As Prime Minister Justin Trudeau gathers with his cabinet for a pre-return to Parliament retreat to plot out their priorities for 2023, a big focus of the conversation is on Canadians’ cost of living concerns.
Moreover, the question circulating at the meeting of ministers is how the Liberals plan to pay for their domestic political and international commitments as well as a potential multibillion-dollar deal with the provinces on health care, while being mindful of the risk of a recession.
As Trudeau meets with his front bench, a new report from the Business Council of Canada and Bennett Jones warns that there’s a “high risk” the Liberals won’t be able to follow through on all their spending plans without veering off of a more prudent fiscal track.
Helping cabinet assess the lay of the economic landscape on Tuesday, ministers heard from a trio of top economic minds ahead of what is expected to be yet another Bank of Canada interest rate hike Wednesday.
So, what’s being said about all this at the federal cabinet retreat?
Here are some of the key quotes.
DEPUTY PRIME MINISTER AND FINANCE MINISTER CHRYSTIA FREELAND
“We have talked a lot about the work that we are doing as a government, what Canadians are doing, Canadian people, Canadian businesses, to increase Canada’s economic capacity to increase growth and to drive the creation of more good jobs for Canadians. We spoke very much about the challenges ahead. There is a lot of uncertainty, a lot of volatility in the global economy. And we also spoke about the position of strength from which Canada enters this challenging period,” Freeland said during a scrum with reporters at the retreat on Tuesday.
“We do need to continue to take a fiscally prudent approach. We still do not know for sure how the plane is going to land. We do not know for sure how the COVID recession is going to finally play out… So, some challenging things to all do at the same time, and that’s the balance we’re going to have to find in the budget,” she said.
ASSOCIATE MINISTER OF FINANCE RANDY BOISSONNAULT
“We’re already seeing a slowdown in the economy, and it means that we’re going have to make some really serious choices about how we invest in Canadians, how we grow the economy. Where we actually direct the fiscal room that we have, the money that we have to invest in budget [2023] so we make smart choices for the future… Because of what we’re seeing with inflation, still at about 6.3 per cent, three times higher than we want to see it, that we are going to continue to see a slowdown in the economy. So, 2023 is going to be a turbulent economic year,” Boissonnault said in an interview on CTV News Channel’s Power Play with Vassy Kapelos, live from the retreat on Tuesday.
“That means that we’re going to face some tough times as Canadians. And that’s why our supports for Canadians will continue. We’ve been through this before, and the economic fundamentals of the economy are good… After 2023, the future is very bright for Canada. We can get into the international reasons for that, but the bottom-line message is we’re going to have to make some really clear choices for Canadians in this budget,” he said.
FORMER SENIOR DEPUTY BANK OF CANADA GOVERNOR CAROLYN WILKINS
“You know, what people have in their minds is: ‘Where are interest rates going to level out? And if they do come down, or when they come down, how fast and by how much?’ … There are risks on the downside to the economic outlook. Evidently we haven’t seen all the effects of interest rates so far because it takes time for them to act. And many, many forecasters say it’s really going to be in the first three quarters of this year that we see the effects on GDP growth and on employment,” Wilkins said during a scrum with reporters at the retreat on Tuesday.
“And that’s going to bring inflation down even more. On the other hand, we see China opening, we see still some tightening in in labour markets here in Canada, in the U.S. and in other countries. And so that could mean that inflation stays a bit higher, or sticky at a level that’s lower than it is today, but still higher than the two per cent inflation targets that many of us have, and that because of that interest rates will either have to rise more or stay higher for longer,” she said.
UNIVERSITY OF BRITISH COLUMBIA ECONOMICS PROFESSOR KEVIN MILLIGAN
“Right now, as we look at the new commitments that are being made, we have to wait to see what comes out on the health accord. You know, my suspicion is there is not going to be an awful lot up front on that, it’s going to be a long run deal such that it doesn’t have as much of an impact over the short run considerations… We are still in a situation where the Bank of Canada is paying attention to what happens on fiscal policy. If you go too far, too fast, the Bank of Canada is going to simply ratchet things up and make the interest rate environment more challenging,” Milligan said during a scrum with reporters at the retreat on Tuesday.
“I think it is most likely over the next year that there’s going to be a soft patch in the economy. And I think all policymakers should keep that in mind. Whether that’s making sure that the employment insurance system is ready, whether that’s thinking about another round of income transfers to lower-income folks in a targeted way, those are the kinds of policy measures you might consider when the economy hits a slow patch,” he said.
HOUSTON (AP) — Brian White scored in the second half to rally the Vancouver Whitecaps to a 1-1 draw with the Houston Dynamo on Wednesday night.
Houston (12-9-8) took a 1-0 lead into halftime after Ezequiel Ponce scored on a penalty kick in the seventh minute of stoppage time. Ponce’s third goal this season came after Amine Bassi drew a foul on Whitecaps midfielder Pedro Vite following a video review. It was Ponce’s sixth career appearance, all starts.
Vancouver (13-8-7) scored the equalizer in the 73rd minute when White, who entered in the 60th, used assists from Fafá Picault and Ryan Gauld to find the net for the 13th time this season. Picault’s assist was his fifth, matching his career high for a single season. Gauld’s assist gives him a career-best 13 on the season.
Yohei Takaoka, who had clean sheets in his last three starts, finished with one save in goal for the Whitecaps.
Steve Clark saved three shots for the Dynamo, who remain one point behind Vancouver in the Western Conference standings.
Houston, which was coming off a 4-1 victory over Real Salt Lake, has allowed just 33 goals this season.
Vancouver — 6-2-2 in its last 10 matches overall — leads the all-time series 10-9-6.
The Whitecaps remain on the road to play the Los Angeles Galaxy on Saturday. The Dynamo travel to play Austin FC on Saturday.
FOXBOROUGH, Mass. (AP) — Tom Pearce and Nathan Saliba scored in the second half — the first goals of their careers — and CF Montreal rallied for a 2-2 draw with the New England Revolution on Wednesday night.
“In the second half, the guys came out a little more ambitious and above all, more connected,” Montreal head coach Laurent Courtois said. “It was a great second half of resilience and fighting spirit. Nathan and Sam were impressive.
“Impressive in covering the gaps and compensating for the teammates, and the individual defending – yes it’s true, it is a lot of weight on their shoulders, but that’s the job.”
New England (8-16-4) jumped out to a 1-0 lead in the 24th minute on Bobby Wood’s third goal of the season. Teenage defender Peyton Miller notched his first assist in his fourth career start and sixth appearance and Carles Gil picked up his ninth of the season. Peyton, at 16 years, 315 days old, is the eighth youngest player in league history to record his first assist.
The Revolution took a two-goal lead in the 35th minute and held it through halftime when 19-year-old Esmir Bajraktarevic took a pass from Gil and scored his third goal of the season and career in his first full season in the league. It was the 73rd regular-season assist in Gil’s career, tying him with Steve Ralston for the most in club history.
Montreal (7-12-10) pulled within a goal in the 54th minute when Pearce scored off a free kick after defender George Campbell drew a foul on New England’s Mark-Anthony Kaye. It was the first goal for Pearce in his third career start and fourth appearance.
“Playoffs are the goal. Maybe it wasn’t in the best form, but in the end, we are picking up a point,” Pearce said. “We came into this game confident, ready to play our own game. Everyone tries their best, whenever the players are called on, we are always ready, and we are always giving it our best.”
Montreal scored the equalizer in the 68th minute on the first career goal by Saliba, a 20-year-old midfielder. Saliba has made 34 starts and 48 appearances with Montreal in his two seasons in the league. Campbell snagged his second assist of the season and the third of his career.
“It’s an incredible feeling, it’s a goal I’ve been waiting for a long time. I’m extremely happy that I was able to score it and that it can help the team take this important point on the road,” Saliba said. “Pearce’s first goal gave us really good momentum and we kept up the pressure to go for a second goal. We got more solid defensively, and we came back ready after halftime, to push for these 3 points.”
Aljaz Ivacic finished with four saves in goal for the Revolution.
Jonathan Sirois stopped four shots for Montreal.
New England beat Montreal 5-0 on the road on Aug. 24.
New England leads the all-time series 16-13-4. Montreal improves to 5-8-2 on the road against the Revs.
The Revolution travel to take on Charlotte FC on Saturday. Montreal returns home to host the Chicago Fire on Saturday.
ARLINGTON, Texas (AP) — Adolis García hit a two-run home run in the sixth inning, Cody Bradford pitched seven strong innings after the worst start of his career, and the Texas Rangers beat the Toronto Blue Jays 2-0 on Wednesday night.
The win kept the defending World Series-champion Rangers alive in the AL West race, trailing first-place Houston by 10 games with 10 to play.
García launched an inside sinker over the left-field wall off Toronto starter Bowden Francis (8-5) after Wyatt Langford singled.
“He swings hard, he swings a lot,” Francis said of García. “I guess the velo was dropping during that time.”
Bradford (6-3) allowed five hits and no walks while striking out six.
The seven shutout innings are the most in a game during his two-year career. He was knocked out of his previous start after allowing career highs in hits (nine), runs (eight) and homers (three) in 3 2/3 innings in a 14-4 loss at Arizona.
“Throughout the week, you’ve got to try and digest what happened, see where I can make adjustments, whether it was just game plan went wrong or just poor execution, or a little bit of both,” Bradford said. “Then you flush it.”
Bradford was perfect through four innings before Alejandro Kirk opened the fifth with a smash back to the mound that caromed off Bradford’s left foot and rolled into right field for a single. It extended Kirk’s hitting streak to a career-high 12 games.
Spencer Horwitz’s double to left-center put runners on second and third with no outs before Bradford retired the next three batters.
Blue Jays manager John Schneider credited Bradford’s “deceptive fastball.”
“When you’re throwing 89, 92, you’ve got to have pretty good deception with that at this level,” Schneider said. “Kept us off balance.”
Kirby Yates pitched a perfect ninth inning for his 31st save in 32 opportunities.
Francis, who took no-hitters into the ninth inning in two of his previous four starts, allowed a double to Marcus Semien, the Rangers’ first hitter of the game. He gave up five hits and one walk in six innings.
Francis has a 1.96 ERA in nine starts with 54 strikeouts and seven walks since being moved back into the starting rotation in late July.
“I don’t even want to get complacent, on cruise control,” Francis said. “Just keep attacking.”
TRAINER’S ROOM
Blue Jays: SS Bo Bichette was a late scratch with a right middle finger contusion suffered during infield practice. Schneider said the team will get back x-rays on Thursday. Bichette was activated Tuesday following a calf injury and played for the first time in two months, going 2 for 5 with one RBI at the plate. … INF Will Wagner (left knee inflammation) will have the knee scoped on Thursday. Schneider said Wagner should be ready to start spring training. Wagner, son of former major leaguer Billy Wagner, was acquired from Houston at the trade deadline.
UP NEXT
Rangers rookie RHP Kumar Rocker (0-0, 2.25 ERA) will make his home debut against Blue Jays RHP Kevin Gausman (12-11, 4.02) in the series finale. Rocker allowed one run in four innings at Seattle last Thursday in his major league debut.
