Ottawa expected increase in New Brunswick's housing budget, not cuts

Federal Social Development Minister Jean-Yves Duclossays that while he can't tell the province what to do with its money, everything was in place for the government to increase funding for affordable housing rather than cut it.

In last week's provincial budget for 2019-20, close to $9 million was cut from spending on housing service. The cut comes just as the first instalment of $299 million funding from the 10-yearnational housing strategy is set to begin April 1.

"We had everything we need for New Brunswick not to decrease but to increase funding in housing," Duclos said Thursday.

Duclos told CBC's Information Morning Moncton that his government didn't believe it should build serviceson the backs of those who need the help the most.

'We need to care'

"Those most vulnerablepeople in New Brunswick in many cases need investments in housing for them not to find themselves on the streets or in shelters or in hospitals or in police stations or homeless.

"We need to care and to look after those vulnerable people across Canada."

Duclos said the federal government will be holding the province to the obligations that are in the housing agreement signed in July 2018.

Dorothy Shephard,New Brunswick's social development minister, has said the money coming from the federal government was a continuation of an old program.

"It's not new," she said.

But Duclos disagreed, saying if the old plan, put in place by the previous government, had continued there would have been little federal money to help with housing in New Brunswick.

The new plan not only maintains the funding, but itincreases it, he said.

"Fortunately, we're not working under the old plan but under a new plan, which will send more money to people in New Brunswick to make sure more families have access to an affordable home."

Under the old plan, the federal government provided $3.9 million a year for affordable housing to the province. Under the new plan, it is expected about $30 million will be spent each year over the next 10 years.

Shephard would not tell reporters how much of the $299 million would be spent in 2019-20.

She said the money will be "backloaded" into later years rather than spread evenly over 10. Howmuch is spent next year will depend in part on what the province wants to do.

No reason to delay

The province has not made public how it plans to use the money, and Shephard has said it's waiting for federal approval of its action plan.

Duclossaid the action plan is an evolving document, but thisdoesn't stop the province from "making the important investments in housing that people in the province expect."

He confirmed the money can begin to be spent on April 1.

"The money is there, the objectives are there, the action plan is to make sure as we proceed, that all of the things that are expected on the part of New Brunswickers are indeed implemented under that agreement."

"There will be all sorts of measures to reassure people in New Brunswick that all those dollars are really invested and the action plan will be one such measure."