Green Party Stunned by Fiscal Recklessness

OTTAWA--The federal leader of the Green Party expressed extreme disappointment in the federal budget. The Green Party, which had hoped to see a budget that would kick-start the economy with a plan to climb out of deficits, now worries the budget will do neither.
 
“The pain of deficits should be temporary for the benefit of a stimulus package and to end the recession.  Instead, we have income tax cuts which the budget admits (see page 238) will not provide a short term stimulus, but which will lead to structural deficits,” said Elizabeth May, Leader of the Green Party of Canada..
 
The budget lacks a clear plan to end the recession.  Spending and investments are not targeted at effective job creation.  There is no major investment in renewable energy with only $200 million a year toward research and demonstration projects.  “The time for research and demonstration projects is over.  Now is the time to build windmills and install solar panels,” said Ms. May.
 
There is only a passing effort to help the vulnerable.  The changes to the EI system add an extra five weeks to entitlements, but do not deal with the 2 week waiting period. Those seniors who have seen investment income shrink have no further relief than the 25% withdrawal of RRIF announced last November.
 
The budget also leaves in the attack on women’s pay equity from the November statement and counts on the sale of $2 billion worth of federal assets, as yet unnamed, to reduce some of the deficit.  
 
“To top off the economic incompetence of this budget, there is nothing for the environment,” noted Ms. May.
 
The few pluses were funds to VIA rail to refurbish stations, buy new engines and build some additional sidings along the Quebec Windsor corridor.  Some $300 million in funds are included for health on First Nations reserves, as well as $40 million for social housing for aboriginal people.  While there is no funding for building generic social housing, there is $1 billion available in loans, as matching funds with the provinces, to renovate and energy retrofit up to 200,000 units.  New social housing is available for low income seniors and people with disabilities.
 
“A deficit of staggering proportions will be created with nothing more than a wish and a prayer in the government’s projections to return to balanced budgets,” noted the Green Party leader.  “It is hard to imagine the budget being supported by fiscal conservatives or social progressives.  Indeed it is hard to imagine anyone thinking this budget meets the needs of Canadians.”   

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Contact:
Michael Bernard
Communications Officer
Green Party of Canada
Office : 613 562 4916 ext. 244
Cell : 613 614 4916
Fax : 613 482 4632