To hear the mainstream media talk about the recent federal and provincial government budgets that came down last week, they were pretty tough pills. If anything, those budgets were emblematic of the inability politicians seem to have in saying no.
Despite the recession putting a crunch on the economy, let us not forget – ever – that it was the Dalton McGuinty Liberals and Stephen Harper Conservatives that racked up their respective debts. Recognizing that, the moaning and groaning about austerity and the need to trim expenses was difficult to watch. Everyone contributed to the problem.
Both budgets address the point of public servants and the ever escalating costs that come with employing people. Wages, benefits and retirement plans have a significant cost and if activity elsewhere is any guide, failing to properly chart costs well in advance is a recipe for trouble. Rather than really dig into program costs and evaluate cost benefit, Harper simply pink-slipped people and McGuinty froze their wages. Longer term, a review is a must.
Both budgets seem to take aim at seniors as well. Extending the age of retirement and imposing means tests for seniors that are well-heeled are not catastrophic ideas. But, it’s hard not to feel like a bit of double dealing has taken place over the years. Typically, people worked to pay off a home and saved for their golden years. Those savings could be investments, a pension or perhaps an income property. The double deal comes in when increases to property taxes and the incredible swings upward for utility and fuel costs are considered. How could anyone expect a senior to plan for government policies that have increased costs so tremendously?
Further freezes and cutbacks are expected for social service programs. In Ontario, welfare rates are destined to freeze, turning a frugal existence to subsistence. For the right wing crowd that finds such treatment a just reward, reflect for a moment on how hard it would be to keep the balls in the air if health or a job failed.
That is not to suggest a soft touch is needed for those who have trouble making it, but does it make sense to tighten the screws one more turn for people who are facing the same escalating costs for food and necessities as the rest of us?
Housing remains a further problem for Canada. Governments can talk about low interest rates until the cows come home, but there are those who are far better off renting than owning. There are also many who can’t afford to buy or even qualify for mortgages. We see little assistance here for a basic necessity such as housing. Again, programs should be reviewed and rather than build fairly expensive non-profit units, perhaps the Planning Act should change to accommodate different housing types to take the pressure off. Private sector jobs as a result of innovative thinking would be of great benefit to local economies across the country.
Much has been said about regulation, too. Efforts to curtail the expense of environmental studies for large projects were met with derision, but that had to come. The Canadian public has been held hostage by a system that seemed satisfied holding up projects rather than getting them off the ground. While we would never suggest a blind eye to environmental matters, there has to be a reasonable path to completion if business is to expand and jobs are to be created.
Infrastructure funding remains available from the federal government, while McGuinty has taken a pass for now. Once again, the rules have changed, hearkening back to a time when Premier Mike Harris more or less shut off infrastructure funding that fuelled the infrastructure deficit.
The actual funding model without the province as a partner will need to be spelled out, but at least the funding will be for present infrastructure as opposed to the debt-laden facilities erected under the old program. For that, MP Mike Chong deserves credit as an advocate for looking after what we’ve got, rather than building new monuments to look after.
Despite these budget woes, we still live in a great country. We just need to get a handle on our finances.
