Consider this: The US Congress passed the massive $825 billion stimulus package, with not one single Republican voting for it. The Democrats alone voted to support President Obama’s package.

And the Democrats put in that package the requirement that the steel to be used in named projects had to be steel made in America:
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With Ignatieff dealing a death blow to the Coalition Accord, the decks are now cleared for Harper’s Tories to remain in power for the next two years, perhaps longer. This will give the Tories time to adjust to the worsening recession, pump yet more billions into the economy, and to survive until the economy starts to turn up.

Harper can then go to the people in the role of saviour of Canada.

During these two years, here are my projections of how our Parliament will work:
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John Tory nomination meeting tonight

I am assuming this nomination meeting is not going to be contested. Tonight John Tory should officially be nominated in the riding of Haliburton-Kawartha Lakes-Brock. The move comes after MPP Laurie Scott resigned her seat to get Tory back in the legislature. I wish John Tory the best of luck in the upcoming by-election. At this point Dalton McGuinty has not set a date for that by-election but promises to do so quickly.
-Darryl

Tory to be named in byelection nomination meeting

Rick Mercer Report: Conservative Policy


It wasn't that long ago that this Rick Mercer video killed what was left of Dion's credibility.



Now it looks like Rick Mercer has taken a pretty good shot against the Conservatives as well.

Newmarket and Aurora Mayors Approve Budget

The budget will be good for Newmarket, Aurora, York Region and the GTA. It is good to see the positive comments from Aurora Mayor Phyllis Morris and Newmarket Mayor Tony Van Bynen.
-Darryl

http://www.yrng.com/News/Newmarket/article/87216

http://www.yrng.com/News/Newmarket/article/87217

Mayor Phyllis Morris

"There's a lot of money going into infrastructure and that's a good thing,"

Mayor Tony Van Bynen

"There are a couple of things in there that, from our perspective, look promising,"

Ontario Premier Dalton McGuinty also supports budget:

"This prime minister has actually delivered. I'm not going to look this gift horse in the mouth,"
"It's real, it's meaningful and it's coming here just in time,"

http://toronto.ctv.ca/servlet/an/local/CTVNews/20090128/budget_EI_090128/20090128?hub=Toronto

Update: Lois Brown comments on Budget

Lois Brown MP, Newmarket-Aurora

MP Brown Announces Budget 2009: Canada's Economic Action Plan

January 28, 2009

(Newmarket-Aurora, ON) - Newmarket-Aurora MP Lois Brown says the Conservative government tabled Budget 2009 - Canada's Economic Action Plan will provide a much needed boost to local residents and businesses.

While Canada is coping with a global economic downturn, our plan will ensure we emerge even stronger as the economy recovers, said Ms. Brown. Canada's Economic Action Plan's targeted and temporary measures will build on Canada's long-term strengths, while helping address short-term challenges.

The plan will provide almost $30 billion in support, equivalent to 1.9% of GDP, to the Canadian economy this year. Ontario will especially benefit from the plan, through:

Action to Build Infrastructure by providing Ontario with its share of $4.5 billion over two years for infrastructure projects such as road, water and sewer system upgrades across the province. It also accelerates payments up to $75 million over two years for additional infrastructure projects.

Action to Reduce Taxes and Freeze EI Rates by providing the people and businesses of Ontario with tax relief of $9.1 billion over the next five years and providing billions to keep EI rates low for 2009-10.

Action to Stimulate Housing Construction by providing billions to build quality social housing, stimulate construction and enhance energy efficiency. The new renovation tax credit will provide up to $1,350 per homeowner, which will benefit Ontario homeowners by up to $1.3 billion over two years.

Action to Improve Access to Financing for businesses to obtain the resources they need to invest, grow and create new jobs and give consumers the adequate financing they need.

Action to Help Canadians Hit Hardest by the Economic Downturn including enhancements to Employment Insurance and more funding for skills and training.

Support for Businesses and Communities by protecting jobs and supporting sectoral adjustments during this extraordinary crisis with $7.5 billion in extra support for sectors, regions and communities such as the forestry and manufacturing sectors.

In addition to these measures, Ontario will continue to receive historically high and growing federal transfers in 2009-10 that will total $15.8 billion - an increase of $1.5 billion from last year and a $4.3 billion increase over the former Liberal government. What's more, Ontario will see growing health ($9.6 billion) and social ($4.2 billion) transfers to help the province pay for vital health care, educational and social services families depended on.

Ms. Brown was pleased to see many of the suggestions she received during her Pre-Budget Consultations were included in Canada's Economic Action Plan. Residents and businesses alike were looking for help, said Lois Brown. Many of them took the time to provide their suggestions and opinions which I had forwarded to the Minister of Finance. I am very pleased to say that many, if not most, of these suggestions were included. This is good news for small business owners, employees, seniors, families, young people and large employers in Newmarket and Aurora. I will be working diligently with all levels of government in the weeks ahead to ensure our community participates to the fullest extent possible in these available measures.

The Government has listened to the concerns of Canadians. Budget 2009 - Canada's Economic Action Plan - includes the top six suggestions for stimulating our economy suggested from people in Newmarket and Aurora, added Lois Brown. Residents wanted reduced taxes, access to credit, spending on infrastructure such as roads, bridges and public transit, investments in green and high-tech jobs, improved Employment Insurance and worker training programs and a stimulated housing sector. I am confident that with measures targeted towards these and other areas, our economy will get back on track and that jobs will be maintained and created in Newmarket and Aurora.
-30-

Lois Brown, MP Newmarket-Aurora

16600 Bayview Ave., Suite 206

Newmarket ON L3X 1Z9

905-953-7515

BrownLo@parl.gc.ca

www.loisbrown.ca

***

BUDGET 2009 BACKGROUNDER

ACTION ON INFRASTRUCTURE

Provincial, Territorial and Municipal Infrastructure

* $4 billion Infrastructure Stimulus Fund over two years to provide funding to rehabilitate infrastructure.
* $1 billion over five years for a Green Infrastructure Fund for projects including sustainable energy.
* $500 million over two years to create Recreational Infrastructure Canada, or RInC, to support construction of new community recreational facilities and upgrades to existing facilities across Canada.
* $500 million over the next two years to accelerate infrastructure projects in small communities.
* $1 billion in accelerated payments under the Provincial-Territorial Base Funding Initiative to expedite “ready-to-go” infrastructure projects.
* $25 million for the National Trails Coalition in 2009-10 for a national initiative to create, upgrade and sustain trails throughout the country.

Infrastructure for the Jobs of Tomorrow

* $2 billion to support maintenance, and repair, and to accelerate new projects at post-secondary institutions.
* $225 million to develop and implement a strategy on improving broadband coverage to extend and upgrade service for underserved communities.
* $750 million to accelerate investments under the Canada Foundation for Innovation, with at least $125 million earmarked for clean-energy research.
* $85 million over the next two years to invest in maintaining or upgrading key existing Arctic research facilities.
* $250 million over two years to maintain facilities at federal laboratories.
* $500 million to Canada Health Infoway to support the goal of having 50 per cent of Canadians with an electronic health record by 2010.
* $50 million to the Institute for Quantum Computing in Waterloo, Ontario for the construction of a new world-class research facility.
* $500 million to Canada Health Infoway to encourage the greater use of electronic health records

Federal Infrastructure Projects

* $130 million for improving travel across Canada with improvements to the Trans-Canada highway.
* Up to $42 million for other federal bridges in need of rehabilitation throughout Canada.
* $217 million to build and improve core commercial fishing harbours across Canada.
* $323 million over two years for the renovation and upkeep of federally owned buildings.
* Supporting the development of aviation security plans, improving operations of the Canadian Air Transportation Security Authority, and implementing a new air passenger assessment system.
* Increasing funding by $80 million over the next two years to accelerate the cleanup of federal contaminated sites.
* The government will invest $80 million to ensure that Canada’s shared border with the United States remains secure and efficient.
* $407 million to VIA Rail Canada to support improvements to the Quebec City to Windsor corridor. These investments will support two additional express trains per day between Montreal and Toronto and reduce trip times by approximately 30 minutes from four-and-a-half hours to four hours.
* $72 million over five years to improve railway safety.

ACTION ON TAX RELIEF

Tax Initiatives ($20 billion over this and next five years)

* The basic personal amount will be increased to $10,320 for 2009 from $9,600 in 2008, allowing individuals to earn more income before paying federal income tax.
* The top of the first personal income tax bracket will be increased to $40,726 in 2009 from $37,885 in 2008, allowing more income to be taxed at the lowest 15% rate, rather than the 22% rate.
* The top of the second personal income tax bracket will be increased to $81,452 in 2009 from $75,769 in 2008, allowing more income to be taxed at the 22% rate, rather than the 26% rate.
* The new basic personal amount and bracket thresholds will be indexed for 2010 and future years.
* Raising the level at which the National Child Benefit supplement for low-income families and the Canada Child Tax Benefit are phased-out, providing a benefit of up to $436 for a family with two children.
* Effectively doubling the tax relief provided by the Working Income Tax Benefit to help low-income Canadians over the “welfare wall” and into gainful employment.
* Providing up to an additional $150 of annual tax savings for low- and middle-income seniors through $1,000 increase to the Age Credit Amount, for a total savings of $961.

Tax and Tariff Relief to Stimulate Business Investment

* Introducing a temporary 100 per cent capital cost allowance (CCA) rate for computer hardware and software acquired after January 27, 2009 and before February 1, 2011.
* Extending the temporary 50 per cent straight-line accelerated CCA rate to investment in manufacturing or processing machinery and equipment undertaken in 2010 and 2011.
* Providing over $440 million in savings for Canadian industry over the next five years by permanently eliminating tariffs on a range of machinery and equipment to lower costs for Canadian producers in a variety of sectors, such as forestry, energy and food processing.

§ The tax measures proposed in Budget 2009 along with other measures announced since Budget 2006, including the reduction of the general corporate income tax rate to 15 per cent by 2012, will provide almost $12 billion in tax relief to manufacturers and processors in 2008–09 and the next five fiscal years.

ACTION ON CANADIAN SKILLS AND TRANSITIONS

Strengthening Benefits for Canadian Workers ($1.9 billion)

* Extending work-sharing agreements by 14 weeks, to a maximum of 52 weeks, so more Canadians can continue working.
* Extending the Wage Earner Protection Program to cover severance and termination pay owed to eligible workers when an employer does not pay due to its bankruptcy.
* Increasing for two years all regular Employment Insurance (EI) benefit entitlements by five extra weeks and increasing the maximum benefit duration to 50 weeks from 45 weeks.
* Providing $500 million over two years to extend EI income benefits for Canadians participating in longer-term training, benefiting up to 10,000 workers.
* Consulting with Canadians and developing options to provide self-employed Canadians with access to EI maternity and parental benefits.

Enhancing the Availability of Training ($1.8 billion)

* Increasing funding for training delivered through the EI program by $1 billion over two years.
* $500 million over two years in a Strategic Training and Transition Fund to support the particular needs of individuals who do not qualify for EI training, such as the self-employed or those that have been out of work for a prolonged period of time.
* $55 million over two years to help young Canadians find summer jobs.
* $60 million over three years to support older workers and their families through the Targeted Initiative for Older Workers.
* $40 million a year to respond to skilled labour shortages by launching the $2,000 Apprenticeship Completion Grant.
* Providing $50 million over two years to develop a national foreign credential recognition framework in partnership with provinces.

Freezing EI Rates ($4.5 billion)

* $4.5 billion to keep EI rates frozen for 2009 and 2010 so that Canadian employers and employees continue to benefit from one of the lowest payroll tax rates in the world. EI rates will continue to be $1.73 per $100 of insurable earnings, their lowest level since 1982.

Further Developing a Highly Skilled Workforce

* Providing an additional $87.5 million over three years to temporarily expand the Canada Graduate Scholarships program. These funds will support an additional 500 doctoral scholarships and 1,000 master’s scholarships.
* Allocating an additional $3.5 million over two years to the Networks of Centres of Excellence program to offer an additional 600 graduate internships through the Industrial Research and Development Internship program launched in Budget 2007.

ACTION TO STIMULATE HOUSING CONSTRUCTION

Initiatives for Homeowners

* A temporary Home Renovation Tax Credit that will provide up to $1,350 in tax relief and reduce the cost of renovations for an estimated 4.6 million Canadian families. The Home Renovation Tax Credit applies to work performed or goods acquired after January 27, 2009 and before February 1, 2010.
* First-Time Home Buyers’ Tax credit will provide up to $750 in tax relief to first-time home buyers.
* Increase from $20,000 to $25,000 the amount that first-time home buyers can withdraw from their RRSP to purchase a home.
* $300 million over two years to the ecoEnergy Home Retrofit program, which is expected to support an additional 200,000 energy-saving home retrofits.

Affordable and Social Housing

* Providing a one-time federal investment of $1 billion over two years for renovation and energy retrofits for up to 200,000 social housing units on a 50-50 cost shared basis with the provinces.
* Dedicating $400 million over two years for the construction of housing units for low-income seniors.
* $75 million over two years for the construction of housing units for persons with disabilities.
* Supporting housing in the North with an additional $200 million over two years.
* Making available up to $2 billion over two years in direct, low-cost loans to municipalities to finance improvements to housing related infrastructure, such as sewers, water lines, and neighbourhood regeneration projects.

Home Renovation Tax Credit Backgrounder

Home renovations are smart investments in the long term value of a home and also create economic activity by increasing the demand for labour, building materials and other goods. Renovations can also reduce energy consumption and the long-term cost of owning a home.

To provide some $3 billion of much-needed fiscal stimulus and encourage investments in Canada’s housing stock, Budget 2009 proposes to implement a temporary Home Renovation Tax Credit (HRTC).

The Home Renovation Tax Credit (HRTC) will provide a temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. The credit may be claimed on eligible expenditures exceeding $1,000, but no more than $10,000.

Who can claim the credit?

The HRTC will be family-based, generally meaning an individual, and his/her spouse or common-law partner. Family members will also be able to share the credit amongst themselves. About 4.6 million families in Canada are expected to benefit from the credit.

What expenditures are eligible?

The HRTC can be claimed for renovations and alterations to a dwelling or the land on which it sits that are enduring in nature. Costs associated with such projects will be eligible for the credit, including permits, professional services, equipment rentals and incidental expenses. Routine repairs and maintenance normally performed annually or on a more frequent basis will not qualify for the credit. Individuals will need to keep receipts for expenditures and may claim the HRTC when filing their income tax returns for 2009.

The HRTC will complement support provided by the Government to Canadians to undertake energy-saving improvements to their homes. EcoEnergy retrofit grants will not reduce the value of claims made under the HRTC. Eligible renovation expenditures claimed under the Medical Expense Tax Credit may also be claimed.

The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The temporary nature of the credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects.

ACTION ON IMPROVING ACCESS TO FINANCING

* Committing an addition $50B to Insured Mortgage Purchase Program. The new total size of the program is $125B.
* $13B in additional financing by increasing the flexibility and capacities of the financial Crown corporations (Canada Mortgage and Housing Corporation, Export Development Corporation, and the Business Development Bank of Canada).
* Increasing the maximum eligible loan amount a small business can access under the Canada Small Business Financing Program which could increase lending by $300M per year.
* Creating the Canadian Secured Credit Facility, with an allocation of up to $12B, to support financing of vehicles and equipment for consumers and businesses.
* To help Canadian lenders remain competitive on the global scale, we are extending the deadline for insuring guaranteed instruments under the Canadian Lenders Assurance Facility.
* Establishing a new Canadian Life Insurers Assurance Facility to generate wholesale term borrowings for life insurers, modelled on the Canadian Lenders Assurance Facility.

The Extraordinary Financing Framework (EFF)

* Providing up to $200B in existing and new measures to support the extension of financing from Canada’s financial institutions to Canadians and Canadian businesses during the current extraordinary period.
* The Government will form the Advisory Committee on Financing to help manage the EFF.
* This committee will include users and suppliers of financing, along with other experts.
* While the Government will undertake additional borrowing, the EFF is expected to generate an overall positive return. It is not expected to lead to an increase in federal debt.

ACTION TO SUPPORT SMALL BUSINESS

* Increasing the amount of small business income eligible for the reduced federal tax rate of 11 per cent to $500,000 from the current limit of $400,000 as of January 1, 2009.
* Increasing access to financing for small businesses through proposed amendments to the Canada Small Business Financing Program and the Business Development Bank of Canada.
* Providing $30 million over two years for the Canada Business Network and $10 million in 2009-10 to the Canadian Youth Business Foundation.
* Allocating $200 million over two years to the National Research Council’s Industrial Research Assistance Program to enable it to temporarily expand its initiatives for small and medium-sized businesses.

ACTION ON A MORE SUSTAINABLE ENVIRONMENT

Transformation to a Green Energy Economy

To maintain a strong economy Canada requires a healthy environment that provides sustainable resources and supports a high and enduring quality of life. The Government is committed to ensuring that Canada's enviable and pristine environment is protected and strengthened for current and future generations.

Canada has committed to a 20 per cent reduction of greenhouse gases by 2020. Clean-energy technologies have the potential to make a significant contribution by reducing emissions from the production and use of energy, and creating new opportunities as Canada transitions toward a greener global economy. This is particularly the case for technologies that capture carbon dioxide, one of the most important greenhouse gases, at the point of production in industrial facilities and safely store it underground.

Since 2006, the Government has provided $375 million to support the development of carbon capture and storage technologies, including $250 million in Budget 2008 for a full-scale commercial demonstration of carbon capture and storage in the coal-fired electricity sector in Saskatchewan, research on the potential for carbon storage in Nova Scotia, and economic and technological issues. An additional $125 million is available for carbon capture and storage projects under the ecoENERGY Technology Initiative of Natural Resources Canada.

To further support Canada's leadership in clean energy, Budget 2009 provides:

* Canada’s Action Plan invests in a more sustainable environment to help create the green technologies of tomorrow that will combat global warming and clean our air.
* $1 billion over five years to a Clean Energy Fund for pilot projects and research, including carbon capture storage. This support is expected to generate a total investment in clean technologies of at least $2.5 billion over the next five years.
* Improving the government’s annual reporting on key environmental indicators such as clean air, clean water and greenhouse gas emissions with $10 million.
* Strengthening Canada’s nuclear advantage with $351 million to Atomic Energy of Canada Limited for its operations and to maintain safe and reliable operations at the Chalk River Laboratories.

Capital Cost Allowance for Carbon Capture and Storage

In light of the potential importance of carbon capture and storage as a means of reducing greenhouse gas emissions from large industrial facilities, the Government will also consult with stakeholders to identify specific assets used in carbon capture and storage with a view to providing accelerated capital cost allowance (CCA) in respect of such investments. Accelerated CCA is used to actively promote investment in certain clean-energy generation technologies. Advancing the timing of capital cost deductions for tax purposes defers taxation and improves the financial return from investment in particular assets.
Informing Canadians About the Environment

The Canadian Environmental Sustainability Indicators initiative produces a coherent set of indicators on water quality, air quality, and greenhouse gas emissions over time. Budget 2009 will provide $10 million in 2009–10 to sustain the Government's annual reporting on the environmental indicators.

Obama speech in Canadian Parliament February 19?

Looking forward to heading to Ottawa on February 19. I am hoping to get tickets to the parliamentary gallery should he deliver a speech to a recalled parliament. I am excited to see Obama deliver a barn burner on Canadian-American relations and am looking forward to the photo op between Prime Minister Stephen Harper and President Barack Obama. A crucial visit being the first foreign country to host the President of the United States of America. This will be a great opportunity for Prime Minister Harper to build strong relations and produce results on the many challenges both our nations face. For Canadians, Obama offers hope that relations with our best friend and ally will only grow stronger under the new administration and more beneficial for both the Canadian and American people. Expect a huge crowd of people at Parliament Hill on the 19th and for a change it will not be to protest. Yes We Can to good relations between Obama and Harper.
-Darryl

Obama coming to Ottawa on Feb. 19

http://www.cbc.ca/world/story/2009/01/28/obama-canada.html

U.S. President Barack Obama will visit Canada on Feb. 19 in his first official trip abroad, the White House announced Wednesday.

No details of the trip, including what city he would visit, were announced, but CBC News has learned that his destination will be Ottawa.

Although Parliament will not be sitting that week, it may be recalled so Obama can address a joint sitting, CBC's Paul Hunter reported.

"This is a testament, not just to the size of our trading relationship and the closeness of our alliance, but also the strength of our friendship," Prime Minister Stephen Harper told the House of Commons.

"I look forward to an important and productive working visit."

Obama had already pledged his first official foreign trip would be to Canada but had not specified a date.

"Canada is a vitally important ally," White House spokesman Robert Gibbs told reporters. "The president looks forward to the opportunity to speak with Prime Minister Harper and visit our neighbour to the north."

Former president George W. Bush made his first foreign visit to Mexico.

Last week, Harper spoke with Obama following his inauguration and congratulated him.

The Prime Minister's Office said Harper and Obama discussed the economy, his trip to Canada, energy, environment and the war in Afghanistan.

A recent poll, conducted before Obama took the oath of office Jan. 20, showed large support for the new president, with 81 per cent of Canadians holding a positive view of him.

Watching Michael Igatieff chortle with delight at his smartness, and congratulate himself for ‘putting the Tories on probation’, a thought struck me.

Does this man understand the realities of politics?

This morning, he held the balance of power in Canada.

And this is how he started his press conference this morning:

“In the last few months, we've participated in an unprecedented national conversation about our economy, our politics, and the future of our country.
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What does it say about a person who is in politics (representing a party which has the support (until now) of millions of Canadians, faced with a highly unpopular prime minister who is leading a reactionary, right wing conservative government, at a time of great peril for the country) and has the golden opportunity to step up and provide the country with enlightened leadership, and who backs off?

Why would a man who strongly believes so many things are wrong with the Tory budget, and who apparently strongly believes in liberal values over conservative values, decide to become the junior partner in a conservative government, by entering into a de facto coalition with Harper?
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Michael Ignatieff has lead the Liberal Party MPs to support the budget tabled by Harper, and in so doing, has parted company from the Bloc and the NDP.

He has also turned his back on the commitment by the Government of Canada to the G20 countries, which required a stimulus package to be implemented equal to at least 2% of the national GDP; the Harper budget with its stimulus package of just over $20 billion falls shy of this target.
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Breaking news: Budget will pass with Liberal Support

As expected...
-Darryl

Full text of Flaherty's federal budget speech

Updated Tue. Jan. 27 2009 4:36 PM ET

Text of Finance Minister Jim Flaherty's budget speech in the House of Commons on Tuesday:

It is Canada's plan to stimulate our economy, to protect Canadians during the global recession, and to invest in our long-term growth.

It is Canada's response to the challenge of our time.

The crisis we face

Since last fall, the global economic situation has deteriorated further, and faster, than anyone predicted.

The global economy has weakened since Canadians voted in the election last October.

It has weakened further since Parliament met last month.

As the crisis emerged, our government took immediate action to ensure Canadian businesses could get the financing they need to reinvest, grow and maintain jobs.

But developments since then require further action.

Canadians are feeling the effects of the global recession, and they are concerned.

They are concerned about their jobs and their savings.

They are concerned about their families, their businesses, and their communities.

Our government has listened to these concerns.

We have consulted Canadians, and we have found among them a remarkable degree of consensus.

From Corner Brook to Kamloops, from Iqaluit to Kitchener, Canadians agree.

We must do what it takes to keep our economy moving, and to protect Canadians in this extraordinary time.

Making new investments is more challenging in such a time; but it is also more necessary than ever.

Canada's Economic Action Plan

Today we present Canada's Economic Action Plan.

It is our plan to protect Canadians during the global recession, to create new, good jobs for the future, and to equip our country for success in the years ahead.

• In Canada's Economic Action Plan we are helping families and stimulating consumer spending.

We are providing additional tax relief, especially for lower- and middle income Canadians.

This will put more money in the hands of Canadian families, to help them weather the current storm, and to help stimulate our economy.

• In Canada's Economic Action Plan we are helping those hit hardest by the global recession.

We are providing extra support to Canadians who lose their jobs.

We are strengthening Employment Insurance benefits and expanding skills-training opportunities.

• In Canada's Economic Action Plan we are protecting jobs and supporting businesses.

We are supporting Canadian industries in difficulty, and the families and communities that depend on them for work.

We are helping these industries -- including forestry, manufacturing, tourism, agriculture, fisheries and the automotive industry -- to find long-term solutions to the challenges they face.

And we are providing additional support for businesses and industries that play a unique role in Canada's regional economies.

• In Canada's Economic Action Plan we are ensuring access to financing for businesses, and the stability of our financial system.

We are providing new ways for businesses to get the financing they need, to innovate, expand and create new jobs for Canadians.

And we are establishing the means to ensure consistent regulation in financial markets across Canada.

• In Canada's Economic Action Plan we are taking immediate action to build infrastructure.

We are launching one of the largest building projects in Canada's history.

In the next few months, we will start construction of roads, bridges, public transit, broadband Internet access, schools and social housing, in every region of the country.

We will create jobs for Canadians now, while providing the infrastructure Canada needs to grow in the years to come.

Meeting short-term needs while serving long-term goals

In response to the global recession, the industrialized countries of the world are taking unprecedented action to inject money into their economies.

Our government will spend what is necessary to stimulate our economy, and we will invest what is necessary to protect our future prosperity.

To finance Canada's Economic Action Plan, our government is making a deliberate choice to run a substantial short-term deficit.

This temporary deficit is an investment which is necessary to stimulate our economy.

It allows us to meet our short-term needs while serving our long-term goals.

The United States and many countries in Europe are in a much more difficult position.

Having entered the recession after years of heavy deficits, the massive deficits they are undertaking now will continue for many years.

Canada has the freedom to respond effectively to the current crisis, without putting our long-term prosperity at risk.

In fact, the situation provides an opportunity to speed up investments that are necessary for our future growth and quality of life.

Canadians can be proud of this.

Together we made the right choices when times were good.

And now, when times are difficult, together we can continue moving forward with confidence.

Economic and fiscal projections

As a result of the global recession, we expect the Canadian economy to contract by 0.8 per cent over the next year.

This means that tax revenues will decrease.

At the same time, we will need to spend more to protect our economy and help Canadians hit hardest by the global recession.

This in turn means that a temporary deficit cannot be avoided.

As a result, our government projects a budget deficit of $34-billion for the next fiscal year; and $30-billion the year after that.

With the participation of our provincial partners, the stimulus provided in Canada's Economic Action Plan represents 1.9 per cent of our economy for the next fiscal year; and for the year after that, 1.4 per cent.

Not only does this fulfill Canada's commitment at the G20 leaders' summit in November.

It exceeds the target recommended by the International Monetary Fund.

The stimulus initiatives in Canada's Economic Action Plan are for this year and the next.

There will be no long-running or permanent deficit.

Our plan includes tax relief that is permanent but affordable over the long-term.

As the economy recovers, we fully expect to emerge from deficit and return to surplus within five years.

We will use future surpluses first of all to pay off the debt incurred during the recession.

By 2011 we project the deficit will fall to $13-billion; by 2012 it will fall to $7.3-billion.

By 2013 we project a return to surplus -- for that year, a surplus of $700-million.

In spite of these temporary deficits, by the end of our program our total government net debt as a share of the economy will still be the lowest in the G7, by a wide margin.

While our projections are based on the best information available, we cannot guarantee them absolutely.

Forecasters all agree that there is substantial uncertainty; so some flexibility is advisable.

If circumstances require it, our government will consider enhancements to the measures in Canada's Economic Action Plan.

Canadians regret the need to run a deficit in order to invest in our economy.

Our government shares that regret.

We have chosen this course because it is necessary, and because we know it will be temporary.

But we have chosen it also because we know it is what Canadian families and businesses need.

In Canada's Economic Action Plan, our government is taking action to help.

We are taking action to protect Canadians during the global recession, to stimulate our economy, and to invest in our long-term prosperity.

1. Action to help families and stimulate consumer spending

Since first coming into office, our government has provided substantial tax relief to Canadian families.

This has given families more freedom to meet their needs.

It has provided, and is continuing to provide, both short- and long-term stimulus to our economy.

In these difficult times, tax relief is more necessary than ever.

It is necessary to help families.

And it is necessary to help keep our economy moving.

That is why Canada's Economic Action Plan includes additional tax relief for Canadians.

Personal income tax relief to stimulate consumer spending

Canada's Economic Action Plan provides immediate benefits, especially to low- and middle-income Canadians.

Effective January 1, 2009, we will increase the basic personal amount.

This means that a greater portion of Canadians' earnings will not be subject to federal income tax.

Effective January 1, 2009, we will also increase the upper limit of the two lowest personal income tax brackets.

This means that a greater portion of Canadians' earnings will be taxed at a lower rate.

And we will increase the amount that families can earn while still receiving the National Child Benefit supplement and the Canada Child Tax Benefit.

As a result of these changes, a single parent with two children earning $35,000 will be ahead $500 per year.

A two-income couple with two children earning $70,000 will be ahead $275 per year.

This tax relief will help low- and middle-income Canadians, and it will stimulate consumer spending.

This in turn will help stimulate our entire economy.

To provide additional help to low-income Canadians, we will also increase the Working Income Tax Benefit, or WITB.

Many low-income Canadians, especially those receiving social assistance, would like to take a job.

But they face disincentives, in the form of higher taxes and reduced benefits.

The WITB supplements the earnings of low-income workers to help ensure they are better off by taking a job.

Our increase to the WITB will effectively double the tax relief this measure provides.

We expect that for the 2009 tax year more than 1.5-million individuals and families -- many of them single women with children -- will benefit as a result.

In Canada's Economic Action Plan we will also provide further tax relief for Canadian seniors.

We will increase the Age Credit amount by an additional $1,000.

This will provide each eligible senior additional savings of up to $150 per year.

But more is needed to help our seniors.

The global financial crisis has caused them added worry, as they see the effect on their retirement savings.

To provide some relief, we will reduce the amount seniors are required to withdraw from their registered retirement income funds, or RRIFs, by 25 per cent for 2008.

This will provide one-time tax relief of $200 million for Canadian seniors.

The personal income tax relief in Canada's Economic Action Plan will put more money in the hands of Canadian families.

Most important, this year and over the next five years these measures will inject approximately $20-billion in stimulus into the Canadian economy.

Employment Insurance payroll taxes

Canadian workers benefit from relatively low payroll taxes.

This allows them to keep more of what they earn; and it encourages businesses to create more jobs.

We need to keep these taxes low, especially during this difficult period.

For many families, right now every dollar counts.

For many businesses, an increase in payroll taxes would make it harder to sustain existing jobs.

And so, in Canada's Economic Action Plan we will freeze Employment Insurance payroll taxes for the next two years.

Home construction and home renovation

For the Canadian economy, the home construction and home renovation industries are major sources of jobs and growth.

To encourage home ownership and home construction, we will increase the amount first-time homebuyers can withdraw from their RRSPs to purchase or build a home -- from $20,000 to $25,000.

We will establish a First-time Homebuyers' Tax Credit, saving Canadians up to $750 on closing costs in buying a new home.

And, to stimulate spending and to help Canadians invest in the long-term value of their homes, we will provide a temporary Home Renovation Tax Credit.

Effective tomorrow and extending until January 31, 2010, this measure will provide tax relief for home renovation costs -- saving Canadian families up to $1,350 each on their 2009 taxes.

The Home Renovation Tax Credit is available for renovations to the house or the cottage, for everything from a new furnace to energy-efficient windows to a new deck.

It may be claimed in addition to support from the existing ecoENERGY Retrofit program, and the Medical Expense Tax Credit.

These measures to support home construction and renovation will help stimulate our construction and building-supplies industries.

This in turn will support forestry and other Canadian industries.

The tax relief provided in Canada's Economic Action Plan will encourage long-term economic growth.

It will help working families manage the effects of the recession.

It will give an immediate boost to our economy, and help to create jobs.

2. Action to help Canadians hit hardest by the global recession

The global recession has begun to make things difficult for many Canadian workers and their families.

Some have lost their jobs; more, we fear, will lose their jobs.

In Canada's Economic Action Plan we are taking action to help.

Employment Insurance benefits

Many Canadians who find themselves out of work will look to Employment Insurance to help make ends meet.

They will need greater support in this time of recession.

During the next two years, we will extend maximum EI benefits by five weeks, bringing the total to a maximum of 50 weeks.

This will give EI recipients more time to get the extra training they need and to find the right job.

We will extend work-sharing arrangements by an additional 14 weeks, to help employers avoid layoffs and to keep Canadians working.

We will provide better protection for workers whose employers go bankrupt.

We will provide special assistance to long-tenured workers in transition.

And we will establish an expert panel to advise on the best way to provide maternal and paternal EI benefits to self-employed Canadians.

This will be of special benefit to many Canadian women and families with young children.

Skills development and youth employment

Beyond this, we need to help Canadians who are out of work to find new, good jobs.

And for that, we need to increase our investment in skills development.

In Canada's Economic Action Plan we will provide new opportunities for short- and long-term skills upgrading.

This will include targeted programs for apprentices and for older workers;

• additional support for skills development and training for Aboriginal Canadians;
• and new investments to create job opportunities for Aboriginal Canadians.

We will also provide support for workers who do not qualify for EI benefits.

In the coming weeks, we will also announce a major, new youth summer job initiative.

3. Action to protect jobs and support businesses

The global recession has affected not only families, but also Canadian businesses.

Many Canadian businesses are in a relatively strong position, compared to their foreign competitors.

As a result of our government's actions, by 2010 Canada will have the lowest overall tax rate on new business investment in the G7.

But Canadians have agreed that we need to do more.

We need to do more to encourage long-term growth.

We need to help sustain Canadian jobs and to help all Canadian businesses to weather the current storm.

Support for industries in distress

Some sectors of our economy are facing special difficulties.

These are industries on which hundreds of thousands of Canadian families depend for their livelihood, on which many communities and regions depend for their vitality.

To help meet this challenge, in Canada's Economic Action Plan we are creating a two-year, $1-billion Community Adjustment Fund.

The Fund will support economic diversification in communities affected by distress or decline in their local industries.

This will help communities across Canada facing unique challenges, from the mountain pine beetle infestation to the declining global demand for seafood.

Our government is also taking action to help sustain key sectors of the Canadian economy.

In Canada's Economic Action Plan we will provide additional support for our forestry industry.

Over the next two years, we will support the industry in developing new products and processes, and in seizing new opportunities in the international marketplace.

We will invest new funds over the next five years to help Canadian farmers to innovate, to increase competitiveness, and to achieve greater environmental sustainability.

We will support Canada's shipyards, through the procurement of 98 new Coast Guard vessels and repairs to 40 of our aging vessels.

We will extend the Mineral Exploration Tax Credit by one year, to help mining companies raise capital for exploration.

We will provide new support for the promotion of Canadian heritage and culture, through events and exhibitions, national parks and heritage sites, broadcasting and community newspapers, the arts, tourism and sport.

And to help all Canadian industries to reduce their impact on the environment, we will establish a new Clean Energy Fund.

We expect this funding will generate more than $2.5-billion in investments such as carbon capture and storage, over the next five years.

Regional economic development

Our government will also continue to foster economic development in the regions of Canada most vulnerable in any downturn.

We will increase funding available to the regional development bodies for Atlantic Canada, Quebec and Western Canada.

And, for the first time, we will provide support for regional economic development across the Province of Ontario.

While continuing our support for Northern and Eastern Ontario, we will provide $1 billion over the next five years to establish a new Southern Ontario Development Agency.

And we will invest $50-million over the next five years to establish a new regional economic development agency for Canada's North.

Tax relief for businesses

To continue growing and creating jobs, Canadian businesses must be free to reinvest.

In our last two budgets, our government temporarily accelerated the Capital Cost Allowance treatment of investments in machinery and equipment.

This has allowed manufacturers to restructure and retool their operations, to remain competitive in the global economy.

In Canada's Economic Action Plan, we will extend the 50-per-cent straight-line accelerated CCA rate, by two years.

We will also provide a temporary, 100-per cent CCA depreciation rate for eligible computer hardware and software acquired over the next two years.

Our government has already provided permanent tax relief to Canadian small businesses.

We increased the amount of income eligible for the small-business tax rate, from $300,000 to $400,000.

In Canada's Economic Action Plan, we will increase that amount again, from $400,000 to $500,000.

The result of all these measures will be greater freedom for Canadian businesses to create jobs and growth in communities across the country.

They will be better able to sustain jobs during the global recession, and to expand opportunities for Canadians in the years to come.

4. Action to ensure access to financing for businesses, and stability in our financial system

The global financial crisis requires that we take further action to support Canadian families and businesses.

The crisis in the United States financial system has sent shock waves around the world.

Canadian financial institutions have been less willing to lend.

Families with a good credit history find it difficult to get a lease for a new car.

Well-run businesses find it harder to finance the purchase of new machinery.

This shortage of financing can make a difficult economic situation much worse.

Our government took action to increase access to financing when the global crisis emerged in the fall.

Because the situation has continued to deteriorate, our government is taking additional action.

Access to $200 billion in new financing

In Canada's Economic Action Plan, we will build on our previous measures to increase access to financing.

We will make available to Canadian businesses up to $200-billion in liquidity and financing, to keep our economy moving.

This new, Extraordinary Financing Framework will have several components.

We will extend the Insured Mortgage Purchase Program through the first half of the next fiscal year, to encourage private sector financial institutions to increase lending.

We will also establish a new Canadian Secured Credit Facility, to help consumers and businesses in financing the purchase of vehicles and equipment.

In November our government committed additional capital to our financial Crown corporations, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC).

EDC and BDC are key sources of financing for the small- and medium-sized businesses which create so many of Canada's new jobs.

They can now leverage this additional capital into billions of dollars of new lending ability.

In Canada's Economic Action Plan, our government will build on this success, through the Business Credit Availability Program.

This new program will give EDC and BDC greater lending powers.

It will also encourage partnerships between public- and private-sector financial institutions, to help ensure creditworthy borrowers can get access to financing.

We will provide additional support also for Canadian small businesses, by expanding the Canada Small Business Financing Program.

And we will give greater flexibility to the Canadian Deposit Insurance Corporation, to enhance its role in safeguarding the stability of Canada's financial system.

Taken together, these measures will help restore confidence and encourage lending.

And that will encourage Canadian businesses to keep investing, growing and creating jobs.

Enabling quick protective action

Even so, recent history tells us we must take nothing for granted.

Canadians need to be confident that their government has the ability to respond to unforeseen crises.

For that reason, our government proposes to give the Minister of Finance the authority required to act quickly to protect the country's financial system, should it ever come under significant additional pressure.

This will include the authority to provide loans and lines of credit, and the provision and payment of guarantees.

And it will enable the government to inject capital directly into federal financial institutions, should such a measure ever be necessary.

We do not foresee the need to use this authority.

But we have a duty to be prepared, should the unforeseen suddenly emerge.

Canadian Securities Regulator

For all its strengths, Canada's financial system does have one glaring weakness.

Our patchwork of 13 separate securities regulators, spread across the provinces and territories, causes uncertainty for investors and unnecessary red tape.

In Canada's Economic Action Plan, our government is providing a solution.

Following the recommendations of the Expert Panel chaired by the Honourable Tom Hockin, we will establish an office to manage the transition to a Canadian Securities Regulator.

Later this year we will table a Federal Securities Act for Canada, and the transition office will deliver an administrative plan within 12 months.

We will respect constitutional jurisdiction; and participation in the Canadian Securities Regulator will be voluntary.

For those provinces and territories and companies which choose to participate, it will sharpen our competitive edge.

It will put Canadians in a better position to seize new opportunities as the global economy begins to recover.

5. Immediate action to build infrastructure

In Canada's Economic Action Plan, our government is taking immediate action to improve our roads, bridges and harbours;

• public transit, railways and border crossings;
• schools, universities and social housing;
• wastewater treatment plants, recreation centres and broadband Internet access.

These and other infrastructure form the backbone of our future prosperity.

Since Sir John A. Macdonald laid a railway across a continent, infrastructure has been both an immediate response to an urgent need and a hopeful act of nation building.

When chosen carefully, infrastructure projects can provide a much-needed, short-term stimulus to our economy.

Most important, infrastructure creates new, good jobs -- in construction, engineering, science and technology and manufacturing.

And this in turn creates new opportunities in other industries.

New investments in infrastructure

And so, in Canada's Economic Action Plan, we are launching one of the largest infrastructure building projects in our country's history.

Over the next two years, we will provide $4-billion in new funding for local and regional projects.

We will provide $2-billion over the next two years for deferred maintenance at Canadian universities and advanced skills training facilities at community colleges.

And we will provide $1-billion for a Green Infrastructure Fund to support projects such as sustainable energy.

Our government has already committed $33-billion for longer-term projects under the Building Canada Plan.

The new investments we are announcing today will be focused on projects ready to start construction.

Most of this new funding will be available only for the next two years, when our need for economic stimulus is greatest.

To make the money flow, we will need the continued co-operation of the provinces and municipalities.

And to break ground on these projects more quickly, we must take action now to reduce red tape and needless duplication.

Projects from coast to coast to coast

Here are some examples of projects from coast to coast to coast.

In Newfoundland and Labrador, we will proceed with improvements to the Tshiuetin railway, which provides a rail link for communities lacking year-round road access.

In Nova Scotia, we will renew bridges on the National Highway System.

In Prince Edward Island, we will invest in the Summerside Wind Energy Project.

In New Brunswick, we will complete the Fundy Trail Parkway.

In Quebec, we will upgrade roads in the Quebec City metropolitan area, and upgrade water and sewer systems across the province.

In Montreal, the Champlain Bridge, Canada's busiest, will be rehabilitated.

Quebec City will see progress on plans for the future of its majestic armoury, the Manage Militaire.

In Ontario, we will help twin key sections of the Trans-Canada Highway along Northern Highways 11 and 17.

Bridges at the crucial border crossings at Sarnia and Fort Erie will be rehabilitated, as will bridges in Burlington and Kingston, and bridges connecting Ontario and Quebec in the National Capital Region.

Railway stations in Hamilton, Windsor and Belleville will be improved.

The crucial commuter hub for the Greater Toronto Area, Toronto's landmark Union Station, will, at last, be revitalized.

And, in Ontario and Quebec, we will take a big step forward in improving travel on the Toronto-Montreal-Ottawa corridor.

We will add a third railway track at key locations between Montreal and Toronto, which will allow more express trains and make the express trip shorter by 30 minutes.

In Manitoba, work on Winnipeg's Centreport Project will accelerate, and the province's Keewatin Railway Company will receive new investments.

In Saskatchewan, we will help build the Highway 39 truck bypass in Estevan.

In Alberta, work will proceed on the Telus Science Centre in Calgary, and we will help twin the Trans-Canada Highway through Banff National Park.

In British Columbia, funds will flow for the Evergreen Transit Line and for a more modern railway station in Vancouver -- key projects as the city prepares to host the Olympic Winter Games.

In Yukon, investments will be made in water-treatment projects.

In the Northwest Territories, we will help build the City of Yellowknife Bypass Road.

In Nunavut, we will speed up construction of the small-craft harbour in Pangnirtung.

We will upgrade key Arctic research facilities.

And we will conduct a feasibility study for the proposed High Arctic research station.

Other immediate projects

Canada's Economic Action Plan will support additional infrastructure projects that transcend provincial boundaries.

These are, quite literally, nation-building projects.

Over the next two years, we will make major, new investments in Aboriginal communities, to build and renovate schools and health services facilities, to improve wastewater treatment, and to provide safe drinking water.

We will provide funding for urgently needed repairs at Canada's universities and colleges.

We will give priority to projects that will advance our universities' work in research and development, and our colleges' role in advanced skills training.

We will modernize Canada's federal laboratories and scientific facilities.

We will start work on extending broadband Internet access to every community in Canada.

And we will launch a national project to renew thousands of community recreational centres across the country.

Recreational Infrastructure Canada -- or RInC -- will provide $500-million over the next two years to build and renovate hockey arenas, swimming pools and other recreational facilities.

RInC funding will help leverage non-profit and community fundraising efforts.

It will encourage all Canadians to get involved in renewing Canada's infrastructure, right in their own neighbourhoods.

Social housing

In Canada's Economic Action Plan, we are also investing in social housing facilities -- another key part of our country's infrastructure.

Many of our social housing units need general renovations, energy-efficiency upgrades, and improved accessibility features.

Our government will invest $2-billion in new funding over the next two years to meet these needs.

We have designed this measure to ensure quick implementation through co-operation with the provinces.

It will include new funding over the next two years to build homes for low-income seniors and Canadians with disabilities, and to build and renovate housing in Aboriginal communities and in Canada's North.

And over the next two years we will make available another $2-billion in low-cost loans to municipalities to invest in sewers, water lines and other housing-related renewal projects.

The result of all these investments will be a better quality of life for Canadians in need, and safer, healthier and more modern communities.

And, like our other infrastructure investments, our investments in social housing will help stimulate our economy and create jobs across the country.

Accountability for progress

Finally, we will make ourselves accountable to Canadians in following through on all of these projects.

Over the spring and summer of this year, our government's focus will be on implementing Canada's Economic Action Plan.

The ministers responsible will provide progress reports in the fall.

Advantage Canada

Canada's Economic Action Plan is consistent with our government's long-term plan to strengthen Canada's economy.

To allow Canadian businesses to succeed in the world economy, we are developing a competitive edge, a Canadian advantage, in five areas:

• lower taxes;
• a smaller debt burden;
• better regulation, and a better climate for growth;
• a highly educated workforce;
• and modern infrastructure.

We have already made great progress in implementing this long-term strategy.

Canada's Economic Action Plan is consistent with it, and advances it on key fronts.

We are, as the experts say, "building capacity." We are making the investments that are needed to ensure our long-term quality of life -- investments that would be required, regardless of the current global crisis.

For the good of the country

In Canada's Economic Action Plan, we are meeting the challenge of our time.

We are stimulating our economy, to protect Canadians during the global recession, and to ensure our country's long-term prosperity.

We are meeting our short-term needs, while serving our long-term goals.

Most important, Canada's Economic Action Plan meets the needs of Canadians.

It helps Canadians who are out of work.

It protects Canadian jobs and businesses.

It builds up our communities.

And it puts more money in the hands of Canadian families.

Canada's Economic Action Plan is a truly national plan, a strong consensus among Canadians on the way forward.

Our government will lead.

But our country's success depends on all of us:

• all levels of government,
• business and financial leaders,
• community leaders,
• and all Canadians.

And we must work together in this House.

The representatives of the Canadian people, assembled here in Parliament, must make a decision.

Deciding whether and how to spend the resources of our fellow Canadians is one of our most serious responsibilities.

In this extraordinary time in our history, it is also one of our most urgent responsibilities.

Our government has presented Canada's Economic Action Plan.

I invite and urge the honourable members to support it, for the good of the country.

Today Harper unveils his budget, and tomorrow Michael Ignatieff will most probably lead the Liberals in approving the budget, while the NDP and Bloc will oppose it. Harper will remain in power.

To date, it seems that the Liberals have been rubbing out one line drawn in the sand after another (Harper deceived the public back in the summer because he knew then that his budget would go into deficit in 2009? That’s OK, we still have confidence in him to run the country. Harper is tabling a stimulus package which is less than the amount the Canadian government agreed with the G20 to spend, and less than the amount the Liberal Party agreed with the NDP and Bloc to spend? That’s OK, we still have confidence in him to run the country. Harper is saying that white is black and black is white, so that we don’t really know what to believe? That’s OK, we still have confidence in him to run the country).
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It's budget day

Today is budget day, and in a few hours Stephen Harper and the Conservative Party will deliver their fourth budget. We already know the budget will take Canada 34 billion dollars into the red. We know tax cuts are likely to be minimal as Ignatieff has said as recently as Friday that the Liberals will vote down the budget if it contains tax cuts that "will not stimulate the economy" or keep us in "permanent deficit". Despite the threat, some form of middle class tax relief will be included and obviously from a political perspective; it will be tough for Liberals to justify in an election campaign or coaliton government their opposition to tax cuts. 6 in 10 Canadians want the budget to pass, and it is largely expected in the media that the budget will in fact pass with Liberal support. Earlier polls show that the coalition has overwhelmingly been rejected by Canadians and it is clear that a majority of Canadians would rather see the Governor General call an election should the Conservatives be defeated as oppose to allow an unelected coalition to rule. Yesterday in the throne speech and through leaks from various ministers, it is obvious that Conservatives are bending over backwards to meet Iggy's conditions for support. The NDP and Bloc will vote against the budget regardless of what is in it. Here is what has already been announced according to the Toronto Star:

What's Known
Deficit
$64 billion projected over two years, including $34 billion in 2009-2010. The stimulus package is valued at about $21 billion for one year.
Infrastructure
$7 billion in spending including: $4 billion of the money over two years on shovel-ready provincial and municipal projects such as roads, bridges and sewer systems. $2 billion for repairs, maintenance and construction at colleges and universities and $1 billion for green infrastructure.
Social Housing
More than $2 billion in spending nationwide, including: $1 billion to renovate existing social housing; $600 million for on-reserve housing to help address a frequent call from aboriginal leaders to improve the state of housing; $400 million for seniors’ housing; and $75 million for housing those with disabilities.
Job Training
Spending of $2 billion, including: $1.5 billion for laid-off workers who are eligible to collect employment insurance, as well as for those who cannot access EI funds under current rules; $500 million for retraining workers who have been in the workforce for a long time but are too young to retire.
Industry
$1 billion to help single-industry towns such as mining, farming and forestry communities; $500 million to help modernize farms; $150 million for forestry. Plus, $50 million to expand slaughterhouses.
Arts & Culture
$160 million in culture spending, including: $100 million over two years for arts festivals, music and comedy across Canada; and $60 million, also spread over two years, for constructing or maintaining theatres, museums and other arts buildings under the Cultural Spaces Canada program.
Autos
In addition to a $2.7 billion bailout already announced for the Canadian arms of U.S. car makers General Motors and Chrysler, the government is expected to take steps to make consumer financing for car loans and leases easier to obtain.

What's expected

Taxes
Billions of dollars in tax breaks for the middle class, including incentives for home renovations, which could take the form of a refundable tax credit, and increased tax incentives to help companies invest in new technology and equipment, develop their research arms and pursue cutting-edge environmental products.
Banks & Lending
The government will take steps to increase access to credit by consumers and business, possibly including authorization of expanded financial support for business by the Business Development Bank of Canada and Export Development Canada. The throne speech pledged action to ensure the stability of Canada’s financial system. Finance Minister Jim Flaherty will seek authority to inject capital into Canada’s banks if needed.
Credit Cards
The budget will include legislative measures to expand Ottawa’s powers to regulate when credit-card companies slam customers with unforeseen rate hikes, forcing companies to be more transparent about rate changes, sources have said.

Michael Ignatieff has laid out three conditions for supporting the budget:

1, It must protect the most vulnerable

From what has already been leaked, it is clear that assistance will be provided for seniors, aboriginals, the unemployed, those in the arts, those who require EI but do not qualify and those in need of affordable housing. This condition has likely been satisfied.

2, It must save jobs

There will be bailouts for the auto industry, banks, forestry, mining communities, farmers and virtually every other industry. All of this is being done to "save jobs".

3, It must "create the jobs of tomorrow."

So far this condition hasn't been satisfied and will likely be revealed after the budget. Will research projects such as the National Centre for Medical Device Development being proposed for Markham be included? What will be done to create "green jobs"? Will there be assistance for small businesses? What will be done to address Canada's productivity? All of this will be interesting in today's budget.

4, It must not include tax cuts.

This could be the potential poision pill that leads to the defeat of the Conservative government. Defeating the government over Middle Class tax cuts could prove costly politically however for the Liberals. Some form of tax credits and cuts are likely for this budget. This issue will determine if Liberals support or oppose in the end.

Tomorrow morning, we will know officially if the budget will pass. Ignatieff wants to "sleep on it". The vote takes place at 6pm. If the budget does not pass, the Governor General will have to chose between coalition or election. Either way months will pass before a new budget is written and implemented meaning that political opportunism will prove costly to Canadians desparate for assistance and an economy desparate for stimulus. Like all budgets this one will produce winners and losers. At the end of the day Conservatives could prove to be both winners and losers. Conservatives might win because they will stay in power another day most likely. Conservatives also lose because survival will come at the high price of their traditional values and policy positions as many from the base have already dismissed this as a "Liberal or coalition budget". I should have an update later today once the budget is officially delivered at 4pm.

Thanks for reading...

Darryl

Ignatieff was asked a few minutes ago by CTV for his views about the Tories and their deficit budget. One question zeroed in on when the Tories might have known about their budget going into the tank.

Ignatieff was very precise and very clear.

“I believe” he said, that the Tories knew they were heading for a deficit in the late summer, before the last election, and at the time of the last throne speech, late last year, and that “they concealed it.”
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Full Text Speech from the Throne

26 January 2009

Ottawa, Ontario

Honourable Senators,
Members of the House of Commons,
Ladies and gentlemen,

In these uncertain times, when the world is threatened by a struggling economy, it is imperative that we work together, that we stand beside one another and that we strive for greater solidarity.

Today, in our democratic tradition, Canadians expect that their elected representatives will dedicate their efforts to ensure that Canada emerges stronger from this serious economic crisis.

Once again, the people’s representatives have gathered to consider the priorities of another parliamentary session.

Each Throne Speech is a milestone on the remarkable 142-year Canadian journey. Your predecessors, too, were summoned to this chamber at times of great crisis: as Canada struggled to claim her independence, in the shadow of war, during the depth of the Great Depression and at moments when great policy division tugged the very bonds of this union.

Today we meet at a time of unprecedented economic uncertainty. The global credit crunch has dragged the world economy into a crisis whose pull we cannot escape. The nations of the world are grappling with challenges that Canada can address but not avoid.

The Government’s agenda and the priorities of Parliament must adapt in response to the deepening crisis. Old assumptions must be tested and old decisions must be rethought. The global economy has weakened since Canadians voted in the last general election. In fact, it has weakened further since Parliament met last month.

Our Government has listened to Canadians who are concerned about how the worldwide recession is affecting their jobs, their savings and their communities. Our Government has reached out to Canadians in all regions, in all communities and from all walks of life.

Our Government has consulted widely:

• with those who work, those who invest, those who create jobs, those who build infrastructure and those who provide non-profit services;
• with municipal, provincial and territorial governments, Aboriginal leaders and representatives of communities;
• in fact, with everyone whose input might help chart a course through the present storm.

Our Government approached the dialogue in a spirit of open and non-partisan cooperation. There is no monopoly on good ideas because we face this crisis together. There can be no pride of authorship—only the satisfaction of identifying solutions that will work for all Canadians.

Acting on the constructive thoughts and suggestions that have been received, our Government will tomorrow present Canada’s economic stimulus plan. The plan will protect our economy from immediate threat, while making investments to promote long term growth.

The economic stimulus plan will be a plan of action.

• Our Government is stimulating the economy, both through direct government action and by encouraging private expenditure.
• Our Government is taking immediate action to build Canada through new investment in infrastructure.
• Our Government is acting to protect the stability of our financial system.
• Our Government is acting to ensure access to credit for businesses and consumers.
• Our Government is acting to support Canadian industries in difficulty―including forestry, manufacturing, automotive, tourism, agriculture―and to protect the families and communities who depend on those jobs.
• Our Government is acting to protect the vulnerable: the unemployed, lower-income Canadians, seniors, Aboriginal Canadians and others hit hardest by the global economic recession.

These actions will be targeted, they will inject immediate stimulus while promoting long-term growth and they will avoid a return to permanent deficits.

These actions will protect the jobs of today while readying our economy to create the jobs of tomorrow.

Canadians face a difficult year―perhaps several difficult years. In the face of such uncertainty, our Government has developed a clear and focused plan. Our Government will spend what is necessary to stimulate the economy, and invest what is necessary to protect our future prosperity.

As Canadians expect, the economy will be the focus of our Government’s actions and of the measures placed before Parliament during the coming year. In pursuing measures to support the economy, our Government will also attend to the other important priorities that it set out in the Speech from the Throne to open the 40th Parliament.

The present crisis is new, but the imperative of concerted action is a challenge to which Parliament has risen many times in our history. What will sustain us today will be the same strengths of character that have pulled Canada through critical times before: unity, determination and constancy of purpose.

Honourable Members of the Senate,

Members of the House of Commons:

As you unite in common effort and in common cause, may Divine Providence be your guide and inspiration.

We do not need a prime minister who grudgingly decides to do what is best for Canadians, as Harper seems to be doing with his leaked budget. He is acting a bit like a reluctant bridegroom, who has been driven to the altar by the pitchforks of irate relatives of the bride …

Jack Layton is right: one of the essential questions is whether one can really trust Harper to deliver on his swollen budget promises.
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Why Budget and Throne Speech will most likely pass

In December, parliament was prorogued following a threat by the opposition parties to form a coalition that would have been led by Stephane Dion, included Jack Layton and the NDP in cabinet and relied on the separatists for support. The move was a reaction to the fall fiscal update that included an end to political subsidies for political parties. A non-confidence motion was tabelled by the Liberals leading the Prime Minister to ask the Governor General to prorogue the parliament until today. A lot has changed over the past month, but today in Canada's parliament returns with a throne speech followed by a crucial budget tomorrow.

At the time the coalition was proposed, opposition to the initiative was obvious across the country. Rallies for Canada took place. Temporarily, Conservative numbers shot up well into majority territory as Canadians outright feared a coalition government consisting of Liberals, NDP and Bloc Quebecois members. Poll numbers rattled the Liberal caucus leading to a quick decision to appoint Michael Ignatieff as leader of the Liberal Party through a caucus vote. Today, Stephane Dion is not even included in the shadow cabinet and will hide somewhere in the backbenches until the next election. Despite the rhetoric, NDP leader Jack Layton and Bloc leader Gilles Duceppe know the coalition is likely dead. What is taking place now is positioning to say later that Michael Ignatieff and the Liberals are solely responsible for propping up the Harper government. Today in the House of Commons, Michael Ignatieff makes his debut as leder of the opposition.

In the United States, during the time parliament was prorogued, an inauguration took place and America now has a new president. He will be working on a US stimulus package and in many ways has already changed the game in Canada. His election gives Harper the chance to work with him on the economy, auto sector, free trade, security, energy, the environment and Afghanistan. He is expected to visit Canada in February, but that visit might be prosponed if there turns out to be a coalition or election. The leadership bar has now been raised for both Harper and Ignatieff heading into this new session of parliament.

Today there will be a throne speech and tomorrow Jim Flaherty will present one of the most important budgets in Canada's history. Consultations have been broad and the numbers show that the government has been listening:

46 municipalities consulted

5,400 letters, emails and submissions from groups, individuals

70 formal roundtables

4 meetings between Flaherty and his economic advisory council

7,200 online responses

102 discussions with provincial/territorial officials

680 organizations consulted included manufacturing, forestry and mining

Consultations with the Premiers have also taken place and there seems to be support from them to put games aside and get to work on the economy. Meetings have also taken place between Flaherty, Scott Brison and John McCallum, and also between Stephen Harper and Michael Ignatieff. Despite being largely a waste of time, Flaherty has also met with the Bloc and NDP. Both parties have basically said they will not support the budget despite not having seen it. Both Layton and Duceppe are clining to the coalition - the only way either man will get into cabinet.

Tomorrow's budget will take us back into deficit. 34 billion this year. 30 billion next year. There is a possibility that the government will be in the red for the next five years. The economy is likely to get worse despite the stimulus package over the next four years. We already know there will be money for various industrial sectors including automotive, foresty and mining. There is also likely to be money for affordable housing, public transit projects and projects promoting research and innovation. Some money will be used for retraining and there will likely be some kind of reform to EI included in the budget. There will likely be tax relief to the middle class, but tax cuts are likely to be minimal due to opposition threats to bring the government down over the issue. The remainder of the budget will be interesting with a few hints likely in today's throne speech.

At the end of the day expect this budget to pass. Liberal demands for support will largely be met. Bringing down the government, forming a coalition and issuing a new budget would take months and would delay stimulus to the economy in the process. Finally, Michael Ignatieff knows that it will be difficult for the Conservatives to govern during this recession or otherwise tough times. He knows full well that his chances are better waiting for poll numbers to improve, rebuilding his party and hoping the economic situation punishes the incumbent as a way to take power in the long term as oppose to forming a coalition and taking the heat for joining with socialists and separatists, governing in bad economic times and then tried to get re-elected later on. Expect Liberals to take credit for parts of this budget. By demonstrating he has the confidence of the House, Stephen Harper will live to fight another day while Michael Ignatieff distances himself from the coalition. By passing the budget, it will be unlikely that the Governor General will grant a coalition as oppose to an election should the government be defeated in the future.

Hopefully Barack Obama inspires Canadian politicians to get past partisan politics and get to work on behalf of all Canadians during these economic times. While I have not seen the budget document at this point, I fully expect it will ultimately pass with Liberal support. Like most Canadians, Michael Ignatieff has no interest in a coalition where he would be held hostage by the separatists and Jack Layton's outdated and irrelevant socialist policy positions. By the same token, Stephen Harper will do what it takes to stay in power. For now politics is back to normal in Canada, but it will not be long before an election takes place in the future.

Thanks for reading...

Darryl

Update: 7 billion for infrastructure will also be included. This allocation will likely include money for green projects, roads and public transit and also construction projects at Canada's colleges and universities. More to come as further details leak...