CAMPBELL CLARK AND GLORIA GALLOWAY
Ottawa — From Thursday's Globe and Mail Published on Wednesday, Nov. 19, 2008 10:34PM EST Last updated on Tuesday, Mar. 31, 2009 9:12PM EDT
Ottawa won't put forward spending packages to stimulate the economy until the new year and Canadians will have to wait for the aid for the struggling auto sector promised in Wednesday's Throne Speech.
The broad-strokes outline of the government's agenda opening the new Parliament focused on coping with hard times. It warned the country could be headed back into deficit, because it would be "misguided" to inflict economic pain to avoid it — and pledged more help for manufacturers, including the auto industry.
But Finance Minister Jim Flaherty told reporters that economic stimulus or industrial-aid measures will not be in the economic statement he will issue next week, but instead will be considered for the budget expected early next year.
Prime Minister Stephen Harper said after a G20 meeting of leaders from the world's biggest economies last weekend that Canada would join in any major international spending effort to stimulate the economy. However, it will not happen now, Mr. Flaherty said.
"We'll look at that as we go up to budget time. It certainly will not be in the fall economic update," the Finance Minister said.
The Throne Speech included a pledge to aid the auto sector, but Mr. Flaherty said that still depends on "several issues," including consultations with the United States about its possible bailout package, and he won't be ready to announce funds in the economic statement. "I wouldn't expect anything that quickly," he said.
The speech included a pledge that the government will "provide further support" for the Canadian manufacturing sector, particular the auto and aerospace industries. But opposition politicians charged that it did not reflect the urgent need for the government to intervene in the economy.
"There's an economic statement next week and we hope, we call on the government to arrive with specific measures that are missing from this Throne Speech, so that we can get through the difficult period we're in," Liberal Leader Stéphane Dion said.
NDP Leader Jack Layton said: "Canadians were expecting some real bold and significant action with regard to this urgent economic crisis. I know Canadians were hoping for more than we just heard.".
The Throne Speech, a typically vague statement of priorities, focused on the economy, and for the most part stuck to pledges the Conservatives made in the recent election campaign.
It included a promise to ban bulk water exports, and to set a goal so that by 2020, 90 per cent of electricity generated in Canada will come from sources that don't produce carbon emissions. Environment Minister Jim Prentice said expanding nuclear power would be "key" to meeting that goal.
Mr. Harper's government also promised to create a national securities regulator for financial markets, but government ministers said provinces, such as Quebec, that object to a national regulator will be able to opt out.
Some more contentious elements of the Conservative election platform, such as toughening the youth justice system, were left to the bottom of the speech — perhaps reflecting indications from Mr. Harper's aides that the minority government will soft-pedal those issues to obtain opposition co-operation on the economy.
The Bloc Québécois and NDP said they would vote against the Throne Speech in a confidence vote, but Mr. Dion said it would be "irresponsible" to defeat the government so quickly on a speech that said "nothing new."
The speech was delivered by Governor-General Michaëlle Jean in the ornate chamber of the Senate. But its message was about girding for tough times.
It pledged cost-control measures in Ottawa, including a squeeze on the budgets of many government departments and a law to limit the pay raises of civil servants.
"Hard decisions will be needed to keep federal spending under control and focused on the results," Ms. Jean read, following with the government's pledge to place grants and capital spending "under the microscope."
Mr. Layton argued that the Throne Speech adopted austerity measures and a laissez-faire approach, when intervention is needed. "I don't think you want to be taking ideas from the Mike Harris-era in Ontario and applying them to today's economic crisis," he said.
Mr. Flaherty insisted that Ottawa will intervene if needed.
"If it means we have to do more for Canadians, we will do more. If it means that we would run a deficit, we'll run a deficit, because the purpose here is to manage the economy effectively for Canadian families, not to artificially create a small surplus."
The Throne Speech pledged that the government would avoid repeated, "structural" deficits.
But the Liberals argued that the real reason Ottawa is now on the brink of deficit is because Conservative cuts to the GST did not stimulate the economy and their rapid increases in spending whittled away surpluses.
"They are responsible for the big-spending policy, having increased spending by 25 per cent," Liberal finance critic Scott Brison said.
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