Federal budget seen as easing sting of oil collapse, finance minister says

Finance Minister Cathy Bennett saysshe considers the federal budget an acknowledgement of the grim economic situation facing Newfoundland and Labrador.

The budget proposes to extend employment insurance in this province as well asother regions hardest hit by the massive slumpin oil prices.

• EI overhaul will extend benefits, shorten wait times

"I think [that's] a good thing for Newfoundland and Labrador, especially for those people who have had long careers working in the oilpatch and the oil industry in Newfoundland," Bennett said after federal counterpart Bill Morneau delivered his budget Tuesday in Ottawa.

The Trudeau government plans to make legislative changes that would extend regular employment insurancebenefits to a maximum of 50 week,and benefits for long-tenured workers to a maximum of 70 weeks.

It's going to be very helpful to get extra money in the economy here.- Cathy Bennett

The extended benefits would be available for one year starting in July but the measure would be applied retroactively on eligible claims dated Jan.4, 2015 onwards.

The federal government will also look to decrease the number of employment hours needed for eligibility, which iscurrently set at 910 hours annually for new entrants and re-entrants. That would come into effect in July.

As well, the federal government would like to see wait times for EI benefits reduced from two weeks to one week, starting next January.

It's also proposing a reversal of the 2012 decision that changed the types of work and commute times thatworkers were expected to accept.

"It's going to be very helpful to get extra money in the economy here," said Bennett.

A total of $19-million will go towards improvements to claims processing in 2016/17. EI call centreswill receive $73million over two years,starting in the 2016-17 fiscal year.

No more ferrytariff

The federal government plans to lift the tariff for importing the MV Veteran. The new $50-million ferry travels among Fogo, Change Islands and Farewell.

"That's a good news story for us," said Bennett, adding that line item is worth more than $23 million.

"[That],as it relates to the ferry tariffs,will certainly help."

Money for Manolis L

Meanwhile, about $6million is slated to go towards a "technical assessment of the wreck" of the Manolis L, which sunk in Notre Dame Bay more than 30 years ago. In recent years, authorities have made several attempts to deal with fuel seeping from the wreckage.

Bennett calls the money an "important first step."

Bennett saidarea residents have been "advocating for a long time" to have leaking oil from the ship cleaned up.

Bennett told reporters Tuesday she intended to follow up with Ottawa about the ship's status.

"We'll continue to pursue with the federal government their responsibility when it comes to the environmental issue that we have with that vessel," she said.

The Canadian Coast Guard will complete the work.

Other province-specific announcements

The federal budget also earmarks $22million for Marine Atlantic ferries travelling the route between North Sydney, N.S., andPort aux Basques.That money would go towards a new mooring system.

As well, $23million has been allocated for fire safety, terminal and hangar upgrades at six rural airports. Two airports in N.L.,atWabush and St. Anthony, are set to receive money from that pot.

The budget also proposed to reopen the veteran service office in Corner Brook.

Ottawa plans to reopen nine offices across the country and to add another in Surrey, B.C.