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Tories slammed for lack of stimulus package
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CTV.ca News Staff
Date: Wed. Nov. 26 2008 5:30 PM ET
Finance Minister Jim Flaherty is not planning on announcing a fiscal stimulus package during Thursday's economic update, a move that brought criticism from the opposition in the House Wednesday.
But the Harper government says that it will have a stimulus package ready for next year -- probably in the form of massive infrastructure spending -- and it should be passed before the Americans move.
President-elect Barack Obama does not take office until Jan. 20 and the U.S. legislative process will only then begin working on a stimulus package.
"We have an administration already in place. The prime minister is the prime minister today. And our legislative process tends to move more quickly," a senior government official told The Canadian Press.
Liberal Leader Stephane Dion said during question period that Thursday's economic update would be a "sad day" for Canadians and asked why there would be no stimulus package for important sectors of the economy.
"Where is the plan to get our economy back on track?" Dion asked, singling out the auto industry in particular as a sector in need of government help.
Parliamentary secretary of finance Ted Menzies responded that Prime Minister Stephen Harper is consulting on a regular basis with other leaders around the world and said that Canada is not in as dire an economic situation as other countries.
Minister of Immigration, Citizenship and Multiculturalism Jason Kenney said on CTV's Mike Duffy Live said that Canada's economy is facing challenges but touted the country's banking sector as strong.
"The reality is we are facing a real difficult time economically . . . and Canada may face a deficit but it will be the least bad situation of any major developed country," Kenney said.
Liberal MP Gerald Kennedy said on Mike Duffy live that the Tories' fiscal moves have "weakened our ability to respond" to the economic crisis.
He added that the government cannot wait until March -- the normal time for a new federal budget -- to respond to the auto industry crisis.
Kennedy, the new opposition industry critic, said the Conservatives cannot expect the U.S. congress to look out for Canadian jobs when and if it responds with an auto sector bailout.
Cuts to perks
Industry Minister Tony Clement said that the government has been investing in auto innovation throughout 2008. However, an economist from the Conference Board of Canada expects another 15,000 jobs will be lost in the industry in 2009.
Flaherty said his economic update will include real "actions." It is expected that those measures will include cutting back discretionary spending by ministers, MPs and top bureaucrats.
"This will be worth tens of millions of dollars a year in savings," said Kory Teneycke, the prime minister's director of communication.
P.E.I. Liberal MP Wayne Easter mocked the budget cuts in the House Wednesday, asking why the Conservatives raised the number of cabinet portfolios.
B.C. Liberal MP Ujjal Dosanjh said the Tories are only acting on "gimmicky" things.
"I'm concerned that they're into the gimmicky stuff and they're not acting quickly enough on the substantive issues that are affecting people. These are jobs in the auto sector, the forestry sector and other sectors," he said.
With files from The Canadian Press
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Wednesday, Nov. 26: There are calls for the government to provide more of an economic stimulus, more quickly.
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.
Comments are now closed for this story
JD
said
This is part of the overall cost - something they dont speak about much in the media - the largest parliament in Canadian history. In BC, we parallel that with the largest legislature in BC history.
Why on earth would civil servants get bonuses - that is not supposed to happen in the public sector with public sector money. How about trying to even begin to regulate the banks and their 18% interest rates on credit cards and lending rates while savings accounts, if you are lucky, earn about 2% - if you want to stimulate the economy, you have to find ways for the 80% who support the economy to have the money to put back into the economy. Harper never had a plan. He was arrogant enough to disobey his own laws; call two elections; spend countless dollars; and had nothing to offer anyone. In the private sector, he would be on the street by now. No politician believes they are even accountable any more.
SK Businessman
said
Jimbo
said
give your head a shake, do something now, this is why you were voted into your jobs. You won't be voted into your jobs if you don't do something.
KC
said
Herb
said
The independent review (last week) that predicted a ballooning deficit said that the current government's mismanagement has made the Canadian economic situation worse than it should have been.
Steady hand, indeed.
zwinky
said
Would that include not wanting to please ME...the taxpayer?
Delays will increase the period of time where uncertainty rules the day.
This drives people to act in ways that increase the recessionary cycle and curtail economic activity.
When all other leaders are acting as swiftly as possible to help their economies these guys want to sit around and hope it all goes away.
Unreal.
Is Harper really an economist or did he get his degree from an online diploma mill?
Fraser
said
History is repeating itself here. How many times does this lesson have to be repeated?
Bailouts do not work and are only temporary band aids. The Europeans are right. The financial system needs to be overhauled in a big way otherwise this situation is going to be a complete looping of the same thing over and over.
People really need to stop be calm and take a look around at who is benefiting from this financial crisis? Is there a shell game being played?
This may give some clues as to what is REALLY going on....and what needs to be done.
Think instead of reacting, I’d like to think that there are some rational intellectual thinking Canadians left on this planet…………
Pat_from_Mississauga
said
Kris D.
said
Plus that's 300 million we could have used towards stimulating the economy...
A plan NOW would be really nice and would do a lot for consumer confidence.
George
said
As for bonuses? They always had then for those that learned french or hired females for their staffs. All totally useless initiatives when we should insist that public servants are the best we can get regardless of sex, religious backgrounds or . . . . well you can fill in at least a half dozen other parameters. You get the picture.
So lets move the MP's out of the House, rid ourselves of their staffs, cars, perks and demand more from those that are remaining.
Bob AB
said
Mike S
said
Cliff
said
Typical Liberal strategy, use taxpyers money with no results...we've seen that with the gun registry, massively over budget, Kyoto...again money but no plan. These weren't viable because there was no plan....just money.
Maybe they would recommend Canadians throw taxpayers money at the big three car makers. They also have no plan...the same old management that didn't have the foresight to adapt to the changing economy, now they want taxpayer money to prop them up for a while.
The opposition have claimed they want to be consulted, well they have been consulted...and what have they come up with nothing...its really easier to complain isn't it.
The FACT of the matter, is that other then infrastructure spending, there is little that the Government can do other then what has already been done. A steady balanced approach is what is now needed, not panic spending.
Dan@KentvilleN.S.
said
Big Oil Calgary Guy
said
If the big 3 could fire all the retirees they'd be profitable
Nick in Gatineau
said
1. Re-instate 100 % deductions for Income Trusts. Its a good thing now as it adds liquidity to financial institutions, and companies alike, and increases spending in 20 or 30 years from now. You can even insist that they be exclusive to RRSPs.
2. Like I mentioned a few weeks back, cap Mortgage rates at Prime + 2 %.
3. Cap Credit cards depending on their volumes: Major cards Prime+2 %, other cards such as Citifinancial, Canadian Tire, Sears, etc...Prime+5 %.
4. Create a National Credit bureau that tracks people's credit - and caps their borrowing capabilities. No more having a mortgage, credit line, 5 credit cards (maxed-out), Car loan,etc... and then asking for more.
5. Clearly define shorting laws and establish harsh sentences for Shorting: 5 years without parole, first offence.
6. Penalties for White collar crimes such as Fraud and Insider Trading should be harsher: 5 years first offence and cannot be executive of any company that is publicly traded, or government - first offence. No more fines. Send them to jail and confiscate their holdings for the entire amount they stole.
7. Stop thwarting revenue streams to buy votes. Add a constitutional law that forbids it.
8. When the snow melts, spend on infrastructre. Place toll booths to pay for some of it with clear timelines for their usage.
Sask Man
said
A stimulus package is no fix. All it amounts to is moving some of our tax money or deficit money into the hands of many who spends it on plastic goods made in China and sold at Wal mart.
The government already has stimulated the economy with the GST cuts as this unspent tax money is still ours.
If you want to stimulate the economy do what governments should do, build roads, bridges... Another good way is to help out the primary producers of wealth in this nation with tax breaks and incentives.
Primary producers of wealth is anyone who takes from the earth and turns it into something of value ie/farmers, ranchers, fisherman, lumber, mining...
The rest of us just circulate the new found wealth that these people have created.
PrairieDog
said
To Jimbo: It is not the tax payers problem if your business goes under.
Along with that, 90% of the cars built here go to the US. You can't get Americans to buy cars that are being built here, by giving the companys more money...it's the people who have to spend the money. If Canada doesn't wait until we see what the Americans are going to do, it could be the wrong move. Remember, 90% of the cars go to te US. Think, before demanding my money!!!
Bill from Whitby
said
Doug
said
Faramir
said
Harper wanted in government
said
Say what you're going to do, Harper.
If you think bailouts are good, start bailing out.
If you think doing nothing is the answer, then admit that's your "plan."
If you don't want to lead, then get out of the way.
Doug BC
said
Secondly,the issue of a cabinet that's to large is just a red herring.Even if we could fire the ALL the people,in both the Senate and Parliament,the actual fiscal savings would be very small relative to the total budget.Although there could be some symbolic value in reducing cabinet,one might be able to argue that it will take a lot more people doing a lot more work to navigate us through these troubled economic times.
Move now?? Haste makes waste.Always.Reacting to this chaos just for the sake of reacting,has the potential to see even more tax dollars wated.I believe it is more important to get it right,than it is to do it quickly.With a finite number of dollars,taxpayers deserve to get value from any bail outs that consume their money.And,since no one,any where has yet figured out how to fix this mess,I think any expenditures we make now would be more of an experiment than a path to a solution.
And finally,Canada has no solution to the mess the "big three" auto makers find themselves in.We don't have the fiscal capacity to help them without the USA being involved.And even with the USA,there is some doubt as to whether we should use tax dollars to delay the inevitable.If they can't export vehicles,and continue to be the highest cost producers,no amount of money will save them over the longer term.
The solutions to this are far more complex than they are for most ordinary recessions.
I'm amazed at how many people think the government has money,or that Canada can have an impact on a global problem.
DC in AB
said
Anne M
said
Michelle
said
Jim in Edmonton
said
Jim from Barrie
said
As for the bailout in auto industry. This failure has been written and designed by the entire industry including it's unions representing its millions of employess. Just check up on their contract, packages and benefits. The fundamentals for the Big 3 union contracts is designed for employee getting rich and pass on the cost to consumer, and manufacturer suffer the loss of sales to foreign imports. Here in Canada the price of a car is still 30% higher than affordable, or any other country. They need to rethink there contract and what they are worth bolting cars together, what benefits are fair, pensions, etc. They don't clearly deserve what they are paid in factory assembly job.
Aaron
said
Banks do not want people to maintain a balance on their credit cards. The 18% is to persuade people to pay them off. Banks make far more money by regular purchases: 4% of the transaction goes to the bank. This is why there are minimum purchase amounts set by retailers when paying by credit card. Debit cards the vendor has to usually pay only 25 cents. If you don't like 18%, get a line of credit which runs at prime rate if secured by real estate, or usually prime + 4% if unsecured.
There are many many ways the 80% of us can stimulate the economy. Invest in stocks, mutual funds (stocks/bonds), or privately invest in local business. Create industry which brings more money into the country by exporting finished goods. Invest globally thus reaping dividends and interest from other countries and bringing the wealth into Canada....
The bottom line is no matter what the government does, it is the people who need to fix this mess. If the government starts printing money, then we all pay through inflation. We need more international trade where we have a surplus. The hard part is getting companies to produce competitive products...
Doug BC
said
As for whining about credit card interest rates,I wonder why people pay it.It is an insane use of credit for even wealthy people.Pay it off every month.
In the USA,they are lowering credit card limits and increasing the rates to discourage people from poor borrowing choices.Rates can be as high as 32% on overdue payments.
This is big trouble around the world.While I concede that few saw the severity of this problem,it is a bit mind boggling why it's a shock to anyone to find out that living on credit doesn't come with a great deal of risk.
Surely poor planning by any business or individual is no justifcation for any government using taxpayers money to bail them out.We must all know that government doesn't have any money of it's own.They just use money they confiscate from us.
If the government is going to pay businesses to make products they have no market for,we had better be sure there is a market in the very near future.If not,they would get more value burning the money to generate heat or electricity.
We tied that with lumber mills in BC.Mills that eventually failed anyway.After burning up millions or taxpayers dollars.
Targeted loans to viable companies,with some potential for a return on those loans,perhaps.More "free" handouts to failing industries,NO WAY.
Roland Godin
said
Energy New Bruswick is possibly billions in dept co signed by all but it's ok it's just on paper...
BadP
said
Now the Liberals are trashing everything that the governing party does.
How stupid do they think we are? Barking at your opponent (especially when the opponent does a great job) is not supposed to make you more popular. Yet they blame the government even for the US economic crisis. The only thing that is missing from parliament debate now is a fistfight.
What we need now is for the politicians from all parties to do the best for their country, not to fight each other to death.
When will we become a civilized nation? Grow up, Liberals, and stop making poor Dion do Sarah Palin's job.
K D
said
James Stinn
said
I perfer a government that does not rush to the aid of large corporations that are in touble. Where has GM, Ford And Chrysler invested the R&D credits that they recieved for Canadian research? It sure wasn't in fuel efficient projects.
If the average Canadian wants a true picture, think about the equation demand = supply. It explains why the North American auto industry is where it is today. They give the consumer what they wanted.
If the government wants to create incentives to improve the economy of the country they should proceed in a very well thorough out manner. To much government spending can lead to both a deficit and inflation.
The Hammer
said
DoasIsay
said
We survived
Go for it:
Roads & bridges
We survived..
keith
said
Why would you ever want to be in government. Opposition members are living in a world of rainbows and unicrons!
Andrew
said
Pat
said
Dennis
said
Prices were getting way out of line, if you had a lower paying job you were slowly starving, mayebe this will bring things back in to perspective, think of it as a big overdue correction.