News Sections
What Harper, Flaherty said during the credit crisis
Email
By: CTV.ca News Staff
Date: Sun. Jan. 25 2009 12:01 PM ET
Key quotes by Finance Minister Jim Flaherty and Prime Minister Stephen Harper during the escalating credit crisis.
2007
March 19
"This budget makes our strong economy even stronger and provides the necessary tools so that Canadians from all walks of life can reach their fullest potential."
Working with a massive surplus of about $9 billion, Flaherty promises to solve the fiscal imbalance between the provinces by spending $39 billion over the next seven years.
August 16
"We must be clear that the fundamentals in our economy are very strong -- that includes corporate balance sheets and household savings -- and that our financial system remains very well capitalized.
"The Canadian economy is the strongest it has been in a generation. The unemployment rate is at a 32-year low. More than 200,000 jobs have been created this year alone. The financial position of Canadian households is solid, supported by strong employment and income growth. And household net worth relative to disposable income has never been higher. The corporate sector is also strong. Corporate profits are at record highs. Business investment is expanding for the fifth consecutive year."
Flaherty is quoted in an official statement from the finance department. A month of turbulence on the Toronto Stock Exchange has left it at 12,848 points from 14,625 on
October 30
"Like the North Star, we are a bright light for others to follow. Canada has emerged as a shining example in an economic universe of rapid change and uncertainty. We are leading the way with our tax cuts, our debt reduction, our focused and responsible spending."
In a fall fiscal update, Flaherty announces tax cuts representing about $60 billion in savings over five years, taking advantage of a federal surplus expected to reach $11.6 billion for the current fiscal year.
2008
February 26
Flaherty unveils the federal budget, which proposes a tax-free savings account for Canadians in the next year. There is a $2.8-billion surplus, down from a recent high of $9.2 billion in 2007.
"Some say we should not have provided tax relief for individuals, families, workers and seniors,'' Flaherty told the Commons in his budget speech.
"They call it 'blowing the surplus.' Well, Mr. Speaker, it takes a certain kind of Ottawa politician to view giving people their hard-earned money back as 'blowing the surplus.'''
February 29
"If you're going to make a new business investment in Canada, and you're concerned about taxes, the last place you will go is the province of Ontario.''
As the U.S. economic slowdown continues, and economists speculate about Canada's own situation, Flaherty trades blows with Ontario Premier Dalton McGuinty over the province's business tax rates.
July 15
"Different experts have different views about the likely growth, but its all on the plus side in terms of positive economic growth in Canada this year and next."
Speaking in Calgary, Flaherty comments on grim forecasts released by the Bank of Canada and U.S. Federal Reserve about the fiscal year ahead, as the TSX falls more than 350 points.
July 27
"There are some fundamental differences between the U.S. economy and our economy, like the housing sector in Canada in which we have not had a bubble, like the consumption in Canada with respect to automobiles for example, that remains strong."
The Finance Department says the federal government began the fiscal year with a rare $500 million deficit. But Flaherty says Canada remains on firmer economic footing than its southern neighbour.
September 30
"We didn't have a housing bubble in Canada, we don't have a large sub-prime housing sector, but it's important we get some relief in the credit markets because that has an effect eventually on the real economy.
"We need to have money flowing so that companies can borrow money, can expand, can invest. So the action that we expect will be taken by the Americans will be significant in the longer term for Canada."
Flaherty tells CTV News that the U.S. bailout will help Canada's economy by helping to thaw the worldwide credit freeze.
October 1
"Canada is not the United States . . . . We have no crisis in our financial system."
Harper battles his election rivals in the televised French-language debate, as the U.S. Senate passes a revised $700-billion bailout plan.
October 15
"I don't think now the atmosphere should turn to one of complete doom and gloom."
Harper speaks to reporters after the historic U.S. investment bank Lehman Brothers files for bankruptcy, and the TSX and Dow Jones industrial average both fall more than 500 points.
October 24
"Spending does not tend to be even during the year federally and revenues don't come in even during the year," Flaherty said during a press conference Friday in Niagara Falls, Ont.
"I'm comfortable with the fact that we will have a modest surplus this fiscal year."
The finance department says a deficit in August 2008 came from a 10.1 per cent spending surge in transfer payments to provinces, but Flaherty says Canada will still likely end the fiscal year in the black.
November 8
"Everyone has to put their own house in order, so that we have an increased degree of confidence between banking systems in the world, so that the credit markets that are not functioning begin to function. To do that, there has to be confidence in the viability, the stability of national banking systems."
Flaherty says G20 countries should be taking practical steps to solve the global credit crisis, not "planning brand new schemes."
November 13
"What we're doing is managing the economy in the best interests of Canadian families and individuals and businesses. If that means that there would not be a surplus, there would not be a surplus," he said.
Flaherty suggests he's not opposed to increased spending to help Canada weather the economic storm, despite the deficit that may cause.
November 19
"I wouldn't expect a deficit right now. If we have to do more, we'll do more. If we have to run a deficit, we'll run a deficit."
Flaherty speaks to reporters after the government delivers its Throne Speech, and says it would be a mistake to deliver a balanced budget at any cost. A deficit is expected for the 2009-2010 fiscal year, beginning on April 1.
November 25
"No one in the world was predicting the kind of economic downturn, and the severity and depth of the economic downturn that we've experienced in the last 12 weeks."
Opposition members demand immediate action on the economy, and Flaherty defends the government during question period.
November 27
"Without a doubt, these are difficult times that require difficult choices. All countries are struggling to cope with this crisis."
In his fiscal update, Flaherty says the government will put off stimulus package until the next federal budget and will cut public funding for parties. But he says there will be a small surplus of about $100 million.
November 29
"I'm disappointed that the opposition parties did not want to lead be example with respect to the contribution to political parties. We are going to freeze the contribution level, the subsidy level on that, but we will not seek to eliminate it, because the number one issue is the economy."
Flaherty expresses his frustration with the opposition, after the government backs away from its plan to slash public funding for the major political parties.
December 4
"It's the opportunity to work in the next six weeks on these measures, and I invite all the opposition parties, especially those that have a responsibility to the whole of Canada, to work with us, to inform us of their detailed position and we will be there to listen."
Harper addresses the nation after the Gov. Gen. Michaelle Jean grants his request to prorogue Parliament. The opposition parties, outraged by the fiscal update, had formed a coalition and threatened to topple the government.
December 12
"We know what we are up against -- worldwide economic slowdown, volatility in financial markets, sharp drop in commodity prices -- we are living in extraordinary times.
"We also know that panicking and making the wrong choices would be devastating for the Canadian economy."
Flaherty, in a speech to the Saint John Board of Trade, urges careful action to fight the credit crisis.
December 17
"There will be a deficit."
Flaherty speaks in Saskatoon, during an economic summit with finance ministers from across the country.
December 18
"I called them all personally and I said, 'Your advice is needed for your country."'
Flaherty on his new 11-member economic advisory counsel.
December 20
"Let me emphasize this: today's announcement is not a blank cheque."
Harper unveils a $4-billion aid package for Canada's struggling auto industry, alongside the Ontario premier. The amount represented 20 per cent of the U.S. bailout.
December 23
"We will ensure that spending that puts us into deficit is temporary, is for finite purposes, so that we will not be into a permanent deficit."
Flaherty before meeting his 11-member economic advisory panel, assembled earlier that month.
User Tools
Print Article
Feedback
Share with your social Network:
 |
|
|
|
|
|
|
|
Most Popular
Most Viewed News Stories
Most Talked about Stories
I fail to see just what a minister could learn by an on site visit that he couldn't get from people who are actual experts in the various fields of work involved. It is doubtful that he is any sort of nuclear engineer or expert in construction. Just another photo op...
