Trying to calm a jittery economy, Oliver stuck to the Conservative government’s calculation that Canada would see overall positive economic growth this year. He said his main concern is “external factors” but said the federal budget would remain balanced in the face of falling oil prices and dismal trade numbers.
He downplayed suggestions like this week’s TD Bank report that the Canadian economy is already in recession, saying it doesn’t reflect the views of other private sector economists he talks to.
Oliver acknowledged that the crisis in Greece and the Eurozone was having a ripple effect on investor confidence and commodity prices, but in his speech to the Australia-Canada Economic Leadership Forum in Vancouver — and in a scrum later with reporters — the finance minister insisted Canada is well-placed to deal with any instability in the global economy as a result.
He said the government’s tax cuts for families, as well as new infrastructure spending, is already injecting “$10 billion in cash” into the national economy this year, “so that should have a positive impact on the Canadian economic activity.”
And he took direct aim at the NDP and Liberals, saying Canada must “avoid risky measures” proposed by opposition parties and “stay the course” with the Conservatives’ low-tax, free trade economic plan.
“This is not the time for raising taxes or high spending,” he said. “It’s not the time to create deficits — this is what the opposition parties are proposing.
Oliver said the NDP and the Liberals had urged the government to invest more to bail out European banks during the global economic crisis, and “had we done so, we’d now be on the hook for in the context of the Greek crisis.”
It prompted NDP finance critic Peggy Nash and Liberal finance critic Scott Brison to scoff that Oliver is ignoring the evidence of a faltering economy and struggling Canadian families.
“They’re quite quick to claim credit if things are going well their way, and if things are going poorly, somehow it’s got nothing to do with them,” said Nash.
Nash said the government is counting tax cuts as stimulus, but it’s clear the economy is shrinking, trade deficits are continuing to rise and Canada has 200,000 more unemployed Canadians than before the most recent recession. She said the NDP believes the government has the “fiscal capacity” to help families by investing more in child care and public transit, measures “proven to boost the economy rather than spending billions on tax cuts that benefit those at the top.”
Brison said Oliver’s “minuscule surplus projection” and “rosy growth projections” do not align with what is “coming to bear” on the Canadian economy.
“Joe Oliver should start telling the truth and stop lying about our record levels of debt and record high trade deficits and the struggling middle class.”
In his speech, Oliver took direct aim at the Liberals and NDP, painting them as anti-free traders prepared to risk Canadian jobs, and pitched the Harper government’s bid to expand trade at ongoing talks toward a new Asia-Pacific free trade zone known as the Trans-Pacific Partnership. Oliver defended it as the key to “leverage the growing wealth of millions across Asia Pacific and create jobs right here in Canada.”
However, Oliver made no reference to the supply-managed agricultural sectors that may be on the table at those talks.
Facing an audience interested in broadening Canadian-Australian ties, Oliver acknowledged that Canadian pension funds have been actively involved in investing in Australian infrastructure projects, including highways, public transit, ports, power stations, desalinization plants, hospitals and pipelines.
But he slammed a Liberal plan to spur Canadian infrastructure development.
Oliver suggested Liberals would “hike CPP premiums and direct the Canada Pension Plan Investment Board to invest the additional funds in specific Canadian infrastructure projects.”
“Let me be clear: a Conservative government will never undermine the operational independence of our pension fund. That would compromise its purpose and threaten its actuarial viability.”
Brison dismissed Oliver’s criticisms, saying the Liberal plan would not direct investment but rather would model its approach on Australia and the United Kingdom, which have “smarter” infrastructure policies that bundle projects and make them attractive to pension funds to invest in.
“The reason why CPP, and OMERS (Ontario municipal employees) and teachers’ pension funds are investing in infrastructure in Australia is that the Australian government is actively courting their investment,” said Brison.
“The Harper government has a visionless infrastructure policy. It’s more about buying votes than building a competitive economy.”
Source: thestar.com/
Author: Tonda MacCharles
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