Local MP promotes Tory government's new savings program

A tax-free program to encourage saving is the most exciting thing in the federal budget, according to Moose Jaw's member of Parliament.
Under the tax-free savings aaccount, individuals can put aside $5,000 annually in a registered account with no taxes owing on the income earned, or when it is withdrawn.
"This is the single most innovative program since RRSPs (registered retirement savings plans) were brought in," said MP Dave Batters. "Everybody is talking about it.
"You don't pay tax on any income you earn in the account - interest, dividends, or capital gains," said the Conservative MP.
The program will reduce reliance on the public purse for social programs in the long run, he said.
"I don't think it's any incentive for the economy," he said. "It's an incentive for individual Canadians."
The budget's main environmental thrust - a $250 million carbon capture and storage program - is all for Saskatchewan, according to Batters.
"The new (Sask. Party) government asked us for it and we delivered."
The funds, matched by the province, will be used to build a demonstration carbon sequestration program.
He believes the development will target the Shand coal-fired generation plant in Estevan to capture greenhouse gas emissions and store them underground.
The budget is acceptable enough to get support of the Liberals and ensure approval, he said. "We won't be needlessly plunged into an election."
While the $208 billion budget leaves only $3 billion - about 1.5 per cent - as a cushion for emergencies, Batters doesn't seem worried.
"Our objective is to pay down the national debt. There's $10 billion in there to pay down the debt. We've already paid $37 billion on the debt."
The increased earnings exemption to $3,500 annually from $500 before guaranteed income supplement is affected is huge for seniors, according to the MP.
No major farm programs were announced. "We've put $4.2 billion into farm programs so far. That's a lot of money," said Batters.
No child care programs were announced, prompting Batters to say the Conservatives have put out $1,200 cheques for every child under six and created $1,200 child tax credits.
On affordable housing, he pointed to a new pilot program for the homeless and mentally ill. "As far as I know we have nothing else (for affordable housing)."

Ron Walter can be reached at 691-1264.