Updated Federal Budget – Highlights for Consulting Engineers

Given a firm majority in Canada’s House of Commons, the Conservative government could confidently table an updated Budget yesterday.

Entitled, “The Next Phase of Canada’s Economic Action Plan,” the budget “includes all of the measures outlined in the Budget Speech of March 22,” said the Preface, but with some major additions such as the provision of $2.2 billion to support Quebec’s sales tax harmonization, and the phase-out of donations to political parties.

New measures in the updated budget tabled yesterday that affect the business of consulting engineering companies, include the following.  

Infrastructure:

The Updated Budget says that the Next Phase of Canada’s Economic Action Plan builds on infrastructure investments announced under the Building Canada plan and in Budget 2009. New budget measures include:

– A permanent annual investment of $2 billion in the Gas Tax Fund to infrastructure funding for municipalities.

– $228 million over three years for federal bridges in Greater Montréal.

– $148 million over the next five years to maintain bridges, dams and other specialized federal assets managed by Public Works and Government Services Canada across Canada.

– Up to $72 million over three years for repairs to storm-damaged small craft harbours.

– $150 million toward the construction of an all-season road between Inuvik and Tuktoyaktuk that completes the Dempster Highway, connecting Canadians from coast to coast to coast.

Natural resources and environment

– Almost $870 million over two years for Canada’s Clean Air Agenda, including funds to address climate change and support clean energy regulations and energy efficiency.

– $252 million to support regulatory activities to address climate change and air quality.

– $400 million in 2011-12 for the ecoENERGY Retrofit – Homes program to help homeowners make their homes more energy efficient.

– $5.5 million over five years to Parks Canada to establish the Mealy Mountains National Park in Labrador.

– Continuing action to assess, remediate and monitor federal contaminated sites. – Renewing the Chemicals Management Plan with almost $200 million over two years to assess and manage the risk of harmful chemicals.

Business 

– One-time Hiring Credit for Small Business of up to $1,000 against a small firm’s increase in its 2011 Employment Insurance (EI) premiums over those paid in 2010.

– Reducing red tape to lessen the compliance burden on small businesses through the Red Tape Reduction Commission and upgrading the BizPaL service.

– $5.5 million over five years to Parks Canada to establish the Mealy Mountains National Park in Labrador.

– Continuing action to systematically assess, remediate and monitor federal contaminated sites.

– Renewing the Chemicals Management Plan with almost $200 million over two years to assess and manage the risk of harmful chemicals.

– Providing Environment Canada with $27 million over two years to improve Canada’s weather services.

Energy

– Renewed funding of almost $100 million over two years for research, development and demonstrations of clean energy and energy efficiency.

– Expanded eligibility for the accelerated capital cost allowance for clean energy generation equipment.

– $8 million over two years to promote the deployment of clean energy technologies in Aboriginal and Northern communities.

– Aligning deduction rates for intangible capital expenses in oil sands projects with rates in the conventional oil and gas sector.

To see the Budget in Brief, click here.

http://www.budget.gc.ca/2011/glance-apercu/brief-bref-eng.html

For CCE’s coverage of the March 22 Budget, click here.

https://www.canadianconsultingengineer.com/issues/story.aspx?aid=1000406121