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Federal Budget won’t halt climbing jobless numbers or reduce hardship in BC
January 27, 2009
The federal budget introduced today by the Harper Conservative government falls far short of the economic stimulus needed in the current global economic downturn.
"Canada has a strong balance sheet and should be doing much more to create jobs and protect vulnerable workers and industries," says B.C. Federation of Labour President, Jim Sinclair.
As a percentage of Gross Domestic Product (GDP) the Harper stimulus package is much smaller than those introduced in other countries. The International Monetary Fund, the Organization for Economic Cooperation and Development, and others are calling for stimulus packages of 2 percent of national GDP. The Harper stimulus represents about 1 percent of Canada's GDP.
"The Harper government has once again reverted to its tax-cutting ideology even though economists are nearly unanimous that tax cuts produce far fewer jobs than would be created through targeted infrastructure spending," Sinclair added.
The Federation also believes the Harper government needs to do more with the $55 billion Employment Insurance (EI) surplus. Eligibility requirements need to be changed because far too many workers discover they are ineligible for EI and many more have their benefits end long before they find new jobs.
"This budget turns a blind eye to tens of thousands of British Columbians who find themselves laid-off and unable to collect EI because of increased restrictions brought in by Conservative and Liberal governments," Sinclair added. "Five extra weeks of benefits will do nothing to give real aid and real hope to those who need it the most. The EI system is broken."
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For more information: Evan Stewart, Director of Communications (604) 430-1421.
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