OTTAWA - On May 9, the Certified General Accountants Association of Canada (CGA-Canada) filed an Application for Judicial Review with the Ontario Superior Court of Justice to address longstanding concerns regarding the structure and processes of the Canadian Public Accountability Board (CPAB).

"CPAB - the body set up by governments and securities regulators to oversee the auditing of reporting issuers in Canada - is fundamentally flawed," said Dany Girard, FCGA, Chair of CGA-Canada's Board of Directors. "Because of CPAB's close relationship to the profession it oversees, CGA-Canada believes that CPAB is unable to make independent decisions and lacks the procedural safeguards necessary to protect against institutional bias."

"Until recently, we believed that CPAB would effect the changes in its structure and processes to begin addressing concerns that we and others have expressed since its creation in 2002. We have been patient. But recent actions clearly demonstrate that CPAB does not have the public interest at the centre of its preoccupations," said Girard.

The decision to challenge the work and composition of CPAB comes after months of discussion and ongoing consultation with CPAB in regards to CGA-Canada's independence standard. As a result of corporate malfeasance, accounting organizations across the world developed a new type of standard -- independence standards - to address the public's concerns that accounting firms be independent in both appearance and fact, and that they be able to conduct engagements and provide an audit opinion free from client influence or other conflicts of interest.

Despite ongoing collaboration with CPAB and CPAB's acknowledgement that the CGA independence standard is equivalent to the one CPAB has already recognized, CPAB has deferred its approval of the CGA independence standard and has not given effect to the required rule change.

"By virtue of legislation, CGA-Canada has the responsibility to set standards for its members," explained Girard. "Our provincial and territorial affiliates have the obligation to enforce standards. Our members are required to adhere to those professional standards. This is a matter of public interest. We would be shying away from our professional responsibilities by simply adopting other standards. CPAB actions have in effect interfered with our professional obligation to our members and the public."

<< The legal action undertaken by CGA-Canada seeks to have the Court rule that:

- CPAB is a public body and its composition must be representative of all accounting organizations who are affected by its decision-making;

- CPAB must discharge its mandate in accordance with the principles of natural justice and fairness;

- The decision to defer a rule change proposed to recognize the CGA independence standard is unreasonable because it discriminates against CGAs and is made in bad faith for reasons that are not in the public interest.

Ever since the creation of CPAB in 2002, CGA-Canada has maintained that in order to fulfill its mandate, the oversight body requires:

- A fully transparent process for deliberations and decisions;

- Procedural safeguards to ensure an arms-length relationship between the CPAB board and the accounting/auditing profession itself;

- Broad representation on the CPAB board;

- Broadly-based funding; and

- Legislative accountability.


"Canadian governments believe that it is in the best interests of the public to have multiple accounting designations in the marketplace. They have adopted legislation to enact this. Therefore, the accounting profession in Canada exists as a multi-jurisdictional landscape. CGAs have worked collaboratively with CPAB since it was formed in 2002. Despite this, CPAB has failed to recognize the jurisdiction of all accounting bodies to undertake professional standard setting as set out by Canadian legislation. We would be failing in our responsibility to the public if we don't act," concluded Girard.

GUELPH, ON - Ontario's livestock farmers applaud Prime Minister Harper's government for its financial commitment to agriculture, delivered in last week's federal budget. The Ontario Cattlemen's Association (OCA), Ontario Cattle Feeders' Association (OCFA), Ontario Pork (OP), Ontario Sheep Marketing Agency (OSMA), and the Ontario Veal Association (OVA) want to ensure that farmers are aware of and appreciate the financial contribution which the federal government has just made to Ontario's livestock farmers in the federal budget.

On Tuesday May 2nd, The Honourable Jim Flaherty, Minister of Finance, announced an additional $1 billion in "new" money for agriculture. The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food, had already initiated discussions with the provinces to overhaul the Canadian Agricultural Income Stabilization (CAIS) program.

"Prime Minister Harper and the federal government should be applauded and recognized for moving so quickly," says OCA President, Ian McKillop. "The province's beef farmers are pleased that the government is retroactively changing the inventory valuation used in the CAIS program." Curtis Royal, OCFA President also agrees that "this is exactly the kind of approach we have been asking for."

The Budget included commitments to agriculture in the following areas:

- providing more responsive income stabilization

- creating new and innovative support for farm family incomes

- enhancing disaster assistance and separating it from income stabilization; and

- investing in future opportunities in the sectors, such as: biomass science; support for a biofuels strategy; and new opportunities for agriculture through value-added products

"At a time when Stephen Harper's government has so many 'spending priorities', an investment in rural Canada is a very wise move for this new Cabinet," comments John Hemsted, Chair of OSMA.

"We look forward to working with both the federal and the provincial governments in their efforts to support and sustain integrated and vital agriculture industries. This budget is a great first step," adds Judy Dirksen, OVA Chair.

Livestock farmers have been pleasantly surprised by the government's readiness to listen and respond in such a short period of time.

"The signal that this government is sending to farmers is that it is ready to help and willing to listen," says Curtiss Littlejohn, Chair of Ontario Pork. "Ontario's 35,000 livestock farmers wish to thank Ministers Strahl and Flaherty, and indeed all of those federal and provincial members of parliament who recognize the importance of supporting agriculture."

The Nova Scotia NDP resolution parallels wording in an April CAW Council resolution that facilitated withdrawal of the CAW from the NDP. A clause in the CAW resolution reads, "Urge the federal party and provincial and territorial party organizations to . . . amend NDP constitutions to accept and respect that labour leaders and others will act in accordance with the democratic decisions made by their unions or organizations."

The Ontario arm of the party expelled CAW president Buzz Hargrove for carrying out the federal election strategy adopted by 900 workplace leaders at the CAW Council meeting in December.

The CAW's federal election strategy called on CAW members to stop a Stephen Harper majority government by supporting the candidate in their riding who had the best chance to defeat the Conservative candidate.

"The Nova Scotia resolution is a first step in the process of change that is needed in the NDP," said CAW president Buzz Hargrove. "The NDP must respect that for labour leaders, the needs of our members and decisions made by our union must come first."

The Nova Scotia NDP resolution includes the following key points: "That the Nova Scotia NDP recognizes that each affiliated labour organization exercises its own best judgement through their own internal democratic process to advance the interests of its members in public affairs as well as in collective bargaining, social justice, political action and other responsibilities - without interference from the NDP.

That this Convention urges Party representatives and affiliated labour organizations to continue the relationship of mutual respect, good communication and cooperation on our shared goal of a better life for working families in Nova Scotia, based on the legitimate independent roles of both the Party and its affiliated organizations.

That the Nova Scotia NDP recognizes and accepts that labour leadership who are also NDP members may, in carrying out the democratically decided positions of their membership, at times be in conflict with NDP objectives and strategic direction."

The CAW Council is the parliament of the 265,000 member CAW. CAW Council meets three times a year. Delegates to CAW Council meetings are elected by their co-workers.

Harper's First Budget "Leaves More Questions Than Answers," Bountrogianni Says

TORONTO - The federal government has presented a budget that raises more questions than answers in meeting Ontario's priorities and addressing the fiscal imbalance, says Dr. Marie Bountrogianni, Minister of Intergovernmental Affairs.

"The federal government has recognized the fiscal imbalance for the first time, but it missed the opportunity to act on the fiscal imbalance today. We will continue to make our case to the federal government for fair treatment for Ontarians," Bountrogianni said.

While the federal government made investments in transit, Ontario is disappointed that there was no specific mention of funding for GTA rapid transit projects. A number of other important areas, such as manufacturing and forestry, lack specific answers for Ontarians.

"This is the beginning of a process, not the end," Bountrogianni said. "We look forward to moving ahead from here in building a more productive working relationship with Ottawa."

TORONTO - The Harper government's first federal budget provides more questions than answers about its impact on services to Canadians, according to the Public Service Alliance of Canada.

In its pre-budget submission, PSAC had argued that demands for public services are growing as the population ages and as more and more people locate to larger cities and communities. The union urged the government to reconsider premature tax cuts.

"In addition to tax cuts, particularly the many corporate tax cuts contained in the budget, the Conservatives are slowing government spending at a time when the economy is growing," says PSAC National President Nycole Turmel. "They're also instituting another round of expenditure review, cutting $1-billion in each of the next two fiscal years."

"If the government is planning to institute these cuts in addition to Liberals' five-year expenditure reduction plan, there will be a serious impact on the provision of federal public services in more areas," says Turmel.

Instead of taking advantage of the growing economy to spend tax dollars investing in public infrastructure, child care and other programs Canadians say they want, the Conservatives are unnecessarily speeding up the federal debt reduction plan.

Working parents who had hoped that the Conservatives would reconsider their position on the creation of new child care spaces will find little relief in this budget. "The government is offering only $250 million to create new spaces, fully $4.75 billion less than the previous government had negotiated with the provinces," says Turmel.

If there is any good news for PSAC members in the budget, it is that the government is planning on spending $101 million over the next two years to eliminate work-alone posts and begin arming border officers. According to Turmel, "these are health and safety issues that the union has been pursuing through successive governments."

"Our pre-budget submission also urged the government to ensure adequate staffing. Any cuts will have the opposite effect, increasing workloads and negatively affecting the delivery of services and our members' health and safety."

Turmel is putting the government on notice that the union expects to meet with the President of the Treasury Board as soon as possible to find out more about which programs will be affected by government cuts and what impact these cuts will have on service to Canadians.

OTTAWA - Canada's real estate industry says the tax cuts outlined in the 2006 Federal Budget will ease the tax burden on individual Canadians, and reduce some costs associated with buying and owning a home.

"These tax cuts will put money back in the pockets of Canadian families and will help increase consumer confidence about making big ticket purchases, such as buying, furnishing, or renovating a home," says Pierre Beauchamp, Chief Executive Officer of The Canadian Real Estate Association.

"The reduction in the GST rate to six per cent will reduce the costs associated with buying or selling a home, and will help to make ownership more affordable," adds Beauchamp. The GST is charged on professional services used by consumers during the course of a housing transaction - including fees paid to lawyers, appraisers, home inspectors and REALTORS(R). The tax is also charged on moving costs, renovations, and the purchase of furniture and major appliances.

The GST is also paid on new homes, and the amount new home buyers will save with the reduction is significant. The one per cent reduction in the GST rate will save a homeowner $1,280 on a new home priced at $200,000 when the exisiting GST New Housing Rebate is also included.

The timing of the GST cut, scheduled for July 1, 2006, is not expected to have any short-term impact on the housing market. "The GST cut will apply to contracts signed after May 2nd," Pierre Beauchamp says, "and there is always a cycle in a real estate transaction, and many buyers who sign after May 2nd would not plan to take posession until after July 1st anyway."

The reduction will also benefit anyone who buys or leases commercial property - particularly for businesses that do not collect the GST, as the tax is a direct cost. The Chair of the National Commercial Council of The Canadian Real Estate Association, Winnipeg REALTOR(R) Mark Thiessen, explains that, "when the GST was introduced, it immediately added seven per cent to the costs of occupancy of leased premises. It also added seven per cent to the purchase price of commercial real estate, or value proportion thereof for commercial and residential mixed properties."

"This is extremely important to note for businesses that do not collect GST, as this is a direct cost," Thiessen adds.

The Federal Budget also announced $1.4 billion to address the needs for affordable and native housing, two REALTOR(R) issues of high priority. These issues are addressed in four different areas of the budget, including creation of three third-party trusts. One trust fund provides $300 million for northern housing; another trust provides another $300 million for off-reserve aboriginal housing. The largest third-party trust fund will allocate $800 million as a one-time investment for provinces and territories to use for affordable housing.

Few details on how the fund will operate were included in Budget documents, and REALTORS(R) will be watching the implementation of the fund closely to see how the money will be used. "Building new housing units is one solution to the affordable housing needs of Canadians, but is not necessarily the best solution. Housing needs are complex, and there are a number of factors that need to be considered, including the ways we can use existing housing stock to meet the needs of most Canadians," says Beauchamp.

The Canadian Real Estate Association has encouraged the development of a comprehensive national housing strategy for several years. REALTORS(R) have recommended measures to address tax and regulatory barriers that impact the affordability of housing, and have voiced their support for long-term, stable funding for the Residential Rehabilitation Assistance Program. REALTORS(R) have also supported the development of a national demonstration project to help low-income earners access homeownership.

TORONTO - Ontario's municipal governments see promise in the Harper Government's first Budget. The Budget includes a commitment to work with provinces and territories over the next year on the fiscal imbalance. It also fulfills commitments to a total of $7.1 billion in federal funding support for municipal infrastructure over the next 4 years.

The Current fiscal imbalance undermines Ontario's competitiveness and undermines the fiscal sustainability of Ontario's communities. The Budget holds out a promise of dealing with the Federal-Provincial fiscal gap through further discussion over the next year. Any advances for Ontario would allow the Government of Ontario to meet its commitment to upload provincial health and social services costs from municipalities and property tax payers.

"Municipal Governments in Ontario welcome the Prime Minister's commitment to addressing the fiscal imbalance in this country, " said AMO President Roger Anderson. "However, Ontario's property tax payers cannot afford to wait another year to see progress in the $3 billion gap between municipalities and the Province.

Today's federal Budget also recognizes an important role for the Government of Canada in helping municipalities deal with Canada's growing municipal infrastructure deficit. It commits to implementing promised federal infrastructure funding including an additional $351.5 million funding for public transit capital in Ontario and $312.3 million for affordable housing in Ontario in the form of trust funds.

"This Budget demonstrates that municipal infrastructure is a responsibility shared by all three orders of government," said Anderson. "It also demonstrates that municipal infrastructure is a critical component of the nation's economic well being."

As predicted, the Budget withdraws federal support for 11,000 child care spaces in Ontario, undermining the success of Ontario's Best Start Program.

AMO is a non-profit organization representing almost all of Ontario's 445 municipal governments. AMO supports and enhances strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario and Canada's political system.

OTTAWA - The Federal Budget contains nothing for child care today and no plan for tomorrow, says the Child Care Advocacy Association of Canada (CCAAC).

Families that can't find child care now are going to find the search harder. Some children may lose the early learning and child care they have and parents will find paying for child care just as difficult.

"This government doesn't understand the benefits of early learning and child care or how to develop it," charged the CCAAC's co-chair Debra Mayer of Winnipeg. "An allowance to parents is not an early learning program for children."

In canceling the child care agreements with the provinces, the Harper government took $3.6-billion away from Canadian communities, Mayer said. This funding was to expand early learning and child care options for over 100,000 families; improve access, particularly for low income and rural families and for children with special needs; and enhance intervention services for children at-risk. It was particular vicious of this government to single out aboriginal children for a $25-million cut.

"The Harper allowance can't begin to replace what children lost in this Budget," says Jody Dallaire, the CCAAC's New Brunswick representative. "This government has failed children, but it has also denied parents the option to participate in the workforce knowing their children are safe and thriving. It has denied Canadians a solution to a shrinking workforce which is threatening the health of our economy."

The Association finds it ironic that a government that has made accountability a priority would cut mechanisms to provide accountability for early learning and child care. "The government can try to erase public dialogue by attacking research and information sharing," charged the CCAAC's executive director Monica Lysack. "However, there is no denying the vast majority of Canadians believe a national child care system is vital for Canada."

Lysack predicts that child care will continue to dog the Harper Tories. "The opposition parties, most provincial premiers, but more importantly, parents of young children recognize early learning and child care is essential for a healthy productive society. They will continue to remind the government of this. "

NIPISSING FIRST NATION - First Nations had been expecting some key financial deliverables arising from the November First Ministers' Meeting including financial commitments to address the elimination of poverty, aboriginal health care, drinking water quality and substandard infrastructure, and housing.

"This budget is a far cry from what was committed by the First Ministers," said Grand Council Chief Beaucage. "Once again, we've been left out in the cold. Like the proverbial poor person looking in through a frosted window watching somebody having a real nice dinner in a fancy restaurant."

"Addressing poverty and improving the living conditions of First Nations people is arguably the most pressing social issue in Canada today," said Beaucage. "Unfortunately, the government is laying only a patchwork foundation to Stephen Harper's aboriginal agenda."

"This budget will mean First Nations will continue to be marginalized and subject to third world poverty," he said.

Beaucage expressed disappointment in the $450 million "new approach" plan to improve education outcomes, socio-economic conditions for aboriginal women, children and families and water supply and housing on-reserve.

Beaucage was particularly critical with the lack of any fundamental investment for on-reserve housing. First Nations have long maintained there is a significant shortage of housing in First Nations' communities across Canada. Needs estimates range from 35,000 to 85,000 new units.

In this budget, the government committed up to $300 million to address immediate pressures in off-reserve Aboriginal housing.

"I acknowledge the government's attempt toward addressing housing especially off-reserve and in urban centers. It may not be what was committed by the First Ministers but it's a start," said Grand Council Chief Beaucage, who holds the National Portfolio for Housing at the Assembly of First Nations and the Ontario First Nations portfolio for Housing at the Chiefs of Ontario.

These funds, however, will be allocated to the Provinces "The Government of Ontario must now begin working with our First Nations governments in addressing off-reserve and urban housing," said Beaucage. The Grand Council Chief looks forward to working with The Hon. David Ramsay, Minister Responsible for Aboriginal Affairs and The Hon. John Gerretsen, Minister of Municipal Affairs and Housing to implement a constructive approach to implementing this new funding commitment for housing.

"Despite our disappointment, we are very willing to work with this government and the Province of Ontario to address our immediate housing needs and demonstrate that our vision of housing can work," he said Despite this overall disappointment, Beaucage expressed pleasure in the $2.2 billion commitment to address the legacy of residential schools.

"I am excited to see the Harper government honour the agreement to compensate residential school survivors," said Beaucage. "Our elders have fought their entire lives, have sacrificed so much in addressing this tragic part of Canadian history. I now look forward to the establishment of a truth and reconciliation commission that will educate all Canadians about Residential Schools and how it has affected all First Nations society."

The Anishinabek Nation incorporated the Union of Ontario Indians as its secretariat in 1949. The UOI is a political advocate for 42 member First Nations across Ontario. The UOI is the oldest political organization in Ontario and can trace its roots back to the Confederacy of Three Fires, which existed long before European contact.

OTTAWA - Canada's national voice for the conservation of historic places expressed disappointment that the federal government has yet again missed an opportunity to encourage investment in Canadian communities. For decades, the Heritage Canada Foundation and its partners in architecture, urban planning and municipal affairs have asked for changes to the federal tax system that would encourage Canadians to rehabilitate deteriorating heritage buildings.

According to Natalie Bull, executive director of the foundation, "For several decades, many municipalities and provinces have offered tax-based incentives - it is high time the federal government stepped up." She added, "Rehabilitated historic buildings and districts are known to generate tourism dollars and new jobs. Projects like the Distillery District in Toronto and the Lougheed Building in Calgary enhance our communities instead of sending building material to the landfill."

In the United States, approximately 1,000 buildings a year are rehabilitated through its tax incentive program.

Canada is the only G8 country that doesn't have federal tax incentives to encourage private sector investment in the country's historic buildings.

The Heritage Canada Foundation is a national, membership-based, non profit organization with a mandate to promote the preservation of Canada's historic buildings and places.

TORONTO - United Steelworkers' National Director Ken Neumann said late Tuesday that Canadian working families have been collectively short- changed by the first Conservative budget

"Rolling back the first halting steps toward a national child care program and replacing it with a few bucks for babysitting hurts more families than it benefits," said Neumann. "$100 a month is half what the finance minister paid for his new budget-day shoes. "It is especially galling when it comes at a time of comfortable surpluses that should be used to build a solid, supportive public policy, not a quick payout and tax breaks."

Neumann said the budget also does nothing to address the crisis in Canada's manufacturing sector, which has lost more than 300,000 jobs since August 2004.

"These losses are largely due to the high Canadian dollar, soaring energy prices and the total absence of a strategic response from the government. "The $400-million supposedly earmarked for encouraging forest industry competitiveness and fighting the mountain pine beetle is a drop in the bucket to an industry that is already in crisis. In fact it is not new money and was long ago committed by the Liberal government in a previous budget projection." Neumann also slammed Finance Minister Jim Flaherty for not taking action in the budget to improve protection for workers' pensions at a time when more Canadians are concerned about the security of their retirement income.

"This budget does nothing to alleviate our collective uncertainty," he said.

Neumann said it is not enough to benefit corporations through government initiatives and tax breaks, without demanding corporate accountability.

"New laws are needed to ensure that companies making profits in Canada also invest in Canada in such areas as plant and equipment, worker training, environmental control and research and development.

"This budget whittles away at commitments to the environment and as such is heading Canada in the wrong direction for the future."

OTTAWA - The Harper Government's first federal budget will do very little to provide relief for students and their families who are struggling with escalating fees for post-secondary education. Although the budget contains minor tax changes for students, it will not fundamentally improve access to post-secondary education according to the Canadian Federation of Students.

"Tinkering around the edges of the tax system is not going to increase access to college and university," said George Soule, National Chairperson of the Canadian Federation of Students. "This government should be restoring the billions of dollars that were cut from post-secondary education transfers during the past decade so that tuition fees can be reduced."

Financial barriers are choking off access to post-secondary education for many Canadian families. Based on calculations from Statistics Canada's Youth in Transition Survey, tens of thousands of high school graduates are denied access to post-secondary education for financial reasons each year. Last month, a Statistics Canada report titled How Students Fund Their Post-Secondary Education confirmed that low- and modest-income families are grossly underrepresented in universities.

The proposed tax changes for students include a $65 a month tax credit for textbooks, and eliminating the taxation of scholarships. Currently, scholarships are tax free up to $3,000.

"For many students the changes will have no impact," said Soule. "A lot of students don't even earn enough taxable income to use all of their existing tax credits."

The Canadian Federation of Students is Canada's largest student organisation. It is composed of more than 80 university and college students' unions, across all ten provinces with a combined membership of over one-half million students.

TORONTO - The Canadian Distilled Spirits Industry predicts significant job losses across the country as a result of the punitive new federal alcohol excise rates proposed in today's federal budget. The first Conservative Party Canadian federal budget in over a decade proposes an increase of nearly 6% in excise duties applied to spirits while reducing comparable rates on wine produced from Canadian grapes and beer produced by smaller producers.

"On the same day that the Canadian dollar passed $0.90 USD for the first time in 28 years, the Canadian Spirits Industry has been dealt a body blow by the new Conservative budget", stated Mr. Jan Westcott, President & CEO of Spirits Canada.

"Given the already exorbitant fiscal burden imposed on spirits in Canada, escalating energy costs and a dollar that has appreciated by nearly 40%, this is just the wrong time to impose higher taxes on primary manufacturers in this country", explained Mr. Westcott.

The Canadian Spirits Industry annually exports over $500 million of premium spirits, more than the combined value of Canadian wine and beer exports. World-class Canadian Whisky brands are well appreciated by discerning adult consumers around the globe.

The Spirits Industry is requesting Members of Parliament from all political parties to defeat this egregious tax increase and save important manufacturing jobs in Amherstburg Brampton, Calgary, Collingwood, Dorval, Gimli, LaSalle, Lethbridge, Montreal, Valleyfield, and Windsor.

Spirits Canada is the national trade association representing the interests of Canadian Distilled Spirits manufacturers at home and in over 140 export markets around the world. Member Companies include Bacardi Canada, Black Velvet Distilling, Canadian Mist Distillers, Corby Distilleries, Diageo Canada, Hiram Walker & Sons, Peter Mielzynski Agencies and Schenley Distilleries. Combined, Spirits Canada Members represent over 80% of Canadian Spirits production.

OTTAWA - May 2, 2006 federal budget delivered the right message in key areas as the government made good on its promises to implement fiscal measures and expense management initiatives that are conducive to Canada's future economic well-being. In large part, Canadian business can endorse this budget, stated the Canadian Chamber of Commerce.

"The government has heard our call and acknowledged the need to reduce the tax burden of Canadian taxpayers and businesses alike, in order to make Canada more competitive. The fiscal measures announced are good for the economy, for working Canadians and for SME owners," declared Nancy Hughes Anthony, President and CEO of the Canadian Chamber of Commerce. "We welcome the tax initiatives introduced as they send the right signals to help improve our competitiveness, although, in some cases, the Chamber would advocate for a more aggressive approach and a shorter timeline," added Ms. Hughes Anthony.

The Canadian Chamber also reacted positively to the government's plan to realign program priorities and better control program spending. "Spending controls must not only be instituted, they must be appropriately monitored and maintained in order to ensure accountability and protect our future prosperity," commented Ms. Hughes Anthony.

In its analysis of the budget, the Canadian Chamber of Commerce pointed out however that the government must remain fiscally prudent, in order to be able to respond to any potential downturn of the economy and also to take advantage of any opportunity to further pay down our national debt.

OTTAWA - The Forest Products Association of Canada (FPAC) today welcomed initiatives in today's Budget which included measures to improve the general investment climate in Canada as well as a strong commitment to addressing the specific challenges facing Canada's forest products sector.

"The industry is very encouraged by these measures which will help stimulate and reward capital investment in Canada and are a welcome first step in addressing the tax disadvantage that the Canadian forest products industry currently faces against its international competitors," said Avrim Lazar, President and CEO of FPAC. "These measures build on the momentum created through the resolution to the long-standing softwood dispute." The forest products industry is facing severe and sustained economic pressure, fuelled by soft markets, aggressive global competition, and a high Canadian dollar. This is particularly true for the pulp and paper sector.

"The commitment to addressing the specific challenges facing the sector such as pine beetle as well as the measures to eliminate capital tax, the corporate surtax and reduce the corporate tax rate to 19% are very clear indications that the government understands the challenges presently facing the industry and that it supports the industry and the over 300,000 Canadians it directly employs in the hundreds of forest-dependent communities from coast-to-coast," continued Lazar.

The industry looks forward to working with the Government to implement its competitiveness commitment. One of the elements FPAC recommends is to establish tax parity among natural resource sectors by implementing a 10% refundable Investment Tax Credit for the forest products industry. Other improvements to Canada's policy framework such as a more efficient regulatory system, market development and branding of Canadian products, additional incentives for renewable energy and investments in leading edge research and development would also greatly contribute to the industry's competitive position.

FPAC is the voice of Canada's wood, pulp and paper producers nationally and internationally in government, trade and environmental affairs. Canada's forest industry represents 3% of Canada's GDP and exports over $40 billion of wood, pulp and paper annually. The industry is one of Canada's largest employers, operating in hundreds of Canadian communities and providing almost 900,000 direct and indirect jobs across the country.

OTTAWA - It's not going to address the critical issue of competitiveness overnight, but Budget 2006 will provide some bottom-line help to Canadian manufacturers and exporters.

"This is encouraging -- a better budget for business than we have seen in the last five years," said Perrin Beatty, President and CEO of Canadian Manufacturers & Exporters. "While it falls short of CME's standard for tax competitiveness, it does include measures that will have a real benefit for business."

Budget 2006 commits to keeping manufacturers' tax rates internationally competitive, provides for new strategic investments in border security and infrastructure, as well as opening the door to solidifying the issue of tax competitiveness as a priority issue for the future. Other measures that will assist business include increasing immigration settlement funding, the establishment of the Canadian Agency for Assessment and Recognition of Foreign Credentials and the creation of the Apprenticeship Job Creation Tax Credit.

"We weren't expecting a budget that would make competitiveness a priority, so this is definitely a positive step forward," said Beatty.

OTTAWA - This is a statement released May 2 by Federation of Canadian Municipalities President, Guelph Councillor, Gloria Kovach following the tabling of the federal Budget.

"This Budget delivers good news for Canada's municipal sector and for all Canadians. It lays out a blueprint for relations among all orders of government that is both respectful of jurisdictions and pragmatic.

The promise to consult with the Federation of Canadian Municipalities before federal Budgets reflects this practical and pragmatic approach. From our vantage point, this Budget lays out a roadmap for resolving one of the most intractable issues in our communities: the chronic funding imbalance. We therefore applaud the Government's reiteration of its determination to tackle the fiscal imbalance.

Today, half of all tax dollars collected go to the federal government, 42 per cent go to provincial and territorial governments and with less than eight per cent of revenues, municipal governments have to meet a growing list of responsibilities. The recognition of the fiscal challenges faced by municipalities holds the promise of a lasting solution. This is good news for the municipal sector, and I look forward to working with the Prime Minister in making this commitment a reality.

We also welcome continued funding for existing infrastructure programs. These programs are crucial to maintaining our infrastructure and preventing the $60-billion municipal infrastructure deficit from growing faster than it is.

The undertaking to begin discussions with an eye to putting federal funding on a long-term predictable track is also very good news. We look forward to starting discussions with Transport, Infrastructure and Communities minister Cannon--we think a long-term plan is the only way to actually erase the infrastructure deficit.

The Budget also goes a long way toward addressing a number of other municipal priorities.

We welcome the promised investments in affordable housing and in support of safer streets. They put much needed money where it will help some of the most vulnerable in our society.

The government has also responded to the concerns of the municipal sector in providing much needed investments to support public transit. The capacity building measures coupled with the transit tax credit should revitalize public transit and contribute to a healthier environment and cleaner air."

OTTAWA - Canada's universities and colleges will be worse off as a result of the first Harper budget.

"We're shocked that the Harper government has cut half a billion dollars out of the post-secondary education funding committed by the previous government," said Greg Allain, President of the Canadian Association of University Teachers.

Allain also expressed concern that there was inadequate new funding for university based research, and little help for students and families struggling with the increased costs of post-secondary education.

"This budget means that Canada's three granting councils will have to reduce their support for research and graduate fellowships at a time when Canada's research capability is more important than ever," said Allain. This is especially troubling in light of inevitable cuts to government science, according to Allain.

"When you cut back on government science, you cut back on the only source, outside of universities, of independent research that the public can trust," he said.

"The Conservatives' fixation on tax cuts and their decision to slash funding for childcare will also have a detrimental impact on the future of education in Canada," said CAUT Executive Director James Turk.

"Every educator will agree that good childcare and early childhood programs are the foundation of quality education. To promote cultural, social and economic development we need to invest in early learning and a government that doesn't do that is a government without a real commitment to education," said Turk.

CAUT is the national voice representing more than 55,000 academic staff at over 100 universities and colleges across Canada.

TORONTO - The Canadian Urban Transit Association (CUTA) is very pleased that today's budget confirms the federal government's commitment to meaningful and sustainable investment in public transit.

"The creation of a Public Transit Capital Trust is a welcomed initiative," says CUTA President and CEO Michael Roschlau. "The further strengthening of federal infrastructure investment programs included in the budget will create the funding certainty needed to make long term decisions."

"CUTA asked that the government honour the transit funding provisions in bill C-48 and C-66 providing $400 million in 2006-2007," says Roschlau. "We're very encouraged that today's budget confirms that this crucial transit funding will now flow, and that it will continue to flow in future years."

CUTA's recent national survey of Canadian transit systems reported a $20.7 billion need for public transit's capital infrastructure needs for the period 2006-2010.

"Today's increase in federal transit investment will go a long way to meeting Canadians' demands," says CUTA Chair Robert Olivier.

"In addition, the government's tax credit for transit pass users is a strong signal that the government is committed to promoting transit use," says Olivier. "It rewards transit customers for making smart travel choices." "CUTA looks forward to working with this government to meet the growing transit needs of Canadians," concludes Roschlau. "A partnership with all levels of government will ensure long term and sustainable funding for all cities."

CUTA is the national association representing public transit systems, suppliers to the industry, government agencies, individuals and related organizations in Canada.

TORONTO - Educators, parents, and school trustees are disheartened to learn that the Federal Budget has scrapped the previous child care agreements made with provincial governments.

Failing to uphold the federal-provincial child care agreements, the Prime Minister and his government have chosen to forego a once-in-a-generation opportunity to give our children the kind of start that assures their readiness to succeed in school and in life.

We have repeatedly urged the Prime Minister not to turn his back on the agreements made with the people of Canada. These federal-provincial agreements began to lay the foundation for a national child care system. They were not about partisan politics but about meeting the needs of Canadian children and their families.

Investing in our youngest children in the early years represents the most far-reaching and responsible investment we can make in Canada's future. Research suggests that as many as one-quarter of Canada's young children may be developmentally vulnerable at school entry. Access to quality child care and developmental programs and services, both those that include parents and those that do not, can and do provide important benefits for Canadian children.

The research is overwhelming, consistent and irrefutable. A child's readiness to learn at the start of grade one is the single strongest predictor of how well the child will do in every grade, whether they will graduate successfully, what their earning potential will be, how positive their contribution to society will be and even how healthy they will be. Every child deserves the best possible start. The time to make that investment a reality was in today's budget.

Rick Johnson
President
Ontario Public School Boards' Association

Emily Noble
President
Elementary Teachers' Federation of Ontario

Rhonda Kimberley-Young
President
Ontario Secondary School Teachers' Federation

Winston Carter
President
Canadian Teachers Federation


Brian Peat
President
The Ontario Federation of Home and School Associations

- a new partnership & a new home!

TORONTO, - No matter what appears in Stephen Harper's first budget tomorrow, Ontario Premier Dalton McGuinty must make good on his promise to create 20,000 new child care spaces before the next provincial election, says Sid Ryan.

The CUPE Ontario president, representing more than 200,000 working women and men - including about 5,000 child care workers - is calling on the premier to publicly demand that Harper's budget include the multi-year funding of $1.2 billion to build a high quality, accessible, affordable community-based child care system.

"Even if Mr. Harper and his finance minister proceed with dismantling the federal-provincial child care plan, there is no excuse for Dalton McGuinty to abandon the child care promise in Ontario," Ryan said. "The province is in good shape. He promised to expand child care and he should keep his promise." Moving forward with child care expansion in Ontario is one good way to keep the pressure on Harper's government to honour the federal-provincial agreements, Ryan said. McGuinty must show leadership as the premier of Canada's largest province.

"Ontario should be a trend-setter, not a follower," he said. "Dalton McGuinty must not use Stephen Harper as an excuse for letting down working families in this province."