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Extraordinary times call for extraordinary measures, the Finance Minister said as he met with business, labour and community leaders in advance of the Jan. 27 federal budget.

Jim Flaherty said the Conservative government is not looking to cut spending as it prepares to table its budget, but it is looking for creative ways to help Canadians through the global recession.

“This is not a cuts exercise,” he said prior to a closed-door budget consultation meeting Monday in Victoria with about two dozen business and community officials. “This is in fact a creative exercise.”

“We are in extraordinary times,” Mr. Flaherty said. “It calls for some extraordinary thinking.”

The minister said the government is looking at ways to help Canadians battle the tough times. Without providing specifics, Mr. Flaherty mentioned retraining programs for people who lose their jobs, money for government infrastructure projects and tax measures.

“We're trying to do the right thing,” he said. “This is unprecedented. This budget is about ensuring that Canada has actions taken that Canada needs . . . to get through the consequences in Canada of a synchronized global recession.”

He forecast a deficit budget, but would not say how large the deficit will be, other than “substantial.”

Mr. Flaherty said he's getting new economic numbers later this week that will provide a more up-to-date accounting of the government's finances.

He was in British Columbia conducting pre-budget consultations and Prime Minister Stephen Harper was also in Vancouver to make an infrastructure announcement.

Those who attended Mr. Flaherty's meeting at the University of Victoria included Jock Finlayson, vice president of the B.C. Business Council; John Allan, Council of Forest Industries president; Darcy Rezak, Vancouver Board of Trade chairman and members of the right wing think-tank Fraser Institute.

“We are listening intently,” the Finance Minister said. “This is not normal budgeting. The world is not in its stable fiscal condition. These are extraordinary times.”

Outside of the meeting, Mr. Rezak said he expects British Columbia to slip into a recession as it struggles through the economic downturn.

B.C. Finance Minister Colin Hansen has said earlier the province will experience tough times but will escape a recession and the provincial government will not post deficit budgets.

A provincial election is set for May in British Columbia.

“We're going into a recession, no doubt about it,” Mr. Rezak said.

Mr. Hansen was not available for immediate comment.

Last week, Statistics Canada reported that 34,400 jobs were lost in December in Canada and the unemployment rate rose to 6.6 per cent from 6.3 per cent in November.

Last November, the Conservative government announced measures in its failed economic statement that included additional credit for the business development bank and measures to help the financial and manufacturing sectors.

The government also said it would improve the management of pension plans and help retirees.

All are expected to be included in the federal budget.