Mixed reaction from provincial and municipal governments Tuesday as Quebec’s finance minister and Montreal’s mayor reacted to the Conservative budget.

Good for economic development, disappointing for health and insufficient for infrastructure: that was the preliminary reading for Finance Minister Carlos Leitao following the federal budget.

“It is disappointing to note that our requests in terms of transfers in health care weren't heard and the formula remains unchanged, so that it does not take into account the demographic reality of the different provinces and in terms of infrastructure,” he said. “It's clearly insufficient.” 

Leitao welcomed in particular the announced tax cuts for small and medium businesses and money set aside for public transit initiatives.

Leitao complained, however, that Ottawa ignored his requests about federal health transfers, adding that the Conservative government is not taking the provinces’ demographic realities into account.

As for income splitting initiatives for families and the increase of the TFSA ceiling, Leitao was cautious, but stressed that he would have made other choices. He said the increased contribution will mean Quebec will lose up to $20 million in tax revenues.

The Parti Quebecois said there is a striking contrast between the federal budget tabled Tuesday and one filed by Quebec’s Liberal government; Ottawa handed out goodies while Quebec unveiled an austerity budget, said the PQ finance critic Nicolas Marceau.

There is nothing for Quebec in the federal budget, he also said, adding that it is not a surprise, since he said Premier Philippe Couillard didn’t ask for anything.

The CAQ agreed with Marceau: the federal budget represents a lack of demand by Quebecers, said finance critic François Bonnardel.

As for the voice of Quebec solidaire, Françoise David said she hopes that this is the last Conservative budget.

Mayor cautiously optimistic


On the municipal level, Montreal Mayor Denis Coderre said cities asked for more transit money, and they got it.

“In the first year, as you know, its $250 million, the second year, $500 million, but after that it's going to be $1 billion, so we have the time to put up the process and the agreement together between the government of Quebec and Canada,” said Coderre.

Coderre was also upbeat about more money for infrastructure and said it's likely Montreal will use that cash to develop the Lachine Canal, the Old Port and to prepare the city for its upcoming 375th anniversary in 2017.

Still others believe infrastructure money should be spent on fixing and maintaining the roads to keep the economy rolling.

“I think that's the only way we can communicate between each other, between different cities and different companies,” said Ralph Fishman, general manager of Garfield Container Transport. “Without roads how do you get there?”
 

With files from La Presse Canadienne