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Alternative federal budget 2009: Beyond the crisis

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Author: 
Canadian Centre for Policy Alternatives
Format: 
Report
Publication Date: 
23 Jan 2009

Excerpts from press release:

The January 27 federal budget will be one of the most important in Canada's history and should meet five key tests, says the Canadian Centre for Policy Alternatives (CCPA).

"Canadians expect a budget that will stave off the worst of the current recession, keep and create jobs, and lay the groundwork for a fairer, greener, and more sustainable economy."

The five tests for next week's federal budget:

1. Help the hundreds of thousands of newly unemployed Canadians by increasing Employment Insurance (EI) benefits from 55% to 60% of insured earnings and extending the period for receiving those benefits to 50 weeks.

2. Support those who need it most, such as unemployed, low-income Canadians and hard hit communities, by making a commitment to reduce poverty in Canada by 25% in the next five years.

3. Implement an ambitious social, physical and green public infrastructure program, creating jobs in both male- and female-dominated professions.

4. Support key value-added sectors with restructuring criteria to ensure they become green and sustainable.

5. Emphasize spending over tax cuts.

Excerpts from Child Care and Early Learning section of the report:

"Canada's reluctance to take responsibility for creating a child care system primarily reflects governments' unshakable belief in market-based solutions despite years of evidence confirming that the market has failed child care."

" Income support is not a replacement for a child care system. Direct cash transfers to families provide no accountability for the quality and affordability of child care services that parents can access with these funds."

"The AFB through the Stimulus Plan will increase CCTB benefits by 8% to an average benefit level of over $3,100/year with a budgetary impact of $612 million in 2009&em;10 and 2010&em;11. The AFB Stimulus Plan would increase NCB support by 15% increasing the average benefit level to $1,800/year over and above the CCTB increase"

"In order to achieve the long-term goals for child care, the AFB will increase annual direct operating funding for ELCC to $5 billion by 2012&em; 13 which, with a capital plan that makes use of existing community infrastructure, will mean all children aged three to five should have access to a quality child care space in their community."

"Some will say that Canada cannot afford to invest in child care in these uncertain economic times. Nothing could be further from the truth. Child care services are an essential part of every community's economic and social infrastructure."

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