Corner Brook -
On the last day of the fiscal year, Finance Minister Tom Marshall managed to scrounge up a few more dollars for a couple of projects in his district.
Marshall was guest speaker at a Greater Corner Brook Board of Trade luncheon Wednesday - his first public speech since delivering Budget 2010 in the House of Assembly Monday.
On the eve of the new fiscal year, which starts today, Marshall did his last bit of spending for the fiscal year now gone by with announcements of $500,000 to renovate cottages at the Interfaith Home for Senior Citizens in Corner Brook and $15,000 to upgrade playground equipment in Steady Brook.
The work at the Interfaith Home will go to tender and start soon. It will focus on new siding, shingles, windows and exterior doors on the 44 oldest cottages at the site, which are now 36 years old.
The minister then spent nearly 12 minutes rhyming off some of the finer details of the budget as it pertained to his district. They ranged from water, sewer and road work projects in Corner Brook, Massey Drive, Steady Brook and Pasadena to funding for various groups and organizations focused on issues such as affordable housing and literacy to major infrastructure investments like the new regional hospital, courthouse, and university campus buildings in Corner Brook.
"There's so many projects taking place out here that we need another engineering position here with Municipal Affairs," said Marshall, who also announced there will be a new regional manager position created to administer the new Family Justice Services program in the area.
As previously reported, the two biggest budgetary highlights in Monday's budget were $30 million over two years to help Corner Brook Pulp and Paper get through the "economic tsunami" that has struck the global newsprint industry and nearly $12 million to advance work on the province.
Marshall reiterated the province's financial plan is designed to continue stimulating the economy as the global economy struggles to emerge from recession.
Now is not the time, he said, to slam the brakes on spending.
"Because of the degree of uncertainty, we made the decision to continue to stimulate the economy until we see traction in economic growth," said Marshall. "At that point, we can moderate our spending and get back to a balance, which will be our goal, and then to get back to a surplus."
In addition to spending, tax cuts are the other major components of a budget designed to stimulate the economy. Marshall said reducing personal income tax and offering a break on business taxes are about more than creating additional disposable income for residents, and a more attractive climate for doing business.
He noted that major projects on the horizon, like the Hebron offshore oil development or the hydromet facility at Long Harbour, will both directly and indirectly create demand for skilled workers and professionals.
"We are competing internationally for the skilled trades workers, the health-care professionals and the engineers and it's not enough that we just offer a competitive wage package ... We also have to maintain a competitive tax environment," said Marshall.
Stimulating the economy comes at a price and the province is predicting a deficit of $194 million this fiscal year. Marshall said he was talking to one person who expressed to the him that the business community didn't like the idea of the province running a deficit.
"I told him to tell the small businesses to send back their tax break and I'll put it toward the deficit," said Marshall. "I haven't heard from any of them yet."
