BC Chamber - Federal Budget Encouraging But Lacks Focus

January 27, 2009

FEDERAL BUDGET ENCOURAGING BUT LACKS FOCUS, SAYS BC CHAMBER OF COMMERCE

FOR IMMEDIATE RELEASE

January 27, 2009 – The BC Chamber of Commerce heard encouraging words in Ottawa today, as the Federal Government unveiled its 2009 Budget, but is harbouring concerns that the Government’s deficit spending may be allocated too broadly to have the desired impact, especially where small business is concerned.

“The infrastructure building program, the total housing package, the strategic training and transition fund, and the tax cuts – these are all good things, and part of a Budget that we can ultimately support,” said John Winter, President and CEO of the BC Chamber of Commerce.  “But we are concerned at this point about the sheer range of projects that the Government has identified for funding.”

The Chamber movement has been the leading voice calling for a focus on the economy, and Chamber members will be pleased to see that the government has acted on many of the Chamber’s recommendations by including initiatives such as improving access to credit, targeted investments in training, expedited infrastructure spending, as well as many targeted taxation incentives for investment in technology and machinery.

However, while there is a heavy focus on training, infrastructure and tax cuts, Budget 2009 aims to address the recession’s unprecedented economic challenge by spending widely across virtually all sectors – a strategy that, while certainly optimistic, in the Chamber’s opinion will not necessarily bring about the results the Government has promised.

“This Budget represents some of the most difficult financial decisions to be made in Canada’s history, and clearly the Government has been listening carefully throughout its consultations,” continued Winter.  “Given that, it’s hardly surprising that the Government has tried to include provisions for as many areas as possible, and tried to avoid making choices between projects, regions and sectors.  Although this inclusivity is admirable, it’s not certain that Canada’s economy would not benefit more from increased focus on the Government’s part, especially when it will be spending at unprecedented levels.”

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Access BC Chamber of Commerce Budget highlights at www.bcchamber.org

MEDIA ADVISORY: Former Associate Deputy Minister for the Federal Department of Finance to Comment on Federal Budget Announcement – January 28, 2009 – Executive Luncheon with Don Drummond, Senior Vice President and Chief Economist for TD Financial Group.  For more details visit: http://www.bcchamber.org/news/releases/drummond_lunch_advisory.html

For more information contact:

John Winter

President and CEO

BC Chamber of Commerce

T 604.638.8110

C 604.376.3577

E jwinter@bcchamber.org