Northern Communities Win Big in Budget 2008

February 27th, 2008

From the perspective of a northern MP I couldn’t have anticipated my pleasure as I began turning the pages of my copy of Budget 2008 when it was tabled by my colleague Jim Flaherty in the House of Commons this week.

I’d expected a sound, responsible budget from the Finance Minister, but he’d already delivered so much in Budgets 2006 and 2007, and in last Fall’s economic statement. Then there was January’s $1-billion federal commitment for the Community Development Trust.

Yet, the 416-page budget document not only continues the tax relief, debt reduction and investment that helps to improve the lives of all Canadians, but it includes a number of changes that recognize the unique and pressing needs of northern and resource-based communities like those in Prince George-Peace River!

Budget 2008 will help northern and isolated communities better attract skilled labour by increasing the Northern Residence Deduction by 10 percent. It also proposes to invest $37-million to modernize Canada’s 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. This will complement initiatives under the federally-funded Community Development Trust which will be administered and delivered by the province.

In another traditional industry, the budget commits $72-million over two years for farm programs and to improve access to $3.3-billion in potential cash advances to Canadian farmers.

To further foster economic diversification, the Mineral Exploration Tax Credit will be extended for another year and $34-million is committed for geological mapping.
Our 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.

Along with my staff which has helped so many constituents in their efforts to obtain a passport partly due to our distance from the nearest Passport Canada Office, I am enthusiastic about the proposal for new high-security electronic passports. They are to be introduced by 2011 and will be valid for 10 years.

Budget 2008 also responds to ongoing concerns about federal firearms legislation expressed to me by constituents by waiving the fees for firearms license renewals until May 2009.

And no doubt, many constituents will have already heard about the Tax-Free Savings Account which our latest Conservative budget introduces. It is 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.

Budget 2008 is designed to ensure that Canadians and their government are well-positioned to carefully plan for the future – both to seize opportunities and to weather challenges. I encourage you to find out more about how it will benefit you and your family at www.fin.gc.ca.