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Details of Huddle with Finance Minister to Be Released

By 250 News

Tuesday, January 13, 2009 03:59 AM

Prince George, B.C.- The Prince George regional team which met with Federal Finance Minister Jim Flaherty yesterday will go public later this morning with the details of their meeting.
 
The group, which included Mayor Dan Rogers, Northern Development Initiatives Trust, a bank representative, Aboriginal Business Development Centre,  reps from Initiatives Prince George and the publisher of the Prince George Citizen.
 
The group’s session with Flaherty focused on some of the major projects which could be launched in order to kick start the economy. One of the infrastructure projects is the Boundary Road development.
 
While there appears to be plenty of pressure on the Federal Finance Minister to introduce a budget that will pump money into infrastructure upgrades and to go ahead with deficit spending, the Fraser Institute is saying that is the wrong way to go.
 
The Fraser Institute says , the most effective way for the federal government to help the Canadian economy is to reduce government spending and permanently decrease personal income and business taxes. 
 
Niels Veldhuis, Fraser Institute senior economist says Canadians would benefit from tax relief aimed at improving incentives to work, invest, and engage in entrepreneurial activities. “Increasing government spending –whether it’s on bailouts for inefficient industries or increased unemployment benefits – will lead to a deficit that will saddle Canadians with higher taxes in the future. There’s no need for Canada to run a deficit other than a politically motivated desire to do so,” Veldhuis said.
 
Instead, he highlights reductions in government spending and permanent tax reductions as key to economic recovery. “There is certainly room to trim wasteful spending. A recent study by European Central Bank economists found approximately 25 per cent waste in Canada’s public sector. Our government needs to follow the lead of many Canadian households and begin by trimming the fat, not taking on more debt.”
 
Meantime, according to ReNew Canada, an infrastructure renewal magazine,  a Prince George project is one of 100 top projects in the country the magazine says should go forward for 2009. The magazine lists the $200 million dollar Cariboo Connector as number 59 on the list which will be officially released tomorrow. The list also includes the expansion of the Prince Rupert port as a major project which should move forward.

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The Fraser Institute won't be happy till we're all chipping rocks, carrying water, and chopping wood again. There's a reason why organizations like that exist, but none come to mind now.

I'm happy to see our Federal Finance Minister is traveling the country, getting some opinions on the road we must travel in the next few years, to deal with the financial turmoil about to envelope us. I think PG was just a convenient stop for him, on his way from Alberta Oilsands project area to Vancouver, nevertheless, it is still significant.

Tories are really trying to stay in power, and I'm sure they're just loading their guns now, preparing for the arguments in the House, which will start shortly.
I thought it said in yesterday's article that business people would be sitting down with the Finance Minister.
Not a single business person...

Maybe it's a public relations exercise? At least you know the results will be that they should hire a consultant to report back to them with some ideas, and then they will do some public round tables and consultations.

Meanwhile, back at the ranch....
While it's true that not all infrastructure projects will help bolster the economy, there are many that can.

The Top 100 list of Canadian Infrastructure Projects isn't about projects that are sure to dig Canada out of a recession, it's about $61 billion dollars worth of construction and the companies involved. But now that you mention it, the majority of these projects are keeping engineers and skilled labourers employed. With commodity prices still very low, now is the time to keep those projects coming--that will help keep unemployment down while closing up the massive infrastructure deficit.
I think that much of the "massive infrastructure deficit" both in Canada and the USA is one of maintenance. Bridges, tunnels and roads need to be rebuilt on massive scales. We have not done that.

That type of infrastructure investment will keep the construction industry working, but will do little to increase the industrial capacity and efficiency of the country.

Dan Rogers probably requested a couple million to upgrade our trail system!!!!!!!!
Part of the problem now is that money has to be invested somewhere... either in Fraser Institute friends company stock... or government bonds... people don't have a lot of faith right now in buddies stock so government is creating debt....

If we are going to create debt to provide for safe investment opportunities and jobs to keep the economy going, than I think infrastructure like roads that enable free enterprise are a great investments.
I support the trails system... lol
reduces health care costs so it should come out of that budget....
I would agree with the FI on the government waste issue. But running a well timed deficit to increase employment and improve infrastructure sounds like a good idea. We need employment. We need a Caribou Connector. The government needs to spend money. Why not?
If the city of Prince George doesn't put it's name on the map, we can forget about any kind of funding. At least it's only to Vancouver as opposed to a slow boat to China! We need business minded people (yes, Mr. Nicholson is included as he runs a business)to plant the seed and we'll just see where it goes.
"money has to be invested somewhere..
either in Fraser Institute friends company stock... " blah blah.... Whatever Eagleone

I love how the Fraser Institiute seems to turn normal thinking people into closed minded idiots. The media goes out of there way to put "right wing think tank" on any statement they make. They don't try to prove their studies as flawed. Just dismiss them out of hand because they are some "right wing think tank".

Any enemy of the BCTF, CUPE, and the rest of the union drones is a friend of mine.
Fair enough Dow, but all I was saying is the Fraser Institute represents business. Nothing derogatory about that. I actually find their reports informative.

It is how ever a fact that many people would prefer to have their retirement in Canadian government bonds (all my investments the last 2-years) in this market, rather than in the private sector stock market... and we do have a shortage of government bonds on the market as a result, so increasing government debt to provide safe investments at this time seems reasonable from that angle.

I think the Fraser Institute economist on this one is however wrong in the short run and right in the long run. He is not looking at it from an investment side, but rather a profit cash flow perspective and that flaws his reasoning considering economic conditions.
Dow7500. The only people who are turned into closed minded idiots by think tanks of whatever persuasion are those who cannot comprehend what they read and either agree with the reports of such organizations or argue counter to the reports.

Thed latest report by the Fraser group that was the topic of one of the articles on here, the report on minimum wages, was one I wrote about on here and how weak that report was.

It is one thing to be against something for political reasons without having to resort to comprehension and thinking, it is another to be able to provied a sensible defense or sensible opposition.

Hopefully you can differentiate between such legitimate dissention and dissention for the sake of dissention.