Honourable James Flaherty
Minister of Finance
House of Commons
Ottawa, ON
K1A 0A6
January 13, 2009
Dear Minister Flaherty,
On January 08, 2009 I held a public meeting to solicit input from my constituents on their priorities for the 2009-10 federal budget. In addition to this public meeting, I also asked my constituents to write me about their budget priorities. The following reflects what I have heard from my constituents, and I ask that it be considered as part of your pre-budget consultation process. You will note that these suggestions and priorities are far-ranging, as I wanted to hear from my constituents about their own priorities.
Overall, those who attended my public meeting expressed a strong desire to see the federal government re-establish its leadership role in the arena of social policy and to nurture the social contract we have together as Canadians. Constituents suggested that instead of once again prioritizing tax cuts, thereby leaving the government with even fewer financial resources, they would rather see greater federal government investment in our communities. I note you were in Victoria on January 12, 2009 for a media event and for meetings with some selected groups and I believe if the cross section of groups you are meeting is as representative as the public meeting we have held, your visit will confirm the priorities listed below.
Housing
An overwhelming number of my constituents said that affordable housing and homelessness should be considered a top priority in the upcoming federal budget and I couldn’t agree more. Infrastructure investment in affordable housing is not only a short-term economic stimulus for Canadians, but will also provide our country with long-term solutions to this shameful Canadian epidemic. It is time for the federal government to join the rest of the G-8 countries and develop a national housing strategy.
My constituents have suggested a range of solutions from those that are market-driven, such as a capital gains tax rollover as prescribed by Bill-C-532 to encourage construction of rental housing, to those involving direct government involvement in co-op housing. Expansion of the Homelessness Partnering Strategy, the Residential Rehabilitation Assistance Program and the Affordable Housing Initiative is also needed.
The City of Victoria has supported adaptive reuse and rehabilitation of heritage buildings through its own tax incentive program since 1989 when it established the Victoria Civic Heritage Trust, an arms-length non-profit agency. This program has succeeded in transforming derelict or limited-use buildings into thriving heritage precincts and in doing so has demonstrated the usefulness of tax incentive programs. I ask that the federal government build on this successful example and implement a federal rehabilitation tax incentive program for heritage buildings in Canada.
As I mentioned in my budgetary submission last year, in October 2007 the City of Victoria’s “Mayor's Task Force on Breaking the Cycle of Mental Illness, Addictions and Homelessness - A Victoria Model” was released after four months of work by dedicated and knowledgeable volunteers. While the task force did an excellent job of analyzing the problem and mapping a way forward, many of its excellent recommendations have not been implemented because they need greater support from the federal government. The meagre $700,000 federal dollars they received barely scratched the surface of what is actually needed. I urge the federal government to review this report and find ways to fund its recommendations. It can be found here:
http://www.victoria.ca/cityhall/tskfrc_brcycl.shtml
One thing is clear; the federal government must broaden its definition of homelessness. Until now the federal government has provided support for housing targeted to the most marginalized groups, ignoring many people in Victoria, including families, who are either homeless or are on the verge of being homeless. It is important that whether the government decides to contribute to solutions directly, or through transfers to the provinces, this funding must be targeted to address the needs of a broader demographic.
Infrastructure/clean energy/public transit/home retrofits
Infrastructure investments should not only be about building roads but it should be about building “a road to the future” to quote one of my constituents. For a sustainable future we must develop a system that prices carbon and removes government incentives that encourage use of fossil fuels. Canada has the talent and skills to lead the world in finding innovative solutions to our climate crisis but to do so; we must invest in infrastructure that supports a clean energy economy. For example, my constituents object to a bailout of the auto industry without clear transparent business plans that lead to the construction of fuel-efficient cars and a guarantee of equity in those companies to protect the public interest. My constituents were also clear that any stimulus package must be for keeping jobs in Canada, not for supporting businesses that export jobs overseas.
A greater investment in sustainable transportation, including a light rapid transit system in Greater Victoria, will bring immediate jobs and reduce congestion and carbon emissions. This should start with the proposed E&N commuter rail service in this region and the rehabilitation of the E&N line for passenger, freight and tourism traffic between Victoria and Courtenay.
The Belleville Terminal in Victoria’s inner harbour, long in need of redevelopment is one example of a shovel-ready project. Another example of a project that is ready to go is the expansion of the federal graving dock that is used for
A home and building energy retrofit program would help to stabilize our local economies. This would create jobs and save homeowners millions of dollars in energy costs. I also ask the federal government to lead by example and invest in an aggressive retrofit program which would involve modernizing all federal government buildings.
Stabilizing local economies
When considering job creation to stabilize local economies, the government must ensure these are household-sustaining jobs. Part-time jobs with minimal benefits provide little security and will not contribute to the stabilization of our local economies. Expansion of the federal government’s Co-operative Development Initiative (CDI) program is yet another effective way to stimulate the economy and address current housing or food security concerns, while investing in Canada’s long-term future.
Employment Insurance
Experts from across the political spectrum agree that increasing numbers of workers will be laid off in the coming months. Canada’s EI program must be reformed in such a way that more people will be eligible for a longer period of time and at a higher benefit rate. As was pointed out in our forum held on January 08, 2009, it is unacceptable that our EI system once provided coverage to 95% of Canadian workers and now only covers 38% of the workforce.
Financial system
Many of my constituents have lost confidence in our financial system. Many have lost their savings, are facing uncertain futures and are fighting an uphill battle to get the government to adopt more transparent rules. The plights of those who have purchased ABCPs illustrates much of what ails the financial sector and government’s lack of political will to protect consumers. They are asking for a change in bankruptcy laws, investigation of securities crimes, and a reversal of the Conservative government’s November 17th Order in Council on credit default swaps to ensure that all credit investors are treated on a fair basis with the international banks who are counterparties to credit default swap contracts.
As a result of the economic downturn, small businesses are experiencing difficulty accessing capital due to new banking practices limiting access to credit. Government must ensure that banks do not exacerbate this crisis by choking access to credit.
Post-Secondary Education & Literacy
My constituents called for investment in post-secondary education by cutting tuition fees and reducing the overwhelming debt loads that many students from low-and middle-income families are now forced to accumulate in order to pursue degrees or vocational training. The downturn in the economy is an opportunity to help upskill or reskill Canadians. Low levels of literacy are a glaring issue that puts Canada’s future productivity and competitiveness at risk. As pointed out in a recent report, a gain of $17 billion in GDP is projected with the increase by just one level of literacy. The federal government could provide a “literacy guarantee opportunity fund” in collaboration with the provinces to address this national issue.
Furthermore, federal government transfers to the provinces should be earmarked specifically for post-secondary education in order to ensure provinces are using these funds for the purposes of skills training and education.
Childcare
Childcare is another urgent need in my riding, as the lack of available or affordable spaces is preventing new parents from returning to work, and will only exacerbate income problems families are expected to have during this economic downturn. It is important for the Conservative government to abandon its ideological stance on childcare and to understand the socio-economic ramifications caused by the lack of childcare.
This was reiterated both by business and the broader community.
Arts/Culture/CBC
Investment in arts and culture programs is vital to maintaining our national identity. It is also important to note that investment in this sector provides one of the highest rates of return. I heard repeatedly from my constituents that they feel investments in arts and culture are an essential element of the transition to the economy of the future.
Canada Pension Plan/Old Age Security/Income Supplement
It was suggested that we need to increase the amounts that seniors receive from CPP, OAS and GIS so that seniors are lifted out of poverty. All of these programs should be reviewed to ensure they are adequately resourced. It was also mentioned that the GIS amount has not been increased since 1984, and that an increase is long overdue. Constituents suggested that the GIS be somehow tied to the cost of living index so that variation in housing prices across the country is taken into account.
Bandwidth
We must develop a national broadband. It is essential to the internet economy. The government must insist telecom providers deliver the broadband promised to Canadians.
Health
Investmentment in our health care, including homecare, eye-care and alternative therapies, will create good jobs and if properly targeted and will improve the health of Canadians. A national pharmacare program would not only enhance the lives of Canadians due to the cost-savings but would also save public funds in the long-term due to the reduced costs of purchasing drugs in bulk, such as occurs in Australia and the UK.
The Access Health Centre, which is a joint project of the Vancouver Island Health Authority, AIDS Vancouver Island and the Victoria Cool-Aid Society, has requested $150,000 in capital funding from Health Canada, but has been turned down. This is a project that is ready to go and with the investment of federal dollars would put people to work immediately.
I appreciate the opportunity to relay my constituents’ ideas to you as Minister of Finance. Thank you for ensuring that their input is heard.
Sincerely,
Denise Savoie, MP (Victoria)