Conservative Throne Speech focuses on economy; budget deficit likely

Opening with reference to history, Governor General Michaelle Jean delivered the Conservative government’s speech from the throne last Wednesday, outlining plans for the coming session of parliament.
Touching the history of confederation and Canada’s participation in the world wars, the Throne Speech talked positively about Canada’s economic successes, and fears for the near future.
“We know Canadians will face the problems of today with the same spirit of determination and resolve as those who came before us faced the challenges of their generation,” said Jean. “And like them, we know we will emerge stronger than ever.”
High on the government’s list of priorities is a commitment to take a leading role in stabilizing global financial markets. “The first order of business must be to put the international financial system on a sounder footing,” said Jean. “Just as these troubles began beyond our borders, so will their solution demand that Canada engage its partners and allies around the world.”
The government also plans to centralize Canada’s securities regulations, which are currently enforced by provinces. “The credit crisis has also underlined the dangers of a fragmented financial regulatory system. To further strengthen financial oversight in Canada, our government will work with the provinces to put in place a common securities regulator.”
The speech acknowledged the growing possibility of a federal deficit, “it would be misguided to commit to a balanced budget in the short term at any cost, because that cost would ultimately be borne by Canadian families.” While promising to avoid ongoing deficits and continuing to cut taxes, the speech also raised the possibility of spending cuts. “Hard decisions will be needed to keep federal spending under control and focused on results,” said Jean. “Grants, contributions and capital expenditures will be placed under the microscope of responsible spending. Departments will have the funding they need to deliver essential programs and services, and no more.”
More details were given in Stephen Harper’s response to the throne speech, including a pledge to review all government spending, including those by crown corporations. Harper also said all government departments and agencies will now have to give financial reports each quarter, which would be available to the public.
While the speech did contain a commitment to support financial assistance for students, no details were given.
The speech also contained a commitment to increase trade and sign new trade deals, with a plan to introduce legislation to pass trade deals that have already been signed with the European Free Trade Association, Peru, Columbia and Jordan. In the Prime minister’s response he also said he would work to increase trade inside Canada.
The speech also touched on fighting climate change, reiterating a promise to cut greenhouse gas emissions by 20 per cent by 2020. “Our government will continue its realistic, responsible approach to addressing the challenge of climate change,” said Jean. “We will work with the provincial governments and our partners to develop and implement a North America-wide cap-and-trade system for greenhouse gases.”
With a minority government, Harper will have to gain the support of one of the opposition parties in order to pass the speech, if it fails to pass the government will fall.
While outgoing Liberal leader Stéphane Dion had strong criticisms for the speech, he told reporters his party would not bring the government down over it, saying it would be irresponsible to trigger an election so soon. “In less than three years, the Conservative government became the highest spending government in Canadian history,” said Dion in a statement. “Prime Minister Stephen Harper made the decision to leave no buffer, no room to manoeuvre, to help protect our country’s finances if an economic downturn would occur,” he said. “It’s no wonder Mr. Harper is now hinting at a deficit.”
Harper can rule out the support of the NDP. “Canadians were hoping for more from the Throne Speech. New Democrats were expecting more. As the effective opposition, New Democrats will be demanding more from this government. We will not be supporting this Throne Speech,” said party leader Jack Layton’s parliamentary response.
Bloc Québécois leader Gilles Duceppe also criticized the speech, saying it contained many irritants for Quebec. However, he did not say whether his party will be supporting it, saying he would wait and see what amendments were made to the speech.

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