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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

There has been COVID-19 exposures at two elementary schools in District 42. (Image courtesy CDC)
Interior Health reports 24 additional COVID-19 cases

This includes three school exposures in Kelowna

Above, MLA-elect Doug Clovechok cast his vote early. He says he’s ready to get back to work for his constituents. Photo submitted
MLA Clovechok re-elected; ready to get back to work on Golden priorities

Clovechok says he’s ready to get back to work on issues like lower canyon access and water bottling.

Pringles.
Morning Start: The inventor of the Pringles can is now buried in one

Your morning start for Tuesday, Oct. 27, 2020

Above, MLA-elect Doug Clovechok cast his vote early. Photo submitted
MLA-elect Clovechok reflects on election

He’s ready to get to work as an opposition MLA, he says

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

This Photoshopped version of the crosswalks near the entrance to the Salmon Arm Art Gallery on Hudson Avenue show what is proposed to help create safety for and show inclusivity to the LGBTQ2S+ community. (Salmon Arm Arts Centre image)
Tri-rainbow crosswalk and Progress flag requested to help make Salmon Arm safe

Council will consider budget requests to help make city inclusive to LBGTQ2S+ community

Penticton resident Seamus Kirby, 30, was sentenced to 16 months behind bars for fleeing from police in a stolen vehicle this April. (Facebook)
Prolific offender back behind bars

Seamus Kirby, 30, has a long history of crime in the Okanagan

Cameron James is celebrating the recent release of his second single, Voodoo. He is pictured in downtown Kelowna, his hometown. (Phil McLachlan - Capital News)
Kelowna hip-hop artist makes waves on the West Coast

Artist Cameron James and filmmaker Jordan Powers proof talent doesnt stop at west coast

A raccoon paid a visit to a Toronto Tim Hortons on Oct. 22, 2020. (shecallsmedrew/Twitter)
Who are you calling a trash panda? Raccoon takes a shift at Toronto Tim Hortons

Tim Hortons said animal control was called as soon they saw the surprise visitor

A yellow 2011 Can Am Commander XT was stolen from a driveway in Parker Cove Oct. 24, 2020. (Contributed)
Licence plates and several ATV’s stolen in North Okanagan

RCMP said none of the property has been recovered

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

A structure fire was reported in Eagle Rock Mobile Home Park in Armstrong Tuesday, Oct. 27, 2020. (Contributed)
UPDATE: Home destroyed in North Okanagan mobile home park fire

Large structure fire broke out at 9 p.m. Tuesday, Oct. 27

The duffel bags were found to contain 84 pounds of cocaine, valued at approximately $1.2 million and 198 pounds of methamphetamine, valued at approximately $960,000. Photo courtesy U.S. Customs and Border Protection.
2 men accused of fleeing border agents near U.S.-B.C. border with $2M in drugs

Cocaine and methamphetamine seized by U.S. law enforcement in remote Idaho area near Canadian border

Most Read