Trudeau sticks to spending pledge
ST. ANDREWS, N.B. • Prime Minister Justin Trudeau won’t say how large he plans to let this year’s deficit grow, but showed no sign Monday of shying away from investing billions in infrastructure in a bid to boost Canada’s ailing economy.
Speaking at a threeday cabinet retreat at this seaside resort, where the e c onomy has been the main theme, Trudeau criticized the previous government’s economic record and doubled down on his government’s plan to focus infrastructure spending to produce long-term results.
But Trudeau skirted the question of whether Finance Minister Bill Morneau will be allowed to run a deficit of more than $ 10 billion to kick- start the economy, as some economists and analysts are recommending.
“I have instructed Bill ( Morneau) to put forward a strong budget that reflects the needs of Canadians and the needs of the Canadian economy, focused on growth while remaining fiscally responsible,” Trudeau said. “And I have every confidence in the world that’s exactly what we’re going to deliver in our first budget.”
The Liberal platform promised an extra $ 60 billion for infrastructure over the next decade, but only $ 17.4 billion in the next four years. With oil and the Canadian dollar slumping, there have been mounting calls to shovel the cash out faster. That would almost certainly mean deficits of more than $10 billion per year.
Interim Conservative Leader Rona Ambrose wrote Trudeau on Monday asking that he commit to a “meaningful limit” on the deficit. She also asked to sit down with him to talk about the economy, which Trudeau said he would do.
“Our focus on infrastructure money is actually getting projects built and gett i ng people working on things that will activate the job market in the short term,” he said, “but ( also) create growth and productivity gains in the medium and long term for our communities, and for our country.”
The Liberals have targeted three areas: public transit; social infrastructure such as affordable housing and waste- water systems; and green projects. Officials say cabinet is still debating the right balance between refurbishing existing infrastructure — such as making buildings more energy- efficient — and new projects.
The Federation of Canadian Municipalities rel eased a report Monday concluding that about 12 per cent of municipal roads, sewers and other infrastructure across Canada is in danger of deteriorating, and that it would cost $ 141 billion to replace. Many cities aren’t spending enough to maintain their infrastructure.
The Liberal plan is a sharp contrast to the previous Conservative government’s approach following the 2009 economic downturn, which was associated i n some minds with s mall- t own hockey rinks and community centre upgrades.