Canada's current deficit level will be 'unsustainable' within 1 to 2 years: PBO | Canada News Media
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Canada’s current deficit level will be ‘unsustainable’ within 1 to 2 years: PBO

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The federal government has no more than one or two years to rein in the hundreds of billions of dollars in deficits it is wracking up through coronavirus spending, or risk the debt being “unsustainable.”

That’s according to parliamentary budget officer Yves Giroux, who spoke with The West Block‘s Mercedes Stephenson about the federal government’s spending ahead of a throne speech on Sept. 23, which Prime Minister Justin Trudeau has said will pitch “ambitious” new programs.

“It’s without a doubt that we cannot afford deficits of over $300 billion for more than just a few years,” said Giroux. “And when I say a few years, I really mean a year or two. Beyond that, it would become unsustainable.

“So if the government has plans for additional spending, it will clearly have to make difficult choices and either raise taxes or reduce other areas of spending. Because it’s clear that we cannot afford to have deficits of that magnitude for even the medium term.”

Trudeau said in an interview with Global News last week that he plans to roll out an “ambitious green agenda” in the throne speech, which will come after he prorogued Parliament in the midst of the WE Charity scandal.

He said the country needs to focus on a green economic recovery to climb out from the effects of the COVID-19 pandemic and the worldwide economic shock waves the virus created.

But he has also touted the need for expanded employment supports, including new child care and social spending, and there have been recent reports of plans to increase spending, with CBC News citing one Liberal insider as saying the government plans on spending “on a scale we haven’t seen before.”

In a statement emailed to Global News, Canada’s Deputy Prime Minister Chrystia Freeland said the country is contending with a “historic, worldwide economic slowdown.”

 

“One for which Canada was well-prepared, due to our strong fiscal position, relative to those of our G7 peers,” the statement reads. “Canada has a well-deserved international reputation for smart and prudent fiscal management. That is the approach our government has taken and will continue to take.”

However,  the throne speech and any new spending promises in it come as the country is bearing the load of a $343-billion deficit this fiscal year, with no clear plan presented by the government on how it plans to pay it down — or when it will rein in spending.

That number came from a “fiscal snapshot” presented by former finance minister Bill Morneau in July.

It contained no clues as to whether Canadians can expect tax increases or service cuts down the road to pay off the cost of the deficit, though Trudeau has said the government is not currently eyeing tax hikes.

Giroux said that even if the government maintains the current deficit level but shifts the spending around, that won’t solve the problem — the amount, he said, needs to be brought under control.

“What’s concerning is the absence of a longer-term plan,” he said. “That is concerning to me and to most people who are concerned about public finances.”

He said it’s one thing to spend to support the country during a crisis, and does not believe anyone would argue that spending was not needed.

“But what people and credit rating agencies, financial markets and Canadians are waiting to see is what is the government’s plan to get out of that crisis and what are the public finances likely to look like in the next year? And in the next couple of years?” he said.

“As the crisis is evolving and we are in months three, four, five, six and seven of this crisis, I think it’s reasonable for Canadians to expect more from the government in terms of what’s the plan going forward.”

Conservative finance critic Pierre Poilievre said Trudeau and his government are “living in a fantasy land.”

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“They believe they can fund the government by borrowing hundreds and hundreds of billions of dollars to fund a bunch of vanity projects that don’t help Canadians,” he said. “We know that the most important thing is to protect our health care and our taxpayers by keeping our fiscal picture strong.”

But NDP House Leader Peter Julian said he thinks the country’s deficit can be managed if Canada were to build a “fair tax system” where “everybody pays their fair share of taxes.”

“That means eliminating offshore tax havens, putting in place a wealth tax,” he said. “It’s making sure that the massive profits that the web giants earn is actually subject to taxation.”

-With files from Global News’ Hannah Jackson

 

Source: – Global News

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Quick Quotes: What Liberal MPs have to say as the caucus debates Trudeau’s future

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October 23, 2024

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OTTAWA – Here are some notable quotes from Liberal members of Parliament as they headed into a caucus meeting Wednesday where they are set to debate Prime Minister Justin Trudeau’s leadership.

Comments made after the caucus meeting:

“The Liberal party is strong and united.”

Prime Minister Justin Trudeau

———

“Justin Trudeau is reflecting and he’s standing strong and we’re standing strong as a Liberal party.”

“We as a party recognize that the real threat here is Pierre Poilievre and that’s what we’re fighting for.”

“Trudeau has made very clear that he feels he’s the right choice but he appreciates all of what is being said because he’s reflecting on what is being done across Canada. I respect his decision, whatever that may be.”

Charles Sousa, MP for Mississauga—Lakeshore

———

“We had some open and frank discussions. People are relentlessly focused on serving Canadians and win the next election. This was really a rallying call to win the next election.”

Industry Minister François-Philippe Champagne, MP for Saint Maurice—Champlain

———

“I don’t know how many people spoke, well over 50 I’m sure. They came at this from all angles and now (we’ve) got to go back and process this.

“We’re on a good path.

“It was very respectful. You know, caucus has always had the ability to get into some tough conversations. We did it again today and it went extremely well. Where we land? Who knows? You know we have to go and really process this stuff. But one thing that is absolutely, you know, fundamental is that we are united in the fact that we cannot let that creature from the Conservative party run the country. He would ruin things that people greatly value.”

Ken Hardie, MP for Fleetwood—Port Kells

———

Comments from before the caucus meeting:

“There’s a — what would you call it? Some palace drama going on right now. And that takes us away from the number 1 job, which is focusing on Canadians and focusing on the important policies but also on showing the really clear contrast between our government, our party and Pierre Poilievre.”

Randy Boissonnault, Employment Minister, MP for Edmonton Centre

———

“We’re going to go in there and we’re going to have an excellent discussion and we are going to emerge united.”

Treasury Board President and Transport Minister Anita Anand, MP for Oakville

———

“I think caucus is nervous because of the polling that has been constantly going down in favour of Liberals, and there’s a lot of people who do want to run again. I’m not running again, although I already told the prime minister that. But there are people there that want to run again and they’re nervous because of what polls are saying.”

“He has to start listening.”

Ken McDonald, MP for Avalon

———

“We’re going to have a good caucus meeting. MPs should be free to air their perspectives, I’m sure they will, and we’ll come out of it united.”

Peter Fragiskatos, MP for London North Centre

———

“I have to read the room. There’s all sorts of wheels within wheels turning right now. I’m just going to go in there, I’m going to make my mind a blank and just soak it all in.”

“I’m not going to say anything about (the prime minister) until I have my say in there.”

Ken Hardie, MP for Fleetwood—Port Kells

———

“I wish there was a mechanism for it, yes,” he said, responding to whether he wanted a secret ballot vote in caucus to determine Trudeau’s leadership.

Sean Casey, MP for Charlottetown

———

“The prime minister will always be on my posters and he is welcome in Winnipeg North any time.”

Kevin Lamoureux, MP for Winnipeg North

———

“Absolutely I support the prime minister.”

Yvonne Jones, MP for Labrador

———

“When you look divided, you look weak.”

Judy Sgro, MP for Humber River—Black Creek

———

“I think Pierre Poilievre is absolutely beatable, he’s ripe for the picking with the right vision, the right leadership and the right direction for our party. The Liberal party is an institution in this country. It’s bigger than one person, one leader, and it’s incumbent on us as elected officials to make sure we put the best foot forward.”

Wayne Long, MP for Saint John—Rothesay

This report by The Canadian Press was first published Oct. 23, 2024.



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With Liberal election win, First Nations in N.B. look forward to improved relations

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October 23, 2024

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FREDERICTON – Chief Allan Polchies says he is excited about New Brunswick’s new Liberal provincial government.

Polchies, of St. Mary’s First Nation, says he looks forward to meaningful dialogue with premier-designate Susan Holt after years of tense relations with the outgoing Progressive Conservatives under Blaine Higgs.

He is one of six Wolastoqey Nation chiefs who have filed a land claim for a significant part of the province, arguing treaty rights have not been respected by corporations and governments, both of which have exploited the land for hundreds of years.

The December 2021 court challenge has been a sore point between Indigenous Peoples and the Higgs’s government.

Eight Mi’kmaw communities are also asserting Aboriginal title to land in the province, and they say they hope to work with Holt and her team on “advancing issues that are important to our communities.”

Holt’s campaign didn’t give details on the Liberal government’s position on the Indigenous claims, but she has said she wants to rebuild trust between the province and First Nations.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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Abdelrazik tells of despair when Ottawa denied him passport to return home from Sudan

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October 23, 2024

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OTTAWA – Abousfian Abdelrazik told a court today about the roller-coaster of emotions he experienced during the tense days of early 2009 when he awaited the green light to return to Canada from Sudan.

The Sudanese-born Abdelrazik settled in Montreal as a refugee and became a Canadian citizen in 1995.

During a 2003 visit to his native country to see his ailing mother, he was arrested, imprisoned and questioned about suspected terrorist connections.

Abdelrazik says he was tortured during two periods of detention by the Sudanese intelligence agency.

He is suing the federal government, claiming officials arranged for his arbitrary imprisonment, encouraged his detention by Sudanese authorities and actively obstructed his repatriation to Canada for several years.

In March 2009, he made arrangements to fly home to Canada and asked Ottawa to issue him an emergency passport, but his hopes were dashed — at least temporarily — when the request was turned down.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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