Flaherty, Carney to provide economic update

Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney will update Parliament on the state of the Canadian economy Friday, but Conservative MPs blocked testimony from independent economists so as not to “worry Canadians.”

Opposition MPs on the House of Commons Finance Committee forced the issue this week by requesting a meeting with the Minister, the Governor and a panel of independent economists in light of recent economic turmoil in Europe and the United States.

Some private sector economists who provided input earlier this year on the government’s revenue numbers have stated publicly that they are downgrading their projections for economic growth in Canada in light of the slowing U.S. economy.

The Finance Minister normally updates his budget numbers for growth and government revenues every fall in a fiscal update, but opposition MPs will be asking for a sense of where those numbers are heading when he appears before committee Friday morning in Ottawa.

At a planning meeting Monday evening, NDP finance critic Peggy Nash put forward a motion requesting that a panel of economists be included as witnesses Friday, but the Conservatives used their majority to limit the invite list to Mr. Flaherty and Bank of Canada officials.

“It’s imperative, in my opinion, that we not do anything that might worry Canadians. And I think that hearing from the Minister of Finance and the Bank of Canada will help to reassure them, as they should be, that there is concern, but that we are proceeding, as parliamentarians, in their interests,” explained Conservative MP Shelly Glover, who is Mr. Flaherty’s parliamentary secretary.

Another Conservative MP, Randy Hoback, suggested the comments from Mr. Flaherty will be more reliable than what independent economists have to say.

“I want to make sure that we don’t have people coming into this meeting and start speculating and start giving their opinions and their impressions which are based on what? A crystal ball?” he told MPs. “I think it’s better that we stick to the facts and I think the two people who can provide the best facts are the Finance Minister and the Bank of Canada.”

Liberal finance critic Scott Brison intervened to note that journalists will seek out reaction Friday from outside economists regardless of whether they are invited to speak to the committee.

“I can understand the government’s desire to turn Friday into a propaganda exercise. But Parliament has a responsibility, actually, to help provide information and clarity to Canadians, not only from the government’s message track, which would come from the Minister of Finance, but also from independent economists, respected economists in Canada as to what the impact would be,” he said.

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Source: Globe&Mail