Unemployed Canadians are paying the shot for the announced $2 billion increase in health funding, says Audrey Cormack, President of the AFL. The 1999/2000 Federal Budget was announced by the Liberal government on February 16, 1999.

"While the health funding is a small step in fixing Canada’s ailing health system, I can’t help but notice that it is coming almost directly out of the pockets of unemployed workers," says Cormack. "The Federal government is hoarding $7 billion this year alone in surplus from the UI fund. That money is going to pay for the health funding."

In the budget, Cormack observes, the Federal government continues to transfer the accumulated UI surplus over to general revenues. "This is money that should be going to workers in the form of UI benefits."

Cormack also states that the health funding is a drop in the bucket. "Considering the tens of billions they took out of health care in the last five years, a two billion increase is barely a band-aid."

The budget also announced a package of tax cuts which benefit mostly the very rich. "I believe working Albertans need a tax break. Conrad Black definitely does not."

Cormack points out that the Martin tax cuts amount to $137 per year for a family earning $30,000, but a person earning $250,000 gets $3,673.

"This budget made Canada’s tax system a little bit more regressive," Cormack points out. "I am looking for a real tax cut for working families."

CLC President Bob White also criticized the budget. "With a huge surplus, Mr. Martin had a real opportunity to address real social problems – and he missed it."

The AFL and CLC are calling for real action on jobs. "Jobs are what Canadians are looking for," says Cormack. Martin’s budget does nothing on the issue of job creation.

Cormack is also concerned that the money provided for health care is provided to the provinces with no strings attached. "Ralph Klein can spend it however he wants. I fear this new money will just go to finance HRG or some other private health care operator."