Nova Scotia Premier Stephen McNeil says he’s happy to see infrastructure money for water and transit in the province announced in the federal budget brought down Tuesday.
McNeil says he’s optimistic, though details about how the money will be divided between provinces is still unclear. The added infrastrucure money is an “opportunity” to boost Nova Scotia’s economy he said.
The infrastructure money is not “spending for the sake of spending,” he said. Its for projects that need work like ageing water mains.
READ MORE: Federal budget 2016: Liberal government projects $29.4B deficit
Missing from the budget is any mention of federal money to help build a new hospital at the Victoria General site in Halifax. McNeil said he doesn’t know if that means Ottawa won’t help pay for a much-needed replacement hospital.
Either way though, he said the rebuild will go ahead.
Budget raises questions about shipbuilding project
The premier also said he isn’t concerned about the decision to push back spending on the national shipbuilding program, adding that in future spending years, more money for the shipbuilding project is expected.
“It’s a clear indication that of their commitment to ensuring that that contract is fulfilled.”
The promised re-equipping of the Canadian military has essentially been postponed until after the next election by a federal Liberal budget that shifts billions of dollars in capital spending to 2020 – or later.
READ MORE: Federal budget 2016: Liberals indefinitely delay $3.7 billion in defence spending
The new fiscal plan delays $3.7 billion in planned defence purchases – ships, planes and vehicles – indefinitely, but Finance Minister Bill Morneau insists it’s not a cut to military funding, which the Liberals promised to maintain during the last election.
Health transfers to the provinces “unfair”
A long-standing thorny issue remains between Nova Scotia and the federal government — the way health transfers to provinces are calculated didn’t change in the 2016 budget.
McNeil said the calculation is “unfair” to provinces with older demographics, because the transfer is based on population size and doesn’t take demographics into account. He said his government continues to make the case for a change in how the health transfer is calculated or for a separate fund to be set up for provinces with more seniors.
In 2011, then-Finance Minister Jim Flaherty announced the new calculation, it benefited provinces like Alberta the most.
–With files from the Canadian Press
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