Business leaders laud Flaherty’s ‘ strength’ during recession
TORONTO — Former federal finance minister Jim Flaherty was remembered by the business community on Thursday for his steady hand and determined leadership in Canada and on the world stage through the 2008- 09 financial crisis.
“He was a source of strength and financial leadership for the country during what was probably the most challenging economic period since the Great Depression,” said Gord Nixon, the head of Royal Bank of Canada. “( Flaherty) provided great global leadership. I think he would be recognized by his peers as being not just a source of strength to Canada but a leading voice in terms of dealing with what was a global crisis.”
“My thoughts go to his wife, to the boys,” International Monetary Fund managing director Christine Lagarde said in Washington, where Flaherty was a fixture at G20 and IMF meetings.
“We had a chat in ( Australia) and a laugh. I would never have imagined he wouldn’t be with us. He was a friend.”
As finance minister for eight years, Flaherty opened the spending taps during the economic crisis, running a $ 56- billion deficit, bailing out the auto sector and spending freely to boost the ailing economy. He also became a leading voice during the crisis globally and earned international recognition for his efforts.
In recent years, he returned to his fiscal conservative roots and moved to tighten spending to put the federal budget back on track to return to surplus.
Nixon said Flaherty “didn’t always see eye- to- eye” with Canadian banks, but the sector knew that he was fair. Flaherty rankled the Canadian investment community when he backed away from a campaign pledge by taxing income trusts like corporations. He also took heat when he publicly chided BMO last year for lowering its key five- year mortgage rate, warning the super- low rate could help overheat the housing market.
The Investment Industry Association of Canada called it a “very sad day.”
“There is little doubt he will go down in history as one of Canada’s most effective finance ministers,” said IIAC president and CEO Ian Russell in a statement.