Tory fiscal follies

Tom Lukiwski (April 22), Conservative MP for Regina Lumsden Lake Centre, took issue with Bruce Johnstone’s (April 11) criticism of Harper’s dismal fiscal record by blaming Pierre Trudeau’s “spendthrift policies”. Lukiwski didn’t mention that Trudeau’s fiscal mess was made messier by Mulroney’s Conservatives.

Mulroney was definitely handed a challenge with higher interest rates and a huge deficit. But in 1993, after nine consecutive massive deficits himself, Mulroney handed Liberals a $38.5 billion deficit ($57 billion in 2015 dollars). The Liberals turned that around by 1997 (not without pain at all government levels), tabled nine straight surpluses, and actually started paying down the debt.

Contrast Stephen Harper inheriting a $13-billion surplus with lower interest rates in 2006. By 2008, he had squandered the surplus and no cushion remained for the financial crisis.

Since 2009, the federal debt has increased over 30 per cent, or $150 billion. $100 billion of that is due to Harper’s irresponsible cut to the GST, a fair and progressive consumption tax. Based on government data, the two cent GST cut is costing Conservatives $13 billion, plus another $4 billion in interest payments to service that extra $100 billion debt. That’s $17 billion of lost revenue this year alone because Harper cut the GST.

Mulroney and Harper accumulated $450 billion of the $600-billion federal debt. Blaming Pierre Trudeau is a stretch considering seven consecutive Harper deficits and current pseudosurplus. And again, with no financial cushion.

So Stephen Harper’s hypocritical “balanced budget legislation” is a few years too late.

Russ Husum, Regina