Wild Rose MP Blake Richards spoke with the Airdrie City View on April 3 about the federal government’s 2012 budget (or Economic Action Plan 2012) and what it means for his riding. Here are some of the key points he covered:
The budget calls for a $205 million one-year extension to the federal hiring credit program, which gives small business owners a tax credit of up to $1,000 on the EI premium increases they’d have to pay when taking on new staff. About 525,000 Canadian employers will be eligible for the program.
“It’s been a very successful program and one we are going to continue,” Richards said.
The budget will introduce new measures to streamline environmental approvals related to natural resource development projects. Projects like the controversial Northern Gateway oilsands pipeline from Alberta to the B.C. coast will likely be approved faster.
“There’s no question that Alberta is the economic engine of the country and clearly our oil and gas sector is creating jobs all across Canada… we need to continue to encourage growth and innovation,” Richards said. “We’ll be looking at things like streamlining our regulatory processes so that those processes can happen quicker, so that projects aren’t delayed unnecessarily.”
The budget calls for implementing several initiatives to reduce “over reliance on the EI system as a way of life.” The “clawback rate” currently reduces an EI claimant’s benefits at a dollar-for-dollar rate above a certain threshold. The rate will be reduced to 50 cents on the dollar, allowing EI claimants to make more money without losing their benefits, and according to the Conservative’s budget, encourage people in the system to get back to work faster. The measure is projected to cost $74 million over two years.
“There will be a number of things that we will roll in regards to EI,” Richards said. “We’re trying to remove the disincentives to work, to encourage people to be actively seeking employment.”
To address Canada’s aging population — by 2056, there will be 50 seniors for every 100 working-age Canadians — the budget calls for the minimum age for collecting Old Age Security (OAS) benefits to be set to 67 (it’s currently 65). Canadians over age 54 today will not be affected by the change and those currently between age 50 and 54 can choose if they want to start collecting between the age of 65 and 67. Those who wait longer to receive OAS, once qualified, will receive a higher benefit.
“Old Age Security is clearly not sustainable on its current path,” Richards said. “(The budget is) going to address that, because with more and more Baby Boomers entering retirement, there’s more people collecting Old Age Security and less people paying into it.”
The Tories plan on having the budget in a surplus by 2015-16 (the next federal election year) and will cut 19,200 federal jobs over the next three years, slashing spending by $5.2 billion annually.
“There are going to be some measures made to create efficiencies and most of what you’re going to see will be accomplished by attrition and retirements,” Richards said.
The budget calls for $275 million to be invested over the next three years to build and renovate First Nations’ schools.
“The Stoney Nakoda Nation is part of Wild Rose and a few years ago we announced we’d be providing a new school there, which is currently in the construction phase,” Richards said.
“That’s the future, that’s the way they’ll best be able to contribute to their community and to the economic prosperity of the country.”
