VICTORIA: The Canadian Taxpayers Federation (CTF) reacted with disappointment to the 2008 Budget today, as the focus on a revenue-neutral carbon tax was in direct contradiction to the recommendations from the pre-budget consultation report, which were to maintain a growing economy and pay down the debt.

"The people of B.C. made it clear last fall they want the government to reduce the debt, but the debt will go up by almost 7% over the next three years," said Maureen Bader, the BC Director of the Canadian Taxpayers Federation. "The focus on climate change will leave B.C. with a legacy of debt."

The budget brings to reality the carbon tax, a tax increase on energy that will be offset by an equal tax cut.

"The government was elected on a tax and regulation reduction mandate," said Bader. "To date, that mandate has resulted in tremendous economic growth in B.C., but this so-called revenue neutral carbon tax will be anything but neutral for individuals, businesses and industries. It will create hardship for families, as soccer moms are unlikely to start walking. "

The government announced protection for low income households from the effects of the increased cost of energy.

"The government has essentially introduced a fuel-poverty strategy similar to the one in the UK," said Bader. "There is a deep perversity about taxing energy then turning around and funding people who have fallen into fuel poverty."

The government has also announced a $1 billion spending spree on green-cloaked initiatives.

"The government's attempt to create incentives for green projects while increasing costs to established industries such as mining shows it has lost its way," said Bader. "Planting trees might sound like a nice idea but the mining industry is one of the highest paying in the province. This misallocation of resources could result in the loss of high paying jobs in the province."