Status-quo budget does little to address the cost of living in N.L., say critics

Solange Fuekang, a Memorial University studentwith a three-year-old son, says it's becoming more difficult to keep up with the rising cost of living.

Fuekang, originally from Cameroon, said food prices are so high, especially for healthy foods like fruit, that she's sometimes forced to go without eating so her toddler can stay healthy.

"I keep the food for him to eat and the only time I get to eat them is if he hasn't eaten them and they're going bad," Fuekangtold CBC News.

Fuekang is just one of many Newfoundland and Labrador residents struggling to keep up with the cost of living as food, gas and heat prices all rise. The price of gas hit unprecedented highs this winter, and food bank operators say they've beenbusier than ever.

Fuekang is unimpressed with how the Newfoundland and Labrador government addressed the cost of living in the 2022 provincial budget.

The 2022 provincial budget was light on measures to reduce the cost of living, especially for those who don't drive or own a home. Vehicle registration fees are being cut in half for one year, and the retail tax on home insurance is being eliminated for one year.

Fuekang does own a vehicle, but drives as little as possible because of the high price of gas. She said the reduction in the fee to register her vehicle $180 to $90 won't significantly affect her day-to-day expenses.

"It's a good thing, it's nice, but it's very little compared to what you actually need, you know?" she said.

Fuekang said she plans to raise her son in Newfoundland and Labrador but that will be possible only if she gets a job after graduation that will allow her to pay off her student loans while keeping up with the high cost of living.

Boosts toincome supplement, seniors' benefit don't reflect inflation

Doug Pawson, executive director of End Homelessness St. John's, said he saw some good first steps in the provincial budgetbutlittle to address income insecurity overall.

The budget included the previously announced 10 per cent increase to the income supplement and the seniors' benefit though that raise does not reflect inflation, which was up by about five per cent year-over-year in February alone.

People on income support and the seniors' benefit also received a one-time cheque for $200 or $400, respectively.

"The question for me and for most folks is whether that will go far enough," Pawson said.

Pawson said creating more affordable housing and raising the minimum wage would helppeople with low income achieve upward mobility.

Josh Smee, CEO of Food First N.L., said he'd like to see the income supplement and seniors' benefit indexed to inflation.

"Income support for the last number of years has not been indexed to inflation, so it's been decreasing every year," Smee said. "The one-time boost that it got this time, you know, makes up for a little bit of that, but not by any means for all of it."

Poverty linked to poor health outcomes

Smee pointed to the Health Accord N.L., which recommends implementing a guaranteed basic income, which he said would help mitigate the impact of rising food prices.

On Thursday, Finance Minister Siobhan Coady told reporters she wished the government could do more for people with low income, but more support could come in the future.

"There's a lot of discussion around ways that we might be able to give a basic income," she said.

Smee said he would've liked to see more evidence of that support this time around, pointing to the poor health outcomes directly linked to poverty.

"I think we sometimes understate the cost of doing nothing here," Smee said. "When people are in poverty and food insecure, that costs government directly down the line."

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