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Harper, premiers discuss infrastructure, RRSPs
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CTV.ca News Staff
Date: Mon. Nov. 10 2008 10:17 PM ET
Two issues topped a meeting between Prime Minister Stephen Harper and Canada's premiers on Monday: the need to quicken infrastructure spending, and how to help pensioners weather the economic storm.
Harper said spending on roads and public transit should be speeded up in the next year, as a way to ease the effects of the worldwide credit crisis.
British Columbia Premier Gordon Campbell said Canada may commit billions of dollars in infrastructure spending for 2009.
"I think the prime minister understands that the acceleration of those infrastructure projects will not just keep people at work in the short-term, but will give us a productivity platform in the long-term which will really get us out of his period with a stronger economy," Campbell told CTV's Mike Duffy Live after the three-hour meeting.
Senior government officials told CTV News that Ottawa will likely focus some of its infrastructure spending on housing, particularly for low-income Canadians, First Nations people and seniors.
On Monday, Harper also agreed with premieres that Canada must take steps to help retirees who have lost money in the plummeting stock market.
By law, Canadians who turn 71 this year must convert their retirement savings into retirement income funds, or RIFs. But some RRSPs have lost as much as 40 per cent of their value, and retirees who are forced to convert now could see huge losses.
Before the meeting, Manitoba Premier Gary Doer said the RRSP law needs to be addressed immediately.
"There's a cascading impact of laws that are well intended but might be quite irrelevant to the kind of flexibility we need right now to keep people working in the Canadian economy," he told CTV Newsnet.
Some premiers have called for the mandatory age for RRSP conversion to be raised to 75 to provide more flexibility for pensioners.
Harper said Monday's meeting produced positive results, and most of the premiers were on the same page on how to keep Canada's economy healthy.
"The premiers came with many ideas, strong ideas and opinions of their own . . . there were many common positions," he said.
The premiers also came out of the meeting with glowing remarks. Even Newfoundland and Labrador Premier Danny Williams, who had waged an "Anyone But Conservative" campaign in his province during the last federal election, said it was a "very good meeting."
He also stressed the importance of showing unity with the prime minister.
"My message was that it's very, very important that we show the Canadian people that they should have confidence in their leaders, that they should see the solidarity and the union that comes out of that room," he told reporters.
Auto sector
Ontario Premier Dalton McGuinty had hoped Ottawa would agree to a rescue package for the province's struggling automotive sector, which has been battered by plant closings as the Detroit Three companies -- Chrysler LLC, General Motors Corp. and Ford Motor Co. -- try to cut their losses.
Harper suggested the federal government may offer help, but was cautious about what that would exactly entail.
"None of us want a sector that would fail and that would cause tremendous dislocation in the Canadian economy," he said. "But neither do any of us want to see a sector that would be permanently supported by the government, and that would not otherwise be financially viable.
"I know the Americans are looking at certain approaches and we're going to be watching those very carefully, and obviously developing our own responses here in Canada."
The auto sector has said in needs at least $1 billion in loan guarantees to weather the current crisis -- providing that consumer demand eventually returns to previous levels.
Government officials told CTV News that Ottawa will help the auto industry, but not in the form of a blank cheque. The government is also expected to put pressure on the Detroit Three to build more fuel-efficient and affordable cars like Honda and Toyota, if the companies want help.
Although Monday's meeting did not seem to result in any concrete promises from Ottawa for the auto sector, Ontario Premier Dalton McGuinty called the talks a success.
"I'd say this is one of the best meetings I've had in five years with a prime minister," McGuinty told CTV's Mike Duffy Live.
This upcoming weekend, Harper will journey to Washington for another meeting on the economy, this time with the G20 leaders.
With a report by CTV's Robert Fife in Ottawa
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Two questions:
1) What does Mr Colvin personally have to gain by what he is exposing ?
2) What has the Goverment gain or protect by discrediting Mr Colvin?

Comments are now closed for this story
Larry
said
Paul - FLorida
said
Flaherty has already annouced at the G20 in Brazil the stimulous package was already done last year in the form of personal tax cuts.
John Mura
said
Janet
said
Pete1951
said
Danny deserves a second chance eh!
said
So far Williams hasn't been a very wise spokesperson for Newfoundland & Labrador. Maybe with age he will see the error of his ways and clean up his act a little. First improvement is to ditch his inflated ego and the pride. After that he's on his way.
H. Jones
said
It's about time for you to think of a plan to fix the economic for all us, Canadian!
Maybe it's also time for you to pull out those Economic Notes and STUDY the trend!
Time to face the reality and work out a plan! Think of HOW TO CREATE MORE JOBS for every Canadian. Then everybody will pay the Government back through the Income Tax!
Please, no more DREAMING AND TALKING! TIME FOR ACTION AND ACT NOW!
Gordon in sarnia
said
PBW in WPG
said
I wonder what he means here? Just a chat with each premier to find out what the status is with their economies and the way they are reported? Or is he hinting at the need for a common set of rules for governing the way financial transactions, the sales of securities, are governed? If the latter, then he might as well give up before starting, as Ontario, Quebec and BC will all say their system is best, why should they change.
Pity. An opportunity to protect Canadian investors, probably wasted.
al from calgary
said
Ed in AZ.
said
larry toronto
said
One way to solve our economic problems is to get rid of taxation. Clearly taxation no longer
works,it can not cope with all our demands & problems. We have to replace the tax system with
a whole new system. With taxation the Gov. takes a % of your income, put a % on things you buy,
puts a value on you property. Instead of putting a value on peoples income or there property,
you put the value on people themselves. Using a mathematical formula of 10,000 per person per
gov. per year, you determain the value of the Gov.,from this big number you take away the the
little numbers, labor, bills etc., then at the end of the year instead of us sending in our tax
returns the Gov. sends in a financial statement,and they get audited. I call this system the
cashless Gov. Decades ago the countries of the world determined the worth of countries by how
much gold they have, but not all countries have gold, but all countries do have people, and
with the cashless Gov. all people and gov.'s rich or poor will benifit.
John in Calgary
said
The North American automotive industry has not been providing it's market with the veichles they want, that is their fault not the governments. These companies need to look at why Toyota and other foreign companies are doing so well in this economy and make the changes needed to be competitive again. Their arrogance in thinking they would be at the top forever has made it that they make cars that only last 10 years and burn twice the fuel. Who wants to by a vechile that loses $6000 as soon as you drive it off the lot?
Andrew
said
pete1951
said
Raj
said
Norm
said
Rebecca in Edmonton
said
I would like to hope for the best, but I'll prepare for the worst. Silver is running out. So is gold. Act quick to be sure you receive your chair!
Alberta Believer
said
Anne M
said
Philip
said
They trusted the stock market; they pay the price.
said
Yeah, well, other citizens want other socialist government intervention.
Let the bargaining begin.
Business boys screw up again and again.
said
The corporate clowns have to be regulated because they're idiots in suits. ...
Paul in Victoria
said
We have ten pretty good Premiers, including Danny Williams. It appears some federal Conservatives are still upset Danny Williams (a Progressive Conservative Premier of Newfoundland and Labrador) spoke the truth during the recent Canadian election campaign when he said Harper is bad for Canada. Williams was right, but we're stuck with Harper for a couple of years again, like it or not for now.
Dale Wilson - Edmonton
said
It is indeed nice to see Danny Williams change his tune.
Brian AB
said
needs to be changed you reach 71 and HAVE to turn your RRSPs.
Why the hell would anyone want to turn in their RRSPs when they could lose up to 40 per cent of their value.
Man that is just a plain stupid law and needs to be changed.Oh and for anyones info i am no where near 71 but how can we do that to them!!!!
Sherry
said
Concerned Citizen of Canada
said
Darren
said
Scarlett from NB
said
Great Idea! Let's bail out the Auto Sector. Let's increase the national debt or income tax to bail out the auto industry. Wow! We'd still be able to buy nice new shiny cars! We couldn't affors them because of the increased income tax but it could work....
I know the perfect way to get more money back into Auto production; get rid of the unions; decrease the hourly wage. I'm sure there are many people out there who'd be willing to work for half of what the CAW works for.
Better yet, Let's take money from education, environment, agriculture, energy, heritage, fisheries, immigration, industry, justice, foreign affairs, defence, arts, and give it to the auto sector.
Canadians would have to do without a lot of things (schooling, food, security, music, entertainment, history; but we'd be able to buy a fuel efficient car!
Val
said
Zwinky
said
never will...
These wealthy men who really believe that the market crash represents "buying opportunities" to anyone but the fortunate few are clearly not focused on those among us who have no money left after the crash and are in danger of losing our jobs and our entire future.
Their records on the economy and their understanding and support of many Canadians' real needs are appalling.
Their GST cuts benefit wealthier Canadians almost exclusively and robbed the treasury of vital dollars that could have been used to help the less fortunate among us survive this economic meltdown.
They need to do a better job on the economy and on heping ordinary Canadians wheather the economic storm but I doubt they will be able to see past their "sink or swim" ideological blinders to do so.
Now all the extremists will scream "Why should MY tax dollars be used to support YOU??".
I would answer humbly:
"Because right now I need your help and if I fail utterly through no fault of my own and you stand by and watch, we will all diminish as human beings and our country will never be the same again.".
Pete1951
said
Thanks
RRR - Lethbridge
said
What has changed? Why do we suddently have to comply with the US? Until recently everyone has been bashing Harper for being close to the US. I don't understand why you have changed your stance. Are we now going to be the puppy dog for the likes of Barack Obama and Americanize all our policies?
Victor in Vaughan
said
Many folks banked on the rules being the same and now they want to tax the thing sooner rather than later in smaller steps from a RRIF.
The Governments shouldn't attack the seniors that were paying taxes from so many years, and now will get a huge back end load too.
Not fair at all.
nc
said
JD - BC
said
kraven
said
John in Ontario
said
Cambob
said
This fuel spike is going to happen again next year too.
Until politicians, economists, and the general public realize that our well lubed western civilization is fundamentally linked to oil, we are in for a very rough path.
Of course, if the US had the nice little gas station they lusted for (Iraq), our way of life would not be as threatened. Yes, war is horrible... but so is the pending collapse of western economics. And if it gets to that point, let's just say civilized people are not civilized when they are desperate and angry.
If you need a historical reference, look at Germany after WWI...
Chris
said
CG
said
Laz in Finance
said
Second, if you are 71 and 100% equities, you are probably not the smartest of investors or you should fire your bank or financial advisor. You should have a majority in fixed income and some more in cash. The cash you would then withdrawal from for your minimum RRIF payment and therefor, you have lost NOTHING. The remaining in Equities will come back over the year and probably provide inflation protection.
Doug BC
said
MOST of the cars we make here,are sold in the USA.As is MOST of the lumber and forest products,and a whole litany of products we make here.
While I totally agree with the notion of having lower taxes,which enable Canadians to buy more products made in Canada,the fact remains,if we don't have expports,we will feel the pain.And even with a few extra dollars in our pockets,uncertainty about the economy,,a lack of technology to make "greener" cars,and our very small domestic market are just a few reasons why we cannot save our auto industry all by ourselves.We simply lack the fiscal capacity.
THe RRSP idea is a good one.But anyone who retired in the last few years is facing big trouble.And,likely no way to improve their personal situation even if this crisis does pass.By the time it does,their life savings will be consumed.
And finally,this is just the "credit market" part of the problem.I expect it will get even worse when the USA starts dealing with their "budget" imbalances.
It's completely dilusional to think leaders in Canada can "bail out" much of anything.Perhaps we would have been in better shape if we had paid down more debt.But for now,there is not enough money in all of Canada to fix this mess.Not even close.
marcel
said
Anne Ottawa
said
keithg99
said
Norm
said
They make $ 30.00 plus an hour and on top of that they get full benefit packages. Add to that their pesions are provided for them and it gets up to around 60 to 70 dollars an hour. As I stated before, they need to take a cut if they want my tax dollars to bail them out.
Joe MacDonald (P.E.I.)
said
remember there is now only one of us working to pay for a half dozen retirees.
Keith In Brampton
said
Chris
said
Furthermore for all of you who enjoy free health care, and services the government provides. WHO Do you think supports that, the people like auto works who make 60 K +/yr or the people who are making 20K/yr ? It's not just simple to say they should take a pay cut.
AS for RRSP's turning into RIF's I am sorry that's the stock market you win, you lose on some. IF I were 70 when all this trouble started I would have moved my RRSP's into funds that were very stable in keeping their value.
I am 25 and never worked in the automotive sector. But it's not that simple.
roy cotton
said
Louisa
said
ME
said
I agree with the writer who said give incentives to those who want to buy green cars. Bailing out the auto industry is just giving away money. This will help the auto industry, the environment and the buyer will save money in the long run.
As for deferring transferring RRSp's into a RIF. This is something the government will benifit from in the long run. Most people have a percentage of their RRSP in mutual funds. As you near retirement it is usually in so called blue chipstocks, not risky stocks. If the government waits a while they will rebound, but if you have to convert them now that money is lost to both the senior and the government. This is not a stock market issue but a government issue.
Gwillimbury
said
Alberta Believer
said
Fact is our economy is dependant upon the US and world economies in varying degrees and there is very little that our first ministers can do that'll keep us Canadians from sharing in the global misery... to varying degrees.
I read some fool blaming Harper for attacking Dion's economic polices during the election campaign as if he was off base to do so? Perhaps he should have not addressed his political opponent's economic agenda during the political campaign or perhaps he should have endorsed it.
Really I dunno how jibberish like that makes it up here.
R/H Ontario
said
kate Coombs
said
Jason B
said
DCR-Toronto
said
This meeting will help. How on earth can it be a bad thing to sit down with the provicial counter-parts and discuss details of our countrys economics?
Neutral Logic
said
Trevor Wade
said
Buddy in Black Creek
said
Maureen
said
AndyL
said
R in Sask.
said
Merv
said
RAV
said
There is a story going around of a man who is going into a restaurant. On his way in he sees a street person who is asking for a hand out. The man orders his meal and receives excellent service from his server. His bill comes and he congratulates the server on the wonderful food and service but does not leave a tip. Instead he gives the tip to the street person. The waiter is dismayed and the street person is rewarded for no effort. This is how social welfare works in all its forms. Take money from the deserving and give it to the non deserving. Blinky, Blinky, Wake up Zwinky.
PM
said
Bobby in Nova Scotia
said
I imagine the naysayers below are those same worrisome willys whom feel threatened by their neighbour's success. Socialism doesn't work folks. Keep competing!!!!
Jim H Canmore AB
said
It would be very helpful if seniors already in RRIF programs could, at their own option , delay withdrawals during this period.
Layton B in Moncton NB
said
As far as infrastructure goes, didn't Harper once say that the government "doesn't do potholes"? If we as tax payers are going to invest in infrastructure, I say it should be in the form of mass transit and renewable energy projects. Simply put it kills a number of birds with one stone.
KJ in Kingston Ontario
said
James Johnston - Saskatchewan
said
Bob Gordon
said
The collective government decision to expedite funds for infrastructure improvement is a good idea unless politicians allow consulting firms and excessive profiteering political friendly construction firms to reap the benefits. Governments at every level must use legislation to set fair wage and fair cost efficient project schedules for the needed infrastructure work. Tearing down personal empires structured during the years of high profits and acceptable tax levies must face rapid dismantling even if it means labour unrest. Canadians simply cannot afford the present level of government. The cost is affecting the main sectors of the Canadian persona envied worldwide in the past. Education, senior security, health care, and social programs are all facing major funding crisis’ meaning the end of burgeoning public payroll must be brought under control. The money used for unnecessary administration, gold plated pension plans and excessive expense spending should face a hiring freeze (not a freeze replaced with hiring contract positions) in an effort to lighten the effect of the upcoming worldwide recession or possible depression.
Pat from Ottawa
said
I did not see any reference to Danny Williams in the article, but since you brought it up.....Williams is the most astute businessman and politian NL and Lab has had in a generation and has helped guide NL to become a "have province" despite Ottawa's bland efforts to provide nothing more than a life vest with a rental fee. NL is also having to import skilled workers. Although to give you some credit no NL Premier has ever lost political points locally by going head to head with Ottawa.
Barry
said
Linda in Vancouver
said
Any time these meeting go on,and the result is not a whole lot of whining and infighting,there is always a chance some problems can be ironed out.Especially when Dalton McGuinty sees the meetings as positive.We all know there is little love loss between Ontario and the Feds.
Still,I think the most they can hope for are ways to mitigate the harm that this crisis will do to a lot of Canadians.
Is it possible we will finally have to curb some of our consumerism,or scale back on the demands we make of a finite number of taxpayer dollars???
This family is OK with some sacrifices if it leads to a stronger Canada in the future.Even though our budget doesn't have a lot of extras any more.
Edmonton John
said
Where is the pulling of aforementioned forelock, the genuflect, the munching of crow pie, pray tell?
This is a photo-op for Mr. H, no doubt, and if he could get a picture of his oxfords on Mr W's throat, he surely would, but it's not happening. This brings me back to my question...what the heck are all you Williams bashers talking about?
If the cost of government is not sustainable,
said
There's a few billion dollars that can be invested in Canadian infrastructure and boosting Canadian industries' productivity.
Brad - Edmonton
said
The interesting thing about the 'Zwinkys' of the world is that they believe that nobody needs to take responsibility for their decisions / actions. How many people do you think have ended up on the street through NO fault of their own? Ask someone who works around them everyday. That doesn't mean that we can't & shouldn't help but it means that there isn't a bottomless money pit for the 'Zwinkys' of the world to reach into and help all those who fit into your grossly naive view of the world. We can't afford to finance your smug sense of social entitlement.
And as far as Williams goes....no he's not even mentioned in this article but unfortunately it won't be too long before his next childish stunt puts him back in the headlines. In the long run he's going to hurt his province.
Pat in Ontario
said
Ian
said
Bob in Harley
said
Brian Williams
said
Larry in Wpg
said
Remember our Vets
said
I think that the province and the federal government should help the struggling auto part sector, not just the big 3. Sure, the big 3 is what we in the autoparts industry count on for jobs, but if they get the lions share of the money, they'll just cut and run to Mexico with it.