June 15, 2011

Lee Richardson, MP for Calgary Centre is applauding the next phase of Canada’s Economic Action Plan, saying it will have positive benefits for Alberta families, seniors and job-creating businesses.

“Canada is weathering the global recession in a stronger position than nearly all
major economies, with nearly 560,000 new jobs created since July 2009. But the
global economy is still fragile, we need to stay focused on the economy,” said Lee Richardson.

The Opposition’s high-tax agenda would increase taxes on job-creating businesses to pay for billions and billions in reckless spending and bloated government programs in Ottawa. “As we try to fully recover from the global recession, massive new Opposition tax hikes would stall Canada’s recovery, kill jobs, and increase the cost of living for families and seniors,” continued Richardson

The next phase of our Conservative Government’s Plan keeps taxes low to promote jobs and economic growth, while supporting Alberta families and seniors. It includes:

Supporting Job Creation: keeping taxes low for employers by introducing a temporary Hiring Credit for Small Businesses to support job growth; an expanded work sharing; extending the Mineral Exploration Tax Credit, extending tax relief for investments
in new equipment and machinery, investing in innovation to help
our agriculture sectors grow; and more.

Strengthening our Families and Communities: up to $5,000 in grants for Alberta families to make their homes more energy efficient; up to $840 in new annual financial support for needy Alberta seniors; a new Family Caregivers Tax Credit, a new Children’s Arts Tax Credit; loan forgiveness to attract doctors and nurses to rural Alberta; a new $3,000 volunteer firefighters’ tax credit; and the waiving of license renewal fees for hunters and firearm owners.


Investing in the economy of tomorrow: help for Alberta farmers with a new $50 million Agricultural Innovation Initiative; increased support for research and technology; improved federal student loans program for Alberta students; and more.


Preserving Canada’s Fiscal Advantage: eliminating government waste; limiting spending growth; and closing unfair tax loopholes to ensure Canada stays on track for balanced budgets.

Alberta will also benefit from many initiatives including $5 million for the 100th anniversary of the Calgary Stampede in 2012.

The next phase of the Plan also reinforces the Conservative Government’s long-standing rejection of the former Liberal government’s legacy of balancing the federal budget on the backs of Alberta and other provinces through deep transfer cuts to health care and education.

Indeed, under the Conservative Government in 2011-12, Alberta will see record high major federal transfers totalling nearly $3.4 billion – an increase of over $1.1 billion from the former Liberal government. What’s more, Alberta will see growing transfer support for health care ($2.1 billion – a 29% jump from the Liberals) and social services (nearly $1.3 billion – a 114% jump over the Liberals). This increased support will help hospitals, schools, and other critical services in the province. “While the former Liberal government radically and recklessly slashed transfers to our home province, our Conservative Government continues to ensure Alberta has record support to provide the health care, educational and other important services families depend on,” confirmed Lee Richardson, MP


INITIATIVES THAT WILL BENEFIT
Calgary and Alberta

Supporting the Recovery

Alberta 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 two regions in Alberta, 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 Alberta, who lose their jobs when their employer’s attempt at restructuring takes longer than six months and is subsequently unsuccessful and ends in 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 lessthan 250,000 to help them stay in the workforce.

Supporting Job Creation

• Fostering a Competitive Business Environment
• The Next Phase of Canada’s 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 Alberta 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 Alberta, 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.
• 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 Families and Communities

Supporting Canada’s Seniors

• The Next Phase of Canada’s 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 Alberta:
• 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 Alberta 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 Alberta will be able to choose how long they wish to remain in the labourforce based on their individual circumstances.

Supporting Vibrant Communities

• 2012 will mark the 100th anniversary of the Calgary Stampede. Recognizing the significance of this historic milestone, Budget 2011 provides $5 million to the Canadian Tourism Commission to market the Stampede’s anniversary events in key tourism markets.
• The Next Phase of Canada’s Economic Action Plan provides $15 million in ongoing funding to the Canada Periodical Fund to continue to support the distribution of publications in Alberta, and across the country.
• The Next Phase of Canada’s 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 Alberta and across the country.
• The Next Phase of Canada’s Economic Action Plan provides $52 million over thenext two years to support programs for Aboriginal communities across the country including those in Alberta. 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 Alberta 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 Alberta 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 Alberta. 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.

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 Alberta.
• 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 Canada’s 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 Alberta.
• 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 Alberta.

Investing in Innovation, Education & Training

Driving Innovation – Canada’s Digital Economy Strategy

• 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 Canada’s 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 Alberta:
• $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 leading- edge 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 Canada’s 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 Canada’s 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 Alberta 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 Canada’s 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 Alberta with approximately $310 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 $73 million in relief and a new Children’s Arts Tax Credit which will provide over $69 million in relief.
• The Next Phase in 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.