The first federal budget in two years promises investments in child care and early childhood education, extending the current pandemic income benefits and assisting Canadian businesses recover from the COVID-19 pandemic.
Locally, the reaction is mixed, with some politicians happy to see money being spent to help families and businesses, while others are concerned about what they feel is a lack of a long term plan for post-pandemic economic recovery.
Barrie-Innisfil MP John Brassard told BarrieToday his first reaction to the budget is that it’s a “staggering amount of money” being spent, but that he is ultimately not surprised.
“No one should be surprised. It’s an election budget made during the height of the pandemic,” said the Conservative MP. “It’s a very high-level, aspirational document that’s going to cost a staggering amount of money.
“Some of the details include $354 billion in deficits, increases in the debt of $1.4 trillion… the question is how are we going to pay for it? Normally, when you look at government revenues, especially coming out of the pandemic the way we are, economic growth pays the bills," Brassard added. "What I saw was very little in the budget that actually promotes economic growth. A lot of it was short-term spending without a long-term plan for real recovery.”
Barrie-Springwater-Oro-Medonte MP Doug Shipley said he's having a tough time wrapping his head around Monday’s budget.
“It’s over 700 pages and over half a trillion dollars in new debt. It’s shocking to me," the Conservative MP told BarrieToday. “I am a true fiscal conservative, I always have been… and the numbers that are being spent are just astronomical.
"I don’t know how it’s ever going to get paid back," Shipley added. "Our great-great-grandchildren are going to be saddled with this debt load and it’s shocking. In an over 700-page document they’ve basically given out money to everybody and everything in Canada. The problem is it’s got to be paid back some day.”
The federal government also announced it will extend the period of time Canadians can receive several pandemic income benefits, something Brassard said could actually cause some issues locally.
“Right now, we have high unemployment in the area, yet we have a labour shortage. Many of the employers I’ve been speaking to… are having difficulty finding people to work because many of them are still receiving these government benefits," he said. "There are lots of jobs available, but the concern it’s causing for these employers is because of the labour shortage, they may have to pick and choose which location stays open, which can cause problems for our local economic recovery.
“Extending this could further cause a problem as it relates to our recovery out of the pandemic when businesses are able to open and are hiring," Brassard added.
The federal Liberals have also pledged $12.1 billion to help Canadian businesses recover from the COVID-19 pandemic. With businesses having borne the brunt of the economic shutdown, Brassard says there’s no question these benefits are going to be needed to help in the region’s economic recovery.
The challenge, he added, is there are many businesses that have fallen through the cracks that don’t qualify.
“A lot of business programs have been restrictive or prescriptive to a point where there are many that don’t qualify. ... So I hope with the extension of these benefits, that they’ll be able to qualify,” he said.
“What we didn’t see (Monday) is a plan for long-term recovery, where every business, every sector, every region and every individual can look forward to a plan that can open up the economy," Brassard added. "What we see is a lot of near-term spending programs to help get us through the pandemic… but we’re not seeing anything that speaks to a long-term recovery plan. That’s a bit of a challenge to (Monday's) budget.”
Shipley’s biggest concern is how will all this money be paid back.
“It all has to be paid back and there’s only one taxpayer. I think people need to realize that sure interest rates are extremely low now, but they’re not going to stay that way," he said. "When they do go up it’s going to cost more and taxes are going to have to go up to pay for these promises made in this budget.
“It’s shocking the size of this budget," Shipley added. "Justin Trudeau talked about re-imagining Canada’s economy… Well, he’s definitely re-imagined it now with these different risky economic ideas he’s come up with.
“The pandemic spending is one thing. We need to help people where help is needed, but the Liberal government is admitting they’re spending an extra $100 billion on extra programs and plans, and that’s a lot of money.”
Barrie Mayor Jeff Lehman told BarrieToday he was happy to see the federal budget targeting not only the end of COVID, but also the country’s recovery with a focus really on small business and additional support for Canadians during the pandemic.
“I’ve talked to a lot of small businesses… who'd said (while it’s) been the worst year ever they’ve had made it this far, but they don’t know if they can make it through another four or five months especially with the shut down,” the mayor said.
“The extension of the benefits is significant given what we are going through in Ontario right now," Lehman added. "There are a lot of people whose jobs are affected and whose companies are affected and those benefits will be needed.”
Lehman said he's happy to see an investment in rapid housing.
“The additional funding for that is really good news and I hope to see that funding in Barrie. What COVID has taught us is that the solutions are within our grasp
Yesterday’s budget also promised $1 billion over six years to improve rural broadband.
“I know Simcoe County has been keen on upgrading broadband. It’s a common problem where you will have good broadband in the City of Barrie, then you go a few kilometres outside in any direction and it’s not nearly as good. That will certainly be a key thing for our neighbours," Lehman said.
Doubling the gas tax for municipalities in 2021 is another item from yesterday’s budget that stood out to Lehman.
“They did that two years ago and we really put it to good use. It goes straight toward capital projects in the city. Affordable housing, green infrastructure, community buildings and projects are all pieces of that,” he said. “That funding helps us with the infrastructure deficit.
"In other budgets, the federal government of the day rolled out big stimulus through infrastructure. … This federal government chose to do that more through housing and broadband rather than just saying to municipalities, 'Go build whatever you can',” Lehman added. “Normally, we like that, but housing has got to be near or top of that list anyway … and I think the additional gas-tax funding will help the City of Barrie with our recovery efforts.”
