Budget Reaction Mixed and Swift
By 250 News
Tuesday, September 01, 2009 03:15 PM
Prince George, B.C.- Reaction to the Provincial budget has been swift.
Initiatives Prince George CEO Tim McEwan says he was happy to see there remains a commitment to some capital projects “This is a prudent budget for challenging times” says McEwan “I am happy to see funding for projects like the Cariboo connector has been committed to. The Speech from the Throne also promised funding for the Northwest Hydro Transmission project and there was a commitment to the Wood Resource Centre for Prince George which will help in the revitalization of our downtown.”
McEwan supports the move to the Harmonized Sales tax. By signing that agreement, the Province of B.C. will receive a one time financial boost of $1.6 billion dollars. “This is a positive measure for the Northern resource based export industry” says McEwan who adds it will make B.C. a very competitive jurisdiction.
In keeping with its promise to keep the HST revenue neutral for British Columbians, there will be some adjustments. For instance, the 4% Innovative Clean Energy Fund levy on heating and hydro bills will be eliminated, but when the HST is added, it will give the province an extra 1% in revenue.
The 10% tax on liquor will be eliminated, however, shelf prices will be increased so the Province will continue to receive the same amount of revenue from liquor sales.
On the other side of the coin, the B.C. Federation of Labour is not impressed. “ This budget is another spin doctor’s dream” says BC Fed President Jim Sinclair “until you walk out the door into the real world and realize that we have more than 150 thousand without jobs, forest communities in crisis, seniors without proper care and students without a chance to get a decent education or proper training.”
Sinclair says the budget does nothing to get people back to work “It does nothing to help British Columbians weather the economic downturn or prepare for a recovery, in real terms, the government should be spending money to put people in school and to work . Instead of helping people and communities they are going to axe 1,500 jobs in the public sector.”
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