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Ottawa鈥檚 housing strategy offers $1 billion a year

Finance Minister Bill Morneau promises 鈥榥ew partnership鈥 with provinces
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The federal budget includes new funds to improve housing affordability. (Black Press files)

The Justin Trudeau government鈥檚 new national housing plan promises about $1 billion a year for the next decade to help bring housing costs into reach for more Canadians.

Finance Minister Bill Morneau鈥檚 second budget, , promises a 鈥渞enewed partnership鈥 with provinces, and an additional $11.2 billion over 11 years to increase housing affordability.

That is on top of last year鈥檚 budget commitment to fund 鈥渓ow-cost loans and new financing tools to encourage municipalities, housing developers and non-profit housing providers to develop more affordable rental housing units.鈥

A centrepiece of Morneau鈥檚 budget is skills development, to help people adapt to a rapidly changing economy, focused on agri-food, digital industries, 鈥渁dvanced manufacturing,鈥 clean technology and bio-sciences.

Employment Insurance premiums are going up five cents next year, while parental leave can be extended to 18 months, at a lower rate of one third of average weekly earnings.

Operating deficits continue to soar in the federal government鈥檚 plan, projected to go from $23 billion in the current fiscal year to $28 billion in 2017-18. The budget forecasts the government would still be in the red $19 billion by 2021-22. Trudeau campaigned in 2015 on a promise to run deficits no larger than $10 billion a year and balance the operating budget by 2019.

Aaron Wudrick of the Canadian Taxpayers鈥 Federation said weaker projected revenues combined with new spending will see the debt pile up to the point where interest costs alone will be $143 billion over the next five years.

Wudrick praised some measures, including a promised spending review for government departments, a commitment to expand free trade between provinces and an effort to crack down on tax evasion.

Conservative interim leader Rona Ambrose said the government鈥檚 vaunted tax cut for the middle class last year has been eaten away by tax and fee increases. 鈥淚t鈥檚 like they鈥檙e nickel and diming everyone,鈥 Ambrose said.

Burnaby MP Kennedy Stewart, the federal NDP鈥檚 B.C. caucus chair, pointed to cuts of more than $1 billion for Canada鈥檚 climate change framework over two years.

鈥淎fter promising real change, Justin Trudeau adopted Stephen Harper鈥檚 environmental assessment process and climate change targets,鈥 Stewart said. 鈥淭his budget shows British Columbians the Liberal government is more of the same.鈥





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