Federal Budget 2006: Opportunity lost

Author(s): 
May 4, 2006

The Harper government inherited one of the most prosperous economic and
fiscal situations imaginable - a thriving economy, the lowest
unemployment in over 30 years, and a windfall of $10 billion more in
federal coffers than the $45 billion projected in November.

Enough room, in other words, to meet the signed commitments made by the
government of Canada to provide quality early learning and child care
for children across the country. Enough room to redress the
appalling gap between First Nations and other Canadians in terms of
quality of life. Enough room to honour our international commitments on
climate change and ensure the viability of the planet for our children
and grandchildren. More than enough room, in fact to fund a host
of overdue initiatives to improve the security and quality of Canadians
lives, and rebuild the foundations of a prosperous future.

But this government isn't looking forward. It is turning back the
clock. The first new national social program in a generation dies with
this budget. The "choice" in child care will narrow choices
for families - by halting plans to build needed spaces that would
provide real choice. An historic agreement to deal with the most
glaring inequality in our society, the poverty of our First
Nations communities, has been shelved, despite signed commitments made
by all governments of Canada, so that the Harper government can speed
tax breaks to corporations, whose profits are at an all time
high. And climate change for Stephen Harper is apparently as low
a priority as it is for George Bush . "Get used to it", as the Prime
Minister likes to say.

The hype on the first Harper budget is all about tax cuts. But
today's $20 billion in tax cuts is only the prelude. By savaging
programs for children, First Nations and climate change the first
Harper budget found an extra $10 billion for tax
cuts. His plan is to cut far more deeply into program
spending, as today's tax cuts becomes tomorrow's program cuts.

Short years ago, Canadians learned after Walkerton that a $200 tax cut
is a poor exchange for being afraid to drink your tap water.
Finance Minister's Flaherty's promise that governments will take less
out of the economy translates in fiscal terms to billions less each
year to spend on needed services.

The Alternative Federal Budget, released on April 27, 2006 takes an
entirely different approach. Our budget adds up, it is balanced - it
has no increase in overall net taxes. But unlike Mr. Harper and Mr.
Flaherty we do not believe every problem can be solved with a tax cut.
We start from the premise that this government has an unparalleled
opportunity to help move Canada forward and create better lives for all
Canaidans. We do this by investing in services that matter
most to people - like child care, health, clean air, safe drinking
water, affordable housing, training, post secondary
education, cities, culture, and programs to support and sustain quality
jobs in Canada.

These services are necessities for all of us, and no tax cut could deliver them so efficiently or so equitably.

Judy Randall is coordinator of the 2006 Alternative Federal Budget
for the Canadian Centre for Policy Alternatives
(www.policyalternatives,ca).

Offices: