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Federal Politics: As inflation fight inflicts pain on the nation, one-third of 2021 Liberals look elsewhere for relief

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Conservatives hold eight-point advantage in vote intention (37 CPC, 29 Liberal, 20 NDP)


June 8, 2023 – The Bank of Canada raised its touchstone interest rate 25 basis points to 4.75 per cent this week, the first such hike since January, returning the cost of borrowing to a level not seen in more than 20 years.

The latest increase, made in an ongoing attempt to curb persistent inflation, is bad news for both mortgage holders and renters, and new data from the non-profit Angus Reid Institute also reveals the amount of damage it has been doing to the governing Liberals politically.

This latest public opinion survey finds overwhelming concern among Canadians over the cost of living now correlating with a loss of voter support for the ruling party, particularly among its own support-base. Past Liberal voters appear to be moving elsewhere in search of relief.

The central bank’s rate hike has been called a “a disaster for many Canadians” by Conservative leader Pierre Poilievre, as he points the finger at government spending and budget deficits for causing the inflation that initiated the BoC’s response. Finance Minister Chrystia Freeland countered that inflation is global in nature, and highlighted the strength of the Canadian economy overall.

Poilievre’s economic message appears to be resonating. Currently, 37 per cent of leaning and decided voters say they would vote for the Conservative candidate in their riding if an election were held, compared to 29 per cent support for the Liberals and 20 per cent for the NDP. Among those faring the worst financially – those “Struggling” on ARI’s Economic Stress Index – half (51%) would vote for the CPC while approximately one-third as many would vote for the Liberals (18%) or NDP (16%).

These economic concerns appear to be driving a dissatisfaction with the incumbent Liberals among its own party supporters. Among those who supported the LPC in 2021 41 per cent of the Struggling would not commit to supporting the party again, alongside 44 per cent of the Uncomfortable.

The overall trend for the Liberals is likely disconcerting to party strategists. In late 2021, after the party had succeeded in winning a minority government, 80 per cent of Liberal voters said they would support the party again if an election were held. This dropped to 72 per cent by the end of 2022 and has dropped to 67 per cent overall this month. Perhaps softening this blow, however, is the fact that the largest portion of these former Liberal supporters say they would vote for the NDP (15%), who have been supporting the minority Liberal government with a confidence-and-supply agreement since the last election.

Meantime, the opposition Conservatives retain much of their 2021 support, with 84 per cent of voters voicing an intention to return to the fold. The party’s overall vote intention proportion is largely unchanged over the past 16 months, hovering between 35 and 37 per cent nationally.

More Key Findings:

  • Cost of living is the top issue chosen by 63 per cent of Canadians. Next is health care, chosen by almost half (46%), followed by housing affordability (30%) and climate change (25%).
  • Ontario remains competitive between the Liberals and Conservatives. Two-in-five Ontarians (38%) say they would support the CPC if an election were held, while 35 per cent would vote for the Liberals.
  • Vancouver and Winnipeg are dead heats, with a near exact number of residents in both saying they would support the CPC, Liberals, and NDP in an election (all receive between 30 and 32 per cent vote intention).
  • The Liberals maintain an advantage in the Toronto core (42% LPC, 23% CPC), but are statistically tied with the opposition CPC in the surrounding suburban areas of the 905 (41% LPC, 39% CPC).

About ARI

The Angus Reid Institute (ARI) was founded in October 2014 by pollster and sociologist, Dr. Angus Reid. ARI is a national, not-for-profit, non-partisan public opinion research foundation established to advance education by commissioning, conducting and disseminating to the public accessible and impartial statistical data, research and policy analysis on economics, political science, philanthropy, public administration, domestic and international affairs and other socio-economic issues of importance to Canada and its world.

Note: Because its small population precludes drawing discrete samples over multiple waves, data on Prince Edward Island is not released.

INDEX

Part One: Top issues

Part Two: Economic stress and vote intention

  • Liberal vote retention slides

Part Three: Vote intention

  • Vote by Economic Stress Index

  • Vote by region

  • Vote by age and gender

Part One: Top issues

There are three weeks left of sittings in the House of Commons until summer recess and the Liberal government has yet to pass its budget bill. The Conservative opposition, led by Pierre Poilievre, is threatening to block the budget by introducing hundreds of amendments and filibustering unless the Liberal government led by Prime Minister Justin Trudeau meets its demands – halting increases to the carbon tax and setting out a plan to balance the budget.

Poilievre says Canadians “cannot afford” any additional increases to the carbon tax, which will affect the prices of gas, heat and groceries. He also says inflation, a persistent issue since the relaxation of public health restrictions beginning in early 2022, is being driven by government spending and debt. The Bank of Canada argues inflation is being caused by spikes in commodity prices, a surge in demand, impaired supply chains, and labour shortages as it hiked its key policy rate again this week.

Amid these ongoing fiscal challenges, a majority (63%) of Canadians believe the rising cost of living to be one of the top issues facing the country. This issue far outpaces health care (46%), housing affordability (30%) and the environment (25%) as a top concern.

This holds true across the country, as the rising cost of living is the top issue selected in every province. From B.C. to Newfoundland and Labrador, at least three-in-five and as many as three-quarters believe inflation is one of the country’s top challenges:

Cost of living is selected as the top issue facing the country by men and women of all ages – except women over the age of 54. Men, meanwhile, are more likely to be preoccupied with government spending and the deficit (see detailed tables for the full list of issues).

At least half of all age groups believe cost of living is a top issue facing the country. There is more disagreement on the issues of health care – which older Canadians are more likely to choose – and housing affordability – selected more commonly by younger Canadians. On the issue of government spending, Canadians over the age of 65 are twice as likely to care about it (17%) than those aged 18 to 24 (8%, see detailed tables).

In January 2022, the Angus Reid Institute created the Economic Stress Index to measure the financial pressure facing Canadians. It assesses factors such as Canadians’ household costs, debt, and self-financial appraisals. The index finds three-in-ten (30%) Canadians to be “Struggling” financially, one-quarter (23%) “Uncomfortable”, one-quarter (26%) “Comfortable”, and one-in-five (21%) “Thriving” (see detailed tables).

For those who are Struggling or Uncomfortable in terms of their economic stress level, cost of living rises to even greater prominence, chosen by seven-in-ten among each group. Health care and climate change are both higher priorities for those who are Thriving compared to other groups:

Part Two: Economic stress and vote intention

Liberal vote retention slides

To fight inflation, the Bank of Canada began a series of interest rate hikes beginning in March 2022. While these increases in the cost of borrowing have had the desired effect of slowing inflation – more or less – it has also put pressure on mortgage holders and many other Canadians holding consumer debt. Renters, too, have felt the pressure, as their landlords have passed on their own increased borrowing costs.

After taking a pause for two rate cycles, the Bank of Canada hiked its key policy rate again this week, further increasing the cost of borrowing as the bank continues to attempt to bring inflation in line with its two per cent target. It also signalled that more rate hikes may be coming, a worrying sign for Canadians already struggling with their mortgage payments, credit card balances and other consumer debts.

These financial pressures come into play when it comes to Canadians assessments of the current federal government, and whether or not past supporters of the governing Liberal party would vote for them again now.

Past Liberal voters are much more likely to endorse the party again if they are in a better financial situation. Three-quarters (74%) of those who voted Liberal in 2021 and are Thriving financially say they would vote again for the Liberals. This falls to below three-in-five among the Struggling (59%) and Uncomfortable (56%).

Overall, two-thirds (67%) of those who voted Liberal in 2021 say they would vote Liberal again if there were an election today. Of the one-third who say they would place their vote elsewhere, half (15%) say they would vote NDP, while equal proportions would vote CPC (5%) or another party (6%). Approaching one-in-ten (7%) say they are undecided how they would vote:

Since the 2021 federal election, Liberal voter retention has been steadily declining. While the NDP have benefitted the most from this movement away from the governing party, there is an increase in the number of past Liberal voters who say they would vote CPC or another party, and among those who aren’t sure:

Compared to the Liberals, the CPC boast a significant advantage in vote retention. Among those who supported the CPC in 2021, 84 per cent say they would vote for the party again. The New Democrats would retain 70 per cent support, while the Bloc Québécois retention rate is closer to the CPC level at 80 per cent.

Part Three: Vote intention

Since Poilievre has taken over the Conservative party leadership, the CPC have held a lead in vote intent. Two-in-five (37%) Canadians say they would vote Conservative if an election were held today. Three-in-ten (29%) say they would vote Liberal, while one-in-five (20%) would vote NDP. These figures have been consistent since September last year:

Vote by Economic Stress Index

Canada’s economic picture may be playing a significant factor as Canadians weigh where they would place their vote in a potential election. Poilievre’s messaging around inflation, and warnings around the effects of further carbon tax increases, appear to be resonating with Canadians who are under financial pressure. Half (51%) of the Struggling by the Economic Stress Index say they would CPC if an election were held. The CPC hold a lead, too, among those who are Uncomfortable. Meanwhile, a plurality of the Comfortable and the Thriving would vote for the governing Liberal party:

Vote by region

In three key battleground provinces, the Liberals trail in current vote intention. The CPC leads the NDP by 10 points in B.C., while holding a slight edge over the Liberals in Ontario. The Bloc Québécois are the preferred party of a plurality of Quebecers.

Elsewhere, the CPC hold the lead in all three prairie provinces, while the Liberals are tied for the lead in vote intention, or hold it outright, in three of the Atlantic provinces:

Canada’s major metropolitan centres are home to some astonishingly close races. Consider that in both Metro Vancouver and Winnipeg – within ARI’s boundary definitions, home to 22 federal ridings – almost exactly three-in-ten residents in each say they would vote for the CPC, Liberals or NDP. The Liberals maintain a key advantage in Toronto core, while tied with the CPC in the surrounding suburban 905 region:

Vote by age and gender

Men prefer the Conservatives by wide margins. Women aged 35 and older are the most likely to say they would vote Liberal if an election were held today. Two-in-five women aged 18 to 34 say they would vote NDP, the only demographic where the NDP hold a lead in vote intention:

Survey Methodology:

The Angus Reid Institute conducted an online survey from May 30 – June 3, 2023, among a representative randomized sample of 3,885 Canadian adults who are members of Angus Reid Forum. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 1 percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding. The survey was self-commissioned and paid for by ARI.

For detailed results by age, gender, region, education, and other demographics, click here.

For detailed results by the Economic Stress Index, click here.

To read the full report, including detailed tables and methodology, click here

To read the questionnaire in English and French, click here.

Image – Pierre Poilievre/Facebook; Adam Scotti/PMO

MEDIA CONTACT:

Shachi Kurl, President: 604.908.1693 shachi.kurl@angusreid.org @shachikurl

Dave Korzinski, Research Director: 250.899.0821 dave.korzinski@angusreid.org

 

 

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Alberta Premier Smith aims to help fund private school construction

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EDMONTON – Alberta Premier Danielle Smith says her government’s $8.6-billion plan to fast-track building new schools will include a pilot project to incentivize private ones.

Smith said the ultimate goal is to create thousands of new spaces for an exploding number of new students at a reduced cost to taxpayers.

“We want to put all of the different school options on the same level playing field,” Smith told a news conference in Calgary Wednesday.

Smith did not offer details about how much private school construction costs might be incentivized, but said she wants to see what independent schools might pitch.

“We’re putting it out there as a pilot to see if there is any interest in partnering on the same basis that we’ll be building the other schools with the different (public) school boards,” she said.

Smith made the announcement a day after she announced the multibillion-dollar school build to address soaring numbers of new students.

By quadrupling the current school construction budget to $8.6 billion, the province aims to offer up 30 new schools each year, adding 50,000 new student spaces within three years.

The government also wants to build or expand five charter school buildings per year, starting in next year’s budget, adding 12,500 spaces within four years.

Currently, non-profit independent schools can get some grants worth about 70 per cent of what students in public schools receive per student from the province.

However, those grants don’t cover major construction costs.

John Jagersma, executive director of the Association of Independent Schools and Colleges of Alberta, said he’s interested in having conversations with the government about incentives.

He said the province has never directly funded major capital costs for their facilities before, and said he doesn’t think the association has ever asked for full capital funding.

He said community or religious groups traditionally cover those costs, but they can help take the pressure off the public or separate systems.

“We think we can do our part,” Jagersma said.

Dennis MacNeil, head of the Public School Boards Association of Alberta, said they welcome the new funding, but said money for private school builds would set a precedent that could ultimately hurt the public system.

“We believe that the first school in any community should be a public school, because only public schools accept all kids that come through their doors and provide programming for them,” he said.

Jason Schilling, president of the Alberta Teachers’ Association, said if public dollars are going to be spent on building private schools, then students in the public system should be able to equitably access those schools.

“No other province spends as much money on private schools as Alberta does, and it’s at the detriment of public schools, where over 90 per cent of students go to school,” he said.

Schilling also said the province needs about 5,000 teachers now, but the government announcement didn’t offer a plan to train and hire thousands more over the next few years.

Alberta NDP Leader Naheed Nenshi on Tuesday praised the $8.6 billion as a “generational investment” in education, but said private schools have different mandates and the result could be schools not being built where they are needed most.

“Using that money to build public schools is more efficient, it’s smarter, it’s faster, and it will serve students better,” Nenshi said.

Education Minister Demetrios Nicolaides’ office declined to answer specific questions about the pilot project Wednesday, saying it’s still under development.

“Options and considerations for making capital more affordable for independent schools are being explored,” a spokesperson said. “Further information on this program will be forthcoming in the near future.”

This report by The Canadian Press was first published Sept. 18, 2024.

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Health Minister Mark Holland appeals to Senate not to amend pharmacare bill

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OTTAWA – Health Minister Mark Holland urged a committee of senators Wednesday not to tweak the pharmacare bill he carefully negotiated with the NDP earlier this year.

The bill would underpin a potential national, single-payer pharmacare program and allow the health minister to negotiate with provinces and territories to cover some diabetes and contraceptive medications.

It was the result of weeks of political negotiations with the New Democrats, who early this year threatened to pull out of their supply-and-confidence deal with the Liberals unless they could agree on the wording.

“Academics and experts have suggested amendments to this bill to most of us here, I think,” Independent Senator Rosemary Moodie told Holland at a meeting of the Senate’s social affairs committee.

Holland appeared before the committee as it considers the bill. He said he respects the role of the Senate, but that the pharmacare legislation is, in his view, “a little bit different.”

“It was balanced on a pinhead,” he told the committee.

“This is by far — and I’ve been involved in a lot of complex things — the most difficult bit of business I’ve ever been in. Every syllable, every word in this bill was debated and argued over.”

Holland also asked the senators to move quickly to pass the legislation, to avoid lending credence to Conservative critiques that the program is a fantasy.

When asked about the Liberals’ proposed pharmacare program for diabetes and birth control, Conservative Leader Pierre Poilievre has often responded that the program isn’t real. Once the legislation is passed, the minister must negotiate with every provincial government to actually administer the program, which could take many months.

“If we spend a long time wordsmithing and trying to make the legislation perfect, then the criticism that it’s not real starts to feel real for people, because they don’t actually get drugs, they don’t get an improvement in their life,” Holland told the committee.

He told the committee that one of the reasons he signed a preliminary deal with his counterpart in British Columbia was to help answer some of the Senate’s questions about how the program would work in practice.

The memorandum of understanding between Ottawa and B.C. lays out how to province will use funds from the pharmacare bill to expand on its existing public coverage of contraceptives to include hormone replacement therapy to treat menopausal symptoms.

The agreement isn’t binding, and Holland would still need to formalize talks with the province when and if the Senate passes the bill based on any changes the senators decide to make.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Nova Scotia NDP accuse government of prioritizing landlord profits over renters

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HALIFAX – Nova Scotia’s NDP are accusing the government of prioritizing landlords over residents who need an affordable place to live, as the opposition party tables a bill aimed at addressing the housing crisis.

NDP Leader Claudia Chender took aim at the Progressive Conservatives Wednesday ahead of introducing two new housing bills, saying the government “seems to be more focused on helping wealthy developers than everyday families.”

The Minister of Service Nova Scotia has said the government’s own housing legislation will “balance” the needs of tenants and landlords by extending the five per cent cap on rent until the end of 2027. But critics have called the cap extension useless because it allows landlords to raise rents past five per cent on fixed-term leases as long as property owners sign with a new renter.

Chender said the rules around fixed-term leases give landlords the “financial incentive to evict,” resulting in more people pushed into homelessness. She also criticized the part of the government bill that will permit landlords to issue eviction notices after three days of unpaid rent instead of 15.

The Tories’ housing bill, she said, represents a “shocking admission from this government that they are more concerned with conversations around landlord profits … than they are about Nova Scotians who are trying to find a home they can afford.”

The premier’s office did not immediately respond to a request for comment.

Also included in the government’s new housing legislation are clearer conditions for landlords to end a tenancy, such as criminal behaviour, disturbing fellow tenants, repeated late rental payments and extraordinary damage to a unit. It will also prohibit tenants from subletting units for more than they are paying.

The first NDP bill tabled Wednesday would create a “homelessness task force” to gather data to try to prevent homelessness, and the second would set limits on evictions during the winter and for seniors who meet income eligibility requirements for social housing and have lived in the same home for more than 10 years.

The NDP has previously tabled legislation that would create a $500 tax credit for renters and tie rent control to housing units instead of the individual.

Earlier this week landlords defended the use of the contentious fixed-term leases, saying they need to have the option to raise rent higher than five per cent to maintain their properties and recoup costs. Landlord Yarviv Gadish, who manages three properties in the Halifax area, called the use of fixed-term leases “absolutely essential” in order to keep his apartments presentable and to get a return on his investment.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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