New Brunswick opposition parties call for immediate cost of living help to taxpayers

As other parts of Canada introduce direct payments to residents to offset inflation, New Brunswick’s opposition parties are calling for the Progressive Conservative government to follow suit just days after unveiling a provincial budget.

Quebec’s government said it would distribute $500 to 6.4 million residents with an annual income of less than $100,000 to balance inflation pressures, on Tuesday.

In response to soaring fuel prices, British Columbia’s government said Friday it would give most drivers (with a basic public auto insurance policy) a $110 rebate, with commercial customers receiving $165.

New Brunswick’s provincial budget includes a new one-year rent cap, tax cuts, a wider threshold for low-income tax breaks, and a promise to increase wages for some public sector employees.

The official opposition says those measures would take time to make a true impact in addressing cost of living increases, adding it would only benefit certain groups.

“It will be too late,” said interim Liberal Leader Roger Melanson on Friday. “The cost of living and the stress and struggles of paying ordinary necessities of living is now. The help is needed now.”

New Brunswick Premier Blaine Higgs said his government made spending decisions “kind of going everywhere” to help offset the cost of living, adding there wasn’t much left in the coffers to move around.

“A $35 million surplus on an $11 billion budget, you could say it’s balanced in our forecast going forward, but that’s an extremely low percentage of ability to say it’s a surplus,” said Higgs on Friday. “So we’re not reporting a deficit, but it’s kind of just barely supporting the surplus.”

New Brunswick Green Party MLA Kevin Arseneau said a “redistribution” of the province’s wealth could find some more funds.

“What we’re seeing is no actual measures of going and getting the money from the people who have profited from the pandemic and high cost of living,” said Arseneau on Friday.

The New Brunswick budget saw an increase to the province’s Low-Income Tax Reduction threshold, going from $18,268 to $19,177 for the 2022 tax year.

The Department of Finance says about 400,000 single tax filers with incomes up to that maximum won’t pay provincial personal income tax for 2022.

The province’s basic personal amount will be increased from $10,817 to $11,720.

On Tuesday, Finance Minister Ernie Steeves said public employees who work in special care, home support, community residences, family support, group homes, attendant care and employment and support service agencies would see wage increases. Steeves didn’t confirm what the raises would amount to per sector, but said $38.6 million had been budgeted for the increases.

Provincial property tax rates will be cut by 50 per cent over three-years for non-owner occupied residential properties, like apartment buildings, while 15 per cent reductions are planned for other residential properties, like nursing homes, and non-residential properties. The province said the reduction would cost $45 million this year and $112 million once the three phases are complete.

Retroactive to Jan. 1, the province is placing a one-year cap on rent increases at 3.8 per cent.

On April 1, the minimum wage will increase by $1 per hour and by October 2022, the minimum wage in New Brunswick will be $13.75 per hour.

Earlier in March, the province announced $5 million to help home and family support workers with transportation costs and soaring fuel prices. The funds would be distributed to workers through their employers.