News

What a Liberal win in an Ontario byelection might mean for the Tories and the NDP

Published

2 months ago

December 14, 2022

Harry Miller

A Liberal win in a federal byelection in Ontario before the holidays has some Conservatives feeling a little blue — and a little worried about what happened to the New Democrats.

Former provincial cabinet minister Charles Sousa handily won the riding of Mississauga-Lakeshore Monday night in a race that saw just over a quarter of eligible voters cast a ballot.

The Conservatives had been tempering expectations for their candidate, local police officer Ron Chhinzer, given Souza’s high profile.

The byelection was the first since Pierre Poilievre took the reigns as party leader and the Tories captured just over 37 per cent of the votes.

The Liberals took just over half the votes, and the NDP saw their share fall to just under five per cent — about half of what it was in the 2021 federal election.

Philippe Fournier, who founded 338Canada and models electoral projections based on polls, says even though the riding isn’t traditionally friendly to the NDP, the result shows the party is “in trouble.”

Dan Robertson, a former chief strategist for the Conservatives, says that illustrates a larger issue for the Tories: NDP voters turning to the Liberals to block a Conservative win, which is a trend he thinks could worsen under Poilievre.

This report by The Canadian Press was first published Dec. 13, 2022.

News

Inflation in Canada: Finance ministers meet

Published

8 hours ago

February 4, 2023

Harry Miller

TORONTO – The two big spending pressures on the federal government right now are health care and the global transition to a clean economy, Deputy Prime Minister and Finance Minister Chrystia Freeland said Friday.
After hosting an in-person meeting with the provincial and territorial finance ministers, Freeland said U.S. President Joe Biden’s Inflation Reduction Act, which includes electric-vehicle incentives that favour manufacturers in Canada and Mexico as well as the U.S., has changed the playing field when it comes to the global competition for capital.

“I cannot emphasize too strongly how much I believe that we need to seize the moment and build the clean economy of the 21st century,” Freeland said during a news conference held at the University of Toronto’s Munk School of Global Affairs and Public Policy.

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“This is a huge economic opportunity.”

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Canada needs to invest in the transition in order to potentially have an outsized share in the economy of the future, she said, or it risks being left behind.

This year in particular will be an important year for attracting capital to Canada, she said, calling for the provinces and territories to chip in.

“This is a truly historic, once-in-a-generation economic moment and it will take a team Canada effort to seize it.”

At the same time, Freeland spoke of the need for fiscal restraint amid economic uncertainty.

“We know that one of the most important things the federal government can do to help Canadians today is to be mindful of our responsibility not to pour fuel on the fire of inflation,” she said.

Freeland said these two major spending pressures, which were among the topics prioritized at Friday’s meeting, come at a time of a global economic slowdown which poses restraint on government spending.

Prime Minister Justin Trudeau is set to meet with the premiers Feb. 7 to discuss a long-awaited deal on health-care spending. The provinces have been asking for increases to the health transfer to the tune of billions of dollars.

Freeland said it’s clear that the federal government needs to invest in health care and reiterated the government’s commitment to doing so but would not say whether she thinks the amount the provinces are asking for in increased health transfers is feasible.

“It’s time to see the numbers,” Quebec Finance Minister Eric Girard said Friday afternoon, in anticipation of the Feb. 7 meeting.

The meeting of the finance ministers comes at a tense time for many Canadian consumers, with inflation still running hot and interest rates much higher than they were a year ago.

The ministers also spoke with Bank of Canada governor Tiff Macklem Friday and discussed the economic outlook for Canada and the world, said Freeland.

“We’re very aware of the uncertainty in the global economy right now,” said Freeland. “Inflation is high and interest rates are high.”

“Things are tough for a lot of Canadians and a lot of Canadian families today and at the federal level, this is a time of real fiscal constraint.”

The Bank of Canada raised its key interest rate again last week, bringing it to 4.5 per cent, but signalled it’s taking a pause to let the impact of its aggressive hiking cycle sink in.

The economy is showing signs of slowing, but inflation was still high at 6.3 per cent in December, with food prices in particular remaining elevated year over year.

Interest rates have put a damper on the housing market, sending prices and sales downward for months on end even as the cost of renting went up in 2022.

Meanwhile, the labour market has remained strong, with the unemployment rate nearing record lows in December at five per cent.

This report by The Canadian Press was first published Feb. 3, 2023.