March 22, 2011

Ottawa – Gord Brown, Member of Parliament for Leeds-Grenville is pleased with the next phase of Canada’s Economic Action Plan introduced today in Ottawa.

“This is a good budget for Leeds-Grenville, Brown says. “This reflects what I heard from the people of Leeds-Grenville in my extensive pre-budget consultations.

“The new budget supports seniors, families, workers, and job creators. We have weathered the economic downturn in great shape but our economy is still fragile and this budget concentrates on continuing the recovery,” he says.

As well as keeping the economy on track, the budget maintains the government’s deficit reduction plan.

Brown is particularly pleased that the Eastern Ontario Development Program will be renewed with the expenditure of $20 million over the next two years.

“This has been an important program for Leeds-Grenville and it was one of the key things I heard in my pre-budget consultations from municipal leaders and constituents. It will be an important factor in further job creation in Leeds-Grenville,” he notes.

As well, a $3,000 firefighters tax credit for volunteer firefighters is included.

“I have spoken out about this credit in caucus and with the Minister and I heard loud and clear from volunteer firefighters in Leeds-Grenville that this is something they wanted to see. I am excited that it is included in the budget,” Brown says.

Low income seniors who rely on the Guaranteed Income Supplement will benefit from a top-up to the benefit of $600 per year for singles and $840 for couples.

The budget also includes funding to attract more health care workers to underserviced areas and provides a tax credit for caregivers.

“Job creation is of utmost importance to our continued recovery,” explains Brown.

To that end the budget provides a number of measures for job-creating businesses and industries.

The work-sharing program will be extended for an additional 16 weeks for those industries still hard-hit by the recession.

“Industries in Leeds-Grenville took advantage of this program and it helped some of them stay in business,” he says.

The government will provide a temporary hiring credit for small business to encourage additional hiring.

Targeted initiatives to help older workers stay in the workforce are continued as are new credits and relief for students and apprentices.

For municipalities, the government is legislating the gas tax fund to provide predictable, long-term infrastructure funding into the future as well as maintaining the Building Canada Fund announced in 2007.

There are initiatives for agriculture and to strengthen food safety and funding to continue to waive the firearms licence renewal fees for all classes of firearms.

A Child Tax Credit is included for children enrolled in artistic, cultural recreational and developmental activities.

“I heard from providers that these should be included and I am happy that message is in the budget,” says Brown.


Backgrounder – Budget Benefits for Leeds-Grenville


Supporting the Recovery
Ontario workers and their families will benefit from measures in the Next Phase of Canada’s Economic Action Plan that will encourage hiring and provide additional financial support to Canadian workers and their families during the recovery, including:

Work-Sharing Program

• $10 million in additional support to assist those employers that continue to face challenges by making available an extension of up to 16 weeks for active or recently terminated work-sharing agreements. The extension will be phased out by October 2011. In addition, the Government will make the program more flexible and efficient for employers signing new agreements by recognizing fluctuations in work schedules and by reducing administrative complexity.

Employment Insurance Pilot Projects

• The renewal of two Employment Insurance (EI) pilot projects to assist unemployed Canadians during the economic recovery. The Working While on Claim pilot project, available across Canada, will allow EI claimants to earn additional money while receiving income support. It will be renewed until August 2012. The Best 14 Weeks pilot project, which allows claimants in 25 regions of higher unemployment, including four regions in Ontario, to have their EI benefits calculated based on the highest 14 weeks of earnings over the year preceding a claim, will be renewed until June 2012.

Hiring Credit for Small Business

• A one-time credit of up to $1,000 against a small employer’s increase in its 2011 EI premiums over those paid in 2010. This new credit will be available to approximately 525,000 employers whose total EI premiums were at or below $10,000 in 2010, reducing their 2011 payroll costs by about $165 million.

Wage Earner Protection Program

• $4.5 million annually to expand the Wage Earner Protection Program to cover Canadian employees, including those in Ontario, who lose their jobs when their employer’s attempt at restructuring takes longer than six months and is subsequently ultimately unsuccessful and ends in bankruptcy or receivership

Targeted Initiative for Older Workers

• $50 million over two years to extend the Targeted Initiative for Older Workers (TIOW) program until 2013-14. TIOW is a federal-provincial-territorial employment program that provides a range of employment activities for unemployed older workers in vulnerable communities with populations of less than 250,000 to help them stay in the workforce.

Supporting Job Creation

Fostering a Competitive Business Environment
The Next Phase of the Economic Action Plan is investing $1 million over two years to ensure that more employers and unions benefit from Labour Canada’s Preventive Mediation Program. Ultimately all Canadians, including those in Ontario will benefit from fewer work stoppages and greater economic stability.

Supporting Agriculture
The Government is providing $50 million for a two year Agricultural Innovation Initiative that will support knowledge creation and transfer and increased commercialization of agriculture innovations. Agriculture related businesses across Canada, including those in Ontario, will benefit from these investments.

The Initiative for the Control for Diseases in the Hog Industry (CDHI) will be extended by an additional two years. The Government is providing $24 million over two years to enable the Canadian Swine Health Board to complete initiatives directed at national biosecurity standards and best management practices that will benefit hog producers across the country.

The Government is providing $17 million over five years for a management and monitoring strategy to contain and prevent the spread of Plum Pox Virus in peach, plum, apricot and nectarine trees. This will benefit producers in the Niagara region.

Strengthening Food Safety
The Government is providing $100 million (on a cash basis) over five years for targeted investments in inspector training, additional science capacity, and electronic tools to support the work of front-line inspectors. All Canadians will benefit from an improved food safety system.

Supporting Forestry
The Next Phase of Canada’s Economic Action Plan provides $60 million in 2011- 12 to help forestry companies across Canada, including those in Ontario, to innovate and tap into new opportunities abroad. This funding will support the development of emerging technologies through the Transformative Technology Program administered by FPInnovations. It will also help forestry companies to diversify and to expand their markets through the Value to Wood Program, the Canada Wood Export Program and the North American Wood First Initiative.


Supporting Families and Communities

Supporting Canada’s Seniors
The Next Phase of the Economic Action Plan builds on the support in place for seniors by announcing new measures to improve the quality of life and expand opportunities for older Canadians, including those living in Ontario:

• A new Guaranteed Income Supplement top-up benefit targeted to the most vulnerable seniors. Effective July 1, 2011, seniors with little or no income other
• than OAS and the GIS will receive additional annual benefits of up to $600 for single seniors and $840 for couples. Single recipients with an annual income (other than OAS and the GIS) of $2,000 or less, and couples with an annual income of $4,000 or less, will receive the full amount of the benefit. Above these income thresholds, the amount of the top-up will be gradually reduced and will be completely phased out at an income level of $4,400 for singles and $7,360 for couples.
• $10 million over two years to increase support for the New Horizons for Seniors Program, which provides funding to organizations that help ensure that seniors, including those in Ontario can benefit from, and contribute to, the quality of life in their communities through active living and participation in social activities.
• Proposed amendments to the Canadian Human Rights Act and Canada Labour Code will ensure that federally regulated employees across Canada, including those in Ontario will be able to choose how long they wish to remain in the labour force based on their individual circumstances.

Supporting Vibrant Communities
The Next Phase of the Economic Action Plan provides $15 million in ongoing funding to the Canada Periodical Fund to continue to support the distribution of publications in Ontario, and across the country.

The Next Phase of the Economic Action Plan provides $60 million to the CBC/Radio-Canada in 2011–12, to provide radio and television services in French and English, in Ontario and across the country.

The Next Phase of the Economic Action Plan supports rural communities by providing $20 million over two years to extend the Eastern Ontario Development Program.

The Next Phase of the Economic Action Plan provides $52 million over the next two years to support programs for Aboriginal communities across the country including those in Ontario. These investments include support to assist First Nations upgrade and replace their essential fuel tanks on reserve, and support for the First Nations Policing Program which supplements existing policing services in First Nation communities. First Nations in Ontario can also benefit from the commitment in this Budget to reallocate up to an additional $20 million over two years to support the First Nations land management regime, which improves conditions for economic growth on reserve for participating First Nations.

Aboriginal Canadians in Ontario may also benefit from the announcement of $8 million over two years to promote clean energy in Aboriginal and northern communities.

The Next Phase of Canada’s Economic Action Plan is strengthening health care in rural and remote communities in Ontario. This new initiative will forgive a portion of the federal component of Canada Student Loans for new family physicians and nurse practitioners that agree to practice in under-served rural or remote communities. This will complement initiatives that are underway in provinces and territories to expand the provision of primary health services to Canadians in under-served rural and remote communities.

Protecting Canada’s Natural Environment
The Next Phase of Canada’s Economic Action Plan provides $5 million over two years to improve the near shorewater and ecosystem health and better address the presence of phosphorous in the Great Lakes.

Public Safety, Security and Justice
The Government is committed to supporting youth by investing $20 million over two years in youth crime prevention programs, including programs in Ontario.
These programs promote the provision of community-based educational, cultural, sporting and vocational opportunities to youth to allow them to make smart choices and resist gang involvement or exit gangs.

The Next Phase of the Economic Action Plan proposes to provide funding of $20.9 million to continue to waive firearms licence renewal fees for all classes of firearms. From May 2011 until May 2012, no firearms owner will have to pay a fee of up to $80 to renew a licence, including gun owners in Ontario.

The Government has long believed that victims of crime deserve to have a strong and effective voice in the federal justice and corrections systems. The Next Phase of Canada’s Economic Action Plan proposes to provide $26 million over two years to support the Federal Victims’ Ombudsman, to promote access to justice and participation by victims in the justice system, including victims in Ontario.

Investing in Innovation, Education & Training
Canada’s Digital Economy Strategy to be released this spring, responds to nationwide consultations held in the summer of 2010 to seek the views of Canadian industry, creators and consumers on how Canada can build a globally competitive digital economy by 2020. The Next Phase of the Economic Action Plan announces new and renewed initiatives that will set the stage for the strategy, and will provide support for communities across the country, including for Ontario:

$80 million in new funding over three years for a pilot initiative, delivered through the Industrial Research Assistance Program, to support collaborative projects between colleges and small and medium-sized businesses to accelerate their adoption of information and communications technologies;

$60 million in funding reallocated over the next three years by Human Resources and Skills Development Canada (HRSDC) to: promote increased student enrolment in key disciplines related to the digital economy such as science, technology, engineering and mathematics graduates; and

$100 million per year to the Canada Media Fund, which invests in the creation of digital content across multiple platforms, including television and leadingedge applications for Internet, wireless and other emerging platforms.

In addition, as part of the Government’s effort to strengthen Canada’s Research Advantage, the Next Phase of the Economic Action Plan proposes to invest $53.5 million over five years to support the creation of 10 new Canada Excellence Research Chairs. Some of these research chairs will be active in fields relevant to the Digital Economy Strategy.

The Government is also renewing the Community Access Program for an additional year.

Promoting Education & Training
The Next Phase of the Economic Action Plan is enhancing Canada’s student financial assistance to ensure that more students are able to upgrade their existing skills and education qualifications so that they can make the most of their abilities and prosper in today’s changing economy.

The Next Phase of the Economic Action Plan will enhance and expand eligibility for Canada Student Loans and Grants for full and part-time post-secondary students. Post-secondary students from across Canada, including those in Ontario will benefit from:

• An increase in the in-study income exemption from $50 per week to $100 per week. This will benefit approximately 100,000 students each year. This represents an ongoing investment of approximately $30 million per year.
• A higher income eligibility threshold for part-time Canada Student Loan recipients. The eligibility threshold for loans will be increased and harmonized with the threshold used in calculating need for full-time students. This represents an ongoing investment of $2 million per year and means that more part-time students will have access to Canada Student Loans.
• An increase to the income eligibility threshold for part-time students used to determine eligibility for the Canada Student Grant to align it with the threshold for full-time students from low-income families. The new parameters will result in an ongoing $2.2-million investment per year.

In addition, the Next Phase of the Economic Action Plan provides approximately $5.6 million per year to reduce the in-study interest rate for part-time Canada Student Loan recipients from prime plus 2.5 per cent to zero. This brings it in line with full-time students, making part-time study more affordable for more Canadians.

The Government of Canada will work with its provincial and territorial partners to put these improvements in place as soon as possible. The Government’s goal is to have benefits flowing to students in the 2011 academic year.

Reducing the Tax Burden on Canadians
Building on the ambitious agenda of tax relief implemented by the Government since 2006, the Next Phase of Canada’s Economic Action Plan takes additional
steps to reduce taxes for Canadians and Canadian businesses. These tax relief measures will provide taxpayers in Ontario with approximately $970 million in tax relief over 2010-11 and the following five fiscal years. This includes a new Family Caregiver Tax Credit which will provide almost $320 million in relief and a new Children’s Arts Tax Credit which will provide almost $246 million in relief.
The Next Phase of Canada’s Economic Action Plan also takes steps to improve the fairness, neutrality and integrity of the tax system, close tax loopholes and limit tax planning opportunities. A secure, fair and stable tax base allows both federal and provincial governments to maintain low tax rates.

Federal Transfers to Provinces and Territories
In addition to these measures, Ontario will continue to receive support through major federal transfers in 2011-12.

Federal support to provinces and territories will reach an all-time high of over $56 billion, which is almost $2.2 billion more than last year. Total amounts for each major transfer will see year-over-year growth again in 2011-12.

For Ontario, this totals $17.7 billion in 2011-12 or $1,326 per capita. This longterm, growing support helps ensure that Ontario has the resources required to provide essential public services, and contributes to shared national objectives, including health care, post-secondary education and other key components of Canada’s social programs.

• Almost $2.2 billion through Equalization, an increase of over $1.2 billion from last year.
• Over $10.7 billion through the Canada Health Transfer, an increase of $707 million from last year. CHT will continue to grow annually through a 6 per cent escalator.
• Close to $4.5 billion through the Canada Social Transfer. For Ontario, this payment represents an increase of almost $1.3 billion since 2005-06 – an increase of 41.0 per cent – due mainly to the move to an equal per capita cash allocation of the CST.

Ontario will also benefit from continued direct targeted support in 2011-12, including:

• $197 million for labour market training as part of a commitment of $500 million a year in new funding to provinces and territories, beginning in 2008-09. $97 million for the wait times reduction fund as part of the 10-year Plan to Strengthen Health Care.