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Local reaction to federal budget mixed

Since Conservative Finance Minister Jim Flaherty presented the federal budget to Parliament on Monday - a document that is a geared towards a possible election, with $20 billion in new spending - local reaction has been mixed.

Since Conservative Finance Minister Jim Flaherty presented the federal budget to Parliament on Monday - a document that is a geared towards a possible election, with $20 billion in new spending - local reaction has been mixed.

In his second minority government budget, Flaherty promised more money for the provinces and territories as well as new environmental policies, two issues that are thought to weigh heavy in the next election.

Local municipal leaders expressed optimism that the budget may have benefits for local communities. The federal budget includes $2 billion a year in new transfers to municipalities from 2010-11 to 2013-14 by extending the Gas Tax Fund, for a total of $8 billion.

"This money will be used for municipal priorities including roads, public transportation and water," said Flaherty."Any time there is further funding being given to municipalities we welcome it," said Squamish-Lillooet Regional District (SLRD) chair Russ Oakley. "Of course we will have to wait until we see how it is allocated.

Oakley added that it seems that larger municipalities usually get more attention than those in more rural areas."And regional districts are often almost an after thought," added Oakley.

The province of B.C. may not fare so well however.

A chief budget proposal aims to add an extra $1.5 billion for the upcoming fiscal year to correct the so-called "fiscal imbalance" - the claim that the provinces are not getting their fair share of the money Ottawa collects.

West Vancouver-Sunshine Coast-Sea to Sky Country MP Blair Wilson said the changes to the equalization payment process would have a negative effect on the local economy by adding property values into the formula for equalization.

"Canadians will not be fooled by this slight of hand," said Wilson in a written statement.

He was also concerned that the budget would have a negative impact on the province's Pacific Gateway project."If Asia Pacific mattered to Stephen Harper, then why is he closing consulates in Japan; ruining our relations with China; and are [we] paying lip service to India?" he said.

West Vancouver Garibaldi MLA Joan McIntyre also expressed concerns that the budget ignores B.C.'s trade potential since the federal budget will have a major impact on B.C. as it changes how transfer payments will operate.

"Our ports put us in a position, better than anywhere else, to take advantage of trade with Asia, and I don't see that being looked at with this," said McIntyre. "The Pacific Gateway would be great for all of Canada and I am a little concerned that it is being overlooked."

The federal budget also had an impact on funding for the 2010 Olympics, with the Vancouver Organizing Committee (VANOC) congratulating the Conservatives for continuing the Own the Podium program.

"In the eyes of Canadians, a large part of our success in 2010 will be defined by the achievements of our Canadian athletes," said John Furlong, CEO of VANOC. "The additional support is a great reminder of how the Government of Canada and Canadian companies, along with the Province of British Columbia, are working together to guarantee Canadian athletes the support they need to train and prepare for the Games in 2010."

But some Olympic counterparts did not feel as positive. The Canadian Olympic Committee criticized the Conservatives for supporting winter sports while ignoring support for Summer Olympians.

Wilson also chastised the Conservative Party for its failure to put money toward its commitment to the environment.

"They cut environmental funding and then claim they're environmental champions when they spend half as much," said Wilson pointing to cutbacks in Canada's renewable energy commitments. "The budget ignores the environment by cutting back our commitment to renewable energy from 5,500 megawatts to 4,000 megawatts of support for clean and sustainable production," said Wilson.

But Flaherty stood by his budget.

"Our taxes are lower. Our budget is balanced. In looking to the future, we take inspiration from our country."

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