Winnipeg Free Press

Winnipeg Free Press (Newspaper) - February 15, 2014, Winnipeg, Manitoba C M Y K PAGE A15 winnipegfreepress. com BUDGET FALLOUT WINNIPEG FREE PRESS, SATURDAY, FEBRUARY 15, 2014 A 15 WATERFIGHT VIDEO AT - 40 The whole story... AND MORE Use Blippar. There's more to the story above embedded in this page. S HE came to praise federal infrastructure funding but couldn't resist taking a shot at Manitoba's provincial government. Federal Heritage Minister Shelly Glover, Manitoba's senior cabinet minister, spoke at the Manitoba Chambers of Commerce MBiz Breakfast Series Friday at the RBC Convention Centre Winnipeg, where she spoke about the federal $ 14- billion New Building Canada Fund, part of the $ 53- billion New Building Canada Plan. After outlining the fund's mandate to offer provinces, cities and smaller communities access to federal money for infrastructure improvements over the next 10 years, Glover chastised the Selinger government for jumping the gun by announcing plans to dig into the fund before the process for accessing it has been finalized. " And I must say, I have watched, with interest, as the provincial government has recently committed to over a billion dollars, almost $ 1.4 billion in fact, for infrastructure projects throughout Manitoba," Glover told the assembled group of about 111 representatives from the local business community. " It is a little unorthodox to read about hundreds of millions of dollars in expected federal infrastructure investments for projects that have never been raised with either myself nor the federal infrastructure minister. We've never seen requests for assistance, no business plans, no proposals, no numbers other than what is contained in news releases." Glover was likely referring to announcement earlier this week by provincial Infrastructure and Transportation Minister Steve Ashton who said the province, with matching funds from Ottawa, expects to spend $ 213 million improving the Trans- Canada Highway west of Winnipeg to the Saskatchewan boundary. Last December, Premier Greg Selinger announced six other projects costing $ 997 million over five years for which matching funding was anticipated from the federal government from the New Building Canada Fund. " This is not how we do business. We certainly didn't want to pre- empt consideration of projects from across Manitoba by cherry- picking priorities before the new details of New Building Canada Fund had even been announced," Glover said. " We are happy to partner on projects that benefit Manitoba and Manitobans but the New Building Canada Fund is not a blank cheque." Ashton said he was surprised by Glover's comments and said the provincial government was following usual procedure in announcing projects under its capital plan. " In the past, what we've done is what we will be doing in this particular case. See what's eligible and we will file all the applications," he said, noting the $ 250- million pre- commitment for flood- protection money for Lake Manitoba and St. Martin was done the same way. " That's the way you do it. You make the announcement, you do the engineering work, you get the project ready to go and if there is eligibility for federal funding, we've always made it clear we would be applying. If you look at any of our news releases, they were strictly about our provincial commitment," he said. " Our approach is that if there's money available for Manitobans, we want to see it accessed." Local business leaders at the breakfast received a personal assurance from Glover Manitobans will benefit, and soon, from the New Building Canada Fund. Prime Minister Stephen Harper announced Thursday the framework for the fund has been established. Glover said Friday the details of the application process are coming. Provincial highways, major roads and public transit are priorities. Half the funding on total project costs in those areas would come from the federal government. ashley. prest@ freepress. mb. ca - with files from Bruce Owen, Larry Kusch, The Canadian Press OTTAWA - If there's one Canadian who's paying close attention to the fate of the Tory election promise on income splitting, it's Steve Wellburn. Wellburn and his wife Tanya allowed the Conservatives to use their Vancouver Island home - and their family - as a backdrop during an important 2011 federal campaign stop. Neighbours peered out the windows as TV cameras, reporters, political fixers and local candidates descended on the Wellburn backyard to hear about a key plank of Stephen Harper's platform. And the Wellburns were the perfect example of a family that would benefit the most from the plan to allow couples with children to pool and then split their incomes to save at tax time. Steve is a chartered accountant in Victoria, Tanya is a stay- at- home mom with three children. Now that it appears Harper and Finance Minister Jim Flaherty are having serious doubts about the wisdom of the $ 2.5- billion promise, Wellburn is watching closely to see what happens. He - like many in Ottawa - wondered whether Flaherty was just floating a trial balloon when he publicly questioned the advisability of the plan, or actually reflecting a government change of heart. " I think we'd have to see if there was some alternative proposed that would be comparable and similar before we could make any concrete decision how we feel about it," Wellburn said. " If they were just to take it away entirely, I don't think that would be a good policy move for them, just because that was one of their campaign promises." One could argue it was little Fiona Wellburn who was the first to screw up Harper's script on income splitting - long before Employment Minister Jason Kenney or Flaherty sowed confusion this week with conflicting points of view. Back in 2011, the rambunctious twoyear- old bounced up and down stairs and swiped at Harper's legs with stuffed animals while he was trying to explain how the plan would help Canadians. " I've got a couple guys whacking me from behind. They're usually packing a bigger punch but they're usually just as low," he quipped. Fast- forward three years, and the Wellburns have moved to a new house, and are living in Green party Leader Elizabeth May's riding. The Wellburns are not Conservative party members, but Steve says they've been supportive of many of Harper's policies. Still, the Wellburn vote is not necessarily in the bag for Harper in 2015 - and a key might be what becomes of the income- splitting promise. " We certainly would look at the best party platform that we would believe economically is good not only for us but the country as a whole, and thinking long- term for that," Wellburn said. " I think we really would have to see what sort of alternative would be proposed to stand in the place of that income- splitting proposal." That point of view is the kind that worries some Conservative MPs, who say they campaigned hard on the promise and want to stick by it for their supporters. Kenney voiced that concern publicly on Wednesday. Harper and Flaherty will be looking for alternatives that satisfy caucus members that the Steve Wellburns of the world won't drift away come election day. - The Canadian Press OTTAWA - The Conservative government is refusing to talk about three other campaign promises from 2011 that were contingent on a balanced budget, saying it's too early to talk about what they might do with a surplus. Finance Minister Jim Flaherty created a stir this week when he raised doubts about the promise to allow income splitting for couples with children under 18. Prime Minister Stephen Harper, it seems, shares his reservations. But Flaherty and the Prime Minister's Office also won't say what will happen to three other promises that hinged on getting back to black - doubling the contribution limits on taxfree savings accounts from $ 5,000 to $ 10,000, doubling the child fitness tax credit and introducing a tax credit for adult fitness activities. Flaherty was noncommittal when asked specifically about the other promises Friday in Vancouver. " There are going to be choices next year; there is going to be a surplus - it should be a substantial surplus, $ 6 to $ 7 billion - and in addition we have a riskmanagement fund which we maintain every year," Flaherty said. " So there will be surplus funds next year and decisions will be made then." That's a much different response from last fall, when Flaherty's office was asked about the promised $ 500 adult fitness tax credit. It said then that the government was " committed to introducing the adult fitness tax credit once we return to balanced budgets in 2015." Each of the four campaign promises held the same condition: " This measure will be implemented when the federal budget is balanced within our next full term of office." Harper spokesman Jason MacDonald said Friday no discussions have taken place yet about what will be in the 2015, pre- election budget. " We aren't in a position to talk about a surplus - or what we might do with it - that we don't actually have," Mac- Donald said in an email. - The Canadian Press Glover touts infrastructure funding Takes shot at NDP for announcing highway projects By Ashley Prest Tories' income- splitting vow scrutinized By Jennifer Ditchburn Feds mum on plans for future surplus By Jennifer Ditchburn SCAN PAGE TO LEARN IF THERE" S A RIFT BETWEEN KENNEY, FLAHERTY ' If they were just to take it away entirely, I don't think that would be a good policy move for them, just because that was one of their campaign promises' - Steve Wellburn WAYNE GLOWACKI / WINNIPEG FREE PRESS FILES MP Shelly Glover addressed the MBiz Breakfast Series in Winnipeg on Friday. ADRIAN WYLD / THE CANADIAN PRESS FILES During the 2011 election campaign, Stephen Harper announced his yet- to- be- fulfilled income- splitting plan at the Wellman household on Vancouver Island. A_ 15_ Feb- 15- 14_ FP_ 01. indd A15 2/ 14/ 14 9: 34: 59 PM ;