Economic Update Sparks Anger
By 250 News
Thursday, November 27, 2008 01:48 PM
The Stephen Harper Government could be in real trouble.
Within moments of the Finance Minister delivering his economic statement, the opposition are saying they cannot support the package. This will force a confidence vote that could happen as early as Monday. The other options being tossed around include a coalition government, or some sort of accord that would keep enough opposition members happy that the Harper government will not be toppled.
The Minister of Finance, Jim Flaherty, has delivered his economic update and he says with some trimming, the budget can remain balanced. However, that is only if there is no fiscal stimulus package introduced.
Flaherty says the government is no different than families who have to make changes to ensure they are financially secure.
“This may not be enough, despite our best efforts, to keep a small surplus on the books.”
The measures announced today include:
-
Getting rid of the $1.70 subsidy given to political parties for each vote their successful candidates received.
-
Reviewing and trimming all expenditures by ministriesby trimming travel costs, hospitality, use of consultants, and use of external legal services. The government figures it can save $15 billion dollars over the next 5 years.
- Wage increase imposed on 300 thousand government workers. 2.3% for the current fiscal year, and 1.5 % in ’08- ’09. The move will save the Government $600 million dollars.
- Pay equity for women will not be retroactive
The 2007-08 fiscal year ended with a $2.3 billion dollar surplus, down from the previous fiscal year surplus of $13.8 billion dollars.
Michael Ignatieff, the former deputy leader of the Liberal Party says “No one wants to play political chicken....but this is not the way to govern, at the edge of Niagara Falls.” Ignatieff wouldn’t go so far as to say the Liberals are prepared to work to topple the Harper government, “They have to go back and do it again” said Ignatieff who wrapped up his comments by saying the mood within the party is clear, “We are tired of sitting down.”
Previous Story - Next Story
Return to Home
With out some type of stimulus - like building infrastructure to move the economy - this credit freeze will hit us a lot harder than we need