Budget 2017: What's in it for Ottawa-Gatineau
The 2017 federal budget introduces a number of measures that apply to all Canadians, such as money for retraining in technology jobs or allowing new parents to stretch out their parental leave over 18 months.
But some budget items will have a particular resonance for people here in Ottawa and the National Capital Region. Here are seven items worth noting:
LRT mentioned, but no specific funding
The budget earmarks money to support "the next phase of ambitious public transit projects," and mentions, as an example, Stage 2 of Ottawa's Light Rail Transit project.
But whether the city will get the $1.2 billion it's asking for isn't clear.
The budget allocates $20.1 billion over 11 years through agreements with the provinces and territories for ambitious public transit projects. But only about $3.9 billion of that funding is set to be spent over the next five years. Ottawa is in competition with municipalities across the country for those dollars.
Elimination of public transit tax credit
Commuters who claim their OC Transpo pass as a tax credit won't be able to do so after June 30.
The government said the Public Transit Tax Credit was "ineffective in encouraging the use of public transit and reducing greenhouse gas emissions."
In practical terms, that means a rider who paid $113 a month for a yearly bus pass will be losing a tax credit worth about $203 a year.
Free ride over for Uber
For customers of companies like Uber, expect to see about 13 per cent extra on your bill, starting on July 1.
That's because the budget is proposing to amend the definition of a taxi business to require ride-hailing services such as Uber to follow the same rules for charging GST/HST as other taxi operators.
So Uber drivers will have to register for the GST/HST and charge it on top of their fares.
National Housing Strategy
The federal government is taking a leadership role when it comes to spending on social housing and homelessness initiatives, and is taking greater control of the purse strings.
Mayors from Canada's big cities, including Ottawa, wanted the federal government to set aside $12.6 billion for social housing. The 2017 budget gets close, providing about $11.2 billion over 11 years for various housing measures, including:
- $5 billion for a National Housing Fund run by the Canadian Mortgage and Housing Corporation
- $3.17 billion to provinces and territories for everything from building new units to fixing existing ones, and offering rent subsidies.
- $2.1 billion for homelessness, and helping people get help for mental health issues and addictions.
Turning old federal buildings into social housing
As part of the new national housing strategy, the federal government is proposing to spend $202 million over 11 years to make surplus federal lands and buildings available to housing providers at low or no cost to develop affordable housing.
This also includes a new plan beginning next year to provide money for environmental remediation, renovations or retrofits to make the buildings suitable as housing.
In cities with a disproportionate number federal buildings, such as Ottawa, the money allocated, while small, may have a bigger impact.
Naloxone tax exemption
The drug naloxone has become a subject of national and local interest here in the National Capital Region, given its use in treating opioid overdoses.
When it was available for prescription, it was eligible for GST/HST relief, but when the government removed the requirement for a prescription to make it more widely available the drug became taxable.
The budget fixes that, restoring its exemption from GST/HST by adding naloxone to the list of drugs that are used to treat life-threatening conditions.
More money for innovation
Imbedded throughout the federal budget is more money to spur innovative technologies, and much of that money is making its way either to or through federal departments, many of which are located in the National Capital Region.
For example, as part of the budget's clean energy plan, it's giving Natural Resources Canada and Transport Canada $229 million over the next four years to continue research and development activities in clean energy and clean transportation innovation.
The budget is also aiming to get more small and medium-sized companies to bid on government contracts, a move that could be a boon for local businesses.
It calls for the creation of an Innovative Solutions Canada fund to spend up to $50 million of procurement funding for departments to try innovative solutions from small and medium-sized companies.
