Ottawa snubs Ring of Fire in spending blueprint

First Nations and long neglected federal services like Via Rail and national parks were among the winners Tuesday in the new Liberal government’s first budget, but other specific Northern interests like FedNor and Ring of Fire infrastructure didn’t make the cut.

Nishnawbe Aski Nation Grand Chief Alvin Fiddler called the $8.4 billion earmarked over five years for the needs of aboriginals “a good start.”

The money, which the government called “unprecedented,” is aimed at a long list of urgent concerns, including inadequate housing on remote reserves, a shortage of proper schools and waste management services.

The budget document says the financial investment intends to “lay the foundation for growth in Indigenous communities (which) will benefit the broader Canadian economy.”

The document noted only 38 per cent of First Nation people aged 18-24 living on reserves have completed high school, compared to 87 per cent for non-Indigenous Canadians.

Fiddler also praised the government for keeping its commitment to an inquiry into murdered and missing aboriginal women and girls by pledging $40 million over two years.

NDP MP Charlie Angus said the budget’s failure to reference FedNor and the Ring of Fire was “shocking.”

Angus (Timmins-James Bay) said the Liberals could have at least mentioned some money for Ring of Fire roads on the condition that mining companies be willing to follow through with private investments.

“Perhaps when we drill down into spending on aboriginal infrastructure we’ll see some roads to resources (in the Ring of Fire), but on the surface I don’t see it,” said Thunder Bay Mayor Keith Hobbs.

Though there was no mention of FedNor, the government did announce $40 million for a Canadian Northern Economic Development Agency.

There was also $500 million for expanding high-speed Internet in rural areas, and $87 million allocated for research in the mining and forestry sectors.

As well, the government pledged $142 million for national parks, many of which endured budget cuts under the former Harper government, including Pukaskwa National Park near Marathon.

The budget also promised to maintain a 15 per cent tax cut for mining exploration investments for at least another year, while noting the move will cost the government $20 million in lost revenue.

Via Rail, the government said, would benefit from a $34-million upgrade to rail stations and other related infrastructure, plus $7.7 million for studies to explore the best ways to overhaul the rail service’s aging fleet.

But there was no mention about restoring passenger service along Lake Superior’s north shore. Via transported 3.8 million passengers last year, but 90 per cent of those travelled between Windsor, Ont. and Quebec City, the document noted.

Some economists said they were worried that under the Liberal plan to a run a prolonged deficit, the country’s debt is set to balloon to a whopping $732 billion over the next four years.

A “commitment to fiscal responsibility is eroded in this budget by the failure to set any plan to balance the budget,” said Lakehead University Prof. Livio Di Matteo.

Di Matteo said by running large deficits and debt, the federal budget mirrors the approach taken by the Ontario Liberals.

That, he said, “has yet to successfully move Ontario out of its economic malaise and has resulted in Ontario becoming the most indebted province in the country, and indeed one of the most indebted sub-national jurisdictions in the world.”