PM announces investment: Evergreen Transit Line

Your Excellency the Right Honourable Michaëlle Jean

I would like to advise you on the constitutional crisis created by a coalition of political parties in opposition of the elected minority Conservative government.

Therefore, In light of the rampant speculation in the media of these developments, I took some time to read up on the procedure for dissolution of Parliament at your web site.

It seems it's the responsibility of the Prime Minister to come to you and submit an instrument of advice on the matter.

Furthermore, I submit to you that until that happens the 'opposition coalition' has no constitutional standing in the government because it does not include all the opposition parties.

This is exclusionary and counter to your mandate to do no harm to the interests of all Canadians and their respective provinces.

Canadians like me, and seniors on a fixed income, have been tightening our belts as best we can and expect no less from the government.

For example, my gas bill has doubled so I was forced to turn down the thermostat a bit to off-set the added cost of heating my home in the winter.

Money saved by the federal government could help fund a stimulus package for our faltering economy. Now is not the time for panicky financial decisions and rampant spending nor wholesale replacement of government because the opposition parties don't want to give up their political welfare in the form of a vote subsidy.

This is the issue that caused them to panic, not the state of the economy.

To say this coalition exists because of the lack of a economic stimulus package forthcoming from the elected government is disingenuous at best and venal political self-interest at its worst.

You, on behalf of all Canadians, should have nothing to do with this partisan political hackery.

I would humbly suggest that you should reject this attempt to usurp the elected government of Canada by the New Democratic Party of Canada in concert with the Liberal Party of Canada to the exclusion of the political party that represents Quebec and simply tell our elected Politicians get back to work.

Respectfully,
Mark-Alan Whittle
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Welcome Message from Terry Anderson

Hamilton Mountain needs a Member of Parliament with a strong voice as a member of the governing party, who will fight for the needs of this community. I am not afraid to speak up to get things done. As a three-time elected Hamilton councillor, I have the experience, the community knowledge and the dedication to get real action for Hamilton Mountain.

I have good working relationships with representatives at all levels of government, and of all political stripes. I understand the issues that face Hamilton in the coming years -- revitalizing our downtown cores; growing our industrial base to provide jobs; ensuring there are enough doctors and hospital services to provide for the needs of seniors; and making our community safe from crime. I also believe we have to stop coddling young offenders who have a history of criminal activity.

I believe it’s important to protect our environment for our children and their children. I believe we can do this in a way that is effective and that does not unduly burden our economy.

I have lived in this community all my life. I work here. I have raised my family here. This is where my heart is. I want to help my city and my country by serving as your Member of Parliament. Hamilton Mountain deserves an MP who will work hard to represent your interests and your values. I am that person.

During two years as Prime Minister, Stephen Harper has shown himself to be a man of integrity, and a decisive, accountable leader. He has acted quickly on his promises to tackle crime, make government more accountable, and reduce taxes. I would be proud to serve on his team on your behalf.

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Real Leadership. Real Results for the Economy.

With increasing uncertainty in the global economy, it is essential that Canada has its own economic fundamentals right.

Thanks to real leadership and real action from Prime Minister Stephen Harper and the Conservative Government, Canada’s economy now has a strong foundation to grow and succeed, regardless the economic news from other countries.

Over the last three budgets, the Conservative Government has dedicated half of its available fiscal room to reducing taxes for Canadians; we have split the remainder evenly between debt pay-down and new investments in key priorities for Canadians.

Lower taxes not only put more money back into Canadians’ hands, they strengthen our economy and put Canada in a globally competitive position. Today Canadians benefit from $60 billion in new broad-based tax relief for individuals, families and businesses. This includes the two-point cut in the GST, a tax cut which benefits all Canadians.

Thanks to these lower taxes, balanced budgets, and strategic investments, Canadians can be confident that our future is bright. Today, we’re in the best financial and economic position of any G-7 country. Inflation and interest rates remain low and stable. Personal disposable income has been rising steadily. Net employment has increased by over three quarters of a million jobs since our government took office, including 43,000 jobs last month alone. In fact, the national unemployment rate is the lowest it’s been since 1975.

For all that we have to be proud of, Canada’s future economic growth could be at risk. With the United States, our closest trading partner, facing considerable economic challenges, Canada cannot leave our economic well-being to Stéphane Dion’s weak leadership and lack of priorities.

Mr. Dion is addicted to new spending; his spending promises to date would plunge Canada at least $62.5 billion deeper into debt. Stéphane Dion has already hinted that he would hike the GST. Now he is talking about increasing gas taxes as well.

The choice between Prime Minister Harper and Mr. Dion is clear. Prime Minister Stephen Harper and the Conservative Government are delivering real leadership and real results for Canadians, including lower taxes and a balanced budget.

Stéphane Dion is promising higher sales taxes, higher gas taxes, and billions in new debt. In a time of global economic challenges, the Stéphane Dion Liberals are not worth the risk.
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Prime Minister Harper and Premier McGuinty announce three new federal-provincial initiatives

OTTAWA, March 27 /CNW/ - Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty today announced three important initiatives that will support provincial programs that provide assistance for workers and communities who have been negatively affected by the rapid appreciation in the Canadian dollar, softening in the US economy, high oil prices, and intense competition from emerging economies, as well as support for public transit and policing.

"Our Government is committed to the federalism of openness, an approach to federal-provincial relations that relies on respect for jurisdiction and productive collaboration to get things done for Canadians," Prime Minister Harper said. "These three initiatives contribute to Ontario's competitive strengths and support the Ontario Government's efforts by investing in workers and communities. Our Governments have collaborated on a number of projects that have delivered real, direct benefits to Ontarians during the last two years."

"Ontario has a five-point economic plan that will grow the economy by investing in our people, communities and infrastructure and further strengthen Ontario's international competitiveness. Our plan will continue to reduce taxes while investing in innovation and forming key economic partnerships, stimulating investment and job growth," said Premier McGuinty. "These federal initiatives will provide support for our efforts as the Ontario economy adjusts to new challenges in the global economy."

The Community Development Trust will provide Ontario with $358 million to support programs that improve productivity and competitiveness, technology development and training for workers and communities facing challenges in industries such as agriculture, forestry, and manufacturing, including automotive manufacturers.

The Police Officers Recruitment Fund allocated to Ontario is its share of the national Fund. Over the next five years, the province will receive $156 million to improve public safety and security by putting more officers on the streets of Ontario's cities and towns.

The Public Transit Capital Trust expands on existing federal support for public transit in Ontario by providing $195 million in new funding. The province will direct the funds into its ambitious plans for expanding public transit, including its MoveOntario 2020 transit plan.

"I want to congratulate Premier McGuinty and his Government for developing programs that will use these federal funds to strengthen the Ontario economy, improve public safety, and expand the public transit system," said Prime Minister Harper. "Working together, our governments are getting things done for all Ontarians."

Backgrounder

COMMUNITY DEVELOPMENT TRUST

This Community Development Trust Fund will support a three-year plan for transition, skills training and new job opportunities for workers who are being negatively impacted by the collapse of the U.S. housing market, the lower U.S. dollar, increasing foreign competition and other circumstances that are now challenging certain sectors of the Ontario economy.

Ontario's $358-million share of the Trust will be used for programs to support improved productivity and competitiveness, technology development, and training for affected workers and communities in agriculture, forestry, and manufacturing (including the automotive sector). Initiatives will include new skills training centres to provide up-to-date training for Ontario students and unemployed workers who require skills upgrading. Specific measures will be undertaken to help communities in northwestern Ontario which have been hard hit by layoffs in the forestry sector.

The Province will consult on the best ways to apply and leverage the new funding for maximum benefit to Ontario workers. The new federal funding is intended to support these specific priorities over several years.

PUBLIC TRANSIT CAPITAL TRUST 2008

Public transit plays an important role in easing traffic congestion in urban areas and contributing to cleaner air and lower greenhouse gas emissions. In Budget 2006, the Government of Canada set aside $1.3 billion in support of public transit infrastructure and introduced a new tax credit for public transit passes.

Budget 2008 set aside up to $500 million in 2007-08 to be paid into a third-party trust, allocated on a per capita basis, for public transit infrastructure such as rapid transit, rail, transit buses, and high occupancy vehicle and bicycle lanes. Provinces and territories are encouraged to report publicly on the expenditures financed and outcomes achieved.

Between 2005 and 2010, the Ontario government and its partners will invest more than $30 billion in public infrastructure. Ontario is expected to announce further progress on this goal by making additional significant investments in public transit infrastructure supported, in part, by $195 million from the federal Public Transit Capital Trust. Among these will be a commitment to initiate a feasibility study for a Peterborough commuter rail line, accelerate the extension of the GO Transit line from Lakeshore East to Bowmanville, and to launch a regular GO bus service to Peterborough.

POLICE OFFICERS RECRUITMENT FUND

A paramount responsibility of government is to protect its citizens' rights to safety and security. The Government of Canada takes this responsibility seriously, and in Budget 2008 provided funding to provinces and territories to support them in recruiting 2,500 new front-line police officers.

Under the federal government's national effort to recruit 2,500 police officers across the country over the next five years, Ontario will receive $156 million from the new Police Officers Recruitment Fund. This funding will help the Province increase the number of police officers in Ontario and is a first step to help build on the Province's strategies to address top public safety priorities.

Provincial and territorial governments are encouraged to report directly to their residents on the expenditures financed and outcomes achieved with the funding provided through the Police Officers Recruitment Fund.
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Broad is Better

Flaherty is boosting overall growth through tax cuts. That beats McGuinty's support of a few declining industries.

The war of words between the federal Finance Minister, Jim Flaherty, and the Premier of Ontario, Dalton McGuinty, is more than just a political debate. It represents a fundamental difference in views as to how to best conduct industrial policy. Ontario favours policies aimed at specific business activities. The federal government pursues broad industrial policies aimed at economic growth. Which one is right?

In recent years, Ontario has provided targeted subsidies for specific industries, especially in the auto, forest and film sectors in reaction to declining fortunes resulting from a rising dollar. True, Ontario has followed through on some broad policies to help all industries, the smartest being the elimination of the capital tax, not just for non-financial but also financial companies.

However, Ontario did hike its corporate income tax rate to 14% in 2004, reversing plans to achieve an 11% tax rate. Ontario's corporate tax rate is only slightly lower than that in Nova Scotia, Prince Edward Island and the Yukon, which are not exactly economic stars and can receive federal equalization payments to make up for their poor industrial tax base.

Even after federal corporate tax cuts scheduled by 2012, Ontario's effective tax rate on new capital projects will remain highest in the country at 31.2%. This places Ontario in the same league as Japan and France, which have the most onerous tax regimes on business investments in the world, now that the U.S. is bringing back bonus depreciation to support business investments in machinery and equipment.

Ontario has such a high effective tax rate on capital investment partly because it relies on an antiquated retail sales tax that has grown little as a source of revenue in the past five years. The sales tax hurts business competitiveness since one-third of revenue is collected from levies applied to intermediate and capital purchases. The Ontario retail sales tax has a much bigger impact on capital investment than had the capital tax. Moving to a value-added tax, similar to the federal GST or the Quebec sales tax, would remove most of the tax on business inputs and sharply reduce the effective tax on capital in Ontario to 23%, making it much more competitive.

This is the beef that Mr. Flaherty has with Mr. McGuinty. Ontario is criticizing the federal government for not doing enough to help business competitiveness and looking for the feds to provide major subsidies to support manufacturing and forest companies. In the meantime, Ontario maintains an unhealthy tax regime.
Moreover, the federal government has been helping Ontario industries with its own subsidies and tax reductions. The federal government has been sharply reducing corporate taxes on businesses and getting little credit from the province. Ontario is the biggest beneficiary since it has about 45% of Canada's corporate tax base and its businesses have enjoyed a much lower federal corporate tax rate, which will be 15% by 2012, down from 28.12% in 2000. The federal government has also eliminated capital taxes and replaced, in 1991, its anti-competitive manufacturers' sales tax with the federal GST. All these policies have helped Ontario.

Nonetheless, Ontario is facing a major challenge today and the Premier is right to be concerned about it. It would a real blight on his record if Ontario is declared a have-not province - its per-capita GDP has already tracked down to be close to the national average.

Canada is undergoing a major restructuring of its economy as Asian economic growth has created a continuing commodity boom:High prices for Canada's agriculture and resource industries will continue for at least a decade and half, repeating the 1950s and 1960s, when Canada had its last commodity boom and high dollar. Ontario's forest sector, which is in the doldrums now, has a better future. Its woes reflect the decline in demand for housing in the U.S., induced by the subprime mortgage fiasco, which will work itself out in the next few years.

Ontario will find that its northern and rural areas will benefit from the boom, but manufacturing industries, which only make up 20% of Ontario's economy (less than services, finance and insurance), will be challenged to maintain competitiveness.

All this raises a very troubling issue for Ontario. It can provide relief for specific industries, but to protect them from a world economy that is vastly different would mean large subsidies for a long period of time. Instead, the federal strategy of pursuing broad policy support that allows the market to sort out how best to be competitive seems far better. It allows resources to move to those business activities with the best economic returns.

It is sometimes argued that a targeted approach to industrial policy, similar to Asian countries like Korea, Singapore, Malaysia and Taiwan, can be successful. However, these countries aimed their support to grow new industries, not to support declining ones. The policies, generally fiscally costly tax holidays, require companies to perform according to certain standards, thereby blunting their effect on investment. It is questionable that targeted tax-relief measures and subsidies have been any more successful than the broad industrial support measures provided in Hong Kong, Chile and Ireland, which have grown equally well. Most countries, as they grow richer, see their manufacturing base move to low-cost countries. Meanwhile, they attract high value-added production involving business services and intangibles.

Overall, the Flaherty approach is right. Ontario needs to rethink its industrial strategy. Targeted subsidies won't cure competitiveness problems. Ontario should consider revamping its tax structure and look at other broad polices to support its industrial structure.

--- - Jack M. Mintz is the Palmer Chair of Public Policy, University of Calgary.
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Finance minister blames premier for Ontario's struggles and offers little hope of budget help

With a possible federal election looming, Finance Minister Jim Flaherty is trying to lay the blame for Ontario's economic woes at the feet of Premier Dalton McGuinty.

Flaherty ratcheted up his war of words with McGuinty yesterday, suggesting in a speech to the Canadian Federation of Independent Business at the Royal York hotel that the Ontario Liberals' tax policies are behind the current slowdown in the province's economy.

Ontario was once the "envy of the country," Flaherty said, but, even though the rest of the country is expanding economically, Ontario's growth has been below the national average, partly due to "a lack of innovation, a lack of foresight and a lack of leadership.

"Flaherty, who will deliver the federal budget on Tuesday, held out little hope for an economic stimulus package to help central Canada, which has seen hundreds of thousands of manufacturing jobs disappear in the past few years.

McGuinty has accused Flaherty of ignoring Ontario during a time of economic crisis because of what the Ontario premier says is a right-wing Conservative ideology fixated on tax cuts as the only remedy for improving the economy.

"These are words of war and, if he wants a war, he's going to get one," said Ontario Economic Development Minister Sandra Pupatello, who attended the speech and spoke for the Ontario Liberals yesterday.

Flaherty's accusations of economic mismanagement directed at McGuinty are "an appalling string of bald-faced lies – totally unacceptable for a finance minister of this nation," Pupatello told reporters.

Flaherty said Ontario has the highest corporate taxes in the country and he urged the Liberals to follow British Columbia's lead and cut them. He said the Ontario government has provided bailouts and subsidies for "favoured firms and threatened to impose higher taxes on imports – the kind of protectionism we just don't need."

The exchange between Flaherty and the Ontario Liberals comes before a possible federal election. If the federal Liberals vote against the budget on March 4, there could be an election on April 14.

Yesterday, a Canadian Press Harris-Decima poll suggested the Conservatives would win 35 per cent of the vote if an election were held today, the Liberals 33 per cent, the NDP 13 per cent and Green party 9 per cent. The survey said the Bloc Québécois would get 35 per cent of the vote in Quebec.

Flaherty said McGuinty's approach reminds him of the government of former premier Bob Rae, which raised taxes and presided over an increased deficit.

McGuinty "sounds like Bob Rae," Flaherty said on CBC Newsworld.

The premier "needs to get his house in order," Flaherty said. Helping individual sectors is fine, not business by business, Flaherty added. In response, Rae, now a federal Liberal, said, "I'll admit I ran a deficit during the worse recession since the Thirties. I also built housing, saved companies and kept people working and off the streets.

"It's the Harris/Flaherty cuts that slashed income supports, cut vital programs and cancelled subways. And guess what? They even managed a $5.6 billion deficit when growth was good and unemployment was down as their going-away present to the people of Ontario," Rae said of the provincial government of Mike Harris, with Flaherty as provincial finance minister.

Pupatello said Ontario taxpayers have always helped other regions of the country, but now that Ontario needs assistance, the federal Conservatives are turning their backs on the province. "It's totally unacceptable that he (Flaherty) would refuse to look at Ontario's support requirements today."

She said that, with a federal election in the wind at a time of economic difficulty, Flaherty and the Conservatives are trying "to take the spotlight off themselves and the responsibility that they have for Ontario."

Ontario's economy has been battered by the rise in the loonie, high oil prices, the decline in the housing sector in the U.S. and longstanding problems in the auto sector.

A bank economist yesterday seemed to suggest that the Liberals were right and Flaherty's stance that the Ontario government is to blame is incorrect.

Lower taxes can be helpful, but aren't a guaranteed fix for Ontario's economic troubles, said Craig Alexander, TD Bank's deputy chief economist.

"The reality is that this is a very difficult environment," he said, referring to the U.S. slump and the impact of the higher loonie on Canadian manufacturers trying to sell to American customers.

"Tax cuts can improve productivity but that doesn't mean that they can't be part of a broader policy approach" that would include targeted support for certain industrial sectors.

But the economist noted that spending increases and tax cuts in Flaherty's previous budgets have left the federal Conservatives with very few financial resources to fund economic stop-gap measures.

Meanwhile, Ontario NDP Leader Howard Hampton said yesterday McGuinty should quit playing the "blame game" against Ottawa and spend the $1 billion in federal money already earmarked for Ontario.

"It is bizarre," Hampton told reporters yesterday at Queen's Park. "The McGuinty government is sitting on about $1 billion of federal money that is available for these things right now."

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PRIME MINISTER ANNOUNCES DECISIVE ACTION ON AFGHANISTAN PANEL RECOMMENDATIONS

Prime Minister Stephen Harper today announced the creation of a Cabinet Committee on Afghanistan and an Afghanistan Task Force within the Privy Council Office to better coordinate and ensure the effectiveness of Canada’s activities in Afghanistan.

The Government also announced it is giving notice of a motion to extend Canada’s commitment to the United Nations mandated mission in Afghanistan until the end of 2011 on the condition that Canada can secure a partner that will provide a battle group of approximately 1,000, as well medium helicopter lift capacity and high performance Unmanned Aerial Vehicles.

Today's announcements represent further action by the Government to move forward on the future of Canada's mission, and to respond directly to recommendations the Independent Panel on Canada’s Future Role in Afghanistan outlined in its report of January 22, 2008.

“Our Government is taking every step to ensure the future success of Canada’s mission to Afghanistan,” the Prime Minister said. “Over the past week, I have been speaking with other NATO leaders about our collective undertaking in that country. And I am pleased to announce today these steps to bring greater coherence and effectiveness to Canada’s efforts.”

The new Cabinet Committee on Afghanistan will have the mandate to consider diplomatic, defence, development and security issues related to Canada’s mission in Afghanistan. The Committee will report to the Prime Minister and the Priorities and Planning Cabinet Committee on a regular basis.

Chaired by Minister of International Trade David Emerson, the Committee will include Minister of National Defence Peter MacKay, Minister of Public Safety Stockwell Day, Minister of International Cooperation Beverley J. Oda and Minister of Foreign Affairs Maxime Bernier.

The Afghanistan Task Force will support the Cabinet Committee by coordinating government activities related to Afghanistan.

Mr. David Mulroney, formerly the Associate Deputy Minister of Foreign Affairs, has been appointed Deputy Minister of the Afghanistan Task Force, effective immediately.

The Prime Minister’s Office - Communications

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Minister of Finance announces appointment

Minister of Finance Announces Appointment of New Director to the Canada Deposit Insurance Corporation

The Honourable Jim Flaherty, Minister of Finance, today announced the appointment of Barry Moore to the Board of Directors of the Canada Deposit Insurance Corporation (CDIC).

"I am very pleased to appoint someone who brings such an excellent combination of business and public experience to this board," said Minister Flaherty.

Mr. Moore is a Senior Auditor with Dumoulin Ethier Lacroix CA and served as the Member of Parliament for the riding of Pontiac–Gatineau–Labelle from 1984 to 1993. He will take up his three-year term immediately.

CDIC is a federal Crown corporation established in 1967 to provide up to $100,000 deposit insurance against the loss of eligible deposits with member institutions in the event of their failure. Member institutions include banks, trust companies and loan companies.
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Barry Moore, CGA
Mr. Moore, a Certified General Accountant, served as the Member of Parliament for the riding of Pontiac–Gatineau–Labelle from 1984 to 1993. He served as the Parliamentary Secretary to the Minister of National Revenue and as the Parliamentary Secretary to the Minister of State (Small Business and Tourism). Before and after his elected service, he has worked as a Senior Auditor with Dumoulin Ethier Lacroix CA. Active in his community, he has served as President of Centraide Gatineau–Labelle–Hautes–Laurentides. He is also past President of the Board of the Caisse populaire Desjardins de Maniwaki
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An Interview with Hamilton East - Stoney Creek Federal Liberal Candidate Larry DiIanni

Dion Liberals Steal Boxes: Call the Cops!

Conservative Party of Canada Candidate Terry Anderson rocks a packed house!

TOUCHDOWN Flaherty: Tax-free fund to help disabled

Conservative Finance Minister Jim Flaherty reacted positively to an expert panel report that recommended Canadian families be allowed to amass up to $200,000 tax-free in a fund, similar to an RRSP, and use the money to help with the costs of caring for disabled children.

Asked about the recommendation by the Globe and Mail, Flaherty said: "I would be surprised if that weren't in the budget." It earned a positive story that will be good news for the parents of disabled children this holiday season.

It showed that Flaherty is willing to listen. And it didn’t damage the initiative. If anything, the positive support Flaherty and his government are likely to hear as a result of the article will probably only increase the chances of it happening.

And besides, it will be in the news again – another communications plus – when the budget is actually announced. Since there was no downside to his honest reaction, the Finance Minister earned a Touchdown.

Prime Minister gives Canadians a say in who represents them in the Upper House

Prime Minister Stephen Harper has announced that Canada’s New Government will introduce a bill in the House of Commons today to establish a national process for consulting Canadians on their preferences for Senate appointments.

The bill will see voters choose their preferred Senate candidates to represent their provinces or territories.

“This bill will make the Senate more democratic and more accountable,” said Prime Minister Harper in a speech to his caucus. “For the first time, it will let the Prime Minister give Canadians a say in who represents them in the Upper House.”

The Senate Appointment Consultations Act represents another step in a comprehensive plan to make government more accountable. The Prime Minister noted that the bill was being introduced the day after the government’s Federal Accountability Act received royal assent. Canada’s New Government has also introduced legislation to limit Senators’ terms to eight years.

Details about the new bill will be released when it is introduced in the House of Commons later today.