OLDS — Overall, Olds & District Chamber of Commerce president Doug Rieberger says some aspects of the federal budget announced recently – like the green economy incentives – have potential be good for local businesses.
But he’s concerned that the budget is vague. He can’t tell if initiatives announced will be good for local residents and businesses until he sees the details.
Secondly, Rieberger says ironically, an expansion to the dental program, announced in the budget might be worse for low-employees because it might serve as a disincentive for employers to offer dental programs to workers.
“Business-wise, I see some benefits that may come into play with the national supply chain strategy they’re looking at,” he said during an interview with the Albertan.
For example, the budget includes $27.2 million over five years to establish a Transportation Supply Chain Office to respond to disruptions.
Its purpose is also to improve coordination with industry and other levels of government to increase the capacity, efficiency, and reliability of the transportation supply chain.
The budget also includes $25 million over five years to develop transportation supply chain data with a goal to reduce congestion, improve supply chain efficiency, and influence future infrastructure planning.
A major focus of the budget was to spur development of a so-called "green economy,” transitioning from an oil and gas-based economy to one run via things like wind and solar power as well as replace gas or diesel-powered vehicles with hydrogen-powered or electric ones.
Rieberger said that may provide some opportunities for local businesses.
The budget contains a 15-40 percent tax credit for investments in clean hydrogen. Projects that produce the cleanest hydrogen will receive the greatest support.
Other examples include $520 million over five years to beef up the investment tax credit for development of carbon capture, utilization and storage facilities.
Also, $500 million will be pumped into the Strategic Innovation Fund over 10 years to spur development and application of clean technologies in the country.
“The biggest trouble I see with the budget this year is there's a lot of discussion in it, but there’s not a lot of detail,” Rieberger said.
“Once those details are kind of fleshed out, then we’ll know if there’s going to be some benefits to the local businesses.
"There are some areas that could benefit the local businesses, but it’s now how those disbursements and how the programs around that are going to be set up, and that’s going to be the biggest thing.”
Last year, the federal government set up a temporary dental benefit for uninsured children under the age of 12 in families who have a household income of less than $90,000.
This year, eligibility will be expanded to people who are under the age of 18, seniors, and people with disabilities who meet the income criteria and don't have insurance.
In the budget, the cost of that program is pegged at $13 billion over five years.
Rieberger said at first blush, the dental program might seem like a good idea to some, but he said ironically, it may backfire for some employees.
“I think it might have a negative impact because it’ll disincentivize businesses to put dental programs in place,” he said.
According to the federal government, the 2022-23 deficit is projected to hit $43 billion, an increase from last fall when, for the fiscal year, it was predicted to be $36.4 billion. The federal debt is expected to be in the $1.18 trillion range.
Rieberger said those figures worry him. Money spent paying down the deficit and debt is money that can’t be spent elsewhere.
Rieberger noted the federal government said it’s cutting spending in various areas, but “in the end, it’s still increasing our deficit and I think that’s something that’s going to start to affect us.”
He’s also concerned about talk that a recession is around the corner even though it’s predicted to be relatively mild one.
“That's another concern that I have,” he said, “because if they start putting more stimulus into the economy because of the recession, is that going to now increase our deficit even more?”
