Budget 2009: What’s in it for us?

The long awaited 2009 Federal Budget was unveiled last week with promises to rejuvenate the declining Canadian economy. There are some far reaching stimulus measures that hope to prompt long and short-term recovery. But, the big question on every one’s mind is, what’s in it for us?

Tax breaks for homeowners- “Deal of the year”

If one has been putting off a home renovation, now may be the time to make that investment. Without a doubt, the most immediate and tangible measure introduced in the 2009 Federal Budget is the proposed Home Renovation Tax Credit (HRTC), which will give home owners up to a maximum of $1,350 in tax relief for projects ranging in cost between one and $10,000.

The intention is to stimulate ‘quick spending,’ since homeowners are only eligible to apply for the credit up until February of 2010.

Some say this measure could result in sudden boost for that industry-either way homeowners should be pleased.

West Hants Chamber of Commerce president Gordon Winstone says the temporary credit will boost anyone associated with home renovation business, from contractors to home decorators.“The climate overall is that it’s going to be the year of the deal, where consumers and businesses alike will be able to get good bargains on the goods and services they need, however they come.”

Revival Decorating owner Maggie Bell is already anticipating an increased demand for services.

Hiring a professional decorator, she said, can help navigate getting projects done in time to be eligible for the temporary credit. “With a higher number of people making their homes an investment priority this credit will give them that extra incentive.”

Bell added, “we work directly with clients in planning every stage of a renovation, from placement of doors and windows to selecting cabinetry, moldings and paint colors that will fit individual needs and budget.”

She noted, “we always choose to do business locally first and will work with contractors and clients to get those projects done before the year is up.”

Windsor Home Hardware owner Jeff Redden says the credit is a “real winner…A lot of times a tax break doesn’t have tangible results, but this incentive will encourage spending in a way that benefits everyone.” Redden noted, “the positive thing about the deadline is that it will jump start people to act right way.”

Local contractors will likely benefit most once homeowners begin to take advantage of the credit opportunity, he said. “We have a lot of trades people that are going to find themselves very busy this year. Every homeowner is eligible and that’s a lot of homes when you consider the size of Windsor and West Hants.”

Hants Regional Development Authority director Ryan MacNeil, says the credit is like a little ‘bonus’ for homeowners. “It basically amounts to a home renovation sale, only on much bigger scale.”

EI benefits extended

MacNeil said there are measures in the budget that will have a more lasting effect on the local economy. “The increased funding for retraining is actually really good.” The $1 billion allotted to enhance Employment Insurance benefits will loosen the retraining purse strings and offer more options for the unemployed. “I’m pleased to see they are putting money behind people that have been laid off.” Many of those, he added, were long-term employees who may now be faced with having to upgrading their skills in order to secure a job.

The budget will also provide a Strategic Training and Transition Fund to support the needs of individuals who do not qualify for EI.

The Job Resource Center in Windsor is ready to work with clients in accessing their options, MacNeil said. “I can’t encourage people enough to get out to the JRC, they are there to help, and to identify what opportunities will work for people on an individual basis.”

Small business gets “little attention”

Small business owners may need to dig deep if they want to benefit from any stimulus package.

MacNeil says a call to an accountant or financial advisor is in order for all small business owners hoping to benefit from this year’s budget. Although there was little attention paid to small business, the budget has promised to raise the ceiling on small business loans.

MacNeil pointed out, however, that interpreting those incentives could be a daunting task. “The budget itself can been very difficult to interpret, but there are tax incentives that can make a real difference, it’s just a matter of identifying which ones will work for a particular business.”

Winstone said that although some of the loan eligibility extensions will benefit the small businesses who can afford them, incurring more monthly payments may not be an option for others. “There are many opportunities for local, small businesses and consumers to benefit from the current economic climate,” he said. “Some measures the federal government have adopted to speed up recovery will help some and not others, but there is something in it for everyone.” ‘Shovel-ready projects,’ require cost sharing

The 2009 budget has called for a $4 billion Infrastructure Stimulus Fund for provincial and municipal infrastructure rehabilitation projects, which this year will include recreational facilities.

MacNeil said Hants County is in a prime position to collect. “For the most part the federal government hasn’t dealt with recreation projects. It’s easy to focus on roads and sewer because those are immediate concerns, but some recreational needs also have to be addressed.”

The stimulus package will target what are called, 'shovel ready' projects, ones that are already on the radar. “This could certainly help to fast track some of the capital projects the municipality has committed to,” McNeil said. Examples include the proposed service road in Hantsport, the East Hants Sportsplex, and the ongoing sewage treatment facility in West Hants.

However, how the municipal governments access those funds is still up in the air.

Windsor Mayor Paul Beazley said the package would help the town move forward on the long overdue Wentworth Road expansion project. “It's encouraging that the budget could free up some money to get that completed, it is high on our priority list.”

The municipality of West Hants already has its ‘wish list’ in order. Warden Richard Dauphinee said although funding for water, sewer and road projects is important, recreational facilities such as the new fire hall and the Newport Rink top that list, as well.

He was, however, disappointed that the stimulus didn’t include funding for municipal buildings, or fire stations. “All of the units have needs right now, not just ours, and I want to see projects that are going to create jobs,” Dauphinee said. “The money may be there, but how long will it take to trickle down from the province? It takes a while to put a shovel in the ground and there’s not a lot of time allowed for.”

Budget results in “hair-splitting”

And in terms of infrastructure there is a catch. East Hants MLA John MacDonell noted it is difficult to know just yet how the budget will affect his area and said the ball is in the province’s court to allot infrastructure funds. “It’s going to result in a lot of hair-splitting,” MacDonell noted. “There will be conditions on a shared-cost basis and it will be up to the province to help the municipalities in matching that investment.”

The province has already committed to a cost-sharing arrangement with the municipality for the proposed Lantz Sportsplex, so that type of project is ideal for the infrastructure stimulus fund. He added that supporting recreational facilities would save money in the long run by reducing overall health costs. And, “it bodes well to keep people here by giving them decent facilities.”

The HRTC, he said, will also encourage people to relax their money and further stimulate the local economy. “I hope those dollars help to transition the economy back to where it was even eight months ago.” But that is only possible, he noted, if the money is fluid.

Agricultural package “not realistic”

In an area such as East Hants, which is dominated by the lumber and dairy trade, McDonell says more attention should have been paid to those sectors. As NDP Agriculture Critic, he said the future of that industry is directly tied to the buy-local premise. “If farmers could actually make money off what they produce they would be willing to weather a lot of storms along the way.” The difficulty, he said, is in the supply chain which, the federal budget has failed address. “I'm still hopeful, but there is nothing there I can see now that would correct this situation.”

West Hants farmer, Wayne Oulton echoes those concerns. Although the budget has allotted a total of $500 million to help farmers diversify and compete, he's not holding out any hopes. “Ever little bit of money helps, but it's not likely to filter through to us.” The agricultural stimulus includes the expansion of slaughterhouses, which Oulton said would more likely affect larger commercial outlets, rather than the small, rural farms.

There are funds available for those wanting to start a farm, but Oulton noted it would be almost impossible to make a new farm workable under the current conditions. “It's just not realistic,” he said. Unless the market opens up for local producers it’s very unlikely any incentives will help. “The future of agriculture right now is very bleak and it doesn’t matter how much the government puts into the industry, if we can't sell our products, that just prolongs the agony.”