Harper, Trudeau spar over Liberal infrastructure plan
Justin Trudeau set out to build Liberal campaign momentum Thursday with a multibillion-dollar infrastructure plan — and an animated Stephen Harper spent much of his day trying to tear him down.
Trudeau’s campaign event in Oakville, Ont., which featured heavy equipment and a small army of supporters clad in reflective vests and Liberal-red hard hats, was framed as a major plank in the party’s platform — one designed to stimulate a faltering economy and shore up the country’s crumbling roads, bridges and transit systems.
The plan — $125 billion over 10 years, twice what’s currently slated for infrastructure upgrades across Canada — would be financed by three years of “modest deficits,” followed by a balanced budget in 2019.
“Government has a responsibility to act decisively and for the public good. Canada’s economic growth was made possible by building ambitiously,” Trudeau said.
“We must do so again if we are to transform our transit and transportation systems, create more livable communities, and ensure that we adapt to a changing climate.”
That willingness to leave the budget out of balance has separated Trudeau from Harper and NDP Leader Tom Mulcair, who both say they would bring in balanced budgets immediately.
An energized-looking Harper, perhaps relieved the barrage of Mike Duffy questions appeared to have eased, mocked Trudeau’s “modest deficits” message during a boisterous speech in Hamilton that at times seemed more standup routine than stemwinder.
“I guess it turns out the budget doesn’t balance itself,” a giddy Harper jeered — a reference to Trudeau’s now-infamous sound bite in which he suggests strong economic growth is the best way to ensure healthy books.
“He’ll run, he says, a modest deficit, a tiny deficit, so small you can hardly see the deficit,” he said, making a teeny-weeny hand gesture that sent Internet meme-makers into a tizzy. “And only for three years — three deficits, three modest little deficits.”
While doubling federal infrastructure funding, Trudeau said, any shortfalls in the federal treasury over the next two years would be capped at $10 billion per year. Harper couldn’t help himself. “Mr. Trudeau has made tens of billions of dollars of spending promises ... he has no idea what he’s talking about when it comes to these things,” he said earlier in the day, during an event where he announced plans to ease the recognition of foreign credentials.
“That’s why you could be sure that his small deficits will become large deficits and would get Canada into the same pickle of high taxes and program cuts that we had under the last Liberal government.”
Harper promised some modest new spending of his own, pledging $40 million to a loan program to help new Canadians while they complete the foreign credential recognition process. The funding would be over five years, on top of the $35 million already allotted for it in this year’s budget.
At a Toronto event, Mulcair appeared to back away from a pledge last year to restore up to $36 billion in provincial health-care transfers — one that has taken a back seat to other pricey campaign commitments within a balanced budget.
Mulcair insisted Thursday that an NDP government would make it a “top priority” to honour his health-funding commitment, but acknowledged it’s not likely to happen right away.
The NDP leader made the promise last summer in what his party called a “historic” speech to the Canadian Medical Association. He castigated Stephen Harper’s government for its plan to reduce the rate of increase in health transfers to the provinces starting in 2017, a move he said would rob the provinces of up to $36 billion over 10 years.
“An NDP government would use any budget surplus to cancel the proposed cuts to health care,” he said at the time.
However, since then Mulcair has said little about that promise while he’s added a number of others — including a $5-billion national childcare program — that would apparently take priority.
“We had said that any surplus, because Mr. Harper had been promising surpluses, would be dedicated in our case first and foremost to avoiding that (transfer reduction),” Mulcair said at the campaign office of star candidate Andrew Thomson, a former Saskatchewan finance minister.
“Now it looks pretty obvious that there won’t be any, but during that two-year period our health minister will have as a top priority to get new health accords.”
The New Democrats are touting Thomson’s record of balancing his province’s budget in 2006 and 2007 after Mulcair said unequivocally this week that an NDP government would balance its first budget. program worked into its budget, but not every province does. The western provinces, beaten up by the oil bust, are trying to spend a lot less than they have been.
The Liberals have given themselves an out: Money they don’t spend each year will just get transferred to municipalities via existing gas-tax payments. So the cash will go out the door one way or the other.
But there’s also the problem that once you’ve built something, you have to operate and maintain it. Light rail in Ottawa will move a lot more people than buses do, but it’ll also be more expensive to run. New social-housing units mean more ongoing rent subsidies. Build a new daycare and you need people to work in it. The feds can show up with their great big novelty cheques, but the provinces and cities will get to pay the bills that come in later, as they’re well aware.
It could actually be difficult to find twice as many things Canada’s cities are willing to build between now and 2025. It’s certainly not clear that the stuff they find to buy, with the second $60 billion they might get, will be as economically useful as what they spend the first $60 billion on.
But between now and Oct. 19, the promise gives Trudeau a big number to throw around and a lot of dreams local candidates can promise to fulfil.
The news about the economy isn’t good and it’s getting worse every day. When he’s asked about it, when he chooses to answer questions, Stephen Harper’s only response is that we need to stick to the status quo. — Liberal Leader Justin Trudeau