Washago Budget Consultation

February 23, 2010

Notes from the Pre-Budget Consultation
Tuesday February 23, 2010
Washago Community Centre
Attendance – approx. 10 constituents

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 are invited to list their name upon arrival with the staff representative to that they may receive a copy of the report to the Minister of Finance that 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 is specific to the coming 2010 Budget, participants are 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 explanations and questions.   Here is what I heard at the meeting:

Employment Insurance (EI):

• Suggestions of the extensions to EI benefits be continued for those people that are experiencing difficulties in finding a job.

$56 Billion Dollar Deficit:

• Constituents raised the question of why the opposition spends so much time arguing about which party has spent the most money to have our country go into such a deficit.
• The response to the deficit needs to be carefully coordinated in order to maintain greater global integration and for Canada to come out of the recession in a good position. It is important that our response stays on track while not raising taxes but still paying back the debt.
• The Government of Canada should hold the line on spending and allow the temporary Infrastructure Funding programs to run their course, but terminate on schedule.
• Making sure that the government does not go into a big spending cycle.

Options participants put forth to diminish deficit and accumulated debt:

• No increase in taxes because economy just started showing signs of recovery.
• Temporary stimulus funding i.e. Home Renovation Tax Credit (wouldn’t want to extend that and go further into deficit)
• Caution against cutting back transfers to provinces (i.e. health care, secondary education, etc.)
• Hold the line on government spending- without cutting programs, but not allowing the economy to expand gradually until growing revenues overtake expenditures.
• It is difficult not to have growth within the government programs offered, and is much easier said than done.

Milk Bag Project for Haiti:

• Lyndie Lair thanked Bruce for having the milk bag collection at both the Orillia and Midland offices and asked if there would be an extension on the program.
• Allison Stoneman, our Volunteer Coordinator, has stated that the milk bag project and will continue on because there has been a very positive response to it.

Harmonized Sales Tax:

• Generally opposed to the HST.
• Canada Pension Plan and Old Age Security:
• Have to allow these benefits to grow in line with inflation.
• Low-income seniors are at risk financially if these benefits are not adjusted yearly to keep up with the changing cost of living.

Seniors:

• One participant would like to see some lightening up on the tax burden for ‘single independent living seniors. Couples have ‘pension splitting’ but once a spouse passes away, the single spouse surviving faces higher livings costs (no longer shared); reduced pension benefits usually, and the loss of pension tax credits.

Flat Tax Opinion:

• One participant asked whether a “flat” income tax could be possible and in fact be more fair.  M.P. Stanton added, this was not likely a place we could go.  Low income earners would end up paying proportionately more.
• Politically it would be a non-starter for any party, as it would likely be widely condemned by Canadians.

Long-Gun Registry:

• The question of Bill C-391 – to scrap the long-gun registry was raised.  The M.P. commented that, “progress on this Bill was not affected by prorogation.
• The Bill is in Committee and will probably come before the House of Commons in early Spring 2010.

Bill C-6 (Consumer Product Safety) Legislation:

• Didn’t pass the Senate in the 2nd Session.
• If someone wants to sell a natural health product in Canada, there are specific standards and guidelines put in place by Health Canada that the products have to meet.
• Pharmaceutical companies have no authorization to make legislation on natural health products.