2012 Canadian federal budget

These initiatives were to be delivered in periods that varied from one to five years:

• The age of eligibility for Old Age Security would gradually rise from 65 to 67 between 2023 and 2029.
• Funding for the Canadian Broadcasting Corporation was reduced by 10% to approximately $1 billion per year. Funding for the National Film Board of Canada and Telefilm Canada was also reduced 10%.{{cite news|last=Kelly|first=Brendan|title=CBC, NFB and Telefilm to see 10% cut|url=https://montrealgazette.com/entertainment/Telefilm/6382993/story.html#ixzz1qzGXr2EA|access-date=3 April 2012|newspaper=Montreal Gazette|date=30 March 2012|archive-date=18 July 2012|archive-url=https://web.archive.org/web/20120718045217/http://www.montrealgazette.com/entertainment/Telefilm/6382993/story.html#ixzz1qzGXr2EA|url-status=dead}}
• 19,200 federal public service jobs were eliminated, approximately 4.8% of all federal public service jobs. Of those, 7,200 would be via attrition, and 12,000 via layoffs.Smith About 4,800 of the affected employees work in Ottawa or Gatineau.National Post
• Extension of Mineral Exploration Tax Credit and Small Business Hiring Tax Credit for one year, elimination of the Overseas Employment Tax Credit (OETC) by 2016, elimination of Atlantic Investment Tax Credit and creation of efforts to crack down on tax avoidance and close loopholes.

Programs and departments cut as part of the budget included:

• Assisted Human Reproduction Canada (effective 13 March 2013)Blackwell
• National Round Table on the Environment and the Economy
• KatimavikCBC News
• National Aboriginal Health Organization (effective 30 June 2012)CBC News
• Experimental Lakes Area (effective 31 March 2013)
• Canadian Immigration Interim Federal Health Program (effective 30 June 2012){{cite web|last=Citizenship and Immigration Canada|title=News Release – Reform of the Interim Federal Health Program ensures fairness, protects public health and safety|url=http://www.cic.gc.ca/english/department/media/releases/2012/2012-04-25.asp|access-date=28 June 2012|archive-url=https://web.archive.org/web/20140306095126/http://www.cic.gc.ca/english/department/media/releases/2012/2012-04-25.asp|archive-date=6 March 2014|url-status=dead}}
• Arctic atmospheric research lab called PEARL – Polar Environment Atmospheric Research Laboratory (effective 30 April 2012)CBC: 2012

As a result of the budget, in April 2012 the CBC announced it would cut its English Services budget by $86 million, of which $43 million was a reduction of programming and the remainder the elimination of 256 jobs.CBC It said it would also cut jobs in other departments, totalling 650 throughout the corporation.CBC The changes took effect in June 2012.Dixon It cancelled the TV series InSecurityRyan: 2012 and the television program Connect with Mark Kelley.CBC The changes included a reduction of the budget for CBC News by $10 million, the elimination of 88 jobs in that division, and the shuttering of its news bureaus in South America and Africa.DeMara CBC Radio had its budget reduced by $3 million, eliminated 18 jobs,CBC and stated it would no longer commission radio dramas. Other programming cuts included the radio program Dispatches and CBC Sports, which had a $4 million budget reduction and recast Sports Weekend as a seasonal program.CBC Compared to its budget in 2011–12, the CBC operating budget was cut by $27.8 million in 2012–13, $69.6 million in 2013–14, and $115 million in 2014–15.Press

Agriculture and Agri-Food Canada announced in April 2012 that it would close the Cereal Research Centre operated at the University of Manitoba.CBC The Public Service Alliance of Canada (PSAC) stated that 5,561 of its members in 23 government departments had received notices from the federal government about the potential termination of their jobs.CBC This includes 308 jobs at the Canadian Food Inspection Agency, which will cut its operating budget by $56 million.Schmidt The Professional Institute of the Public Service of Canada announced that the employment of 1,500 of its members would be affected. Health Canada would eliminate up to 840 jobs, including 150 scientists.

The Department of National Defence will cut at least 1,149 public service jobs,Pugliese about 585 of which are in the Canadian Forces and 234 at the Defence Research and Establishment Canada.

On 1 May 2012, PSAC announced that Parks Canada would eliminate 638 jobs, and that 1,689 of its "scientists, engineers, technicians, mechanics, carpenters and program managers" would be affected by changes,Curry: 2012 and that 908 employees of Human Resources and Skills Development Canada, 490 employees of Aboriginal Affairs and Northern Development Canada, and 180 employees of Transport Canada would also be affected. Library and Archives Canada is expected to eliminate 105 jobs, and Statistics Canada is expected to cut 273.

In November 2012, the Treasury Board president Tony Clement stated that the federal government had cut 10,980 public service jobs, of which 7,500 were by attrition or not replacing employees who had quit.Payton

In 2011, Statistics Canada reported that the nonfinancial corporate sector (NFCS) was "sitting on more than $583 billion in Canadian currency and deposits, and more than $276 billion in foreign currency."{{cite news|title=Canadian firms sit on money as taxes drop again: Last of 5 corporate tax cuts goes into effect this week|date=1 January 2012|publisher=CBC News|url=https://www.cbc.ca/news/canada/calgary/canadian-firms-sit-on-money-as-taxes-drop-again-1.1163244|access-date=2 July 2013}}

The Canadian government has introduced measures to encourage business to invest in the Canadian economy. There were five federal corporate tax cuts over a period of five years with the last 1.5 percent reduction taking effect on 30 December 2011, bringing the federal corporate tax to 15 per cent.

Flaherty explained that the one-year extension on the Mineral Exploration Tax Credit and Small Business Hiring Tax Credit introduced in the 2012 budget are business incentives "to compel Canadian corporations to invest some $525 billion of dead cash back into the economy."{{cite news|url=http://www.macleans.ca/2012/08/27/private-sector-should-be-responsible-for-stimulating-economy-flaherty-says/ |title=Private sector should be responsible for stimulating economy, Flaherty says |publisher=Macleans |date=27 August 2012 |access-date=2 July 2013}} In their analysis of the 2012 budget the Canadian Labour Congress argued that "non-financial corporations" have used their federal incentives and tax cutsPrior to 2007, the federal corporate income tax rate was over 20%. Since 2007 the corporate tax rate was lowered. By 2012 it was 15%. to "buy up their own shares, to increase dividends, and to increase their cash holdings" which amounted to "close to $500 billion of surplus cash" that they were not investing in job creation.{{cite web|title=CLC Analysis of the 2012 Federal Budget |date=29 March 2012 |url=http://www.canadianlabour.ca/news-room/publications/what-did-corporate-tax-cuts-deliver-2013 |publisher=Canadian Labour Congress |access-date=2 July 2013 |archive-url=https://web.archive.org/web/20130603181253/http://www.canadianlabour.ca/news-room/publications/what-did-corporate-tax-cuts-deliver-2013 |archive-date=3 June 2013 |url-status=dead }}

This budget was criticized because of cuts to health care, the old age security, environmental protection and because of the expansion of $6 billion in corporate tax cuts for corporations, banks, and oil companies.{{citation needed|date=July 2020}}

{{reflist|group=note}}

{{Reflist}}

{{refbegin}}

• {{cite news|url=https://www.cbc.ca/news/business/the-penny-s-days-are-numbered-1.1174546|title=The penny's days are numbered|publisher=CBC|date=2012-03-29|access-date=2012-03-29|ref=penniless}}
• {{cite news|url=https://www.cbc.ca/news/canada/cbc-cancels-shows-slashes-88-news-jobs-1.1159573|title=CBC cancels shows, slashes jobs in cutbacks|publisher=CBC News|date=10 April 2012|access-date=2012-04-10|ref=CBCcuts}}
• {{cite news|url=https://www.cbc.ca/news/canada/manitoba/cereal-research-centre-to-close-amid-federal-cuts-1.1146550|title=Cereal Research Centre to close amid federal cuts|publisher=CBC News|date=11 April 2012|access-date=2012-04-11|ref=cereal}}
• {{cite news|url=http://news.nationalpost.com/2012/03/29/budget-2012-federal-canada/|title=Federal budget kills the penny, cuts CBC spending|last=Carlson|first=Kathryn Blaze|publisher=National Post|date=2012-03-29|access-date=2012-03-29|ref=budgetwrap}}
• {{cite news|url=http://news.nationalpost.com/2012/03/30/government-shutters-agency-that-oversees-canadas-fertility-and-assisted-reproduction-industry/|title=Government shutters agency that oversees Canada's fertility and assisted reproduction industry|last=Blackwell|first=Tom|publisher=National Post|date=30 March 2012|access-date=2012-04-11|ref=Blackwell}}
• {{cite news|url=https://www.theglobeandmail.com/news/politics/ottawa-notebook/parks-canada-hit-hard-as-ottawa-doles-out-nearly-4000-job-notices/article2418073/|title=Parks Canada hit hard as Ottawa doles out nearly 4,000 job notices|last=Curry|first=Bill|publisher=The Globe and Mail|date=1 May 2012|access-date=2012-05-01|ref=PCCurry}}
• {{cite news|url=https://www.thestar.com/entertainment/article/1159268--cbc-cancels-connect-and-dispatches-in-response-to-federal-budget-cuts|title=CBC cancels Connect and Dispatches in response to federal budget cuts|last=DeMara|first=Bruce|publisher=Toronto Star|date=10 April 2012|access-date=2012-04-10|ref=bureau}}
• {{cite news|url=https://www.theglobeandmail.com/news/arts/television/cbc-cuts-current-affairs-shows-88-news-jobs/article2397349/|title=CBC cuts current-affairs shows, 88 news jobs|last=Dixon|first=Guy|publisher=The Globe and Mail|date=10 April 2012|access-date=2012-04-11|ref=Dixon}}
• {{cite news|url=http://news.nationalpost.com/2012/04/04/defence-department-cuts-1000-plus-civilian-workers/|title=Defence Department cuts 1,000-plus civilian workers|last=Pugliese|first=David|publisher=National Post|date=4 April 2012|access-date=2012-04-11|ref=Pugliese}}
• {{cite news|url=http://news.nationalpost.com/2012/03/29/cbc-takes-a-10-federal-funding-cut-in-canada-budget-2012/|title=CBC takes a 10% federal funding cut in Canada’s 2012 budget|last=Press|first=Jordan|publisher=National Post|date=29 March 2012|access-date=2012-04-11|ref=Press}}
• {{cite web |url=https://www.theglobeandmail.com/news/arts/television/cbc-cancels-battle-of-the-blades-as-part-of-budget-cuts/article2407570/?from=sec434|title=CBC puts Battle of the Blades on hold|last=Ryan|first=Andrew|date=19 April 2012|publisher=The Globe and Mail|access-date=2012-04-19|ref=Ryan}}
• {{cite news|url=http://news.nationalpost.com/2012/04/11/cuts-to-food-safety-inspection-force-will-impact-food-quality-in-canada-union/|title=Cuts to food-safety inspection force will impact food quality in Canada: union|last=Schmidt|first=Sarah|publisher=National Post|date=11 April 2012|access-date=2012-04-11|ref=Schmidt}}
• {{cite news|url=https://www.thestar.com/news/canada/politics/article/1159565--federal-budget-2012-up-to-100-food-inspectors-on-chopping-block-says-union|title=Federal budget 2012: Up to 100 food inspectors on chopping block, says union|last=Smith|first=Joanna|publisher=Toronto Star|date=11 April 2012|access-date=2012-04-11|ref=CFIA}}
• {{cite news|url=https://www.cbc.ca/news/politics/almost-11-000-federal-jobs-cut-so-far-tony-clement-says-1.1288838|title=Almost 11,000 federal jobs cut so far, Tony Clement says|last=Payton|first=Laura|publisher=CBC News|date=16 November 2012|access-date=2012-11-16|ref=Payton}}

{{cite web|url=https://www.cbc.ca/news/science/high-arctic-research-station-forced-to-close-1.1171728|title=High Arctic research station forced to close|publisher=CBC|date=28 February 2012|access-date=2012-07-09|ref=cbcpearl}}

• {{cite web| url = http://www.budget.gc.ca/2012/plan/chap6-eng.html|title=Budget 2012 – Jobs, Growth, and Long Term Prosperity|publisher=Department of Finance, Government of Canada|access-date=2012-03-29|ref=DOF2012}}

{{cite news|url=https://www.cbc.ca/news/politics/katimavik-killed-for-ideological-reasons-trudeau-says-1.1277023|title=Katimavik killed for 'ideological' reasons, Trudeau says|newspaper=CBC News|date=5 April 2012|access-date=6 April 2012|ref=Katimavik}}

{{cite news|url=https://www.cbc.ca/news/canada/north/national-aboriginal-health-organization-s-funding-cut-1.1194520|title=National Aboriginal Health Organization's funding cut|newspaper=CBC News|date=2012-04-09|access-date=2012-04-10|ref=NAHO}}

{{refend}}

• [http://www.budget.gc.ca/2012/plan/toc-tdm-eng.html Budget Plan] of the Government of Canada
• [http://www.tbs-sct.gc.ca/media/nr-cp/2012/1116-eng.asp Harper Government Announces 10,980 Public Sector Positions Eliminated in Past Six Months] at the Treasury Board

{{Canada federal budget}}

{{41st Canadian Parliament}}

{{Stephen Harper}}

{{DEFAULTSORT:Canadian federal budget, 2012}}

2012

Canada

Category:2012 in Canadian politics

Budget, 2012

Budget, 2012