Community News
Ontarians should be deeply concerned about the $15 billion cuts in programs and services
BY PAUL JUNOR
The release of the Federal Government of Canada 2023 Fall Economic Statement on Tuesday, November 21st, 2023, by Deputy Prime Minister and Minister of Finance, Honourable Chystia Freeland has provoked a widespread response.
It projects a deficit of $40 billion in 2023-24, $20.8 billion in extra spending for the next six years beyond what was previously mentioned in the 2023 federal budget. There is about $15.7 billion in new measures while there is an anticipated $2.5 billion saving from public sector cutbacks with an overall $13.2 billion in net spending. In a press release issued at canada.ca, it touts the growth in the Canadian economy as, “Over a million more Canadians are employed today compared to before the pandemic. Inflation is coming down, wage increases are outpacing inflation, and private sector economists now expect Canada to avoid the recession that many had predicted.”
There were several positive announcements in the Fall Economic Statement (FES) such as: the Canada Mortgage Relief and actions on housing affordability and the housing crisis. Minister Freeland states, “Our economic plan is about building a strong economy that works for everyone, and this Fall Economic Statement is the next phase of our plan. With a focus on supporting the middle class and building more homes, faster, we are taking action on the priorities that matter most to Canadians today. We will continue doing everything to deliver to Canadians from coast to coast to coast.”
Some of the new measures include:
Canada’s Housing Action Plan
- Removing the GST from new rental housing
- More financing from apartment construction
- Building more affordable housing
- Strengthening the co-operative housing development program
- Cracking down on non-compliant short-term rentals
Supporting a Strong Middle Class
- Helping more household make the switch to electric heat pumps
- Temporarily pausing the federal pollution price on heating oil
- Removing the GST/HST from psychotherapy and counselling
- A new employment insurance adoption benefit
- Enhancing employment insurance supports for seasonal workers
Building an Economy that Works for All Canadians
- Expanding eligibility for the Clean Technology and Clean Electricity investment tax credits to include waste biomass
- Clean economy industrial supports
- Supporting employee ownership trusts
- Sustainable finance action
- Delivering the Canada Growth Fund
Effective Government, A Fair Tax System, and a Stable Financial Sector
- Responsible Government spending
- Responsible investments to meet the current needs of Canadians
- Supporting journalists and news organizations
- Dividend received deduction by financial institutions
The Public Sector Alliance of Canada (PSAC) responded to the Fall Economic Statement in a press release issued on Wednesday, November 22nd, 2023. It applauds the actions of the government to address housing affordability, and the housing crisis, but is deeply concerned about the $15 billion cuts in programs and services and an additional $ 3 million in spending reductions this year.
Chris Aylward, National President of PSAC states, “Canadians are feeling squeezed everywhere they turn as they struggle to make ends meet. Our government should be responding to the needs of families by increasing investments in housing, childcare, stronger employment insurance for workers who lose their jobs, and good public service jobs.”
PSAC believes that the government is not being transparent about the nature and scope of these cutbacks to programs and services, and it should play an essential role in the deliberations regarding future government spending. President Aylward notes, “Any government savings shouldn’t fall on the backs of workers and the services they deliver to Canadians. Rather than slashing public services, the government should be looking to increase its revenue through equitable taxation and by making sure wealthy corporations pay their share.”
PSAC is pleased that measures will provide bankruptcy protection for public post-secondary institutions but hoped that funds would have been earmarked to fix the pressing Phoenix debacle.