Harper meets with Ignatieff
After a crazy couple of weeks in Ottawa, it looks like things are slowly starting to get back to normal. What a week it was though. After threatening to cut of taxpayer subsidies to political parties as part of the economic statement, opposition parties quickly assembled a coalition that was greeted with protests and terrible poll numbers. To avoid a likely defeat in the House of Commons, Stephen Harper asked the Governor General to prorogue the parliament until the budget due for January 27, 2009. In response to that, Liberals used the time to show Stephane Dion the door by voting Michael Ignatieff in as interim leader. Ultimately Mr. Ignatieff will remain leader as both LeBlanc and Rae dropped out of the race. In the final event of this crazy week, Stephen Harper plans to appoint 18 senators with names going around like General Hillier, Don Cherry, the current Governor General, Bernard Lord, Mario Dumont and a series of other names who are a bit more predictable. Ironically, the surprise Senate appointment could result in a seat for John Tory prior to his self imposed December 31 deadline.
Parliament may have grinded to a halt, but the world around us did not. In Afghanistan, Canadian troops unfortunately suffered their 100th casualty. The United States is putting pressure on Canada to once again extend the mission beyond 2011. Unfortunately terrorism struck India in a way that threatens the world’s largest democracy with Western citizens including Canadians being targeted. Today Jim Prentice is representing Canada at a international environment conference. At the same time the economy has only gotten worse. Last night in the Senate, the US auto bailout collapsed after the UAW refused to make any concessions. Today GM is saying they will shut down all plants in January. There are also rumours that they are getting advice on bankruptcy protection. Chrysler warns it is rapidly drying up its cash reserves. Magna has laid off workers as have many other companies worldwide and in Canada. Other automotive companies seem OK in the short term but are facing heavy pressure from the lack of consumer confidence and economic recession. A dealership in Chicago was offering "buy one get one free" promotions on cars. As we speak, it appears the Canadian government has put together their own bailout package that would be approved following US action.
As the Canadian government decides what to do about the auto bailout, other economic indicators are of equal concern. Housing prices are slumping. Interest rates have been slashed to a 50 year low but banks are not passing on those savings to consumers. Credit availability is still a concern. Personal credit card debt and a lack of savings are becoming a threat to retirement as many baby boomers approach that age. Pension plans are taking a hit in the stock markets. The Canadian dollar and oil prices have declined drastically from where they were at the beginning of the election campaign. As oil prices drop, some projects may get delayed in the oil sands and elsewhere in Canada. Unemployment is increasing, especially in the manufacturing sector. Foreclosures and bankruptcies are rising. No one is buying anything. The result is less tax revenue for both the government of Ontario and the government of Canada. This will lead to deficits with or without a stimulus package. While Canada is better off than most of our G7 counterparts, one cannot ignore the economic turmoil happening all around the world. No one is expecting that 2009 will be anything less than an extremely tough year for Canada and the entire global economy.
With all of these pressing concerns, our parliament is currently paralyzed and unstable. The Conservatives face potential defeat on the upcoming budget. Should this happen we are looking at a potential election or transition to a coalition government. Either way the government would be paralyzed for at least another six weeks meaning nothing would be done until April at the earliest to address the economy.
After a week of crazy events in Ottawa, it looks like some sanity is being restored. Jim Flaherty and Stephen Harper have been hard at work on the upcoming budget that will likely include sector by sector assistance, a stimulus package, tax relief for corporations and businesses, a reduction in spending and infrastructure investments. Today Michael Ignatieff met with Stephen Harper and I would imagine the budget was discussed including some potential Liberal demands to ensure it passes. Let's hope for the good of this nation that the meeting went well. After putting partisanship before the people, it is clear that something now has to be done for the state of our economy. For months we have not been able to pick up the business section of a newspaper without seeing catastrophic news. In Ontario things are worse due to the fact the province is now dead last in growth projections, a have not province and will bare the brunt of the impact that is currently affecting the manufacturing sector. It is important to get John Tory or a leader in the House that can hold Dalton McGuinty to account. Canadians of all political stripes seem to admire how President elect Barack Obama was able to get beyond left and right politics, partisanship and demonstrate a commitment to work across the aisle. Now Canadians and Ontarians have the same opportunity within their government.
Stephen Harper and Michael Ignatieff, the onus is now on both of you to get past partisan politics and work together to demonstrate to Canadians that they can once again have confidence in their government. The state of the economy and the threats to this nation are far too important to continue playing these silly games. For that reason, I hope the meeting that took place today went well for the benefit of all 308 MPs who were elected to work for their constituents as oppose to themselves. We cannot afford an election. We cannot afford a coalition. Therefore that only leaves the option of working together. Get it done!
Update: New poll shows 65% of Canadians support compromise over coalition. 56% prefer election over coalition. 46% - 26% support Conservatives over Liberals despite the change in leadership. The message is clear. It is time to work together.
-Darryl
