The first federal budget from the Justin Trudeau Liberals excelled at the easy part: spending.
But did they invest it in the right places?
Fans of low-carbon footprints and inclusive initiatives would say yes; adherents to the wisdom of investing public funds first in better goods movement across a vast land with a small population would say no.
Depressed commodities markets, volatile exchange rates and China’s growth slump are all factors in turning projections of a small surplus in 2016 to what will now be a $29.4 billion deficit in 2016-17.
But Liberal stimulus spending also plays a part in adding fiscal burden to an already disturbingly high household debt in Canada, so in the 2016 budget it needed to make strategic economic sense regionally and nationally.
Investing in key transportation corridors such as B.C.’s Asia-Pacific gateway, for example, is at the core of the most recent Canada Transportation Act review.
The review’s report, released in December, points out that allocating fiscal and other resources in developing a national transportation strategy is fundamental to Canada’s development. It estimates that, by 2050, international freight transport volumes will increase fourfold, and the North Pacific will eclipse the North Atlantic as the world’s busiest trade route. The budget’s infrastructure allocation did little to help West Coast logistics chains prepare for that looming sea change.
Aside from targeted investment in infrastructure and innovation in port and ground transportation, B.C. needs more federal investment in airports in smaller communities at the centre of resource extraction and energy development initiatives.
The government’s economic inclusive and green innovation aspirations are admirable, but the blue-collar grit that remains the foundation of the country’s economy also needs attention.
Without it, there will be little upon which to build innovation – be it green or any other colour.
