P.E.I. budget includes big spending on housing, but 'it's not enough'

The P.E.I. government has tabled a budget that tops $3 billion in spending, including substantial investments in housing and health care.

Investments in housing include $6 million to offset property tax increases for homeowners and $1 million for a new rent-to-own program for first-time homebuyers.

It's a step in the right direction, said Cory Pater of the P.E.I. Fight for Affordable Housing.

"It's a serious amount of money being spent on housing and it's really good to see that," he said.

"Ultimately this amount of money, while it's a lot, it's not enough to alleviate the issue."

He said the rent-to-own program only benefits those who have the means to eventually own a home — Islanders with the time and money required for upkeep.

"That does sting. We would like to see more investment in rental units that become available to people because a substantial amount of Islanders are tenants," he said.

"We need to see more resources put into rental accommodation and social housing."

For the first time, spending in the province's operating budget will top $3 billion, with a projected deficit this fiscal year of $97.5 million and a plan to continue deficit spending for at least the next three years.

"It will not surprise anyone in this chamber that the budget I present today has three key areas of focus: health care, housing and affordability," Finance Minister Jill Burridge said Thursday.

"The investments in this budget are purposely interconnected with the ultimate goal of making lives better for all Islanders. The budget I present to you is our plan. It's a plan that is balanced and responsible."

The budget also included $25 million to develop new lots for development, and a plan to expand a program offering low-interest loans to developers.

Sam Sanderson, general manager of the Construction Association of P.E.I., said it's difficult to say at this point what the impact will be.

"It's a good starting place for sure, it's great to see the investment in helping rural communities become better prepared and more efficient," he said.