January 12, 2010

Notes from Orillia Pre-Budget Consultation
Tuesday, January 12, 2010
7 p.m. to 9 p.m.
Orillia Council Chambers

Meeting Format:

The format of the meeting invites participants to address their comments and concerns about the upcoming Budget 2010.  The meeting begins with opening comments from the M.P. to set the context of the forum.  Speakers are allowed to speak more than once, though preference will be provided to participants who have not yet spoken.   The M.P. will Chair the meeting.  There is no time limit for each speaker per sé, however the Chair will intervene to restrict time so that all interested participants will have an opportunity to bring their comments and questions forward.  

The Chair and his staff representative will keep notes on the verbal presentations.  Written submissions are welcomed individually or in support of oral presentations.

Participants were invited to list their name upon arrival with the staff representative so that they may receive a copy of the report that is being sent to the Minister of Finance which will be completed once all the town hall consultations are completed.

The Chair may ask questions for clarity, provide answers to questions, and make statements of explanation as needed.

Though the meeting was specific to the coming 2010 Budget, participants were welcome to pose other questions not necessarily related to the Budget.

Budget 2010 Context:

• We are half way through a Two-Year Economic Action Plan (EAP)
• The 2010 budget is not expected to be as expansive as 2009
• The Economic Action plan encompasses three themes:
• Investments in infrastructure, stimulus investments
• Tax relief for Canadians – e.g. Home Renovation Tax Credit
•  Support for unemployed workers, those displaced by the economic down turn
• Budget discussions for 2010 could consider:
•  the current EAP; are there components that could finish earlier than planned; are there parts that should be extended
• The need to look ahead to reducing the budget deficit and return Canada’s budget framework to balance and eventually surplus
• The need to strengthen Canada’s economy into the future

Note from the Member of Parliament, Bruce Stanton:

What follows are the comments and in some cases, the consensus of opinion, summarized for clarity and brevity, of the participants at this consultation.  I want to thank them all for their candid and thoughtful comments, suggestions and questions.   Here is what I heard at the meeting:

Provincial HST: There was some discussion on the HST.

• While it was recognized this new tax may have significant negative implications on consumer demand, it was recognized this was a Province of Ontario initiative.

Note from Bruce:  The federal government did pass enabling legislation to facilitate the HST in December 2009.  The Province of Ontario made the request to harmonize their sales tax with the GST earlier this year.  In 1997 the federal government facilitated three provinces’ requests to do the same.  The option of harmonizing has existed since the inception of the GST in 1990.  It rests with the Provinces to initiate this step.

Home Renovation Tax Credit (HRTC):

• Clearly beneficial to this community.  HRTC should be extended if possible.
• Upgrades on homes should show that they reduce energy and improve insulation so there is a ‘green’ component to the renovation.  Limit the scope so there is an eco-friendly aspect to the tax credit and double the rewards.
• What we gain with the HRTC, the new HST will take away – so extend the tax credit another year.

Green Energy:

• There was a discussion on making greater use of hydraulic energy from rivers and watersheds in the North and the need for green energy initiatives.

Employment Insurance (EI):

• It was suggested that the government continue their commitment to retraining and second career funding.  This assists the older workforce who often need new training and upgraded skills.
• It was mentioned that the qualifying period for EI should be uniform throughout the country and not zoning i.e. Toronto vs. Orillia (420 hours vs. 720 hours to qualify).
• Expand access to other programs that would allow unemployed workers to access education e.g. Canada Student Loans.

Canada Revenue Agency (CRA)

• Difficult to get through to a live person at CRA; interest and penalties excessive making it difficult for a person behind to get ahead.

Tax Policies – Reducing the Deficit

• Move to more user-pay system so that general taxpayer not being burdened by services that are specific to one group e.g. new security scanners at airports should be born by air travellers not the general public.
• Donations to political elections were discussed noting that parties should not receive tax credits.  Most political campaigns funded by taxpayers – by virtue of the tax credit offered to donors, and the rebate of election expenses.  They increase voter apathy.  Remove the $1.95/vote per quarter for parties.  If parties wish to raise funds it is better that they find ways to engage voters directly.
• If the government is thinking of selling a particular asset, the public should be consulted and justification for this sale should be given.
• Move to allow all couples to split their household income – not just pension splitting – even though this might mean an increase in tax rates.

Deficit:

• The question was posed how the government is going to manage to bring down the deficit without raising taxes.
• There was some discussion that reduced spending has to be the route to take.
• Perhaps ‘defence’ spending should be analyzed more closely and spending reduced.  This would be preferable to cutting or freezing healthcare spending.
• The important aspect of this phase of our economic recovery is that the government “rise to the needs now – help people get through this recession, then, begin to scale back spending and allow the economy to bring the books back into balance.

24 Sussex Dr:

• One participant spoke about the need for the Prime Minister and his family to be moved from this historic residence for a period to allow for necessary renovations and maintenance.

Note: the participation in this event was quite low.  More budget consultation meetings have been scheduled in February.  A preliminary report to the Minister of Finance will be sent before February 15, 2010.