Students, business applaud pre-election budget

Most of Newfoundland and Labrador's latest budget with record spending, a record surplus and tax cuts along the way is being warmly received by advocates who have lobbied for change.

"We're on our way to having the most accessible system of post-secondary education in North America in Canada, definitely," said Jessica Magalios, the provincial chair of the Canadian Federation of Students.

Magalios was reacting to the reinstatement of aneeds-based grants system, which has been on the student agenda for so many years it seemed like a pipe dream. The system will mean many students can borrow less to finance their education.

Finance Minister Tom Marshall also announced an extension of a freeze on post-secondary tuition fees at Memorial University, which are already among the country's lowest. The freeze also applies to the College of the North Atlantic.

Marshall's $5.9-billion budget brought down with less than six months before a general election scheduled for Oct. 9 had something for everyone.

The business community was given a corporate tax cut, on top of a range of personal income tax cuts. For organized labour and youth advocates, a $1 increase in the minimum wage, to be phased in over the next year.

"When you take your personal income tax from fourth in Atlantic Canada to first in Atlantic Canada, no doubt that's good news," said Cathy Bennett, president of the St. John's Board of Trade.

"This money that will be saved by each and every one of us who pay taxes in Newfoundland is going to go back into the economy. It's going to go back for small business owners to be able to make investments in their business."

Reg Anstey, president of the Newfoundland and Labrador Federation of Labour, said the budget will help the province hold on to young people, who have been moving away for years for better opportunities elsewhere.

"I think it's a good example to people as to why the battle over offshore revenue is so important, and why the battle over equalization was so important," said Anstey, referring to a heated battle between Premier Danny Williams and Prime Minister Stephen Harper over equalization.

Not everyone applauded the budget.

Bradley George, director of provincial affairs with the Canadian Federation of Independent Business, warned that there will be a toll as the minimum wage rises to $8 per hour next year. He said some businesses will likely close because they cannot afford the higher labour costs.

Budget panders to taxpayers: Reid

The political opposition saw cynicism and missed opportunities in Williams's fourth budget.

"There's no doubt about it, that it's an election budget," said Liberal Leader Gerry Reid. "It's an attempt by the government to buy or get votes in the fall of this year by using taxpayers' own money."

NDP Leader Lorraine Michael welcomed personal income tax cuts, but said the Progressive Conservative government ought to have used surging oil revenues to help low-income earners, with more spending on public housing, child care and income support.

"I think they have adequate money to do the tax breaks that they did, but they also have the money to do things low-income people need," she said.

"If we can't do this kind of thing, and cover these kind of programs, when we have a $76-million cash surplus and then an accrual surplus of over $200 million, when are we going to be able to do these programs?"