Media.Knet.Ca

See the Press Releases issued by AFN and NAN below for their reaction to this federal budget along with CBC North news article about the new Conservative government's first budget. News coverage is describing this budget as the Conservative's attempt to get re-elected in a majority government by trying to attract urban voters through tax credits and reducing GST by 1 percent. 

The Budget Speech 2006 - Focussing on Priorities - Excerpts for Aboriginal Canadians

Mr. Speaker, people from many nations have built a good life in this country and contributed to its strength. But our First Nations, the first people to live here, face special challenges.  We must support our Canadian Aboriginal communities in addressing their particular needs.

• We are providing $450 million for improving water supply and housing on reserve, education outcomes, and socio-economic conditions for Aboriginal women, children and families.
• We are confirming up to $300 million to the provinces to address immediate pressures in off-reserve Aboriginal housing.
• We are setting aside funds to meet the Government’s obligations associated with the legacy of residential schools.

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ASSEMBLY OF FIRST NATIONS FEDERAL BUDGET REACTION 2006

Assembly of First Nations Statement on the 2006 Federal Budget - First Nations Sacrificed to Build a Better Canada

     OTTAWA, May 2 /CNW Telbec/ - "First Nations will remain in last place as a result of today's so-called "Building a Better Canada" federal budget. This disappointing budget does not begin to address the gap in quality of life between First Nations and other Canadians and could increase the gap through inaction.

     The Canadian public may see a $3.2 billion figure dedicated for Aboriginals in the 2006 budget, but $2.2 billion was already set aside last November as compensation for residential schools survivors. We welcome the money for survivors, but it was a measure to provide redress and acknowledge liability, not a new measure to build a better Canada for First Nations.

     The money allocated to address the critical socio-economic and infrastructure gaps faced by First Nations is more realistically described as a portion of the two-year, $450 million funding commitment that has been earmarked for "Aboriginal Canadians". That money is a drop in the bucket when compared to the $17 billion surplus, and is only a third of the money that had been allocated to improving quality of life for First Nations and other Aboriginal Canadians under the corresponding first two years of the Kelowna targets.

     The government committed in this budget to measures that will correct fiscal imbalances at the provincial and territorial level. Nowhere is fiscal imbalance more apparent than in the critical under-funding of First Nations health, education, housing and infrastructure, yet today's budget perpetuates the imbalance for our communities.

     There is a critical need to address First Nations health, social and childhood development issues, yet First Nations are excluded from the government's new comprehensive plan on wait time guarantees. This budget committed to a 6% escalator in health for provinces and territories, but despite previous announcements, there was no corresponding escalator for First Nations health. There is no First Nations-specific component in the government's child care plan and, while over $300 million was committed to addressing diseases like tuberculosis and HIV/AIDS in developing countries, there was no funding to address rising tuberculosis and HIV infection rates for First Nations.

     This government stated today that they will consult with provinces, territories and Aboriginal leaders to "develop a new approach". The approaches developed in Kelowna were developed with and supported by Aboriginal leaders, provinces and territories. These were not commitments from a particular party, but by the federal and all provincial and territorial governments. The Minister of Indian Affairs, Jim Prentice, has stated publicly that he was committed to "putting the wheels on Kelowna". Why is it now necessary to reinvent the wheel?

     This government has consistently stated that they are willing to discuss Kelowna targets. We are more than willing to meet to discuss implementing measures that will improve quality of life for First Nations, but this budget does not appear to offer much."

Phil Fontaine
National Chief
Assembly of First Nations

     The Assembly of First Nations is the national organization representing First Nations citizens in Canada.

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/For further information: Don Kelly, AFN Communications, Director, (613) 241-6789 ext. 320, cell: (613) 292-2787; Ian McLeod, AFN Bilingual Communications Officer, (613) 241-6789 ext. 336, cell: (613) 859-4335/

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NISHNAWBE ASKI NATION FEDERAL BUDGET REACTION 2006

NAN Grand Chief disappointed with fraction of FMM commitments in budget

     THUNDER BAY, ON, May 2 /CNW/ - Nishnawbe Aski Nation (NAN) Grand Chief Stan Beardy is disappointed only a fraction of the priorities addressed by the former Liberal government at the First Ministers Meeting on Aboriginal Issues was part of the 2006 federal budget announced by Finance Minister Jim Flaherty in the House of Commons this afternoon.

     "It's good to see the Harper Government recognize the need for resources to upgrade water, housing, and social services both on and off-reserve, especially considering the ongoing challenges of many of the communities across Nishnawbe Aski territory, including the second evacuation of Kashechewan in less than one year," said NAN Grand Chief Stan Beardy who represents 49 First Nation communities across Ontario.

     "It remains disappointing, however, that other priorities identified at the November 2005 First Ministers Meeting, such as health and economic opportunities continue to be neglected."

     As announced in Budget 2006, the Conservatives are committing $450 million to improve water supply and housing on reserve, education outcomes, and socio-economic conditions for Aboriginal women, children and families, $300 million to provinces to address immediate pressures in off-reserve Aboriginal housing, and funds to meet governmental obligations associated with the legacy of residential schools - a fraction of what was announced by the former federal government last November.

     The First Ministers Meeting on Aboriginal Issues, which took place in Kelowna, B.C. November 2005, had former Prime Minister Paul Martin's Liberal government announcing contributions of more than $5 billion over the next five years to close the gap between Aboriginal and non-Aboriginal Canadians in the areas of education, health, housing, and economic opportunities.

     "If significant steps and strategies for implementation are not taken today to close the gap between Aboriginal and non-Aboriginal Canadians, there will be continued hardship in taking responsibility for ourselves in terms of decreasing the burden currently posed on all of Canada," said Beardy. "In order to take responsibility for ourselves we need economic development and business opportunities, particularly in terms of skill development and partnerships with industry."

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/For further information: Jenna Young, Director of Communications, Nishnawbe Aski Nation, (807) 625-4952 OR (807) 628-3953 (mobile)/

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from

Tory budget kills Kelowna deal  May 2 2006 - CBC News

The Kelowna Accord– an agreement to raise aboriginal health, education and housing standards – has been killed in the new Conservative government's first budget.

Finance Minister Jim Flatherty told the House of Commons on Tuesday that the Tories want to meet the targets of the agreement made last November… but estimates show it plans to spend far less money than was promised under the former Liberal government.

The accord set aside $5.1 billion to raise aboriginal living standards.

Instead, Flaherty promised to spend $150 million this year and $300 million next year for vaguely defined efforts to improve education programs, provide clean water, repair crumbling housing stocks and close "the socio-economic gap."

But the budget states the new government is still committed to meeting the targets agreed upon at the Kelowna meeting of native leaders and politicians last November.

"The government will work with aboriginal leaders, and provinces and territories to develop a new approach with workable solutions," the budget says.

Other northern spending– or not

 
Finance Minister Jim Flaherty tables the Budget in the House of Commons on Parliament Hill in Ottawa. (Tom Hanson/ Canadian Press)
 
There's some new support to ease housing pressure in the North. Flaherty confirmed up to $300 million will be spent over the next three years for affordable housing in the three territories. That money will be used to buy more affordable housing, including rental units and transitional homes.

Programs to improve off-reserve housing in the provinces will also get a $300-million boost.

There was also no mention of spending for a new military base in the Arctic. While on the campaign trail, Conservative Leader Stephen Harper surprised many observers when he promised to build a new military base in the Arctic to watch for signs that other nations were encroaching on Canada's sovereignty in the North.

Although the budget includes increased funding for the military, amounting to $1.1 billion this fiscal year, no specific mention was made of the new northern base.

One commitment the government did keep from previous Liberal promises was for a $500-million socio-economic fund for the Northwest Territories. The money is to be used over the next 10 years to help communities along the Mackenzie Valley pipeline project path address problems caused by the megaproject.

However, "[f]unding will be linked to project milestones and is conditional on the project moving forward," budget documents warn.

Ottawa spent $9.1 billion last year for education, social services, health and housing programs for aboriginal people, many of whom are owed the support under historic, mutually agreed upon treaties.

Opposition critics and most native leaders urged the Conservatives to honour the Kelowna deal. Crafted after 18 months of talks, it included a 19-page plan of targets and reporting requirements.

There have long been hints that the Tories would scrap it.

Conservative MP Monte Solberg, now immigration minister, was most blunt last January when he accused the Liberals of drafting the deal "on the back of a napkin on the eve of an election. We're not going to honour that."

Fulfilling campaign promises

The Conservative government used its first budget to follow through on several campaign promises, with initiatives that include reducing the GST and bringing in its monthly child-care allowance.

INDEPTH: Federal budget 2006

"For years, Ottawa has been overtaxing Canadians," Flaherty said in the advance copy of his speech to the House of Commons. "In this budget, we deliver real tax relief for Canadians."

The Conservatives said they will cut the GST by one percentage point to six per cent on July 1. The move is expected to cost the government $3.52 billion this year and $5.17 billion in 2007.

The government didn't specify when it would cut the rate to five per cent, as Prime Minister Stephen Harper promised during the last election campaign.

Income tax measures both remove and add some relief.

The tax rate on the lowest tax bracket will go to 15.5 per cent on July 1, after the Liberals cut it from 16 per cent to 15 per cent in their fiscal update in November.

At the same time, the government is introducing a new Canada employment benefit that will offer working people a $250 tax credit for 2006 to cover work-related expenses, such as home computers, uniforms and supplies. The credit rises to $1,000 for the 2007 tax year.

Child-care money

The government also followed through on another of its five promises by introducing a $1,200-a-year child-care benefit for all children under the age of six.

The government said it will spend $3.7 billion on the program, starting when the first monthly cheques are mailed in July. The payments will continue until the month in which the child turns six.

"While the universal child-care benefit will support child-care choices by families, we also intend to invest in creating new child-care spaces," Flaherty said in his prepared remarks.

He said the budget includes $250 million, beginning next year, to create child-care spaces.

More cash for the military

Canada's military will see its budget increased by $5.3 billion over the next five years, including money to speed up recruitment of 13,000 regular armed forces and 10,000 more reservists.

The extra money for the armed forces will also go toward new equipment, such as transport planes to replace the country's fleet of aging C-130 Hercules planes.

In keeping with the government's stated focus on security, the budget also includes $303 million over two years for border security and $161 million over two years to expand the number of RCMP officers and hire additional federal prosecutors.

Business tax cuts

Flaherty said the Conservatives will retroactively eliminate the federal capital tax as of Jan. 1, 2006. The tax, which is charged at 0.125 per cent on taxable capital in excess of $50 million, was originally slated to be phased out in 2008.

In order to encourage Canadian companies to hire apprentices, the government is also introducing a non-refundable tax credit equal to up to 10 per cent of the wages paid to qualified workers. The credit will have a maximum of $2,000 per year.

Flaherty said the government will try to curb its expenses by cutting some programs deemed to no longer be serving their purpose.

Flaherty said the Treasury Board will aim to find $1 billion in savings for 2006-07 and 2007-08. Details about the cuts, which could affect department and agency employees and the programs they offer, are expected by the autumn.

After putting aside $3 billion in both this year and next for debt reduction, the government said it expects a surplus of roughly $600,000 for the current year and $1.4 billion the following year.