Phil McColeman Applauds Economic Leadership Shown by Conservative Government

November 27, 2008

Ottawa, Nov.  27/  Phil McColeman Member of Parliament for Brant, welcomes the 2008 Economic and Fiscal Statement that takes action to help guide Canada’s economy through the global economic challenges faced by countries around the world.

“Last election, Canadians chose our Conservative government to deal with the economic crisis facing the world,” McColeman said.  “The Economic Statement takes prudent action to restrain spending by forcing government and politicians to cut back spending, before asking Canadians to tighten their belts.”

The Economic and Fiscal Statement reins in spending by:

• Eliminating subsidies for political parties paid for by taxpayers;
• Reducing unnecessary costs by reviewing the effectiveness of government operations, including crown assets;
• Ensuring that federal public sector wages grow at a reasonable and affordable rate, including the pay of MPs, Senators, cabinet ministers and senior bureaucrats; and
• Putting Equalization on a sustainable rate of growth.

The Honourable Jim Flaherty, Minister of Finance, also said the government continues to plan on balanced budgets.  However, considering the ever-changing economic situation, a deficit cannot be ruled out.

Minister Flaherty emphasized that the Conservative Government does not take the possibility of a deficit lightly.  But he indicated that the Government will not engineer a surplus for the sake of having a surplus, or put the future of the Canadian economy at risk.

“Our Government believes that the current economic turmoil is the most important issue facing Canada.  We will ensure the strength of the Canadian economy while protecting the long-term fiscal position of Canada.  Any possible deficits will be temporary until the economy is back on the right-footing. This is the balanced approach that Canada needs in this time of economic uncertainty,” McColeman said.

The Economic Statement also builds on previous action taken by the government to ensure the continued competitiveness of the financial sector with measures to:

• Provide solvency funding relief to federally regulated private pension plans;
• Enhance credit availability through Crown agencies for Canadian businesses; and
• Reduce the minimum withdrawal requirements for Registered Retirement Income Funds by 25 per cent for 2008.

The Government took early action to help stimulate the Canadian economy with tax cuts of nearly $200 billion over this and the next five years, and the largest investment in infrastructure in over 50 years.  In the Economic Statement, the Government has committed to consult with provincial and territorial leaders on the best way to accelerate infrastructure projects to help further stimulate the Canadian economy.

“Our plan strikes the right balance.  We’re restraining spending, and protecting our economic future.  I am confident we will overcome the current economic turmoil and have a stronger economy coming out of it,” McColeman said.