Thursday, March 29, 2012

My Take on the 2012 Federal Budget...

Earlier today - Federal Finance Minister Jim Flaherty presented the 2012 Budget to the House of Commons, but not before it was interrupted by protesters' who were led away by House of Commons Security and let go later on without charge

There are elements in this year's Federal budget that will be cause controversy and angst for the governing Federal Conservatives as follows:

* Change OAS eligibility from 65 to 67 - watch for the Federal NDP/Federal Liberals to fight this tooth and nail but with a Conservative Majority in the House/Senate, this measure is a fait accompli and will pass easily.  I agree with the measure, given the upcoming ratio of workers to retirees of 2:1 in about 20 years or 2022 compared with a worker-retiree ratio of 7:1 when OAS was brought in the 1970's

* One environmental review for major projects - Environmentalists shouldn't be surprised given hints were dropped last week about this measure.  Again - I support this measure as projects that need to have provincial/federal environmental reviews should have one review and not two

* Enforcement of 'charitable tax status' for charities - Environmentalists will be most upset by this move and although I haven't heard any complaints yet about this move, I'm looking to see what reaction will come forward from this move by Ottawa

Other Budget Highlights:

* Removal of the penny starting this fall
* Revamping of the Federal Pension System for Federal Workers and Federal Parliamentarians
* Reduction of roughly 19,000 Federal Jobs
* Use EI System to 'encourage' people looking for jobs to move to areas within Canada that has plenty of jobs

Overall, I am satisfied that this is a good budget - both today and long into the future and while some will find fault with this budget based on their own perspective, given the realities of the world today - this is a prudent and responsible budget

I look forward to the debate that starts tomorrow and ends on next Wednesday

You can review the budget highlights here and full 2012 Federal Budget documentation here

Finally - our local MP, Dick Harris, express his support for the Federal Budget.  Read more here

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