The majority Conservatives rolled out a federal budget Monday almost exactly the same as the one that helped trigger an election this spring, which includes provisions for a key transportation project in northern B.C.
The budget allows the Crown corporation Ridley Terminals Inc. to borrow from capital markets so it can expand its facilities at Prince Rupert.
The terminal has essentially reached its coal-handling capacity, which has caused fears that coal production in northeast B.C. could be hampered by the bottleneck. Coal production is booming in northeast B.C., providing economic activity and jobs, including for those in Prince George.
The budget also provides $60 million to help forestry companies innovate and tap into new markets abroad.
"It's a restraint type budget, but we're still leaning toward job creation and ensuring the economy remains on a good track," said Cariboo-Prince George Conservative MP Dick Harris.
The Conservatives increased spending to stimulate the economy during the recent global recession, increasing deficit spending which will now be reduced.
The Conservatives have a $130-million promise on the books to help pay for the $404-million Northwest Transmission Line, which recently received federal regulatory approval. The transmission line is expected to be a catalyst for several major mining and hydro-electric projects, which would provide economic benefits in northern B.C., including in Prince George as a supply and service centre.
Harris said the federal government is ready to contribute its promised funding.
Total federal spending, including public debt charges, will total $281.4 billion this fiscal year. The Conservatives have promised $4 billion in annual cuts.
The deficit for last year has been revised downward to $36.3 billion from $40.5 billion. But this year's red ink has been revised upward to $32.3 billion from $29.6 billion. The government continues to say the nation's books will be balanced by 2014-15.
There were two changes in the budget tabled Monday.
The Conservatives will phase out the $2-per-vote public subsidy received by federal political parties, something they campaigned on during the election. The budget also includes $2.2 billion for Quebec as an incentive to finalize harmonization of the provincial sales tax with the GST.
Northern NDP MP Nathan Cullen vowed to hold the Conservative government accountable for the budget, which does offer more assistance for seniors, but not all the NDP had wanted.
"They make a real mistake to assume they have the will and backing of all the people," Cullen said from Ottawa, where, for the first time, the NDP are the official opposition.
If they don't listen to the larger public, they can easily be a one-term majority government, noted Cullen, the MP for Skeena-Bulkley Valley, a riding that includes Fort St. James, just west of Prince George.
Cullen said he will also be watching closely to see if the Conservatives move ahead on funding promises like the Northwest Transmission Line, a project he supports.
Cullen said he is also concerned with the $4 billion in cuts, for which the Conservatives have provided no details.
-- With Canadian Press.
