REPORT FROM PARLIAMENT

As you know, our government has tabled Budget 2009: Canada’s Economic Action Plan - an extraordinary spending and tax relief package for an extraordinary time. The stimulus plan will enable us to emerge from the economic downturn faster, with a more modern infrastructure, a more skilled labour force, lower taxes and a more competitive economy.

Folks, I can tell you that moving into a temporary deficit position is difficult and uncomfortable, but necessary. This economic plan gives us the boost we need at this time. What’s important to keep in mind, is that unlike other budgets during recessionary times, we are not offloading to the provinces.

Saskatchewan will continue to receive historically high and growing federal transfers in 2009-10 that will total $1.4 billion – an increase of $63 million over last year and a $293 million increase over the former Liberal government. We are not spending on the backs of the province. Health and social transfers will continue to grow to assist the province in paying for vital health care, educational and social services that you depend upon. Health transfers will continue to increase by six per cent each year and social transfers by three per cent annually – both of them tied to population growth.

We talked to the provinces, to experts and to ordinary Canadians to develop this plan, and the importance of immediate action to build and renew bridges, sewers, roads, transit and rails became clear. We’ve committed almost $12 billion in new infrastructure stimulus funding and Saskatchewan will share in the pie. The emphasis for expenditures will be on short-term projects that get sod turned as soon as the ground thaws this spring. And we’ve cut back on the red tape to help things move quickly.

There are tax savings too, amounting to $20 billion over this and the next five years. Your 2009 basic personal income tax amount will increase, letting you earn more before paying federal income tax. Also, top limits on income tax brackets are being increased, again keeping more money in your pocket and in the economy. With these changes, the eligibility for the National Child Benefit expands, so more families can collect. Seniors are also getting a break. There’s additional tax savings for low- and middle-income seniors through an increase in the Age Credit amount.

Since our government took office, I’m proud that we’ve delivered almost $6 billion in tax savings for the residents and businesses of Saskatchewan. Another $595 million in additional tax reductions is included in this budget.

And, there’s a lot more. Measures, such as $500 million to implement an agriculture flexibility program, action to support business and industry, improvements to Employment Insurance, a home renovation tax credit, post secondary education funding, skills training, and improved access to credit are part of our comprehensive plan.

This budget clearly puts people to work, minimizes hurt and stimulates economic activity. I look forward to seeing the rewards of it benefitting farm families, seniors, businesses and municipalities throughout my riding and Saskatchewan.

Hon. Gerry Ritz is the Member of Parliament for Battlefords-Lloydminster www.gerryritzmp.ca