Budget consultations with Canadians: cautious, yet promising

On December 9, 2009 the House of Common Standing Committee on Finance tabled its sixth report for 2009 in Parliament, A Prosperous and Sustainable Future for Canada: Needed Federal Actions. Based on approximately six months of committee consultations with a variety of organizations and individuals across Canada, including Citizens for Public Justice, this report aims to inform the government during the drafting of the 2010 budget.

According to the report many of those consulted called for responsible spending focusing on debt reduction, as well as sustainable investments, especially during economic recovery. Many of these same witnesses spoke against increases in taxation. Others were cautious about further increases in government spending until it was evident that the stimulus was working.

The committee agreed with most of these ideas, especially concerning debt management and government spending focusing on recovery, and that most extra spending should continue to be limited to the recovery.

However, despite the cautious outlook on government spending, several of the recommendations in the report call for further spending and adjustments in a variety of areas, including childcare, employment insurance, and affordable housing.

In terms of childcare, the committee calls for the creation of a federal child care plan that will provide good quality, affordable childcare services across the country. The committee recommends that the federal government transfer payments to provinces and territories who wish to participate.

Employment Insurance has been a hot political topic in the last year. The committee recommends several changes to the program, including common standards for applicants across the country, eliminating waiting periods for payments, and increasing the benefit replacements to 60%.

Finally, concerning affordable housing, the committee recognizes the need for safe and affordable housing for Canadians. Access to housing, according to the committee, is necessary for people to prosper. The committee advises the government to investigate further into repayable loans through the Canadian Mortgage and Housing Corporation in order to invest more in affordable housing.

It will be interesting to see how the government will respond to these recommendations when the budget is presented in March.