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Weekly UpdatesA mostly warm and optimistic Northern Ontario reception awaited the expansive, wide-ranging federal budget Jan. 27, which promised a $40 billion stimulus package over the next two years.
The reigning Conservatives put the budget forward in what many hope will provide a much-needed shot in the arm to the flagging economy, a view shared by North Bay Mayor Vic Fedeli.
"The economy is really stretched, so we have to have a stimulus package that addresses that, and I think this budget does that in a number of ways," he says.
Nearly $12 billion has been set aside for infrastructure spending, which made North Bay officials "very happy" in light of a $50 million capital budget the city set in anticipation of Tuesday's announcement. With engineering work and various studies already complete, the city has a number of shovel-ready projects and the funding required to leverage the federal funds, he says.
Timmins Mayor Tom Laughren also lauded the infrastructure funding, pointing to a variety of water and sewer projects that could readily make use of the funding.
In addition, $170 million worth of provisions appealing to the forestry sector also stand out as a strong benefit for Timmins and other forestry-minded communities, he says. These include a $120 million promise to invest in research and design support initiatives, with an additional $50 million set aside for marketing forestry products at home and abroad.
With more than $1 billion being set aside for the construction of social housing and another $1 billion for home renovations and energy retrofits, the forestry sector may receive a much-needed boost, he says.
"Overall, it's a good budget, with good payback at the end. It needed to be done, and to me, it's money well spent," says Laughren.
Many Northern Ontario chambers of commerce, including those in Fort Frances and North Bay, reflected statements made by the Canadian Chamber of Commerce which refer to the budget overall as "an important step forward."
Some First Nations also came out in support of the budget, which included specific measures targeting them, such as $515 million earmarked for "ready to go" First Nations community infrastructure projects over the next two years.
Another $175 million has been set aside for First Nation job creation and skill training, a key component for helping Aboriginal people to participate more fully in the economy, says Nishnawbe Aski Nation Grand Chief Stan Beardy.
Representing 49 First Nation communities across two-thirds of Ontario, Beardy says the budget looks as though it may help set the groundwork for lifting his people out of the Third-World conditions.
"We figure that by having capacity and participating in economic opportunities, that's the way to begin to close the gap, rather than just having our hand out and say 'give me, give me,' which I don't see as a solution. When I see the budget, I see the makings that will assist our people in moving forward."
Not all feelings on the budget were wholly positive, however. Dick DeStefano, executive director of the Sudbury Area Mining Supply and Service Association (SAMSSA), says local firms are cautious about the budget.
The government's move to extend a temporary 15-per-cent tax credit designed to help raise capital for mineral exploration to 2010 is a step in the right direction, but may not be sufficient, he says.
www.city.north-bay.on.ca
portal.timmins.ca
www.samssa.ca
By NICK STEWART
Northern Ontario Business
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