Local leaders, pundits say cuts will hurt Atlantic Canada
Posted Mar 30, 2012 05:35:29 AM.
This article is more than 5 years old.
Sweeping job cuts in the public sector and changes to Old Age Security are the two biggest concerns for Nova Scotians following the release of the federal Conservative 2012 budget.
The budget will eliminate 19,200 civil servant jobs by 2015, 2,300 of which are estimated to be in Atlantic Canada, according to a report from the Atlantic Provinces Economic Council (APEC).
“What matters is these are huge cuts and they were unnecessary,” said Christine Saulnier, director for the Nova Scotia Canadian Centre for Policy Alternatives. “When we do the analysis of where we are at in terms of debt and deficit, there is no crisis. There was no need to do this kind of cutting.”
The budget projects a $25 billion deficit for 2011-12, $6 billion better than in the fall economic update. More than $5 billion in spending will be cut by 2015 – and the APEC reports that will be achieved, in part, by job cuts in the public sector.
The president of Canadian Employment and Immigration Union Local 80217 said last year’s cuts lead to the closure of more than 100 Service Canada offices. Mike Duhamel says the additional $180 million in funding cuts included in the latest fiscal plan will likely affect front end services.
“What that means to the Canadian public, though, is more passport delays, more pension delays, more EI delays,” said Mike Duhamel. “More delays in these areas are going to be ridiculous and they are going to hurt the Canadian public.”
APEC notes the pending federal spending cuts could hit several key sectors in Atlantic Canada.
Atlantic Canada employs about 20 per cent of Department of Defence non-civilian employees, but could be hit hard by spending cust of $1.1 billion by 2014-15.
Spending to ACOA will be cut by nearly $18 million, Marine Atlantic by $11 million, Veterans Affairs by $67 million and the Department of Fisheries and Oceans by $79 million by 2014-15.
Nova Scotia, with an aging population, will also be significantly affected by changes to Old Age Security and the Guaranteed Income Supplement.
The age of eligibility will be raised from 65 to 67 by 2023.
The Public Service Alliance of Canada’s Atlantic director spoke sarcastically about the changes at the Italian Club following the tabling of the budget.
“The made changes to the Old Age Security after they said they would not make changes,” said Lori Walton. “But it’s okay because it won’t affect those who are close to retirement age now. Let’s leave the headaches for future governments and future generations to worry about when they hit that age and will be living in poverty.”
Anyone currently 54 years of age or older will still be able to retire at age 65.
Without the changes, the annual cost of OAS was projected to increase from $38 billion in 2011 to $108 billion in 2030. APEC reports Atlantic Canada receives about 8.5 per cent of OAS payments because of its large share of seniors age 65 and over.
