Manitoba stakeholders react to Liberals' 2016 federal budget

There was a range of reactions from Manitoban stakeholders to the 2016 federal budget.

The Liberals' spending plan,unveiled Tuesday,includes significant investments in aboriginal communities, infrastructure andthe arts, and money for middle- and low-income families through the new Canada Child Benefit program.

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The investments come at a cost. Ottawa projects a $29.4-billiondeficit in this coming fiscal year.

Chuck Davidson, president and CEO of the Manitoba Chambers of Commerce, said the amount is a worry for Manitoba's business community.

"It's a bit of a concern. There doesn't seem to be a long-term plan in terms of getting us back to a balanced budget," he said.

Davidson said he was looking for two things inthe federal budget:how thegovernment would make Canada more competitive, and how Canada plans todevelop a skilled workforce. Neither of these items were addressed to his satisfaction, he said.

Lynne Fernandez, Errol Black chair in labour issueswith the Canadian Centre for Policy Alternatives, said she supports the Liberalbudget and would have gone even further into the red.

"The fact that we've gone back into stimulus spending, into deficits, is very welcome," Fernandezsaid.

"We're facing three major challenges in Canada: we have slow economic growth, which is projected to stay around one per cent in the long term, which is worrisome; we have crumbling infrastructure; and we have an aging population."

Fernandez said she would have been comfortable with the federal government increasing thedeficit if it meant more investments in areas like green technology andhealth careand restoring "really important" federal agriculture programs.

"We lost the Community PastureProgram, we lost the shelterbelt program and the beef cattle program in Brandon," she said.

"Our federal expenditures as a percentage of GDP haven't been this low for 60 years, and 60 years ago, we didn't have healthcare, we didn't have EIand we didn't have pensions so we're now having to juggle with these programs with our expendituresat an all-time low."

Possible change in relations: Nepinak

Grand Chief Derek Nepinak said the new budget could be a step forward for relations between the federal government and the indigenous community in Manitoba.

"The money that's been announced today is very significant," said Nepinak.

• Liberal budget includes billions in new spending for aboriginal people

The federal government has earmarked $8.4 billion over five years to pay for improving primary and secondary education,drinking water, family and child services, and housing on reserves.

"The numbers that are now being produced in the budget reflect an attempt to restore a relationship that's been badly damaged over the last number of years," said Nepinak.

"One thing Canadians need to know is since the spending cap of two per cent growth was put in place in the 1990s, a multibillion-dollar deficit has been created in terms of the gap between investment in infrastructure for children on reserve in education and the non-indigenous community."

Boost for Canadian arts

The federal government plans to invest $1.9 billion in the arts over the next five years. That's welcome news to Jeff Herd, executive director of the Royal Winnipeg Ballet.

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"This kind of investment for us is critical," said Herd.

Through the recession Canada was largely sheltered from severe cuts to the arts;instead,Canada's investment has been largely "stagnant" since the 1990s,he said.

With production costs on the rise, that has put arts institutionsin tough positions.

The increase in funding will give Canadian arts an opportunity to "bat above our weight," Herdsaid.

"I'm actually quite pleased."