to fund regional parks

DCCs to assist in funding land acquisitions and development

Parksville powerlifter qualifies for world championships

Buhler sets personal bests in both raw and equipped lifting events

Wires left dangling after van crashes into hydro pole in Dashwood

Road closed while BC Hydro crews dealt with situation

Police go on hunt for distracted drivers in Parksville Qualicum Beach

One motorist ticketed for not wearing a seatbelt and using a cellphone while driving

VIDEO: The ‘most cosmopolitan’ of butterflies could migrate to B.C.

The painted lady butterfly will likely arrive this summer from Southern California

Indecent caller handed 18-month conditional sentence

Vancouver Island man pleaded guilty to making indecent phone and video calls to women across B.C.

First Nations public art piece stolen in Nanaimo

Spindle Whorl went missing over the weekend, according to Nanaimo RCMP

Mexican restaurant in B.C. told to take down Mexican flag

General manager of Primo’s Mexican Grill in White Rock: ‘I’ve never heard of anything like this’

COLUMN: Smart phone too powerful a tool to yank from students’ hands

Rather than ban them from schools, let’s teach kids to harness their phone’s power and use it properly

B.C. river cleanup crew finds bag of discarded sex toys

Chilliwack volunteers stumble on unexpected find while removing 600 lbs of trash from riverway

Kamloops chamber of commerce director let go after controversial Facebook posts

Facebook account had derogatory comments about Muslims, Justin Trudeau

Is it a homicide? B.C. woman dies in hospital, seven months after being shot

Stepfather think Chilliwack case should now be a homicide, but IHIT has not confirmed anything

Sources say Trudeau rejected Wilson-Raybould’s conservative pick for high court

Wilson-Raybould said Monday “there was no conflict between the PM and myself”

Most Read