Coady announces cost-of-living help, but critics say it's not enough
Finance Minister Siobhan Coady says the government is taking some steps to help people struggling with rising prices, but critics say too many people will be left out of the new measures.
Flanked by ministers John Abbott and Bernard Davis, Coady said the government is raising the income supplement — given to 162,000 individuals and families each year — by 10 per cent, meaning a family of four could get up to $1,000 a year, while an individual with a disability will receive up to $715 a year. The seniors' benefit will also increase by 10 per cent — up to $1,444 annually for the 50,000 seniors who avail of it.
Coady also announced a one-time benefit for those receiving income support, which will come in the first week of April. Individuals will receive $200 and families will receive $400.
The move comes after the prices of gas, heat and groceries soared in recent months.
The 10-per-cent rise to the income support and seniors' benefit programs will not cover the more than 25-per-cent rise in gas prices since December, though Coady pointed out fuel prices are volatile.
Food bank operators have told CBC they've become busier, and Coady said income support programs have seen a marginal increase in enrollment.
EV, electric heating rebate program expanded
Billed as a five-point plan to help the people of the province, Coady said the government is spending $1.9 million on electric vehicle infrastructure — an announcement made last year — and said it will expand the EV rebate program. Plug-in hybrid vehicles will now qualify for a $1,500 rebate, in addition to the previously-announced $2,500 rebate for EVs.
There were no new measures to help people struggling with the price of gas who cannot afford a new electric or hybrid vehicle. Coady pointed to the bus passes given to income support clients in the St. John's metro region.
Davis said 100 people have taken advantage of the EV rebate program since it began last September.
"We understand that not everyone's going to purchase an electric vehicle tomorrow because of this, but we do want people to have that in their mindset as they move forward."
The rebate for transitioning from oil to electric heat will double from $2,500 to $5,000. Davis said about 150 people have applied for that rebate since it began in September.
Focusing on the vulnerable
Coady said on Tuesday the new measures are intended to focus on the most vulnerable, and the provincial budget may do more to address the cost of living when it comes in about three weeks.
"On April 7th, there may be some things there that we can do in addition to what we've announced today, but we really wanted to make sure that those impacted greatly right now have the support that they need," she said while speaking with reporters.
But critics say it won't help many beyond the province's most vulnerable.
Progressive Conservative opposition leader David Brazil said the new spending is welcome for people on income support and the seniors' benefit, but leaves out others in the province struggling with the cost of living, including rising gas, heating and food prices.
"This doesn't go anywhere near where it needs to go for people who are on fixed incomes, the working poor, the average citizen, the people who are going to be impacted dramatically," he said.
Brazil wants the government to bring in a home heating rebate and get rid of the five-cents-a-litre gas tax, implemented to cover the cost of transporting the fuel to the province.
Brazil also called on the government to work with the Public Utilities Board to lower the price of gas, which has risen dramatically in recent weeks, in part because of Russia's invasion of Ukraine.
Coady said the government is committed to improving the fuel pricing process, but didn't give any details on what those improvements might be.
Livable wage, basic income could be long-term solutions: NDP
NDP leader Jim Dinn said the measures make sense, but called them "short term fixes."
"It's still going to come down to the need for a long-term fix to make sure that people are not put in the situation where they need sort of these patchwork band-aid solutions."
Some of those long-term fixes, according to Dinn, would include guaranteed basic income and raising the minimum wage to a livable wage.
"We've got a legislated poverty wage," he said. "If we're going to look at addressing the cost of living, it's going to come down to paying people a living wage."
When asked about other measures to help people avoid slipping into poverty, Coady again pointed to the provincial budget.
"There will be other other opportunities and other measures that may be taken in that budget," she said. "We're really focused right now on the most vulnerable understanding."
