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G8 leaders say economy uncertain, stimulus needed
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CTV.ca News Staff
Date: Wed. Jul. 8 2009 9:42 PM ET
On the same day that Prime Minister Stephen Harper urged world leaders to hold off on new stimulus funding, G8 leaders issued a draft statement emphasizing the need to take action to breath new life into the economy.
Harper is in earthquake-ravaged L'Aquila, Italy for a Group of Eight summit with the heads of Britain, France, Germany, Italy, Japan Russia and the U.S.
In a draft statement issued on Wednesday, the first day of the meetings, the leaders said the global economic outlook "remains uncertain" and pledged to do whatever it takes -- including issuing new stimulus funds -- to strengthen the economy.
Earlier Wednesday, Harper urged leaders to complete the stimulus initiatives that are already underway, before committing new funds.
"My own thought is before there's talk of additional stimulus, I would urge all leaders to focus first on making the stimulus that's announced actually gets delivered," Harper said.
"That's been our focus in Canada and I would urge the same priority elsewhere."
Harper also signalled he will continue to push his message that the temptation for nations to move towards protectionist tendencies should be avoided at all costs, saying such moves could actually prolong the recession.
Harper's position may clash with some other leaders, including U.S. President Barack Obama and British Prime Minister Gordon Brown, who appear to be in favour of committing further funds to the recovery effort.
The G8 summit was originally set to be a held at a resort, but was moved to L'Aquila in order to generate attention and funding for the region, said CTV's Roger Smith, travelling with the prime minister.
He said many local people are still living with the after-effects of the quake which killed 300 people and left 60,000 homeless.
Thousands of residents of the area are still living in tent cities as the reconstruction continues amid aftershocks.
Harper was the first leader to respond to the call for help, Smith said.
"The prime minister announced that Canada would spend $5 Million dollars to help build a new youth centre at the university here and that Canadians would also help raise money privately to help with the reconstruction effort.
G8 on global warming
The G8 leaders agreed to seek dramatic cuts in greenhouse gas emissions. They said that global temperatures should be kept from rising by more than 2 degrees Celsius.
"After a long struggle, all of the G8 nations have finally accepted the 2-degree goal," German Chancellor Angela Merkel said.
But while British Prime Minister Gordon Brown called the group's statement a "historic agreement," the statement is nonbinding and there is no clear path to success.
Environmental groups were quick to say the effort fell far short of what is needed to cut the carbon emissions that mostly come from energy production.
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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
willow b
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Frank
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Dougy in Wiarton
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Connie Alberta
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beeman
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DCR-Toronto
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Now...just wait for it. The Liberals were just saying how out of control the spending is, but with this so-called "recomendation", they will be screaming to spend more. Once again demonstrating that the Liberals will say anything to get power. ENOUGH SPENDING ALREADY!!!
phil
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Concerned Canadian
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Apparently only 10% of the money already allocated has actually been spent, at least in the States. It seems premature to be putting more money in, until we are sure of the impact of the first entire stimulus amount.Furthermore, there are indications that the economy is improving, albeit in a muted manner. Given the drawbacks, such as an increase in inflation,we ought to hold fire for a while.
On the other hand, we need to ensure that we are really spending the money where it is most needed. Mr. Ignatieff's criticism was perhaps justified here- is our government really correct to spend money on gyms when, as Willow B said, the fisheries are in so much trouble?
Rick in NB
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PS: Where's the money!
Buba
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KJ in Kingston Ontario
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The public seems to always demand "government action" --even when it is the wrong action.
V aka Layton in Moncton NB
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GUTSHOT!! in Thunder Bay
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Giving money to those who whine the loudest is just welfare. Time for liberals to grow up!
J-Bone
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Then, when that involvement creates recessions or other market failures, the socialists blame the free market, and then demand even more intervention. To whit, there are already calls in the US for *another* stimulus package.
Sue in Orillia
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Stimulus spending - doomed to fail
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Taxpayers are certain they could be paying huge tax increases for a decade, for the present stimulus that has not worked.
Please refer to the "Ricardian Equivalence theory by Robert Barro.
Jake S.
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Martin
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"That's been our focus in Canada and I would urge the same priority elsewhere."
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Everybody wants to rule the world, buddy. Too bad Merkel and Sarkozy have been waiting for their moment. Turnabout is fair play, remember. 'No Soup For You'!
Rick in NB (East)
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Let's face it Harper just stood up in front of the world and lied about our state of affairs.
Dan
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Paul, Kingston
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Jeffery
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nc
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Jason B
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If there is to be more stimulus spending, then the money should go to individuals and families. For now though, let's see how the current package performs before commiting more money.
Steve Robinson in Calgary
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Steve in PEI
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By historical standards, even corrected for inflation, the "low" oil prices this winter were actually very high, and the current prices are exorbitantly high. Our economy, not to mention our food supply, is built on massive amounts of cheap, abundant energy, and you can't stimulus spend your way out of a problem like that.
We're going to rack up massive debts that we won't see very much for, which governments will be tempted to monetize, leading to massive inflation and weakening of the US dollar reserve system. It's not worth it. We should suck it up and take the pain now. Hopefully that would create some economic incentive to drive innovation to lessen our dependence on oil.
Fred from Ottawa
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Maureen
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Toronto
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André in Ontario
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Roger T
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Good try to divert attention away from problems back home.
Buzz
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Frustrated.
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Our own stimulus has not even reached Shovel Ready Jobs !!!
The stimulus money is not flowing and nobody cares !!!
GJS - Markham
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Negative environmental results since in power!
Negative economic results!
Not able to get the money out for the "shovel ready programs"
And on and on the negative list grows.
Get him out of office and certainly off the world stage.
Alicia
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Edb
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B. Kelley, Ontario
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Sean Calder - Chatham ON
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People complaining about the debt we are incurring to do this also seem to have forgotten to thank the Liberals, NDP and BLOQ for putting the gun to the Conservative's head in order to force this spending on the nation. Next time you speak to an opposition MP, be sure you thank them appropriately.
And while it may not be making national headlines in favor of other media circuses as of late, this current Government has been negotiating Free Trade Agreements at an almost breathtaking pace which we have yet to reap the benefits from, and we're talking Billions upon Billions of dollars of increased Trade Revenue.
M M B Ont
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I believe Canada is in good shape despite the unenployment rates. Whoever said life would be a bowl of cherries and everything delivered on a silver platter? Perhaps we have had so much here in Canada that we have become a spoiled people wanting the gov't to do everything for us, including raising our children. Whatever happened to the role of parents?
The rising oil prices are a detriment to the economy and I believe that is a direct result of greedy speculators.
Ken - Calgary
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Liberal Policies - Well Presented
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The other thing I agree with him on is that Canada took steps in the 90"s to ensure we did not hit the brunt of the economic crisis. We did have good planning and did not allow banks to go crazy.
The only coincidence on these is that they are both things that the Liberals have actually been leading. hmmmmm
Edmonton John
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Harper has not let the money flow to provinces and municipalities to stimulate employment. He has no idea and no plan beyond destroying the opposition, especially the Liberals, and stacking the senate with ridiculous appointees.
Harper is employing the same strategy of obstructionism with the G8 that he always pursued when in opposition. When he doesn't get to call the shots, he doesn't want anyone else calling them either, and he will do anything he can to prevent or obstruct them.
He is an embarrassment.
Wayne in New Brunswick
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MAL of TO
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Marc Foisy
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Messages like this just feed the "die hard conservatives" that don't like the whole message, just feed off the little blurbs of VERBAL DIHARREA that sound good.
Follow through mr. harper. Follow through. If you don't follow through, you'll slice the ball. And although Mr. Harper's message is "a good shot", he is not following through so the message is being sliced far to the right. Far far!
Art in Alberta
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Did the taxpayers pay for his family to attend this one too?
Nice media coverage on this. Now that MJ's memorial is finished we'll start getting real news again?
Kevin in T.O.
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Raging Ranter
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Canada Goose Whistler
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Unemployment keeps rising, bankruptcies are soaring.
Harper's incompetent government will waste half of any stimulus money before it gets out the door.
The only way to improve Canada's economy is to have an election.
Harper will be voted out & the liberals will clean up the mess.
Aaron in Toronto
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Is that an indication that our system does not work and need a complete overhaul? There is no relief for regular taxpayer. Jobs are being exported to Asia and in NA all we do is consume with no jobs or the so called jobs are just trading on the stock market. Will this house of card collaps anytime soon?
Someone once suggested that instead of bailing out the banks, the Canadian gov't should give each taxpayer who file for income tax to the Gov't a cool $1 million instead of giving the $ to Bay street. I think it will cost far less than what we spent on the bailout and the result would be much better as business need consumer to spend in order for them to make money. Bailout means nothing as it only cover their mistake.
Michael from Toronto
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What do want us to do - bring you crabs from Cuba? ...hike the world prices for shrimps and crabs? ...or just give you cash to do nothing?
Maybe Atlantic Canada should work a teeny bit harder on diversifying its industries after being warned for umpteen generations of the collapse of the fisheries business?
Ontario is now a have-not province and frankly we are a bit tired of bailing out Atlantic Canada with its forever whining "seasonal workforce".
Pip
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If "Grim Gordon" increases stimulus spending in Britain, he has to get the money from somewhere, either by borrowing from those who have it - China, oil-rich nations - or by printing it, thus devaluing the pound. If other G8 nations join in, that leads to the major world currencies - dollar, Euro - all being either controlled elsewhere or being devalued as well. Either way, the taxpayers of those nations will end up paying for it with even more of their income going to pay national debt.
And where does that leave Canada? The choice is to follow suit so our dollar remains where it is, at a slight advantage to our trade with our largest trade partner, the USA; or standing firm to protect our economy and avoid really major tax impositions on our citizens, but having a currency that is too strong for our exports to sell.
I'm glad I don't have to make THAT decision.
Johnny Mac
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wreck76
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Harper is intensely disliked by most Canadians,"
Hey Eddy John, I'm Canadian and I like Harper. Have you talked to most Canadians? Most of the ones I know like him. I can't imagine what the country would be like right now if iggy or the moustache man were in charge.
I agree completely with him that they should wait out some more to see how things are running before cutting more cheques.
GP
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He is absolutely correct that all governments should stop and take a calm sober second look at stimulus before committing to a second or third package. Let’s take a look at what worked and what didn’t, and what has changed before charging forward.
However the Harper government has needlessly wasted time and continues to play politics with the stimulus package here.
In my eyes his statement makes him look condescending. Harper likes to play American style politics...but I’m not American, I don’t want to be American, I want politicians to focus on the job at hand and not always in campaign mode. That’s how he will earn my vote...hard work with less political games.
hollinm
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Andrea
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Canada is now in a difficult position on the international stage.
One thousand dollars to each voter NOW
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Where's my bailout? Where's my stimulus?
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Do something useful, Harper: resign, useless.
Jeffery
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That's why Canada has become the last one on G8 list.KEEP GOING,WE WILL BE DROP OFF under the conservative!
Gate in Gatineau
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Nancy: Brown is going down
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Obama never ran a kool aid stand so he has no idea what he is doing.
Harper should stop doing nothing
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Harper's attitude toward government is to sabotage government and then push his ideology that government doesn't work.
Red Tape Guy
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An entity or organization creates a plan for spending throughout the year, allocating funds based on Parliamentary votes. For example, Vote 1 funds are for Operations and Maintenance, and Vote 5 Funds are for Capital assets (large equipment, buildings).
In order for the money to be sent out by government, the expenditures have to actually have been made. So if Joe Construction plans for $100,000 worth of expenditures of Government money, he doesn't get it all immediately because he doesn't need it. If Joe Construction racks up an expenditure of $50,000, then that is all he needs, so the Government transfers the funds, holding back the rest until more is needed.
It works the same way with the Conservatives stimulus package. You wait until there is a plan in place, and once expenditures are made, you transfer the appropriate funds, holding back the rest until it is needed. Therefore, when Harper says that 80% of stimulus funds have been committed, that is just what he means. The money is sitting in Ottawa until it is needed. What you DON"T want to do is give out Millions of dollars for projects that haven't been started or completed yet. Once the shovels are in the ground and workers have begun earning wages, the money will flow. Until then, it is safely tucked away until needed.
Can you imagine the chaos if you gave out all of this funding before it was needed? For example, what if some incompetent dolt like the Mayor of Toronto was suddenly given $100 Million dollars of stimulus money to build bridges
Red Tape Guy
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And after he caved in to yet another Union, he'd moan and complain that the Conservatives don't like Toronto enough to provide the funds needed for infrastructure.
Harper thinks it's still the Reagan 80s.
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guppies
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You just spend 30+B to Gm (An Americian company) As a Canadain asking for $ 500k to bail me out. I don't think I am asking too much. And I will purchase a Camaro as a return. Good deal right ?
Bill in BC
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The economy is already begining to recover. Wait and stop panicing.
Ray Jacques, Glen Robertson, ON
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I do not like Harper mainly because he is dividing our Country with excessive and divisive partisanship. He also doesn't have any vison or ideas.
He has yet to pass any legislation that makes any siense, and for some inexplicable reason, wants to sell-off AECL instead of repairing the Maple 1 & 2 reactors. Wasn't it him who screamed in Parliament that providing isotopes was a medical crisis / emergency and the person who he blamed for not allowing it to operate due to safety concerns, Mrs Keene was fired "because she was a Liberal apointee" - never mind she was the top person in her field in the atomic energy world !! - just mind bogling incompetence on Harper's part. There are at least (20) other debacles brought about by the dishonest and incompetent Conservatives. Pauil Martin was a saint compared to Harper
But perhaps more importantly, almost 65% of Canadians did not and do not vote for him - so we have a minority government who does not have the support of the majority of Canadians, trying to act like they do and it is getting onto (4) years now.
Time for an election and a change!
little spender sask
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Mary Theison
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Why provide more stimulus,when the current funds have not even had a chance yet,to serve their intended purpose?
GG
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Peter- Van. Island
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Dave from Toronto
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Really?? Oh come on....REALLY??? lol
Concerned citizen
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Steve Lawrance/Saskatoon
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Doug BC
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That aside,we all need to remember that Canada is a bit player in the global economy.The total wealth of all of Canada is a pitance of the global economy.It is for that reason,that we are not in a position to "save the global economy'.Even if more stimulus was needed,I hope Mr.Harper waits for the results of the spending he has comitted to before he piles any more dewbt on our children and grandchildren.
Spending the entire amount possible right now would be foolish indeed.We need to see how this recession is going to unfold.If we spent to much now,we might very well find ourselves unable to take advantage of any opportunities,or to react to future events.
Keep some spending capacity in reserve.At least until we can figure out what kind of spending will get the most bang for the buck.
Liberals are talking out of both sides of their faces these days.On one hand whing about big deficits,and,at the same time wanting more spending and more "free" social programs.Wake up my friends.There is no such thing as "free".
If we keep our wits about us,we will get through this.
But spending,just for spending sake,is not the answer.We are still if FAR better shape than the UK,the rest of Europe,or the USA.A fact we seem to take for granted all to often.
B.Greenfish66
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eddytoronto
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The impact would be devastating by making it punitively expensive to finance national borrowing will create debt explosion!
the UK, too, as public debt is soaring. A US crisis would have implications for the rest of the world, in any case.
Using historical examples for his paper, New Evidence on the Interest Rate Effects of Budget Deficits and Debt,a percentage point increase in the projected deficit-to-GDP ratio raises the 10-year bond rate expected to prevail five years into the future by 20 to 40 basis points, a typical estimate is about 25 basis points”.
Considering the track record of the global elite, the government-mandated vaccination program now in the works — as Ghislaine Lanctot and Jane Burgermeister warn — will serve the eugenicist plan to depopulate the planet. A contrived pandemic will also set the final stage for the implementation of martial law and a high-tech surveillance and police state grid.
This is not a joke please understand we will be toppled and become a third world country in 3 to 5 years...Depression will last 29 to 50 years!
You think JAPAN is Bad You wait and See!
WESTERNER
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Cut the military spending in half NOW.
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No more of my tax money for the US wars.
No borrowed money that I'll be taxed for in the future, either.
Randy
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Sojo
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Red X
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TSX 9653.45 is about the level it was at when Stephen Harper made his remark about "good time to invest"
Also, Harper & the Neo Cons were elected on the promise of balanced budgets not the projected $156 billion in Deficits...
Stephen in SC
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BTW..is CTV going to ask PM Harper about the new global eurodollar coin each G8 leader received, which will replace the US & Cdn dollar? I doubt it.
Westender, Windsor,Ont.
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Throwing money around does nothing unless there are JOBS to be had. The money is going into the wrong pockets.
Enough already with the Spendulous Money!
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And as for Harper; he may be saying the right thing today, but I don't trust him (Layton or Ignatieff) further than I can spit.
Niagara George
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You say the best thing he announced was the "slashing of all this foreign aid business." I didn't read that and I certainly hope it isn't true.
If we quadrupled our foreign aid, we could half our military budget. We are the haves. The have-nots cannot even imagine what we have.
We cry about phone calls interrupting our television watching. Our world has almost stood still because Michael Jackson has died. Hundreds of thousands have starved to death in the past week. We don't hear about it and we don't care.
If the rich nations don't share soon, the world will go into a terrorism revolution like we cannot imagine.
observer Natty,ON
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$Billions promised with great fanfare are yet to materialise. Money spent on Infrastructure is an Investment in the National future. This Govt's penchant of preferential treatment for it's powerbase fosters disunity.
Harper's reliance on Natural Resources to bail Canada out could easily back-fire. To enrich yourself by selling require Buyers with Money.