Winnipeg Free Press

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The sources say there is new uncertainty about the political and policy wisdom of the measure. Work is being done to see if there is a better option for helping reduce the tax burden on families and attract a wider swath of voters. Increasing the Universal Child Care Benefit that gives parents $ 100 per month per child under six was one point of speculation. " Of course, everything is set for the next budget. The 2014 budget is the setup for 2015, so I think it's impossible for anyone to think that income- splitting was not discussed at that time or that Jim would be freelancing or going on his own on something like this," one senior Conservative said. Harper has taken pains not to specifically commit to income- splitting when asked about it directly, referring instead to general tax relief for families. " Once we get a balanced budget and once we get a surplus, we can have obviously the discussion about what we do next," Harper told reporters at an infrastructure announcement in Gormley, Ont., on Thursday. " But we're very clear we've made some commitments, and reducing taxes for Canadian families will be among our highest priorities as we move forward." This is not the first time Flaherty has had to break the news of a policy reversal. In 2006, he backtracked on a promise not to tax income trusts when more and more companies were taking advantage of the lucrative structure. But things are much more complicated this time. When Employment Minister Jason Kenney emerged from a Wednesday caucus meeting to say he stood behind the campaign promise, he was reflecting a widely held feeling among MPs. " The promise is there, we all ran on that promise, that's the expectation that is out there," said one longtime Conservative MP who spoke on condition of anonymity. Some MPs feel income- splitting for families might not be dead but could be altered from the format proposed in the campaign. " A lot of my colleagues ran on that plank in the policy platform, and they would expect reasonable discussion and input before anything's finalized," another veteran MP said. Liberal Leader Justin Trudeau said the income- splitting issue is evidence the Tories care more about good politics than good policy. " The way that I'm building the platform for the Liberal party over the coming year- and- ahalf, we're very much thinking about how we implement ( policies) and not just whether or not they're salable politically," said Trudeau. - The Canadian Press G ORMLEY, Ont. - Prime Minister Stephen Harper lifted the veil Thursday on a $ 14- billion infrastructure fund that will offer provinces, cities and smaller communities access to eagerly anticipated federal money over the next 10 years. The New Building Canada Fund, first announced in last year's federal budget, will be available starting this spring. It is part of the larger $ 53- billion New Building Canada Plan, which also includes a gas tax fund and a funding model for publicprivate partnerships. " Provinces, territories and municipalities will now have unprecedented access to predictable, sustainable federal infrastructure funds for a decade," Harper said in a visit in the community of Gormley, Ont., north of Toronto. " This will allow those whose job it is to make infrastructure decisions to plan those decisions with assurance over the long term." Harper said his government has established a framework for the fund, which details how much money the government will give out and what kinds of projects it will invest in. The federal infrastructure minister will now work with provinces, territories and municipalities to " seek input on outstanding parameters" such as the application process for the fund. The Federation of Canadian Municipalities greeted Harper's announcement with muted enthusiasm and said many questions remained about how the fund would be used to meet local needs. " Municipalities own a significant majority of public infrastructure, and for a fund that will span the next decade, we must be sure that it is used accordingly," federation president Claude Dauphin said. Dauphin said there were concerns the fund's rules could force municipalities to carry a larger share of infrastructure costs in the future and that local roads might not be eligible for cash under the fund's framework. The New Building Canada Fund takes over from a similar fund that expires this spring. Documents on the fund's details said $ 4 billion is being set aside for projects of " national significance" that are a federal priority. The fund's remaining $ 10 billion has been dedicated to infrastructure and community projects in the provinces and territories, with $ 1 billion of that earmarked for communities with populations under 100,000. Provincial highways, major roads and public transit were highlighted as priorities, with Ottawa promising to contribute up to half of total project costs. For most other projects, the federal government will pitch in one- third of the cost. When a project involves the for- profit private sector, the maximum federal contribution under the fund will be 25 per cent. The same amount will apply to projects that are public- private partnerships. Projects with a capital cost of more than $ 100 million will be screened when they apply to the fund to see if they might be appropriate for public- private partnerships, of which Harper said he wanted to see more. The New Democrats called Harper's announcement a " recycling announcement from last year." " There's really no new funding per se," said NDP infrastructure critic Olivia Chow. Under the fund, each province and territory will receive $ 250 million plus a per capita amount over 10 years that is calculated on the 2011 census. The funding framework means there will be a reduction in the annual average funding for most provinces and territories, as they will be getting their cash over 10 years rather than the seven- year spread of the fund's predecessor. But the government said when a gas tax fund is factored in, the total annual funding will be " very similar" to what each province and territory is used to receiving. - The Canadian Press SCAN TO SEE VIDEO Tories revise income- splitting vow Crafting compromise to keep faithful happy yet lure voters By Jennifer Ditchburn PM touts $ 14- B fund for public works plans Federal 10- year program sets out kinds of projects it will invest in GALIT RODAN / THE CANADIAN PRESS Prime Minister Stephen Harper outlines the federal government's New Building Canada Fund on Thursday. By Diana Mehta ' There's really no new funding per se' - NDP infrastructure critic Olivia Chow A_ 17_ Feb- 14- 14_ FP_ 01. indd A13 2/ 13/ 14 10: 17: 21 PM ;