Northern Communities Win Big in Budget 2008

Tuesday, February 26th, 2008

OTTAWA – The needs of northern and resource-based communities were given special attention in the federal budget tabled today said local Member of Parliament Jay Hill.

“On top of the tax relief and investment that will help improve the lives of all Canadians, Budget 2008 includes measures that respond to the unique and pressing needs of communities like those in Prince George-Peace River,” said Hill. “Our Conservative Government came through with changes that recognize the realities of northern living and the challenges faced by our forest sector.”

Budget 2008 will help northern and isolated communities better attract skilled labour by increasing the residency component of the Northern Residence Deduction by 10 percent and by modernizing the immigration system to speed-up the processing of applications.

As well, the federal government will provide $10-million to promote Canada’s forestry sector in international markets and $90-million to help older workers stay in the workforce.

Local municipal governments will now be able to count on stable, long-term funding for their infrastructure needs through the Gas Tax Fund, valued at $2-Billion in 2009-10, because Budget 2008 establishes it as a permanent measure.

Hill said he also believes the new high-security electronic passport, which will be introduced by 2011 and will be valid for 10 years, will prove especially beneficial to local residents who must travel a significant distance to access a Passport Canada Office.

The budget also introduces the Tax-Free Savings Account, the most important federal personal finance program since the introduction of the Registered Retirement Savings Plan (RRSP). Canadians 18 and over will be able to contribute up to $5,000 per year into their Tax-Free Savings account, to be withdrawn tax-free whenever and for whatever they want. All investment income earned within that account, including capital gains, will not be taxed nor will they affect federal income-tested social benefits and credits.

Other highlights include the waiving of fees for firearms license renewals until May 2009; a further one-year extension of the Mineral Exploration Tax Credit to encourage economic development and $72-million over two years for farm programs and to improve access to $3.3-billion in potential cash advances to Canadian farmers.

“This budget continues to reinforce our Conservative Government’s steadfast commitment to debt reduction, tax relief and targeted, responsible investment in Canada’s future,” concluded Hill.

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For more information, contact Jay Hill at (613) 947-4524 or (250) 787-1194.