Mr. Speaker, at a time when Canadians are concerned about their country's economic future, at a time when the international financial markets are in crisis, the world is heading into recession, Canadian businesses are facing closures, and Canadians are worried about their jobs and savings. Canadians today deserve a government that would actually provide a real action plan to help the Canadian economy meet the challenges ahead.
However, instead of presenting us with a plan, the Conservatives have chosen symbolism over substance, rhetoric over real action and deception over decisions. They have given Canadians nothing but gimmickry when Canadians need a game plan.
The Conservatives have done nothing today to help protect the jobs and savings of Canadians. The Conservatives do not have an economic plan: there is nothing for manufacturers, nothing for the automobile industry, nothing for forestry, and nearly nothing for seniors and workers facing layoffs.
Today the Prime Minister is trying to distract Canadians from his own economic incompetence. He hopes we will not notice that he bungled the economy during the good times and that he has no economic plan for Canada during these tough times.
It is no wonder, today, that the Prime Minister wants to change the channel from economics to politics. We will not allow him to change the channel from economics to politics.
Our job as members of Parliament is to turn the channel back to the economy, back to the people. Canadians are hurting, and it is not about politics, it is not about political parties; it is about Canadians.
It is about the young Nova Scotian man whom I chatted with last week on the plane on the way to Halifax. As we chatted, the discussion soon went from small talk to big concerns. He told me that in recent months he had lost a lot of his investments and savings in the markets. He turned to me and he said that he and I had time to recover from this, but he was really worried about his parents because they feared they could no longer live on their retirement savings.
It is not about politics; it is about people.
It is about the friend I went to school with, whom I saw the other day when I stopped for gas at Sanford's corner store in Burlington, Nova Scotia. Jamie told me that after 20 years of working at the local gypsum company, he was being laid off, along with 49 other rural Nova Scotians, most of whom had spent their working lives there.
This is about Maynard Williams who owns Cornwallis Chevrolet in New Minas and his 32 employees who fear for their future.
These ordinary Canadians did not talk to me about political party financing. They talked to me about what was important to them. They talked about the economy. They talked about their jobs. They talked about their savings.
That is what I will be doing today and that is what the Liberal Party will be doing. We will be standing up for Canadians to protect their savings and their jobs, not play petty politics.
The Prime Minister is failing Canadians by not giving them a plan for the Canadian economy. He is failing Canadians by not telling them the truth, and the truth is, Canada is back in deficit. The Prime Minister is failing to tell Canadians why we are back in deficit, the fact that his bad tax policy and his big spending policy is responsible for that deficit.
If members look at page 50 of the economic statement, they will see there, in black and white, that next year Canada will face a $5.9 billion deficit.
Earlier today the Minister of Finance said,“It is misguided to engineer a surplus just to say we have one”. That is exactly what the Conservative government is doing. It is pretending it has a surplus when in fact it has a deficit.
The government is trying to hide this new Conservative deficit, first, with rosy growth numbers, as we enter a recession. In fact, it is predicting 0.3% growth while the OECD's prediction is 0.5% shrinkage in the Canadian economy.
To further bury the new Conservative deficit, the Conservatives are planning massive cuts. It should not surprise anybody that one of the massive cuts they are planning, and that they actually are proud enough of to list in this document, is their pledge to cut pay equity for women.
We should not be surprised that, as they start to cut during tough times, they choose ideological cuts, because during the good times what did they cut? They cut literacy, they cut women's equality and they cut the court challenges program.
Most disturbing, in order to hide the new Conservative deficit, the Conservatives are preparing to sell off an imaginary list of government assets. They are preparing to sell in a buyer's market.
The Conservative government is not a government that is considering asset sales out of a sense of market opportunity obviously. That is a government that has put itself in a position where pawning off assets is required because of not market opportunity, but because of fiscal desperation. It is akin to selling the house to pay for the groceries.
I can see it now. The signs will be going up on government assets across Canada, “Come on down to deficit daddy's big blowout sale. Make us an offer. Seller highly motivated”. The Minister of Finance is highly motivated to bury the deficit he fathered.
The previous Liberal government did not book revenue until an asset was actually sold. That makes sense to me. However, the Conservatives are booking revenue before they know what assets they are going to sell. Today, we asked financial officials for a list of the assets they intended to sell. The fact is there is no such list. The $10 billion figure for the assets comes out of the air because it matches exactly the amount of money they required to pay off the deficit they created.
There is no list of assets that the Conservatives intend to sell. They are not that far along the process. There is no price yet set for those assets, but they have already booked the revenue.
The Conservatives are not being honest about the deficit and they are not being honest about the cause of the deficit. Last week, Kevin Page, the Parliamentary Budget Officer, was clear when he said:
The weak fiscal performance to date is largely attributable to previous policy decisions as opposed to weakened economic conditions.
It is pretty clear, and Mr. Page is very clear, that these bad policy decisions were the Conservative government’s misguided tax policy and their big spending policy. In fact, under the previous Liberal government, spending increased over a period of 13 years, on average, 2.5% per year, consistent with inflation. Under the Conservatives, government spending has ballooned by 25% in 3years, an annual growth rate of 8%.
It is a big spending, bad tax policy government that has created a made in Canada, new Conservative deficit. Three years ago, the Conservative government inherited the best fiscal and economic environment in the history of any incoming government in Canada. It had a $13 billion surplus and the best economic growth in the G-8. Today, Canada is in deficit and for the first half of this year, we had the worst economic growth in the G8. That was long before the global financial turmoil.
Not only did the Conservatives’ bad tax and big spending policies waste the surplus, they eliminated the contingency reserve, Canada’s rainy day fund. The Conservatives spent the cupboard bare during the good times and gutted Canada’s fiscal capacity to help vulnerable Canadians today during the tough times. Today, during these tough times, when Canadians are looking for some level of economic leadership, some sense of hope for the future and ideas to build a better and more secure economic future, they are getting no plan from the government.
The differences between the government’s approach in Canada and the approach taken by our largest trading partner, the U.S., could not be more clear. The headlines said it all yesterday. “Canada bides time, U.S. sets course.” Canadian Prime Minister waits, president-elect Obama acts. While we watch the U.S. take bold steps, in Canada all we see are political schemes.
For a few days now, President-elect Obama has been gathering the greatest economic minds in the United States in order to fashion an economic action plan to help protect jobs and the American economy.
However, in Canada we have a Prime Minister who calls himself an economist, who has been in office for three years and who promised Canadians in the last election that there would be a new economic plan within weeks of him taking office, in fact this fall, and we still do not have a plan.
Instead of showing leadership, the Prime Minister is playing politics, and nowhere is that more evident than in the auto sector. As the American Congress and Senate are working with the U.S. auto sector to develop a plan, our government is waiting and hoping that we somehow are going to be able to join a deal at the last minute.
What the Conservatives do not seem to realize is those American congressmen and senators are exacting commitments from the auto sector to put jobs in their districts. Yesterday, when the member for Guelph asked the industry minister to tell the House “with whom in the Bush administration and in the new Obama economic team he has met to ensure that Canadian jobs are protected”, the minister dodged the question. He was afraid to admit he failed to get any meetings of significance in the U.S.
The fact is, more than ever, Canadian auto workers need a Canadian government that is a voice at the table in the U.S. on this issue. However, when the industry minister recently went to Detroit for meetings, he forgot that on that day the Detroit auto leaders were all in Washington. It is bad enough to have a Conservative industry minister who is not at the table, but he does not even know where the table is. Let us hope his bungling does not mean that at the end of the day, Canadian auto workers are lucky to get a few scraps off that table.
Other countries are acting too. Great Britain, Germany, France and Japan are all taking significant action at this time of crisis and there is no plan from the Canadian government whatsoever. I can only think of four reasons why the Conservatives are not acting, why they have no plan.
Number one, is it because their reckless spending and bad tax policy has eliminated their fiscal capacity to help Canadians now?
Is it number two, that their absolute belief in rigid neo-conservative ideology leaves them blind to the fact that market forces alone will not solve this mess? They do not believe that government can and must play a role in helping people during tough times.
The third possibility is that the Conservatives have no idea what to do. Given how badly they bungled the economy during the good times, it is increasingly likely that number three is at least part of the problem.
The fourth is they just do not care.
Whatever its motive, by doing nothing to protect Canadian jobs and Canadian savings, the Conservative government is failing Canada. It is just not good enough.
It should not really surprise us that the government has no plan or vision today during the tough times because over the last three years it has failed to produce any form of plan or vision for Canada. In the last three years, the government was more interested in buying votes than building prosperity, and it is failing once again.
It was the economists who told the Conservatives that their tax policy was wrong, that we were the only country in the world that was increasing income taxes while cutting consumption taxes. They did not take that advice then. It is the economists who are telling them that we need a real plan for infrastructure today to invest in people, to create new jobs, new green jobs, to help Canadians with their post-secondary education, to help them train and retrain in lifelong learning, to develop the skills they need to survive and thrive in the new economy. The Prime Minister has been calling himself an economist for so long that he forgets he is not a real economist and he will not listen to the real economists, not in the good times and not in the bad times.
When Canadians need strong economic leadership, all they are getting from the Conservatives are cheap political schemes. We need leadership today. We need a new deal, but the Prime Minister is telling Canadians, “No deal”.
This is not about politics. This is about people.
Members of the Liberal Party, as responsible members of Parliament, will be defending the people of Canada. We will be standing up for Canadians. We will be offering Canadians a clear vision of hope for a better future and pride in a stronger Canada, not cheap politics like the Prime Minister has done.