CANADA NEEDS LEADERSHIP, NOT CHEAPER POTATO CHIPS
There is never a good time for the federal government to be wracked by political instability because of the snap resignation of a finance minister. But seven weeks before an economic crisis hits the country is undoubtedly the worst time.
Chrystia Freeland’s departure from cabinet was dramatic, complete with a resignation letter that catalogued the shortcomings of the Trudeau government. But Monday’s turmoil is not what should concern Canadians. No, the bigger worry by far is the Liberals’ failure to effectively deal with the multiplying challenges facing this country.
“They know when we are working for them, and they equally know when we are focused on ourselves,” Ms. Freeland wrote in her letter. Indeed, Canadians are all too aware of this government’s inability to put the interests of the country ahead of those of the Liberal Party.
A housing crunch that turned into a crisis. A military neglected as the world grew more dangerous. An immigration system pushed to the brink. Crumbling productivity that threatens our long-term prosperity. The bloating of the federal civil service. And, of course, years of mismanagement of federal finances. Each time, the Trudeau cabinet – with Ms. Freeland at its centre – has failed to deliver the prudent governance that Canadians deserve, ignoring all warnings.
Now, Canada is faced with the prospect of a debilitating trade war with the United States, and the Trudeau government is focused on buying favour with, as Ms. Freeland put it, “costly political gimmicks” rather than deterring incoming U.S. president Donald Trump from imposing 25-per-cent tariffs on Canadian exports.
That Ms. Freeland warns on her way out the door that the Liberal government is acting irresponsibly is no absolution.
If Mr. Trump keeps to his plan, he will send the Canadian economy tumbling into an abyss. Yet, there is no sense of urgency in the Liberals’ fiscal update, delivered on Monday after a day of chaos. The government’s downside economic scenario does not even contemplate what Mr. Trump’s threatened tariffs would mean for Canada.
The government touts a $1.3-billion “comprehensive border security package,” a response to Mr. Trump’s demand that Canada crack down on drug smuggling and illegal migration. But only $81-million of that is to be spent in the current year – less than 5 per cent of the amount that the Liberals will splash out by cutting the GST for two months.
That is a foolhardy choice by a floundering government. Ms. Freeland takes aim at the Liberals’ misguided priorities in her resignation letter, saying Ottawa should keep its “fiscal powder dry” in order to be able to deal with a tariff war. But much of that powder has already been expended on Ms. Freeland’s watch, with the government taking every opportunity to increase spending rather than balance the budget after the pandemic economic crisis receded.
Monday’s fiscal update was no exception. Deficits are bigger in every year of the forecast than they were in the April budget. If Ms. Freeland had simply stuck to the spending plan she outlined in the 2022 budget, the update would have featured a $16.6-billion surplus for the current fiscal year, rather than the projected $48.3-billion deficit. That would be dry powder aplenty.
The Liberal government has not just wasted money. Much worse, it has wasted time, long before the question of Mr. Trump’s tariffs arose. The housing shortage, now afflicting major cities, will take years to relieve. The stresses in the immigration system continue to build as the government contemplates quarter-measures. The rebuilding of Canada’s defence capacity is still mostly a plan to come up with a plan – by 2032 – as authoritarian countries forge an alliance of aggression. It will take years to downsize the civil service and restore the federal budget to balance.
Meanwhile, the Liberals (including Ms. Freeland, until this week) tout the wonders of reducing the sales tax on potato chips for two months.
Imagine if the Liberals had acted in the long-term interests of the country and were prepared to set aside narrow partisan interests. What might Canada look like today? It would be a country more secure, with armed forces able to make good on defence commitments. It would be a country more prosperous; a destination for investment. It would be a country more confident; able to face the instability of the world.
Canadians deserve that country. Canadians deserve better.
Story by: The Globe and Mail
