by Drew Cashmore
A stable economic future in Canada is the number one concern of the opposition in Canada who are currently forming a coalition to prevent further mismanagement of Canada’s federal budget.
On November 27th, 2008, Stephen Harper and Jim Flaherty released an economic statement in an attempt to quell fears of an impending financial crisis.
The list below summarizes Steven Harper and Jim Flaherty’s proposal to “strengthen Canada’s fiscal position in an uncertain time” (National Post, Nov. 27, 2008):
-cut tax payer funding to political parties by $26 million (National Post, Nov. 27, 2008) of a total $206 million (Ottawa Citizen, Nov. 27, 2008), conservatives get roughly 35% of their funding from tax payers versus approx. 66% for the Liberal party (Ottawa Citizen, Nov. 27, 2008)
-cut $4.3 billion in government spending, “including transportation hospitality, conferences, exchanges and professional services”, from the projected $25 billion this year, despite an increase of $11.4 billion from the 2007-08 fiscal year (National Post, Nov. 27, 2008)
-take a “more careful approach to the sale of any assets” owned by the government
-put legislation in place that caps annual public service wage increases at 1.5% per year over the next 3 years (National Post, Nov. 27, 2008), cost of living increased by approx. 3.5% per year since 2006 (Cupe, Sept. 19, 2008)
-temporarily suspend the right to strike in the public service sector through 2011 (National Post, Nov. 27, 2008)
-cut funding to pay equity settlements in Canada allowing women equal pay as men (National Post, Nov. 27, 2008), women in Canada working fulltime are paid on average 20% less than men (Cupe, Sept. 19, 2008)
-invest more in ‘infrastructure spending’ resulting in a surplus reduction to a projected $100 million in the 2009-10 fiscal year from a $13 billion surplus in 2006 (Ottawa Citizen, Nov. 27, 2008)
-allow the Minister of Finance “additional flexibility to support financial institutions and the financial system in extraordinary circumstances” (National Post, Nov. 27, 2008) despite his current mismanagement of revenues in Canada resulting in a loss of over $13 billion in surplus over the past 2 years (Ottawa Citizen, Nov. 27, 2008)
-double the amount of time that companies have to top-up their pension plans (Ottawa Citizen, Nov. 27, 2008)
-invest $350 million in equity to increase the credit for both Canada’s export business and Business Development Bank of Canada (National Post, Nov. 27, 2008)
After closer inspection, this ’stimulus package’, as some are calling it, drastically increases government spending while cutting less than $1 billion dollars. In anticipation of the full budget for the 2009-10 fiscal year, Stephen Harper’s Minister of Finance is proposing a multi-billion dollar increase in spending while focusing on insignificant costs such as the $26 million dollars paid to support the Canadian democracy.
By the end of the next fiscal year, Stephen Harper will have cut $31 billion of individual and business taxes since 2006 and cut our annual surplus by over $13 billion (Ottawa Citizen, Nov. 27, 2008). The conservative’s tax cuts have resulted in a 28% increase in corporate profits or $150 billion (Cupe, Sept. 19, 2008) yet in July Canada saw its biggest job loss in 17 years (CBC, August 8, 2008).
We have a severe financial problem in Canada, partly due to the global economic crisis but largely due to the financial mismanagement of Jim Flaherty and Stephen Harper. The coalition government now being enacted by the opposition is a way of preventing further losses to our diminishing economic situation.