Harper ignores Quebec's call for health care payments, finance minister says

Quebec Finance Minister Carlos Leitao is not completely satisfied with the federal budget tabled Tuesday by the Harper government.

Leitao told reporters in Quebec City that Quebec's requests for transfers in health care payments were not heard.

"The formula remains unchanged, so it does not take into account the demographic reality of the different provinces," Leitao said.

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He also said Ottawa is not contributing enough money for infrastructure.

"It's clearly insufficient the amount that the federal government is putting forward. Quebec alone is going to spend $88 billion over 10 years. So $47.5 billion for all of Canada is clearly insufficient."

Leitao also said he was disappointed that there was no indication in the federal budget that the Harper government would review the formula used to calculate transfer payments in health care.

Quebec will continue to get a six per cent annual increase until 2017-2018, but Leitao said future payments are unknown.

"Presumably, after 2017, there will be a change. The change will be that the growth in the transfers will slow," Leitao said. "We'll see if in fact the federal government goes in that direction. There's still time."

But Leitao said the federal budget contains some good news in terms of economic development and tax relief for businesses and consumers.

The Minister said he was satisfied with the decrease in the federal tax rate for small businesses, which will go from 11 per cent to 9 per cent over a period of four years.

Quebec opposition responds

The federal budget has a $1.4 billion surplus this year — down from $6.4 billion projected a year ago and $1.9 billion in November.

Parti Québécois finance critic Nicolas Marceau accused the Couillard government of not asking Ottawa for anything for Quebecers.

"I deplore the fact that the Quebec Premier did not make any requests to the federal government. Obviously, when you ask for nothing, you get nothing. The federal budget has nothing in it for Quebec."

Coalition Avenir Québec finance critic François Bonnardel agreed.

"There are a few Quebec specific measures, and it reflects the lack of interest of Premier Couillard in reducing the economic gap between Quebec and its neighbours," Bonnardel said.

Françoise David of Québec Solidaire said that some measures announced in the budget, such as income-splitting where there is a capped tax break on family incomes, will only benefit the rich.

"What strikes me the most in the federal budget is that after years of austerity, the government is happy to tell us we attained a balanced budget, but it's clear that it's done on the backs of workers and poor Canadians," she said.

In Montreal, Mayor Denis Coderre said he thinks Federal Finance Minister Joe Oliver is on the right track.

Coderre said he is pleased the federal budget includes a dedicated infrastructure fund for public transit.

""In the past, I saw many, many times — no matter which party, no matter which government — you had a consolidated fund [where] you cannot necessarily be specific.  Now to have that concept of that dedicated fund — on an account base and on an accountability issue — this is a good thing."

Coderre said he will meet with the province to sort out any budget priorities from the new public transit fund.

The federal fund will launch in 2017 with an initial investment of $250 million.