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With investments in infrastructure, First Nations education funding, and broadband, the 2016 federal budget holds promise for local businesses, though items such as small business tax freezes are a concern, according to the Timmins Chamber of Commerce.

The federal budget is offering several opportunities for Timmins businesses, including:

  • $120 billion in infrastructure spending over 10 years, including increased and faster transfers to municipalities;
  • $8.4 billion for First Nations, Inuit and Metis education, infrastructure and skills training over 5 years, including $2.6 billion over five years to improve primary and secondary education on reserve;
  • $500 million over five years for a new program to extend and enhance broadband service in rural and remote communities;
  • Extended Employment Insurance benefits in Northern Ontario;
  • Another one-year extension of the 15-per-cent Mineral Exploration Tax Credit for flow-through share investors.

“With several items standing to make a difference for Timmins businesses, the 2016 federal budget is a promising one,” said Timmins Chamber President Kurt Bigeau.

“In particular, we’re pleased to note the federal government places a strong priority on improving training and educational opportunities to enhance our workforce, as staffing concerns continue to be top of mind for many Timmins businesses. Plans to invest in Aboriginal education and infrastructure is key, as First Nations represent a crucial and growing segment of our population whose supports have long gone underfunded. Improving high school completion rates and skills development opportunities for Aboriginal peoples is essential for Canada’s economic and social prosperity.”

However, the federal budget also contains some items of concern for Timmins businesses, said Bigeau. The deferral of reductions to the small business income tax rate, initially planned to drop from its current rate of 10.5% to 9% by 2019, is a concern, as small business is in particular need of relief during these challenging economic times.

The considerable deficit of nearly $30 billion – nearly triple the estimated $10 billion deficit — is also an issue, as the budget is not projected to returning to surplus until 2019; this poses

Still, there is positivity in the federal government’s recognition of the region’s unique needs by expanding Employment Insurance (EI) access in Northern Ontario; this helps to recognize the burden previously placed on the region’s employers, as discrepancies in the system have led to Ontario businesses providing a disproportionate amount to the system. This supplements other investments in key areas, such as broadband expansion and infrastructure improvements, which are good news for Timmins businesses, says Bigeau.some questions about the country’s fiscal footing, and how the government plans to eventually balance the budget.