TORONTO - Despite being pushed by the opposition-led coalition to do something to stimulate the economy in recession, the Conservative Government's budget is too small a step, says United Steelworkers' (USW) National Director for Canada, Ken Neumann.

"This budget should be defeated," said Neumann. "It is too little too late to address the worst economic crisis since the Great Depression. "It provides insufficient economic stimulus, inadequate improvements to Employment Insurance, no meaningful safeguards for private pensions and no improvements to public pensions."

Neumann said the stimulus package falls far short of the target of two per cent of GDP that Harper himself agreed to in a November meeting of G20 countries.

"It contains $18 billion in new federal measures, which equals only 1.2% of GDP. As expected, Budget 2009 increases infrastructure spending. But it continues to insist that infrastructure projects be organized as public-private partnerships, despite the lack of available private capital. It fails to combine the new money with a necessary buy-Canadian procurement program."

USW Economist Erin Weir adds that Budget 2009 follows on the heels of the 2008 economic statement's spending cuts.

"Budget 2009 incorporates this austerity," Weir said, "leaving only $10-billion of net stimulus, which equals only 0.7 per cent of GDP." While the budget extends the duration of Employment Insurance benefits by five weeks, Neumann said the proposed EI measures do nothing to address eligibility, "a travesty when 60 per cent of unemployed Canadians are currently not eligible for benefits.

"Unemployed workers in regions where benefits currently last for 14 weeks will only get 19 weeks of benefits. Nothing has been done to make EI more accessible, to improve benefit levels, or to address the two-week waiting period."

Neumann said what is also missing from the budget are measures to encourage real investments in the manufacturing and forestry sectors, and measures to take the lead on creating a more environmentally sustainable economy.

"Canada urgently needs to take the lead on going 'green' by investing in renewable power, public transit, building retrofits and other initiatives to reduce greenhouse gas emissions," he said.