Red Deer Chamber concerned with growing debt in federal budget

Some fiscal highlights from the federal budget include:

$40.1 billion projected federal deficit for the coming fiscal year
$59.5 billion in new spending over the next five years, with $8.3 billion to be spent over the coming fiscal year
$83 billion is the expected cost of tax credits for clean energy and electricity through to the 2034-35 fiscal year

With an accelerating transition to a net-zero, clean energy-based economy, Robinson feels central Alberta is well-equipped to adjust and move forward.

“We are learning more recently of the opportunities for lithium mining in this area due to our geology, and then of course the oil and gas industry and lithium mining through traditional oil deposits,” adds Robinson. “That’s really an interesting development that could turn into a very big play for central Alberta over time. Then there’s some work being done on the hydrogen front. There’s going to be a need for some hydrogen refueling stations, and then east central Alberta is a big part of that carbon sequestration trunk line that the Alberta government is investing in, so those are all things that will benefit our region with jobs and opportunities and spinoffs from that.”

Elsewhere on the business front, the budget reveals the federal government will be lowering credit card transaction fees for small businesses. Robinson acknowledges every little bit helps.

“From what we saw yesterday, that was probably the one thing that would help small business a little bit and not passing on those fees to the business owners which is very important at this time, especially when we’re still battling inflation and labour costs and those types of things right now,” he points out.

Robinson concludes, however, the Chamber is concerned with what he describes as the lack of a long-term plan for growth and productivity.

“We, fortunately in Alberta, will probably be the least affected by an impending recession that is expected to come in the second and third quarter of this year,” says Robinson. “We’re lucky here because we have so much industry that’s in demand. But they’re [the federal government] running out of options with the amount of debt they have. They’re going to have to get that under control at some point.”

by Sheldon Spackman

Red Deer Chamber concerned with growing debt in federal budget

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