Sunday 30 November 2008

Should the coalition (let’s call it the People’s Coalition Party or PCP) succeed in voting the Harper government out of power, with the help of the Bloc, on December 8 or in late January (if Harper runs for the hills and prorogues parliament), then I support Dion as leader of the Liberal Party and as the next prime minister.

He has been elected leader of the Liberal Party and stays as leader until replaced in accordance with the rules of the Liberal Party.

Therefore I expect the convention to elect a new leader of the LPC to take place as already planned, and that Dion would step down as he has already announced that he will. I will not be supporting him for leader at the convention.

Also, I do not think it is appropriate at this stage that any of the three candidates, or any other persons, including the MPs in the LPC caucus, do an end run around the legal process set out in the rules of the party for selecting a leader, and appoint any of the three declared candidates as leader at this stage, to replace Dion.

Dion is a very decent man, with a deep love for Canada and Quebec, and he has fought to defend the country when it was not a popular thing to do. He deserves to be allowed to exit his time as leader of the LPC, and if this happens, as prime minister, until the convention. To do otherwise will be a disgraceful and mean-spirited thing.

To allow any of the three candidates to attempt a coup and take over from Dion at this stage would be unacceptable. No matter which one of these three men becomes leader of the party now in place of Dion, instead of waiting for the convention where all Liberals can voice their views and choices, will amount to an underhanded and graceless act, and on principle I will oppose that person at the convention.

Let us allow Stephane Dion to enter the history books as a decent man, who is replacing a man of much lesser stature, as the prime minister of Canada, and let us turn our thoughts to saving Canadians from the problems looming over us.

There will be time enough to select Dion’s replacement, and in the proper way.

Now is the time for Michael Ignatieff to step forward and let Canadians know where he stands with regard to a possible coalition government on December 8. There appear to be rumours that people close to Ignatieff say he is opposed to any coalition:

“Liberal leadership candidate Michael Ignatieff is unlikely to support the coalition deal being negotiated by lame duck leader Stéphane Dion - a decision that would doom the opposition parties attempt to bring down the government next week in a vote of no-confidence in the House of Commons. A person close to Mr. Ignatieff said that any deal with the Bloc Québécois and NDP struck by Mr. Dion would be a “poison chalice” for the next leader. He said that Mr. Ignatieff has the support of more than 50 of the 77 Liberal MPs, so the success or failure of a coalition proposition will depend on how the leadership candidate views any deal. Although Mr. Ignatieff has publicly maintained the official Liberal line that the government should fall over its handling of the economy, his supporters say any coalition deal with the left-wing NDP and separatist Bloc is fraught with risk. It would only take nine Liberals to be absent from the House next Monday for the government to survive and the source said he fully expects a number of no-shows.”

http://network.nationalpost.com/np/blogs/fullcomment/archive/2008/11/30/john-ivison-coalition-success-may-ride-on-ignatieff-and-he-isn-t-game.aspx

This muddies the waters, and it is imperative that Ignatieff step forward and let everyone know clearly where he stands on a coalition government.

If he is for it, he should say so.

If he is against it, he should say so.

I watched him on television carefully state that he was not involved in the negotiations of the coalition, did not know where they were, and was only being told about the talks. I thought his phrasing was very careful, and it filled me with unease.

For one thing, why on earth is he not directly involved in the talks?

I have been assuming that Stephane Dion, as the caretaker leader of the Liberal Party, was working very closely with the three candidates for the leadership of the party. If Dion is not doing this, it is the height of folly, and he should immediately involved them, consult them, and respect their views on all matters.

But this I do know: if Ignatieff or Rae or Lebanc oppose any reasonable coalition terms which will allow a progressive government to replace the Tories next week, then they will not – repeat not – become leader of the Liberal Party. Liberals will rise up in wrath against any candidate who spoils this chance to install a government which will work with the other two opposition parties to protect Canadians against the gathering storm of the recession.

Let your voice be heard, Michael. Loudly and publicly.

For starters, you could refer to the above article and expressly state that it is or is not correct with respect to the statements made about you.


Layton and Duceppe plotting coalition well before the economic statement CTV learns.


Truth kills lack of stimulus argument. CTV stikes again! The opposition was plotting to overthrow elected government from the beginning. Power needs to be earned not taken in countries that have a democracy. The self serving power grab has been exposed for what it really is.


"Let's just say we have strategies. This whole thing would not have happened if the moves hadn't been made with the Bloc a long time ago and locked them in early," Layton says. "Because, you couldn't put three people together in one or three hours. The first part was done a long time ago"


Any talk of putting Canadians first from these three opposition parties is a total joke. They want power rather you vote for them or not. It is time for an election to take these new facts to the Canadian public. Some people have some explaining to do and must be held accountable for this.

-Darryl


CTV strikes again.

***

Update: Jokes all around from Jack Layton on Working with people who want to destroy our country. Credit: Stephen Taylor's blog




We need 15 opposition MPs with principle to cross the floor

An excellent column from Tom Brodbeck in the Winnipeg Sun. Not only would the BQ be able to demand whatever it wanted, Liberals would likely have no choice but to grant it because of their inability to finance an election that turning down the BQ demand would cause. Worse the lower the approval rating of the coalition and Liberal Prime Minister, the more united the government would be to hold power at all costs. If Conservative poll numbers go through the roof as expected under a Prime Minister Dion governing with separatist and socialist support during the time of a depression; the incentive of keeping the coalition together would only strengthen simply because of a common front to avoid an election where all opposition parties except the Bloc would likely get thrashed. This alliance is dangerous for Canada and quite frankly there should be huge public protests in Ottawa on December 8 when the vote takes place. It will be interesting to see if this coalition gives a boost to the PQ in the Quebec elections set for the same day. Imagine what Premier Pauline Marois could extort from Ottawa through BQ demands. At this point I think backing down isn't an option for either side. We need an immediate election right now so that Canadians can determine if the Conservatives should get a majority to get something done on the economy vs. the need for a public mandate on a potential government that includes separatists.

I personally think Harper made a miscalculation that backfired huge on him. Had there been an election people might have been angry about being forced into another expensive vote on partisan games. Conservative might have lost seats. Acknowledging Harper's mistake, I think the Liberals may have caused a much larger blunder than the carbon tax that will eventually have massive implications through even engaging in these coalition talks. Liberals have exposed themselves as being willing to work with separatists and socialists to take power despite the election results. That will be an election issue for sure next time. At the same time, they have given credibility to the NDP and BQ virtually guaranteeing the left split will continue in the future. You cannot say the NDP are bad for the economy and then consider joining a coalition that is considering Jack Layton as finance minister. This experiment with the Greens failed in the last election and will prove to do so again.

All Liberals who consider themselves as federalists, who backed Paul Martin's work as Finance Minister, who are against NDP economic policies, who are not on the extreme left or even those who are self-interested and represent districts such as the Western provinces where this coalition would go from significant representation to basically no representation should consider crossing the floor and joining the Conservative Party. I think the best way to avert an election a this point and move forward on the economy would be for 15 opposition MPs to join the Conservative caucus. Keith Martin, Irwin Cotler, Andre Arthur and Bill Casey would be a good start. Justin Trudeau? Ken Dryden? Ralph Goodale? Marc Garneau? Scott Brison? Are there any opposition MPs with principle still left? I can't imagine many Liberals are comfortable working with the separatists under Dion's leadership. We need you to make this parliament work and deal with this economic crisis. Consider joining the government side as independents uncomfortable with the direction of the Liberal party or simply throw your membership where it belongs (the trash) and join a party that talks and acts like a federalist party and who would never allow unions to dicate actions on the economy during these tough economic times. 50 billion dollar tax increase on corporations? I am hoping at least some of you recognize this pendign disaster.
-Darryl

***

Separatists cannot hold balance of power in Ottawa

By TOM BRODBECK

I never thought I'd see the day when the cancer that threatens the future of Canada would gain a real foothold in our Parliament.

Until now, the Bloc Quebecois -- whose only real goal is to break up the country -- has been relegated to the opposition benches of the House of Commons.

It's been troubling enough watching separatists get sworn into Parliament, occupying seats that should be the exclusive domain of people who swear their allegiance to Canada.

But we're now faced with the real possibility that the Bloc Quebecois could have a seat around the cabinet table if opposition members topple the Conservative government next week and replace it with a coalition that includes Quebec separatists.

Even former prime minister Pierre Elliot Trudeau must be spinning in his grave at the thought of separatists -- the very people he dedicated his political career to defeat -- having a say in Canada's national government.


It would be, if it happens, a historical turning point for Canada -- separatists calling the shots on how our country should be run and ultimately scheming to break it up.

It would be a major victory for Quebec separatists too, who have been plotting the demise of Canada since the 1960s and who have trampled on the rights of non-French speaking people for three decades.

What better way to fight for the independence of Quebec than to be in power in the very Parliament they seek to destroy?

And who is making it possible for separatists to invade the federal cabinet room?

Liberals and New Democrats.

So desperate are they to be in power that they would put the future of Canada at risk by inviting the Bloc Quebecois to play a role in their proposed coalition government.

RECESSION

These are the very people who purport to stand up for the unity of Canada. But now, in exchange for a short stint in government, they are willing to sell the Dominion of Canada down the St. Lawrence River.

The pretext for the move is that the Conservatives are refusing to open the spending taps further than they already have.

The Liberals and NDP claim that because Prime Minister Stephen Harper is not willing to spend as much as they believe is necessary to help Canadians through a possible recession, that government should be toppled and replaced with a coalition that includes separatists.

It's a red herring, an excuse for Liberal Leader Stephane Dion to make a final, desperate bid for the prime minister's chair and for the NDP -- who could never form government on their own -- to finally have representation around the cabinet table.

So what could the Bloc do if they played a role in a proposed coalition?

They could begin by demanding that Quebec get a substantially larger share of Canada's fiscal pie.

They could demand that Quebec's provincial government take over certain federal functions, those which fall under shared responsibility under the Constitution.

The Bloc could demand that the Clarity Act, which ensures that a clear question and a clear majority is necessary for any province to separate from Canada, be amended.

They could demand it be scrapped altogether.

The political manoeuvrings, schemes and strategies by the Bloc to advance their agenda to break up Canada would be endless should they ever get the foothold of power they seek through a coalition government.

And the NDP and Liberals should be ashamed of themselves for what they are about to do to Canada.




The privilege to govern must be earned, not taken.

November 29, 2008

Dear Mr. Wolk,

The Liberal Party was completely rejected by Canadians in the last election. They received their lowest share of the popular vote since Confederation.

Now the Liberals are trying to take power through the back door.

As you read this letter, the Liberals are holding secret negotiations with the socialist NDP and the separatist Bloc Québécois to overturn the wishes of Canadian voters and take power.

They want to take power and impose on Canadians a Prime Minister without a personal mandate, a Liberal-NDP Coalition not one voter has ever endorsed and have it all backstopped by the separatist Bloc Québécois who simply want to destroy the country.

We need your help to ensure that they do not succeed!

Senior Liberal insiders are trying to fool Canadians into thinking their scheme has something to do with the economy.

But it is clear the Liberals do not care about the economy. They only care about re-gaining power and re-gaining their entitlements. They've learned nothing since being turfed out of office over the sponsorship scandal.

On October 14th, Canadians passed judgment on the Liberals.

The Liberals have no mandate to lead a government.

The Liberals have no mandate to cut a deal with the NDP.

And the Liberals certainly do not have a mandate to cut a deal with the separatists who want to destroy our country.

This backroom deal is so unprecedented and so undemocratic that Canadians must have their say.

This is Canada. The privilege to govern must be earned, not taken. We cannot let this happen.

When an election occurs - and it must - the Conservative Party will have to wage the fight of its life.

We now know we are no longer competing just with the Official Opposition. We are competing against a coordinated campaign between Liberals, socialists and separatists to impose their agenda on Canadians.

I am asking you to make an emergency donation of $200 or $100 - whatever you can afford to protect Canada's future and protect Canada's democracy from being hijacked by politicians who care about nothing more than power and entitlements.

In the last election, Conservatives stood together and spoke out loud and clear about the kind of Canada they wanted.

Now we must stand together once again to ensure that the wishes of the voters are respected.

Time is of the essence. Please respond immediately.

Sincerely,


Irving Gerstein,C.M., O.Ont
Chair, Conservative Fund Canada

PS: We also need you to write letters to the editor, call Talk Radio and let the Liberals and NDP know what you think of their plan to overturn the Government without seeking the consent of Canadians.

Darryl's note: Watch how easily this is done opposition parties. If you want to make a contribution to stop this coalition...please click here! The taxpayer shouldn't always be on the hook for funding of political parties.

Saturday 29 November 2008

My personal wishlist for the Coalition is that the NDP hold the line on the new government taking steps with respect to changing our system of voting to that of a modified proportional representation system.

One idea for the Coalition to consider: agree to test the waters, by having a citizens group come up with a method of modified proportional representation, and then hold a plebiscite in each province and territory. Of course, both the Yes and No sides should be adequately financed by the federal government …

If the required majority of votes are cast in a province, then institute proportional representation in that province. If any province does not produce the threshold votes, it continues with the current first past the post system.

However, the legislation should require a further plebiscite within two years after any general election held after the first plebiscite, in those provinces which did not reach the required threshold.

This will give voters there a chance to reconsider, after seeing what actually happened in the provinces which adopted the modified proportional representation system.

Some astute advice from Mr Reid which every Liberal, NDP and Bloc MP should read, cut out and keep it to hand for the next few weeks, reading it every day. This advice can ensure that Canada has a progressive government in December.

Let’s listen to part of what this strategic advice covers:

“So be smart. Be deserving. Prove your case and show you have a plan that serves the public interest. Above all else, use the coming week to exert real leadership on the issues that matter.
The next few days are a campaign. Mr. Harper is no longer on trial; the coalition is. So take the initiative, show leadership and demonstrate competence.

That effort must first focus on the economy. Start with an articulation of how the coalition would direct the stimulus that the Conservatives withheld. Indicate that you will create a fund to echo U.S. investment in the auto sector. Express a willingness to create incentives to boost the manufacturing and forestry sectors. Announce an advisory board that is widely held and draws on the most talented that business and labour have to offer. Above all else, show that you're prepared to act, that you enjoy the support of serious people and that you will be guided by the need to create jobs and protect middle-class Canadians.”

http://www.theglobeandmail.com/servlet/story/RTGAM.20081129.WReid29/BNStory/Front

Reid also recommends that the Opposition take out PM Harper.




Potential Liberal-Socialist-Separatist Cabinet posts

Here are my predictions for Canada's new government:

Something for Governor General Michaëlle Jean to consider before deciding to call an election...
-Darryl


The Ministry

The Right Honourable Jean Chretien (Liberal appointed through the senate as co-founder of new party)
Prime Minister of Canada

The Right Honourable Ed Broadbent (NDP appointed through the senate as co-founder of new party)
Deputy Prime Minister of Canada

The Honourable Elizabeth May (Green Liberal appointed through the senate)
Leader of the Government in the Senate and Minister of the Environment

The Honourable Jack Layton (NDP)
Minister of Finance

The Honourable Gilles Duceppe (BQ)
Minister of Foreign Affairs

The Honourable Dawn Black (NDP)
Minister of National Defence

The Honourable Irwin Cotler (LIB)
Minister of Justice and Attorney General of Canada

The Honourable Stephane Dion (LIB)
Minister of National Revenue

The Honourable Denis Coderre (LIB)
Minister of Veterans Affairs

The Honourable Charlie Angus (NDP)
Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians

The Honourable John McCallum (LIB)
Minister of International Trade

The Honourable Pat Martin (NDP)
President of the Treasury Board

The Honourable Thomas Mulcair (NDP)
Minister of Labour

The Honourable Yves Lessard (BQ)
Minister of Human Resources and Skills Development

The Honourable Bernard Bigras (BQ)
Minister of International Cooperation

The Honourable Michael Ignatieff (LIB)
Minister of Transport, Infrastructure and Communities

The Honourable Bob Rae (NDP/LIB)
Minister of Industry

The Honourable Christiane Gagnon (BQ)
Minister of Intergovernmental Affairs and Minister for La Francophonie

The Honourable Ujjal Dosanjh (LIB/NDP)
Leader of the Government in the House of Commons

The Honourable Ève-Mary Thaï Thi Lac (BQ)
Minister of Public Safety

The Honourable Ralph Goodale (LIB)
Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board

The Honourable Ruby Dhalla (LIB)
Minister of Citizenship, Immigration and Multiculturalism

The Honourable Scott Brison (LIB)
Minister of Public Works and Government Services

The Honourable Michel Guimond (BQ)
Minister of Canadian Heritage and Official Languages

The Honourable Olivia Chow (NDP)
Minister of Health

The Honourable Justin Trudeau (LIB)
Minister of Natural Resources

The Honourable Dominic LeBlanc (LIB)
Minister of Fisheries and Oceans

The Honourable Ken Dryden (LIB)
Minister of State (Sport)

The Honourable Marc Garneau (LIB)
Minister of (Science and Technology)

The Honourable Martha Hall Findlay (LIB)
Minister of State (Satus of Women)

The Honourable Buzz Hargrove (NDP/LIB Appointed through Senate)
Minister of State and Chief Government Whip

Anyone else have any predictions they want to share??? God help this nation if this coalition takes power.
-Darryl

Opposition leaders in their own words from the election campaign; Harper responds to the coalition

This is what Canadians were told by this newly proposed coalition of Liberal-NDP-BQ parties during the last election campaign that ended six weeks ago.

Dion on a NDP coalition during the election campaign



Layton on Dion as Prime Minister



Duceppe on being Prime Minister



Stephen Harper responds by defending the Government selected by Canadians


Question of the Day: Would Canadians have given the Conservatives a majority had they known the BQ in government was the alternative?

Great opinion article today in the Winnipeg Free Press
-Darryl


Media keeps ignoring one of the coalition partners...missing the real story

As the media cover this Liberal coup d’état, they seem to forget one of the coalition partners that are necessary to maintain the confidence of the house. A NDP and Liberal coalition means absolutely nothing and the Governor General has no right to even consider it unless the Bloc Quebecois is a formal part of the agreement guranteeing to support the Canadian government for a reasonable period of time. The Liberals have 77 seats and the NDP has 37. Together they have 114 seats, not even close to the 143 that Tories earned. An NDP-Liberal coaliton has no where near enough seats to govern and together are not even the biggest party in the House of Commons. By itself, a Liberal-NDP coalition lacks any kind of mandate and would be given no legitimacy on its own. Therefore the media needs to find out what has been promised to a party that wants to break apart our country. An explanation is required on how a party only concerned with the interest of Quebec is good to balance the affairs of the entire nation (FYI the Western provinces would go from 58 seats in the government to 20 under this arrangement. Quebec would go from 10 seats in government to 64 with the coalition) . Finally it needs to be determined if the BQ is a formal part of this coalition or is simply onside for only one confidence vote. If they are not in the coalition formally, every confidence vote will cause drama as Conservatives would have a responsibility and obligation to bring down this undemocratic coalition at all costs and on every confidence vote.

This whole process is an assault on democracy. Harper is exactly right when he says a soundly defeated Stephane Dion would rather simply take power than earn it. Liberals are not just entitled to their entitlements but feel they have a right to take power at any cost rather you vote for them or not. The willingness to work with the separatists question if they stand for anything at all. Giving socialists cabinet roles show a lack of confidence in their ability to handle the economy. Jack Layton in finance? Give your head a shake team red. The fact that this all started over their lack of ability to fundraise without the Canadian taxpayer shows the opposition care about themselves and their own partisan interests than the Canadians and economy they talk about. Canada will have no credibility preaching democracy to the Russians or Chinese if this coalition goes through with Dion installed leader despite not being elected. When did Canada become a banana republic? How will the markets react to Prime Minister Stephane Dion's Liberal Party of Toronto propped up by socialists and separatists. Liberals will ask Canadians to have confidence in Dion as Prime Minister when they lack confidence themselves in him as leader. During the last election they campaigned against the BQ and NDP and never informed the voters of any potential left wing governing coalition.

The media needs to do its job. The BQ has 49 seats and would be the second largest coalition partner in this arrangement. Are they part of this coalition or not? If so what were they promised. If not how can the GG have any confidence in Dion's ability to maintain the confidence of the house. Obviously they cannot count on any kind of support from us whatsoever. This story is not about a Prime Minister who miscalculated anymore, it is about Canada's old natural governing party selling out its values to the separatists and socialists for a couple months in power. How can anyone be proud to be a Liberal today. A sound defeat will come when Liberals eventually face a democratic election should this power grab actually take place.
-Darryl

Friday 28 November 2008


We now have a two party system in Canada

People complain that Canadian politics is not exciting. Today, like when the PC and Alliance parties decided to unite is a game changing moment in Canadian political history regardless of the outcome of these coalition talks. While I do not expect that we will see NDP, BQ, Green and Liberal candidates decide not to run against each other in the next election; the game has fundamentally changed just by what we now know from talks that have taken place between the opposition parties.

1. Jean Chretien and Ed Broadbent are in negotiations to build an NDP/Liberal coalition that will need the support of the Bloc Quebecois.

2. By engaging in these talks at the highest levels (Dion, Layton) it is clear that both leaders agree they share a common agenda. Both are comfortable either bringing the Bloc Quebecois (a party that supports breaking up our country) into the Canadian government or allowing Duceppe to extort the government in order to maintain support on confidence matters.

3. For at least some MPs it is OK overthrowing the will of the Canadian voters and installing a Prime Minister who is not even elected by the grassroots members within his party. I am not sure if this coalition will happen, but I do know that all day Dion's caucus has been planning to get rid of him and broadcasting it to the media. How can he now lead regardless of what happens in the next couple of weeks.

4, The Liberals and Greens already had an alliance during the election and Dion even got Elizabeth May's endorsement.

5. Right now the only common agenda known among this potential coalition government is that they are united in wanting their subsidies, they want to go on a spending spree and call it a stimulus, they oppose Harper and every policy decision he makes, they want power, and they all financially cannot afford to fight an election right now.

With regards to these meetings, what is going on is not transparent. Grassroots members concerns are not taken into account. Most MPs are out of the loop and have no say. We have no idea what is being promised in these negotiations. Media do not have access. Do these arguments sound familiar? Wasn't this all initially about Harper using a budget bill to interfere with democracy? Liberals putting together a coup with socialists and separatists is what is best for Canadians according to the opposition. Brokering an alliance one week into parliament to seize power is what is needed to protect Canadian democracy?

I am not sure if it is Stephen Harper or just simply the fact there is one party on the center-right and 4 on the left; but it is clear this minority government is not going to work. Stephen Harper and the Conservatives cannot work with the opposition parties and get anything done despite this recession or potential depression. While a coalition between the Bloc-NDP-Liberals may last in the short term, rival demands will make it complicated to stick together. The only possibility of a long term coalition is if Prime Minister Dion's approval ratings are beyond low, all parties remain broke and the worsening economic situation drives up Conservative numbers. This will unite the opposition for no other purpose than to avoid the people through an election and to keep power away from the Conservatives. The West who just got in will be locked out again thanks to a backroom deal between the Liberal Party of Toronto backed by the Separatist party from Quebec. That is not in the best interest of Canadians and I do not see how this whole situation is good for unity.

It is unfortunate, but we probably need an election despite the cost and timing. Canadians have to choose between giving Conservatives a majority government to deal with the economy or otherwise provide a mandate to this madness with the left wing coalition. Conservatives won the election and we cannot maintain power let alone get any legislation passed as is evident today. The left is united and no longer have credibility attacking each other. Let us decide based on the new two party system of Conservatives vs. the Green Liberal Socialist Separatist Party. Regrettably if Canadians want their government to get anything done for them it will require an election and a majority. Regardless of if this coalition forms and regardless of how long this parliament lasts it is quite clear that nothing will get accomplished because of partisanship from all sides of the House unless attitudes change in a hurry. The Governor General should not delay the inevitable and simply allow this government to go to the people once it is defeated rather than play these games. Any other solution at this point is just lost time and wasted taxpayer dollars with no action on the economy or any other issue of the day.

Based on the events of today, everything has changed and this parliament simply cannot function any longer. The sooner there is an election the better. The left might as well unite under one banner as irreversibly each of their individual brands no longer have credibility in Ottawa. While the day was exicting, regular Canadians are the big loser today after all of this political positioning. Shame on all politicians for that.

-Darryl

Harper has some ten days to pull a stimulus rabbit out of the hat, before the Liberals can table their craftily worded no-confidence motion. That motion has a stinger in its tail which all but forces the Governor General to at the very least talk to Dion, Layton and Duceppe, before making a decision on whether to allow a new election, or to allow the Liberals to form a minority government.

Now, put yourself in the shoes of the GG. Harper’s Tories have just been outvoted on a no-confidence motion. The country has just been put through an election. The two parties who tell her they have reached an accommodation (the NDP and LPC) between them do not command a majority of votes.

So the GG has to decide: should she give the Liberal leader time to cobble together a workable minority government? Harper will be protesting that another election should be held; that the voters should be allowed to choose the next government, not a smaller minority government than the one he leads.

What do you do?

For starters, you probably would not allow a new election until the other avenue has been tried. Why spend a third of a billion a few weeks after having spent that amount on the last election, when a massive recession, the worst in fifty years according to the Prime Minister, is bearing down on the country?

So you have to decide whether the Liberals can count on the NDP for support should the Liberals form a government. And whether both the Liberals and NDP can in turn count on the support of the Bloc for major policies the new government will want to implement to deal with the recession.

And how do you decide?

You ask for some demonstration from the Liberal leader that he or she has an agreement with the NDP and the Bloc.

If the Liberal and NDP leaders tell her face to face that they will form a coalition government, and have agreed on major policies, including who will do what, and for how long, then the GG can discreetly probe this to make sure it has some substance. The GG would probably want to know if the caucus of both parties are in full agreement with the policies and personnel.

And the GG will want some indication, either in person from Duceppe, or by some other means, that the Liberal-NDP minority government can in fact govern. How will the GG know for sure?

One way to solve all the above problems is to have a written agreement, signed by the party leaders. Most likely, two such agreements will be needed.

The first one will be between Jack Layton and Stephane Dion, setting out the terms of the deal regarding the working accord, coalition or other relationship which will be the foundation of the minority government.

The second one will be between these two and Giles Duceppe, setting out in broad terms the major policy items which the Bloc will support the minority government on, for the near future.

So, perhaps the three parties should spend the next ten days gainfully employed in drafting, agreeing and executing just such agreements.

This will also allow the new government to hit the road running, and so allay any fears of the GG that the response to the recession will be unduly delayed.

Sharpen those pencils, folks!

Or Harper will steal this opportunity away from you …

Harper has realized his hubris is about to cost him the prime ministership, and has bought a week by postponing the opposition day, according to the Toronto Sun:

“Prime Minister Stephen Harper is moving to avert a major political showdown, pushing off the earliest non-confidence vote in his government by one week.

Harper’s dramatic move late Friday follows a day of political turmoil in Ottawa as the opposition parties threatened to bring down the minority government and form an unprecedented coalition.
The prime minister cancelled a scheduled opposition day Monday, at which the Liberal threatened to put a motion of non-confidence in the weeks-old government.

The threat was so real that Rideau Hall said Gov. Gen. Michaelle Jean had made contingency plans for a swift return to Canada from a European tour should the government fall.

Harper said the next opposition day will be set for Dec. 8, giving his government a week’s breathing space.

He also cancelled the vote on a ways-and-means motion that had been scheduled for Monday night, which also gave an opening to bring down the government. “

Where does that leave the opposition? They should avail themselves of this week to put together a progressive framework, which will govern the way the Liberal minority government will run the country for the next two to four years. This framework should cover the major steps to be taken to stimulate the country, perhaps along the lines of an earlier post of mine.

Harper, of course, will cobble together his own stimulus package, and then will present this to Parliament. But does anyone believe that he won’t simply be playing for time, and dragging his feet in implementing his ‘new’ stimulus package?

It is time for the voice of the majority of voters to be heard in Parliament. The Bloc, NDP and Liberals should join and work out the progressive agenda, and then vote the Tory government out and proceed to implement their own agreed program.


10 questions unanswered about a coalition government


1, How can Michael Ignatieff be Prime Minister without being elected by either the members of his party or the Canadian electorate?


2, What cabinet positions will the NDP demand? La Press is reporting Layton wants 1/3 of cabinet seats including finance and the environment?


3, After the 1995 referendum, how can Jean Chretien plot coalition with the Bloc Quebecois?


4, If the BQ is not formally in the coalition what is their incentive to prop up the Liberals/NDP? What promises have been made that could impact the unity of this country?


5, If the Bloc is going to support the coalition on a vote by vote basis how long can this new coalition last given that they won’t be able to count on Conservative support on any confidence vote regardless of its merits?


6, Are Liberals prepared to face the Canadian public after making a side deal with the Bloc Quebecois to take power? Imagine the attack ads that will come.


7, Does anyone have confidence that Jack Layton is the right man to fix this economy?


8, If Stephane Dion is named Prime Minister will he ever give up the job?


9, How can you square threatening to bring down the government to “protect democracy” with regards to the vote subsidy and then later turn around and pull of a coup that slaps the Canadian electorate in the face by demonstrating that their vote doesn't count? I don't think anyone would debate that Dion was clearly rejected as Prime Minister six weeks ago.


10, Will Stephen Harper stay on as opposition leader should this all go down on Monday? If not who replaces him and how?

Harper has beaten a hasty retreat on the issue of public funding of political parties, despite having flung down the gauntlet to the opposition parties. He has realized on that score that his hubris might possibly have made him overreach a bit, and slunk away, tail between his legs.

But let’s not forget two other issues which the mean-spirited new Tories still have on the table: the attack on pay equity, and the stated intention to strip public sector workers of their right to strike for the next few years.

Does any supporter of the NDP believe that the gutting of the right to strike is not the first step in the new Tory war on public sector workers? That the Tories will not use that period to hammer through other restrictions on unions?

And can you imagine if Harper had or does achieve a majority? What steps the Tories would take to gut the federal government’s funding and programs, and reduce Canada to a collection of provinces run as fiefdoms by ‘firewall’ premiers, with no voice speaking for Canada and Canadians?

I am sure that Jack Layton does not wish to go down in history as the man who allowed the Tories to gut the public sector unions; after all, if any party is supposed to be the protector of unions, the NDP is. Because this is what will happen if the Tories are not thrown out of power, and replaced by a more progressive government.

It is time now to give Canada the good government it needs in these troubled days. It is time for men and women of good will and progressive inclinations to reach out to each other, and work together while we fight the damage which the international recession is just starting to cause.

She will fly back in time to deal with the fall of the government, if this happens:

“If the non-confidence motion passes, the Liberals and New Democrats would visit Gov.-Gen. Michaëlle Jean to request her permission to try to form a coalition government.
There are reports the Governor General's office has made contingency plans to cut short her trip to Europe. The Canadian Press quoted aides as saying she is being briefed on the situation at home.
The Governor General would have option to call on other parties — perhaps the coalition being discussed between the Liberals and New Democrats — to form a government.”

http://www.cbc.ca/canada/story/2008/11/28/fed-govt.html

Also, note how Harper and his Tories are now squealing like stuck pigs over the ‘undemocratic’ nature of the opposition parties. No doubt the Tories define democratic as things Tories do, not things parties representing 60% of the voters do.


Text of Liberal non-confidence motion to be voted on Monday


"In light of the government's failure to recognize the seriousness of Canada's economic situation and its failure in particular to present any credible plan to stimulate the Canadian economy and to help workers and businesses in hard-pressed sectors such as manufacturing, the automotive industry and forestry, this House has lost confidence in this government and is of the opinion that a viable alternative government can be formed within the present House of Commons."

If the Governor General allows a coalition (she has the ability to go right to an election) than Stephane Dion will become Prime Minister according to CBC.

More details to come...



Breaking News: Conservatives back down

Update: It looks like we are not out of the woods yet. Opposition still threatening to topple the government due to a "lack of stimulus package included in the bill". Coalition talks are continuing. Liberal plotting to remove Dion and replace him with Ignatieff (or Goodale or Rae) still ongoing.

Update 2: It looks like the coalition talks are ongoing but now that the public financing portion has been separated from Monday's bill it only raises the stakes that much higher. Liberals, NDP and the Bloc could proceed with coalition talks and vote against the government Monday due to it not containing a stimulus package. They could be taking a huge risk though as there is no guarantee the Governor General will allow the official opposition a chance to form a coalition. Unintended consequences could be a snap election caused by the opposition meaning they would feel the wrath of the people for making the stimulus package a 300 million dollar election campaign over the holidays. Allowing the bill to pass on Monday could expose them as being more concerned about their own election financing then their argument about an economic stimulus. Sounds like it is still a tough choice for the opposition parties. Personally I hope that if we are defeated on Monday, Jean just simply calls an election so that the people can sort out this mess - not Broadbent, Chretien and the separatists.

Update 3: (From CBC)

The federal Liberals plan to introduce a motion in the House of Commons on Monday declaring non-confidence in the minority Conservative government and proposing a governing coalition, the Canadian Press is reporting. Emissaries from the Liberals, New Democrats and Bloc Quebecois have been holding talks about forming a new government should Prime Minister Stephen Harper's minority fall.


More to come...

http://www.thestar.com/news/canada/article/545220

http://www.google.com/hostednews/canadianpress/article/ALeqM5j-vaw1H_MNCsBEEmjJaOuSu_dRSQ


Potential Compromise?

There might be one easy way to get out of this. Cut all public subsidies following the next election while paying out the current subsidy from the last election. Would that be acceptable to all sides?

On the coalition front it is not being revealed in the media that Ed Broadbent and Jean Chretien are trying to broker a coalition government. Would Canadians accept Liberals taking power over public election financing subsidies by joining forces with a party that wants to break up our nation?

-Darryl




Is a Liberal-Separatist-Socialist Coalition Possible?

This scenario is starting to look more likely. Obviously there are a lot of questions about how long such a coalition could last and what the political implications would be long term for the Liberal Party. Here is how it might look.

1, Dion would not be Prime Minister. A caucus vote would take place. If that vote took place right now Michael Ignatieff would easily become leader of the Liberal party and Prime Minister under this coalition.

2, The NDP would get some cabinet posts in non-economic portfolios.

3, Elizabeth May would be potentially appointed to the senate and be given a cabinet post

4, The Bloc would support the coalition government but would not get any cabinet posts.

5, The coalition would attempt to govern as long as possible with the Conservatives in opposition.

All of this of course depends on the opposition parties voting down the economic statement and the Governor General allowing the opposition to attempt to form a coalition that can demonstrate confidence in the house. Obviously this raises more questions than answers but it is starting to become a reality. The Conservative Party has an opportunity to back down but I do not think that they will. Opposition MPs believe they can bring down the government without going to an election. It looks like a constitutional crisis.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081127/Tories_fiscal_081128/20081128?hub=QPeriod

Thanks for reading...

Darryl

Thursday 27 November 2008


Breaking News: Are you ready for another federal election???

Update: All three opposition parties have said they will vote against the economic plan. That means election or coalition government.

Update 2: Another possible option for the opposition would be to allow this motion to pass and remove the election financing portion in committee where the opposition parties have a majority of seats. If this is possible it is the most likely outcome.

Are you reading for another federal election??? Given that the elimination of the $1.75 per vote public financing is now part of the fall fiscal update; it will be a confidence vote. That means if opposition parties vote against the speech; we are heading for an election. Here are the three options the opposition parties now face:

1, Allow the Fall Economic Statement to pass by abstaining, holding back some MPs from voting or in the case of the NDP; potentially supporting the bill outright. Obviously that will have a long term impact on the parties that do not recieve funding from their grassroots supporters and members.

2, Vote down the government and ask the Governor General to allow Dion to form a coalition government as oppose to having another election. That would mean the NDP, Bloc and Liberals would have to work together to govern. It would mean the NDP and BQ members would have to be assigned cabinet posts. Potentially it could mean Elizabeth May would be appointed to cabinet through the senate. It would make Dion the Prime Minister while a Liberal leadership contest is ongoing. How long this coalition could last and if it could be formed at all would be a question mark.

3, Vote down the government. Forget the coalition and go right to the polls. Conservatives have the cash to fight an election right now. All the opposition parties are in debt. Harper would risk the public seeing him as partisan bully who caused an unnecessary election. Opposition parties would risk Conservatives obtaining a majority by running on the need for stability. Harper might lose power. A majority Conservative government might end public financing anyways. What everyone likely agrees on is that Canadians do not want another election, nor can the economy afford another 300 million dollar campaign.

According to CTV, here is how much these public election financing changes would impact each of the parties:

  • Conservatives: $10 million
  • Liberals: $7.7 million
  • NDP: $4.9 million
  • Bloc Quebecois: $2.6 million
  • Green Party: $1.8 million
While the Conservatives would lose the largest amount of money from public subsidies, their strong grassroots fundraising efforts would allow them to maintain a strong advantage over the opposition parties. According to CTV, the following is a percentage of total funding each of the national parties recieve from Elections Canada:
  • Conservatives: 37%
  • Liberals: 63%
  • NDP: 57%
  • Bloc Quebecois: 86%
  • Green Party: 65%
The next move is now in the hands of the opposition parties. Personally I would be happy to fight an election on eliminating the 2.6 million dollars that forces taxpayers to fund breaking up our country by funding the separatists. I would also be happy to make the pitch to Canadians that the Conservative Party needs a majority government to avoid the instability of a minority government during these difficult economic times. Finally I would be tempted to go one more time against Dion now as oppose to waiting for Ignatieff in May. For now the government has maintained a small surplus but that could change in the next fiscal year when some form of stimulus package will be introduced.

Expect a lot of drama as a vote on this takes place over the next few days. At the end of the day I expect the opposition parties to back down, but at this point I cannot rule out another election in the next few days. If an election does take place, it will be interesting to see how the public reacts to this issue. A poll on CTV's website asks, "Should the government slash public funding for federal parties?". So far 7459 votes have been cast and 80% agree with the position of Jim Flaherty vs. 20% who oppose this idea. Canadian politics should get interesting over the next few days and weeks.
-Darryl

***

November 27, 2008

The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance

Check Against Delivery


Mr. Speaker, I am pleased today to present the Government’s Economic and Fiscal Statement, and to set out our key short-term and long-term objectives as we prepare for the next federal budget.

I present this Statement at a time of unprecedented deterioration in economic and financial systems around the world. Without a doubt, here in Canada and around the world, these are difficult times that will require difficult choices.

It is important to recognize just how quickly things have changed, Mr. Speaker, and how dramatically. The cascading effects of the international credit crisis were sudden and devastating.

An unexpected credit crunch in the summer of 2007, and a U.S. recession sparked by a plunge in the American housing market, have spread throughout the world.

Today, the International Monetary Fund expects global growth to be the weakest since 1993.

The speed at which this crisis has intensified, and the damage it has brought to countries around the world, have been extraordinary.

All countries are struggling to cope with this crisis.

The Euro area is in recession for the first time since its creation in 1999.

It has been joined by Japan.

There are signs of a prolonged downturn in the U.S., with a sharp decline in U.S. consumer spending and almost 1.2 million jobs lost since the beginning of the year.

A lengthy list of American financial institutions have either collapsed or required a bailout or takeover—Citigroup, Fannie Mae, Freddie Mac, Bear Stearns, Lehman Brothers, Washington Mutual, AIG, Wachovia—all in a matter of months.

Financial rescue efforts are underway in the U.S., and similar ones are happening in countries throughout Europe.

The crisis has laid bare some serious flaws in many aspects of the international financial system:

  • Non-bank institutions that were not properly regulated and were relying on borrowed money;
  • Financial institutions lacking enough capital to withstand the financial market turmoil; and
  • A dangerously short-sighted tendency to underestimate risk in good times.

The mistakes of some are today being felt by all.

We have not been immune to the resulting global economic slowdown. Forecasters around the world did not predict, and could not have predicted, the full force of this economic crisis.

Forecasts

The volatility we are seeing in the world economy is truly historic. It is affecting Canada, driving down our economic growth expectations. Canada has not faced such severe economic tests in a generation.

Economic projections are now much lower than at the time of our last budget. Private sector forecasters expect real GDP growth of just 0.6 per cent this year and 0.3 per cent next.

The same private sector forecasters are now widely expecting a technical recession, with negative growth in the fourth quarter of 2008 and the first quarter of 2009.

No government at any level can guarantee the future. In fact, given so much uncertainty, no one could unconditionally guarantee the fiscal projections contained in today’s Statement.

We will be faced with tough choices as we prepare our next budget, in the face of the deteriorating international economy. Those choices must be part of a clear plan to protect our future.

Last week’s Speech from the Throne laid out a five-pronged plan to protect Canada’s economic security—a plan that will define the choices we make.

  • Along with our international partners, we will reform global finance;
  • Here at home, we will ensure sound budgeting;
  • We will secure jobs for families and communities;
  • We will expand investment and trade; and
  • We will make government more effective.

What We’ve Done to Prepare—Early Action and Stimulus

We were fully aware that difficult times were ahead when I presented our Economic Statement last fall.

We planned for it. We made choices to help put Canada in a stronger economic position. In fact, since 2006:

  • We have reduced the federal debt by $37 billion;
  • We have reduced taxes by almost $200 billion over 2007–08 and the following five years;
  • We will have reduced the tax rate on new business investment, leading to the lowest level in the G7 by 2010;
  • We have made historic investments in job-creating infrastructure; and
  • We have invested in science and technology, education and training.

Our Government, from last year to next, will have doubled the level of federal funding for provincial, territorial and municipal infrastructure projects.

Canadians and Canadian businesses will pay nearly $31 billion less in taxes in the next fiscal year, thanks to the tax reduction measures introduced since 2006.

That’s equivalent to nearly 2 per cent of Canadian GDP.

This is a substantial fiscal stimulus—stimulus with staying power.

Unlike other countries, Canada is providing tax relief that is sustainable and permanent—tax relief that is helping Canadian families every single day.

We took action when it was necessary. Our performance has shown that it was worthwhile.

However, our actions did not insulate us completely from the rest of the world. Global conditions have deteriorated as 2008 has unfolded.

We had to take further extraordinary steps in the financial sector to respond to a global credit crunch we did not spark, yet which threatened to engulf us if we failed to act.

Once again, we had a head start over other nations. Our financial system is considered to be the world’s soundest by the World Economic Forum.

The International Monetary Fund concluded Canada’s financial system is mature, sophisticated, well managed and able to withstand sizeable shocks.

We have acted to keep it that way. We have protected its stability, so that Canadian businesses and families would continue to have access to credit.

Businesses need credit to invest or to meet their payrolls. Families need it to take out mortgages and loans.

These are basic and vital components of the Canadian economy.

We took steps to maintain the availability of longer-term credit with the purchase of mortgage pools through the Canada Mortgage and Housing Corporation.

This innovative measure is allowing Canadian financial institutions to continue lending to consumers, homebuyers and businesses at an affordable cost.

Our Government also created the Canadian Lenders Assurance Facility. The Facility offers insurance on a temporary basis on wholesale term borrowing by Canadian financial institutions.

This backstop ensures that our financial institutions are not at a competitive disadvantage internationally.

We increased the borrowing authority of Export Development Canada and the Business Development Bank of Canada.

The combined boost of nearly $4 billion that we introduced will mean more lending choices for Canadian businesses.

We announced new rules for government-guaranteed mortgages this summer to prevent a U.S.-style housing bubble, rules that are in place today.

Our sensible Canadian approach is paying off.

Our country will come out of this economic crisis in a strong position, because we are going into it in a strong position.

Faced with threats outside our borders, we answered with leadership from within. The result is a fiscal position that is the best of all G7 countries.

The next fiscal year will be difficult. But Canadians can be fully confident that we will overcome whatever hardships may lie ahead in 2009, and beyond.

Fiscal Position

Mr. Speaker, like governments, families face economic challenges beyond their control every day.

When they face challenges like those, families must adjust their priorities. Just like governments, they must make tough choices—tough, but pragmatic. They make choices that give them flexibility to weather the storm.

Their choices are made with the future in mind. To protect the future they want, they make sacrifices today.

Our Government will take the same approach. We will protect the future by maintaining strong fiscal and financial management.

We take no pleasure in saying that despite our best efforts, this may not be enough to keep a small surplus on the books.

But in situations like this, it would be misguided to simply engineer a surplus, just to be able to say we have one.

Today’s Statement lays out a plan that keeps our budget balanced for now.

However, in the weeks ahead, we will determine the extent to which we will inject additional stimulus to our economy, joining the efforts of our international partners.

Any additional actions to support the economy will have an impact on the bottom-line numbers in our next budget. These actions, or a further deterioration in global economic conditions, could result in a deficit.

We do not take the potential of a deficit lightly. The thought of a long-term structural deficit would be even more serious—one that the Government is unable to climb out of, even when the economy improves.

The days (and years, and decades) of those chronic deficits are behind us. No matter what 2009 brings, they must never return.

Our goal must be to ensure the strength of the economy—to protect jobs, to encourage investment, and to help business grow.

We must do that while protecting the long-term fiscal position of the Government, so that when the economy improves, we return quickly to balanced budgets.

Today, our Government is announcing a series of measures designed to strengthen Canada’s fiscal position in an uncertain time.

These measures will enable us to plan on a balanced budget framework, while recognizing potential downside risks.

The Road Ahead—New Actions

Fiscal

We cannot ask Canadians to tighten their belts during tougher times without looking in the mirror.

Canadians have a right to look to government as an example. We have a responsibility to show restraint and respect for their money.

Canadian tax dollars are precious. They must not be spent frivolously or without regard to where they came from.

Canadians pay taxes so governments can provide essential services. They trust the people they elect to serve society with that money, not serve themselves.

The truth is, tax dollars have been supporting political parties for a long time.

For example, we take advantage of reimbursements on our election spending. Canadians also receive a tax credit on their donations to political parties.

This is a generous allotment of tax dollars to politicians. It ought to be sufficient for all of us. But we ask for much more, in the form of a $1.75 subsidy for every vote we receive in an election.

Canadians pay their own bills, and for some Canadians that is getting harder to do. Political parties should pay their own bills too, and not with excessive tax dollars.

Even during the best of economic times, parties should count primarily on the financial support of their own members and their own donors.

Today, our Government is eliminating the $1.75-per-vote taxpayer subsidy for politicians and their parties, effective April 1, 2009.

There will be no free ride for political parties. There never was. The freight was being paid by the taxpayer. This is the last stop on the route.

There will be no free ride for anyone else in government either.

We are directing government ministers and deputy ministers from every single department and agency of the Government to rein in their spending on travel, hospitality, conferences, exchanges and professional services.

This includes polling, consultants and external legal services.

In the broader fiscal picture, we will expand the actions under the new Expenditure Management System we put in place in 2007. We will use this systemic approach to help keep spending growth on a sustainable track.

Under this new system, the Government has been reviewing all departmental program spending. The Government already examined department spending of $13.6 billion in 2007, and is examining $25 billion in program spending this year.

For the first time in nearly 15 years, the Government is also expanding this businesslike and multi-year review to include corporate assets: Crown corporations, real property and other holdings.

The review will take a careful approach to the sale of any asset, considering market conditions and ensuring fair value can be realized for the benefit of taxpayers.

Our Government expects to save over $15 billion over the next five fiscal years under the new Expenditure Management System. This system will be an invaluable tool to help us maintain balanced budgets, along with the other steps announced today.

As indicated in last week’s Speech from the Throne, the Government is also introducing legislation to ensure predictability in federal public sector compensation.

Our Government values the contribution and hard work of our public servants. They must be fairly compensated for their work on behalf of Canadians.

We must bear in mind that their work is also paid for by Canadians.

We will introduce legislation to ensure that the pay for the public sector grows only in line with what taxpayers can afford as the economy slows.

This legislation will put in place annual public service wage increases of 2.3 per cent for 2007–08, and 1.5 per cent for the following three years.

This restraint will also apply to MPs, Senators, Cabinet Ministers and senior public servants.

The legislation would also temporarily suspend the right to strike through 2010–11.

Another issue we intend to address is the litigious, adversarial, and complaints-based approach to pay equity. Since the mid-1980s, Canadian taxpayers have paid out over $4 billion in pay equity settlements.

These settlements were the result of pay equity complaints to the Canadian Human Rights Commission. These complaints were filed after agreements on public sector wages had already been reached through collective bargaining.

New complaints continue to be filed, sometimes for the same groups that have already received past pay equity settlements. These represent large potential future costs to taxpayers.

This costly and litigious regime of "double pay equity" has been in place for too long. We are introducing legislation to make pay equity an integral part of collective bargaining.

We are also bringing certainty to the growth of Equalization. We have put its growth on a sustainable path.

A new, three-year moving average that puts growth in Equalization in line with nominal GDP growth will bring fairness and stability to both the provinces and the federal government, while reflecting changes in the Canadian economy.

We are ensuring that Equalization will continue to grow, because it is a key federal program for providing support to provinces.

We are also protecting the Canada Health Transfer and the Canada Social Transfer. Provinces must be able to plan accurately, especially when it comes to some of the largest expenditure items in their budgets: health care and social services.

These transfer payments will continue their built-in growth of 6 per cent for the Canada Health Transfer and 3 per cent for the Canada Social Transfer.

We will ensure any new measures to support the economy are carefully chosen and targeted for maximum benefit.

In preparing for the 2009 budget, we will ensure spending is as effective as possible, and aligned with Canadian priorities.

Infrastructure is an example of such worthwhile spending. Investment in infrastructure creates jobs for today and for the future. It creates essential links between communities and regions.

Next year’s increase in infrastructure spending will be our largest, and will push the total amount to over $6 billion in stimulus to the economy.

Our Government is committed to expediting our historic, $33-billion Building Canada plan to get projects moving as quickly as possible, in particular for the upcoming construction season.

We will work with provinces and territories to identify a limited number of key infrastructure projects across Canada by January 2009.

These investments will help keep Canada moving forward as the world economy slows.

Pensions, Credit and the Financial Sector

Quickly deteriorating circumstances in the financial sectors in other countries have contributed to this slowdown.

Here at home we must have the flexibility to respond quickly and decisively, and protect our financial system from global risks.

Our Government is proposing that the Minister of Finance be granted additional flexibility to support financial institutions and the financial system in extraordinary circumstances.

This is consistent with the additional powers we provided the Bank of Canada earlier this year. It is also in keeping with the action plans we agreed to with our international counterparts at the G7 and G20 meetings.

These proposed measures include authority for:

  • Funding in the unlikely event there is a draw on the Canadian Lenders Assurance Facility;
  • Canada Deposit Insurance Corporation to establish a bridge bank to help preserve critical banking functions;
  • An increase in the borrowing limit of CDIC to $15 billion to reflect the growth of insured deposits, the first increase since 1992;
  • The power to direct CDIC to undertake key resolution measures to ensure financial stability when necessary; and
  • The legal ability to inject capital into a federally regulated financial institution to support financial stability, on terms that would protect taxpayers.

These are additional tools in our tool box. I hope we never have to use them.

But the lessons of the past couple of months have shown us that we have to be ready to deal with every kind of risk, even the unlikeliest ones.

With these measures, we will be ready.

We are taking steps to help Canadian seniors. Our seniors built this country and deserve to live with dignity and respect.

Many seniors are understandably concerned about the impact of the sharp decline in the markets on their retirement savings.

Registered Retirement Income Funds, or RRIFs, and their associated withdrawal requirements are of particular concern.

Last year, our Government raised the age limit for converting a Registered Retirement Savings Plan to a RRIF from 69 to 71.

I have heard from seniors about two issues they are dealing with today:

  • The impression among some that assets in RRIFs must be sold in order to meet withdrawal requirements; and
  • The recent steep drop in market value of some of those assets.

There is no requirement under the tax rules to sell these assets to meet the RRIF minimum withdrawal requirements, and seniors should not be left with the impression that there is. Assets may be kept intact, so that they can grow in the future.

To help deal with this issue, last week I wrote to all federally regulated financial institutions. I asked these institutions to ensure that in-kind distributions are accommodated at no cost to clients, or that clients are offered another solution that achieves the same result.

Now, these are exceptional circumstances, and we are taking further action to allow RRIF holders to keep more of their savings in their RRIFs.

To help seniors cope, today I am proposing a one-time change that will allow RRIF holders to reduce their required minimum withdrawal by 25 per cent for this tax year. For example, for an individual otherwise required to withdraw $10,000 from their RRIF in 2008, the required withdrawal will be reduced to $7,500.

If the individual has already withdrawn more than $7,500, they will be permitted to recontribute the excess up to $2,500, and claim an offsetting deduction for the 2008 taxation year.

We are also addressing the immediate consequences this financial distress has dealt to Canadian workers who contribute to federally regulated pension plans.

Based on what has happened so far, and under current rules, the decline in value of these plan assets would trigger substantial payments at the worst possible time for struggling companies.

The money these companies would need to use for pension top-ups could otherwise be used for further investment and growth.

The Government is proposing to allow plans under federal jurisdiction to double the length of time required for solvency payments from 5 to 10 years.

Companies that pursue this option must meet one of two conditions:

  • The agreement of pension plan members and retirees by the end of 2009; or
  • The securing of a letter of credit to cover the 5-year difference to protect pensioners.

Today’s announcement will give these companies one more option they can use to cope with these extraordinary circumstances.

To deal with longer-term pension concerns, we will soon be launching consultations on issues facing defined benefit and defined contribution pension plans, with a view to making permanent changes next year.

Since pension plans are regulated either federally or provincially, our Government will coordinate our efforts with our provincial and territorial counterparts to create a pension system able to withstand whatever future challenges come its way.

This subject will be high on the agenda when I meet with my provincial and territorial colleagues next month.

While helping Canadian workers save, we will also help the businesses that employ them, in particular with their ability to borrow.

We will increase the supply of credit available to export-oriented manufacturers, including the auto sector, as well as small and medium-sized businesses.

On top of a recent $2-billion increase to the borrowing authority of Export Development Canada, today I am announcing a $350-million equity injection that will support up to approximately $1.5 billion in increased credit for Canada’s export businesses.

The export sector has been hit hard by the financial crisis. EDC will now be able to add to the nearly $80 billion in exports and investment it helps make possible for Canadian enterprises, including $4 billion for the auto sector alone.

The Government will also inject $350 million in equity to the Business Development Bank of Canada to assist small and medium-sized companies. This new injection will increase BDC’s lending ability by about $1.5 billion, and comes on top of a $1.8-billion borrowing increase announced earlier this year.

We will also move forward quickly on the securities regulation front. Our cumbersome and unwieldy system of 13 securities regulators is a glaring flaw in Canada’s world-leading approach to promoting financial stability.

The Government will soon receive the report of the Expert Panel on Securities Regulation. The report is expected to outline the best way forward to improve the content, structure and enforcement of securities regulation in Canada.

We will act on it quickly. We invite all participants to join us in improving our regulatory system.

Conclusion

Mr. Speaker, this Government came to office looking years down the road. Our country is better off today thanks to exactly such an approach. Short-term problems will not distract us from continuing to focus on the horizon.

At the same time, we are far from finished confronting unheard-of global economic and financial threats. There are warning signs ahead that we must heed if we are to remain a global role model in an uncertain time.

We will address our immediate, external challenges the same way we will reach our longer-term goals: by continuing to manage tax dollars wisely, investing strictly in the essentials and focusing on what ultimately matters—the longer-term prosperity of all Canadians.

These are not easy times. But we must not forget that our country has been through plenty of hard times before, and we’ll get through these ones the same way.

Our Government will respond to the challenges of the upcoming year the same way we are seeing this year to a close, through the values Canadians themselves hold dear: prudence and restraint, combined with hard work and a focus on the future.

The greatest histories are always written in the toughest times. I believe that we’re in the midst of writing some bold new chapters in our country’s long-running success story—an unfolding account of new accomplishments by a country that is compelled to grapple with global hard times, and that will emerge even stronger because of them.

Thank you, Mr. Speaker.


***

Government of Canada Maintains Strong and Responsible Economic Leadership

Related Documents:


The Honourable Jim Flaherty, Minister of Finance, today announced in his 2008 Economic and Fiscal Statement that the Government will take actions to restrain spending, protect Canada’s hard-won fiscal advantage and reinforce the stability of our financial system amid this period of global economic uncertainty.

"Without a doubt, here in Canada and around the world, these are difficult times that will require difficult choices," said Minister Flaherty. "We cannot ask Canadians to tighten their belts during tougher times without looking in the mirror. We have a responsibility to show restraint and respect for tax dollars."

The Government will continue to manage spending responsibly. To that end, this Statement takes action to:

  • Eliminate the taxpayer subsidy for politicians and their parties.
  • Reduce the cost and ensure the effectiveness of government operations.
  • Ensure sustainable federal public sector wage rates and modernize the pay equity regime. This will also apply to MPs, Senators, Cabinet Ministers and senior public servants.
  • Put Equalization on a sustainable growth path.

Minister Flaherty said the Government continues to plan on balanced budgets. However, given the fluidity of the economic situation and the rapid decline in commodity prices, a deficit cannot be ruled out.

"Our goal must be to ensure the strength of the economy—to protect jobs, to encourage investment and to help businesses grow," the Minister said. "We must do that while protecting the long-term fiscal position of the Government, so that if we must run a deficit, when the economy improves, we return quickly to balanced budgets."

While the Government has already taken major actions to strengthen and preserve the competitiveness of Canada’s world-leading financial sector, this Statement takes further measures to:

  • Support the financial system in extraordinary circumstances.
  • Provide solvency funding relief to federally regulated private pension plans.
  • Enhance credit availability through Crown agencies for Canadian businesses affected by the global credit crisis.
  • Reduce the required minimum withdrawal amounts for Registered Retirement Income Funds by 25 per cent for 2008.

The Government will consult with provinces and territories, and all Canadians, to develop responses to short-term economic issues, while continuing to implement its long-term economic plan. The immediate priorities are to accelerate infrastructure projects, improve opportunities for workers and sectors affected by current economic conditions, strengthen our world-leading financial system in line with our G20 commitments, and improve the competitiveness of the Canadian economy.

"The next fiscal year will be difficult," said Minister Flaherty. "But Canadians can be fully confident that we will overcome whatever hardships may lie ahead in 2009 and beyond."

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For further information, media may contact:

Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
David Gamble
Media Relations
Department of Finance
613-996-8080

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