Federal 2023 budget receives mixed reaction in Calgary

The federal government announced the 2023 budget Tuesday, and it has drawn a mixed reaction from Calgary’s mayor, the Calgary Chamber of Commerce, and Alberta’s finance minister.

Finance Minister Chrystia Freeland’s 2023 federal budget includes a 15 per cent refundable tax credit for eligible investments into clean technology innovation. It also includes a $20 million allocation to the Canada Infrastructure Bank’s Clean Power and Green Infrastructure priority areas.

Mayor Jyoti Gondek says she is “pleased” to see a refundable tax credit and mental health support.

“Calgary’s commitment to energy transformation with projects like transit fleet electrification has positioned our city as a strong candidate for these Budget 2023 funds, as well as other capital opportunities that require partner funding,” her statement said.

In addition, $144 million will be committed over five years to address the toxic drug supply through “community-based supports” and a focus on overdose prevention.

Around $158.4 million over three years will go to the Public Health Agency of Canada to support the implementation and operation of a “national 988 suicide prevention line,” which is expected to launch on Nov. 30, 2023.

“Both of these measures will provide further support to Calgarians in need,” Gondek said.

She is also happy to see funding for the construction of new affordable housing units, explaining that “one in five Calgary households struggles to afford housing.”

However, the lack of funding for the city’s downtown revitalization is a cause of concern.

“While there are positive notes, we continue to be disappointed that there is no direct source of funding for downtown revitalization programs, such as office-to-residential conversion,” she said.

“We will continue to advocate to the federal government that cities across Canada need support in improving the livability and safety of our downtowns.”

The City of Calgary provided Freeland with six recommendations for the federal budget, including funds for a multisport fieldhouse, funds for the Sunyside Flood Barrier and Stormwater Infrastructure Climate Resilience Improvements, and a contribution to Calgary’s downtown conversion program.

Related Video

The Calgary Chamber of Commerce says the federal budget “reflects the fiscal restraint” needed by the government during times of economic uncertainty.

In addition, it notes “several important initiatives” that include investments in clean technology, supply chain measures, internal trade supports, and commitments to reduce regulatory timelines.

However, Deborah Yedlin, the president and CEO of the chamber, says the budget misses investments in “areas proving most challenging for businesses,” which includes affordability measures and initiatives to address the labour force and skills gap.

“Today’s budget reflects the cautious optimism felt by businesses by avoiding unnecessary spending to manage the inflationary environment,” Yedlin said in a statement.

“While this budget signals several key initiatives, businesses have questions as to how tax credits will work, how small and medium-sized businesses will be supported as they grapple with affordability and the ongoing labour shortage. We remain concerned regarding an absence of measures aimed at increasing productivity and economic growth,” she said.

The chamber says several investment tax credits outlined on the chamber’s website will be helpful in spurring investment in clean technology; however, further clarity is required before private sector investments can be deployed.

The budget is a ‘nothing burger’: Federal MP

In the meantime, Member of Parliament for Calgary Nose Hill Michelle Garner Rempel calls the budget a “stale, expensive, nothing burger.”

She says the budget will only create more debt for Canadians and does “little to address the needs of Calgarians,” which includes affordable housing or lowering the cost of living.

“The Liberals posted a $40.1 billion deficit for [the] fiscal year 2023-2024, up nearly $10 billion more than was forecasted last fall. This flagrant disregard for public finances will only make the inflationary crisis worse,” her statement said.

“That the Liberals spent that much on a collection of rehashed announcements shows a government that is out of touch, out of ideas and long in the tooth.”

Finance Minister Travis Toews says the provincial government is analyzing the budget to determine how it will impact Alberta.

“We are encouraged to see more detail on the previously announced hydrogen investment tax credit. We will be working to understand how it will affect the overall competitiveness of the hydrogen industry here in Alberta,” Toews said in a statement.

“While the budget does acknowledge the federal government’s burdensome environmental impact assessment process, there’s nothing in this budget that will fundamentally change the narrative on business investment that’s been stagnant since 2015.”

Toews says he is concerned with the level of spending and the “lack of fiscal responsibility” in the budget, saying it contributes to the country’s debt levels.

“This is a budget that will encumber Canadians and Albertans with a doubling of debt servicing costs over the course of the fiscal plan,” he said.

“We are disappointed that the federal government did not include a path to balance. This is contrary to their recent claims that the budget would represent a fiscally responsible plan.”

Read More: Feds $491B budget invests in clean electricity, healthcare and expanded dental care

In the House of Commons Tuesday, Conservative Party Leader Pierre Polievre called the budget a “bonanza of $43 million of new inflation, debt, and taxes that will be on the backs of everyday hard-working Canadians.”

He says the federal budget doesn’t meet the Conservative Party’s three conditions for support, which are eliminating inflationary carbon tax deficits, removing “gatekeepers” to help provide affordable homes, and that it “brings home powerful paychecks with lower taxes that reward hard work.”

“None of these … three demands have been met. All that they have delivered is more debt, more inflation, and more costs on the beat on the backs of the hardworking and beleaguered people in this country,” Polievre said.

“That is why conservatives are proud to announce we will be voting against this inflationary spending budget.”

Meanwhile, Federal NDP leader Jagmeet Singh said he and his MPs would vote for the budget.