Municipalities Want Share

Budget Causes Some Concern
Posted By JORDAN BAKER and LYNDA HILLMAN-RAPLEY Lakeshore Advance staff
Knowing what is in the federal budget, people want to know how it will benefit us, locally.

Lambton Kent Middlesex (LKM) MP Bev Shipley says the Conservative government is pumping billions of dollars into the Canadian economy in a way that will create jobs, stimulate spending and make a difference for our communities in LKM.

“A difference we will all see as we drive to work, take our kids to hockey practice, transport goods and services, and travel around the country,” he says

Lambton Shores Mayor Gord Minielly says they are already working on a shove-ready $22 million dollar Grand Bend sewer project that had been applied for previously. He said this is their first priority. In other infrastructure projects that could come under the new federal budget money is the downtown revitalization for all of the former communities in Lambton Shores and the Thedford arena.

“$500 million for municipalities under 100,000 people will disappear quickly,” he said of the new cash influx from this budget.

“The budget is fine as long as we get our fair share,” he said.

Shipley says part of this budget, crafted to provide a major shot in the arm to the Canadian economy, involves doubling infrastructure spending.

“It is a huge investment, the likes of which has not been seen in decades and decades. Infrastructure projects, such as building roads and bridges, improving water systems and others, will create thousands of jobs for Canadians, and will provide work for many different sectors of our economy.”

He says infrastructure spending is more than simply putting a shovel in someone's hand and saying "dig there." It's the first link in a long chain of job creation, stimulus, spending and re-invigorating the economy.

“Consider a local infrastructure project, like a new bridge, water or sewer line. The project requires workers: that means local jobs. The project also requires materials, like wood, steel and cement. These will typically be supplied from local dealers. It requires specialized labour, such as engineers, electricians, carpenters, welders; typically those who work in the community. The end result is jobs, more cash for the community and, subsequently, more money entering the local economy.”

Jeff Wareham,Wealth Advisor with ScotiaMcLeod says this economic downturn is a concern for him and many of his clients. He says one of the best things this government has offered is the $5,000 tax-free savings account. He said this is something everyone should take advantage of.

Of the budget, Wareham said he can see many people taking advantage of the home renovation rebate as more people are fixing up the homes they have and not upgrading to bigger homes. He says people can see the investment value in that.

What is scary, he says, is that people are not opening statements, ignoring their investments because they know they have gone down.

“This is the time people need to open those statements and re-balance what they have,” he says. “Look at other things, long term investments they may be more comfortable with.”

Wareham says this is the time people should sit down with their financial advisors and make appropriate decisions. He said his office is being flooded with people asking for a second opinion.

“People are trying to make sense of what they have, and want advise,” he says.


Huron views

Bluewater mayor Bill Dowson says a problem is though funding is coming, the municipality still needs to find money for these projects. He notes, "There are some strings attached. I hope [the federal government] uses common sense for those strings."

Most infrastructure funding programs are contingent on a one-third contribution from federal, provincial and municipal governments.

Dowson says roads and bridges may be a high priority for any federal infrastructure funds.

"We've put a lot of time and effort into sewage and water recently, but need to turn our focus back to roads and bridges."

Important for local governments to watch is the window of opportunity for this funding. Many of these funds must be accessed within two years. Municipalities have to act quickly to decide what projects they can apply for.

Dowson says the turn-around time for the municipality to make decisions is fairly short when it comes to the federal government's funding. He also notes though, it's not the time to make poor decisions in an effort to get money with no idea of where it should go.

"With this money available we need to step back and see what we can do with that. It can be hard to decide which is the right way to go. We need to make sure we're spending it wisely."

Dowson says it would also be nice if the money could be used to ease some of the tax for homeowners instead.

Ben Lobb, Huron-Bruce MP, “I think it’s the right time for a budget like this. It’s going to stimulate the economy and get Canadians back to work.”

The Conservatives are turning their spending inward, and Lobb said infrastructure spending will benefit all four pillars of the Huron-Bruce economy: agriculture, manufacturing, tourism and culture.

The budget will see $7 billion dollars put toward infrastructure projects, and Ontario is expected to receive about $4 billion in infrastructure funding.

“One of the key things for our riding is infrastructure,” Lobb said. “I am excited about Huron-Bruce and the possibilities.”

He also praised programs that would retrain those in the workforce as well as stay-at-home parents who are looking at new lines of work.

“I think it’s a fantastic idea,” Lobb said. “This is a great time to get retrained and get back into the workforce.”

Fulfilling an earlier election promise, the budget calls for $550 million to create an Agri-flex program that recognizes the diversity of Canada’s farming regions. Lobb said it was a long time coming.

“It is something the Canadian Federation of Agriculture endorsed and asked for, and was delivered,” Lobb said. “Each province in Canada has different agricultural needs.”

Other features of the budget that could benefit Huron-Bruce are $350 million for tourism, $2 billion in training and support for workers and $400 million in seniors' housing. Details of the spending are as of yet unknown.

As layoffs and closures continue, many people are reinventing their livelihoods, those from the manu industries that are seeing closures such as the auto industry, are looking at new prospects with retraining while this offers some comfort staffers at job action centres hope they are out having these people pursue something with interest and passion and then there's no job at the end of it. In the budget the government will provide $500 million over two years to extend EI income benefits for individuals participating in longer-term training.

To see the budget in full check out: www.budget.gc.ca

Article ID# 1417498