March 3, 2010

Throne speech

Conservative government lays out austerity plan for Canada

Says it will restore country’s “fiscal balance” by restraining spending, freezing MP salaries

Say goodbye to the big-spending glory days. After two months “recalibrating” during a controversial parliamentary shutdown, the Conservative government laid out an austerity plan for the country in Wednesday’s throne speech in a bid to chop the record $56-billion deficit.

The government says it will restore the country's “fiscal balance” by restraining government spending — starting with a proposed symbolic freeze on lofty MP salaries.

There are no plans for major spending cuts, but there's also none of the big new spending of past budgets.

As expected, the Tories confirmed that the last $19 billion the big-money, recession-fighting stimulus fund will be doled out next fiscal year and then the taps are off for good.

The government is replacing cash-heavy programs with other measures, such as: loosening foreign investment rules, cutting environmental red tape, and increasing the child-support payment for single-parent families.

The foreign investment changes — particularly in the telecommunications and satellite industries — are designed to help recruit foreign talent and enhance Canada’s international competitiveness

Many economists have warned that the government must raise taxes or cut spending to balance the budget. But the government has rejected that, saying it can balance the books by limiting spending as economic growth improves.

“Canadians also realize that a balanced budget is not an end in itself, but the foundation of a strong and resilient economy,” Gov. Gen. Michaelle Jean said in the speech from the Senate floor.

“In taking responsible steps to reduce the deficit, our government will not repeat the mistakes of the past.”

The proposed salary freeze is designed to show that the government is leading by example. It will apply to the prime minister, cabinet ministers, MPs and senators. MPs currently earn $158,000, while cabinet ministers make $233,000.

Opposition parties say the document doesn’t justify Prime Minister Stephen Harper's decision to suspend Parliament, which was to have resumed Jan. 25.

They intend to use the belated return of Parliament to focus on Harper's supposed character defects: his alleged lust for unrestrained power and his contempt for democratic institutions.

But however heated the rhetoric, an electoral stalemate between the Conservatives and Liberals all but guarantees neither of the main parties will try to trigger an election.

A survey conducted Feb. 18-28 by The Canadian Press Harris Decima suggests the two main parties are deadlocked at 31 per cent each.

Entitled “A Strong Canada. A Strong Economy. Now and in the Future,” the speech also outlines plans to promote the jobs and industries of the future.

And it revives the government’s continuing “tough on crime” agenda with plans to bring back several justice bills.

Liberal Leader Michael Ignatieff mocked the government Tuesday for taking so long to finally realize the need for long-term investments in research, innovation and learning. “Well, hello. After four years, better late than never,” he scoffed. Despite Parliament's resumption, both Ignatieff and NDP Leader Jack Layton intend to continue hammering away at Harper for extending the Christmas break by six weeks.

Layton is calling for an emergency debate on the prime minister's power to prorogue Parliament whenever he sees fit and intends to introduce legislation to restrain that power.

The Liberals intend to introduce their own motion to change procedural rules so that the prime minister would need the consent of the Commons to suspend Parliament in future.

Liberal MP Derek Lee, meanwhile, is planning to challenge the government’s refusal to hand over uncensored documents related to the alleged torture of Afghan detainees.

At some point early in the new session, he intends to ask Commons Speaker Peter Milliken to find the government in general — and Defence Minister Peter MacKay and a senior justice department official in particular — in contempt of Parliament.

-Canadian Press

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