Politicians gush, business cautious after federal budget

Manitoba politicians are salivating at the prospect of new spending on roads, sewers, museums and stadiums but at least one business owner believes Ottawa's spending splurge will do nothing to boost consumer confidence.

Manitoba Finance Minister Greg Selinger said that at first blush there was something for everyone in the Harper government's budget.

"We think that waste water and sewers in Winnipeg and in Brandon are important," he said. "We think that highways are important. We think that social housing is very important. We think specific signature projects such as the Canadian Museum for Human Rights should move forward. We can look at the football stadium as another signature project, so we have a number of things on the table that we can move on very quickly."

Manitoba's NDP government has already identified certain priority projects that it plans to cost-share with the federal government, he said.

"There's no question that this budget has put resources on the table that will help stimulate the economy across the country."

No confidence

But small business owner Joe Gupta said he's disappointed since to him it appears the 2009 federal budget will drive the national government deep into debt and will not boost public confidence in the economy.

And he said measures for small business won't make much difference to his Winnipeg-based company, India Spice House, because consumers just aren't spending. Tuesday's federal budget is not going to reverse public worry about the economy or create an environment where consumers will suddenly start spending again, he predicted.

"There's a lot of unemployment," said Gupta. "People are not secure with their jobs and all that. They have a scary feeling and they will buy only what is required."

'Heart of the Continent'

Winnipeg Mayor Sam Katz said he's pleased to see Ottawa will fast-track development of an inland port in the city.

The CentrePort idea is to build on Winnipeg's reputation as an air cargo, rail and trucking transportation hub in the geographic centre of North America. About 20,000 acres of land around Winnipeg's James Richardson International airport would be dedicated to building transport and storage terminals.

Katz says it capitalizes on the city's location at "the heart of the continent."

"There's a lot more discussion to go on," said Katz. "But there's certainly a fantastic opportunity for us."

Katz echoed Selinger's comments — hoping the budget provisions will open the door to construction of a new football stadium for the CFL's Winnipeg Blue Bombers at the University of Manitoba.

The mayor said the city has placed a priority on repairing back lanes, bike paths and roads. But he said Winnipeg has yet to determine how projects will be cost-shared between governments before deciding how to proceed.

Treasury Board President Vic Toews, the federal minister responsible for Manitoba, said upgrading a dangerous stretch of the Trans-Canada Highway through Headingley, just west of Winnipeg, was specifically mentioned in the budget.

And he said the federal share of funding for a new football stadium will be easier to find. "[The stadium is] not specifically mentioned but it certainly makes it much easier for me to come up with $15 million of taxpayers' money," Toews said.