Liveblogging Flaherty’s economic statement

4:09pm: Persuant to a standing order I do not recall, the Minister of Finance tables his economic statement.

4:10pm: Time of unprecedented economic deterioration. Uh oh, this sounds bad.

4:11pm: IMF projects global growth weakest since ’93. Good thing the IMF puts Canada in the best fiscal position of the G7.

4:13pm: CTV reports that the Liberals will not support the economic statement. This statement is a matter of confidence and if defeated would precipitate an election.

4:14pm: Reformation of global finance will be done with global partners.

4:15pm: Trade will be expanded.

4:15pm: Opposition mocks Flaherty for saying the government planned for the downturn last year.

4:15pm: Taxes have been reduced by $200B. Investments have been made in infrastructure, S&T and training.

4:16pm: Funding for infrastructure projects. Taxes down by equivalent of 2% GDP. Sustainable and permanent tax relief.

4:19pm: Canada will come out of the crisis in a strong position because it went in a strong position.

4:21pm: Will not engineer a surplus just to say we have one.

4:21pm: Budget is balanced for now, but future injection of government stimulus may move Canada into deficit.

4:22pm: Days of chronic structural deficits are behind us.

4:23pm: Tax dollars for political parties and tax credits for donations brought up. Flaherty talking about the $1.75 per vote subsidy. Political parties should pay their own bills without excessive tax dollars.

4:25pm: $1.75 subsidy gone as of April 2009.

4:26pm: Spending growth will follow sustainable track.

4:27pm: Spending review will also look into crown corporations. Government will save $15B over the next five years because of expenditure management system.

4:28pm: re: public sector… New legislation will put in place “annual wage increases for the federal public administration, including senior members of the public service, as well as Members of Parliament, Cabinet Ministers, and Senators, of 2.3 per cent in 2007–08 and 1.5 per cent for the following three years, for groups in the process of bargaining for new agreements.”For groups with collective agreements already covering 2008–09, the 1.5 per cent would apply for the remainder of the three-year period starting at the anniversary date of the collective agreement. In addition, the legislation would suspend the right to strike on wages through 2010–11.” Some honourable socialist members: “oh, oh”.

4:32pm: Largest increase in infrastructure spending. $6B in spending. Aim is to provide new jobs.

4:33pm: Flaherty wants more power to help sustain the banking industry. These powers would include:
– Funding in the unlikely event that there is a draw on the Canadian Lenders Assurance Facility.
– The Canada Deposit Insurance Corporation (CDIC) to establish a bridge bank as a further resolution tool to help preserve banking functions.
– An increase in the borrowing limit of CDIC to $15 billion to reflect the growth of insured deposits since the last increase in 1992.
– The Minister of Finance to provide the CDIC Board of Directors broader scope of action when systemic risk concerns may result from the potential failure of a member institution.
– The power to direct CDIC to undertake resolution measures when necessary to prevent adverse effects on financial stability.
– The provision to CDIC of greater flexibility in the timing of preparatory examinations.
– The Government to inject capital into federal financial institutions to support financial stability, with appropriate provisions to protect taxpayers.

4:37pm: taking action to allow RRIF holders to keep more money in their RRIFs.

4:40pm: increase available credit to the exporting sector. $350 million injection of credit for these businesses.

4:41pm: Inject an additional $350 million of capital to the BDC to help SMEs.

4:44pm: “The greatest histories are written in the toughest times”

4:45pm: Scott Brison to respond for the opposition. Demands a “real action plan”. Brison accuses Conservatives of symbolism over substance. Conservatives have provided gimmicks instead of a game plan. “Nothing for manufacturing, autos”.

4:46pm: Brison: PM wants to change the channel from economy to politics. Canadians are hurting. They want talk on economics rather than politics.

4:48pm: Brison bringing out the personal anecdotes describing real Canadians and real concerns. Liberal are making this statement out to be about that $1.75 vote subsidy cut.

4:50pm: Brison accusing the Conservatives of huge spending and huge cuts at the same time.

4:51pm: Brison: government is selling the house to pay for the groceries.

4:51pm: Brison calls Flaherty “Deficit Daddy”.

4:52pm: NDP will not support economic statement.

4:53pm: CTV reports that the government is digging in their heels on the $1.75 subsidy.

4:55pm: Brison brings up Obama and speaks about his economic team and accuses the Conservatives of schemes.

5:00pm: Brison calls for “a new deal”. Brison’s seat mate earlier called out “FDR”

5:01pm: Gilles Duceppe responds for the Bloc. Duceppe: hat was presented was not an economic statement but an ideological statement.

5:02pm: Duceppe: government blind to urgent need to stimulate the economy. Government is attacking democracy, women’s rights and worker’s rights. Government has attacked Quebec.

5:03pm: Duceppe: government has sparked a democratic crisis.

5:03pm: Duceppe: economic statement runs against Quebec’s interests.

5:04pm: Duceppe: Bloc will not cave in on its principles.

5:06pm: Duceppe: Bloc ready to support the reduction of the size of the state.

5:12pm: Bloc Quebecois will oppose the economic statement.

5:13pm: Layton responds for the NDP. He’s got his wounded face on.

5:14pm: Layton: government has failed to act on the economic crisis. Layton is speaking quietly and slowly to show concern and disappointment.

5:15pm: Here comes the anger. Now Layton is doing some finger pointing.

5:19pm: Layton applauds Duceppe and Brison for “standing up to ideology”.

5:21pm: Layton reiterates NDP’s position that they will vote against the economic statement.

Conservatives demand answers on Liberal fundraising scheme

In response to a story broken here three days ago, the Conservatives are demanding answers from Elections Canada on the Grit fundraising auction being held among the 8 Ottawa ridings, where according to the Liberals, “the sky is the limit” and successful bids do not count as donations.

From: Poilievre, Pierre – M.P. [mailto:PoiliP@parl.gc.ca]
Sent: Tuesday, February 12, 2008 3:08 PM
To: commissionersoffice@elections.ca
Subject: “Liberal Party of Canada Cocktail Event” – Investigate

Commissioner of Canada Elections
c/o Elections Canada
257 Slater Street
Ottawa, Ontario
K1A 0M6

February 12, 2008

Dear Sir,

I have become aware of a Liberal Party of Canada Cocktail Event scheduled for February 13th boasts that “the sky is the limit for this auction. A successful bid is not a political contribution…as such individuals, partnerships, corporations and associations are free to bid as high as they want.” The event boasts auction items including:

* Golf with former Liberal Prime Minister Paul Martin.
* Attending a hockey game with senior Liberal Member of Parliament
and former Liberal leadership contender, Ken Dryden.
* Tennis with Liberal star candidate Bob Rae and his brother Liberal campaign Co-Chair, John Rae.
* Lunch with Liberal Deputy Leader Michael Ignatieff.
* Lunch with former Liberal Prime Minister, Pierre Trudeau’s son, Justin.
* Lunch with former Liberal Leadership candidate, Scott Brison

…..and more!

This event raises serious questions surrounding the legality of the fundraising practices of the Liberal Party of Canada. I respectfully ask that you investigate whether or not this event complies with the sprit of the Federal Accountability Act and other federal political party fundraising legislation.

If you allow the Liberal Party to use these methods, you will have unilaterally repealed all of the campaign finance legislation passed over the last five years, and you will be reintroducing big money and corporate cash into our political process.

With the possibly of a federal election happening in the near future I hope that this matter can be dealt with great expediency.

Sincerely,

Pierre Poilievre
Member of Parliament
Nepean-Carlton

The new “opposition”

If Joe Clark’s mistake was that he arrogantly governed with his minority government as if he had a majority, will Stephane Dion’s mistake be that he is timidly opposing Stephen Harper’s minority government as if the Prime Minister had a majority?

But it’s even worse than that. Stephane Dion as Opposition leader is not opposing or even supporting the government’s mandate. In effect, by abstaining from judging the government’s sought mandate, Dion isn’t showing up for work.

The NDP has parsed the opposition benches into the absent opposition (Liberals) and the effective opposition (NDP).

The Prime Minister should play along this theme.

Since Dion is effectively silent on the Prime Minister’s mandate by abstaining from voting on the Throne Speech, Harper should simply rebuke Dion’s future questions and remind him of the opportunity he had to support or oppose the government’s outlined agenda. Harper should then proceed to only debate the points of the NDP and the Bloc as the effective opposition since these parties are the ones fulfilling their parliamentary roles.

If elections are held for parties to seek a mandate from the people to govern, the Throne Speech is ratification and confirmation of that mandate by Parliament. If Stephane Dion wants Parliament to work as he so clearly states, it can do so by approving the government’s mandate or by opposing it sending the parties back to the hustings to determine the true support/opposition to the government’s plan. In effect, by abstaining Dion has made Parliament less functional and by not wanting an election it seems that the Liberal leader would rather leave Parliament, with its checks and balances, in limbo for the sake of our convenience rather than allow us to fulfill our duty as the electorate since he cannot exercise his as Leader of Her Majesty’s Loyal Opposition.

If Dion cannot enunciate his party’s position in opposition when the government seeks its mandate, how can he expect us to trust his abilities to do so if he should ever form government?

UPDATE: I found this post on Ignatieff’s website concerning what the Liberals should do for the Throne Speech.

“I’m driving down the highway with Suzanna and Scott Brison is at the wheel. It is a white knuckle experience. I’ve just given a talk to 300 students at Dalhousie Law School and tonight well be in Cheverie at a fundraiser for Scott. There is media at every spot asking what the party should do on the throne speech. We need to read it first and then decide what party interest and national interest require. One thing is sure : we — and not the PM — will do the deciding. Let’s keep and hold the initiative. More later. MI”

Unfortunately for Ignatieff (or fortunately?), the Liberals didn’t take initiative and the Liberals instead decided on being indecisive.