CCA Bulletin 21/11 - Throne Speech and Federal Budget: it’s almost business as usual

Just the Facts

On Friday, June 3, the Governor General gave a speech from the throne heralded by many as primarily ceremonial. The speech toed a safe line without introducing any new drastic policy measures, and we saw the same approach again in yesterday’s tabling of the federal budget by the Minister of Finance, the Hon. James Flaherty.

Minister Flaherty tabled his second 2011 federal budget, The Next Phase of Canada’s Economic Action Plan: A Low Tax Plan for Jobs and Growth. The government’s first budget was presented on March 22, but died on the order paper when the minority government fell, leading to an election.

As the CCA expected, there are no major program cuts to arts and culture in this budget. In fact, all measures mentioned by the CCA in its March 22nd analysis of the budget remain in this second version. They include:

• Introducing a new 15% Children’s Arts Tax Credit, provided on up to $500 of eligible expenses for programs associated with children’s artistic, cultural, recreational and developmental activities. This should translate into annual returns of $75 for parents;

• Providing $25 million over five years to renew funding for the Harbourfront Centre;

• On-going funding of $15 million per year to the Canada Periodical Fund to support a broad range of publications and ensure a diversity of Canadian content in 2011-12 and 2012-13;

• Renewal for 2011-2012 of the $60 million granted to CBC/Radio-Canada for the “production of high-quality Canadian programming”;

• Granting of a one-time investment of $7.5 million to the Royal Conservatory of Music to launch a national examination system in partnership with Carnegie Hall;

• Renewal on an on-going basis (as opposed to an annual renewal) of $100 million per year to the Canada Media Fund to invest “in the creation of convergent digital content across multiple platforms, including television and leading-edge applications for Internet, wireless and other emerging platforms”.

Now entering the 41st Parliament with a majority, there is no doubt that the government will pass its budget before the summer recess. (more)