Premiers, PM aim for economic consensus
http://www.thestar.com/News/Canada/article/572141
Robert Benzie
Queen's Park Bureau Chief
And Bruce Campion-Smith
Ottawa Bureau Chief
OTTAWA — Canada's first ministers began meeting this morning in a bid to "kick-start" the nation's ailing economy by injecting billions in job-creating infrastructure programs.
Heading into the all-day closed-door session here between Prime Minister Stephen Harper and the provincial and territorial leaders, Ontario Premier Dalton McGuinty said they all know what needs to be done.
"Even in the context of this economic uncertainty there are some things about which we are pretty sure. We know how to stimulate the economy," McGuinty told CTV's Canada AM.
"We want to make sure we do that in the best way possible," he said this morning at theconference being held at Ottawa's old city hall on Sussex Drive.
With Harper hinting that the big-spending Jan. 27 federal budget could ring up a $40 billion deficit, the premiers know there will be wheelbarrows of cash for roads, bridges, waterworks, skills training, and other economic stimuli.
"I don't think it's a question of really spending our way out. It's a matter of ... jumpstarting the economy and restoring confidence," emphasized McGuinty.
"About 60 per cent of the Ontario economy ... is based on consumer spending. A lot of folks are pretty anxious," he said.
"They're very concerned, they've withdrawn and retrenching. It's now well-documented by economists ... is that one of the most important things you need to do in this time is to come together through your government and kick-start the economy by creating jobs and the kinds of projects that people can see and do in fact get shovels in the ground."
McGuinty called the summit a "rather extraordinary meeting" because the premiers, who will have briefings from Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty, should have a front-row seat to crafting national economic policy.
"It's a real opportunity for us to lend shape to the upcoming federal budget," he said.
"We are all here to represent some of the sentiment being felt in homes right across the country. Canadians are anxious, they're concerned about job losses, they're concerned about foundering businesses. There's a lot of anxiety and there's a lot of uncertainty."
Alberta Premier Ed Stelmach, who has expressed concern about a spending spree on borrowed money that could balloon the national debt and inflate interest rates, urged prudence.
Stelmach said he'd like to see "strategic tax incentives to not only create the confidence in the economy for consumers but also to encourage business investment."
"We have to be careful that these deficits are short-term because the fallout may be inflation and higher interest rates three or four years from now," he said.
The Albertan told Canada AM that he was also worried about labour mobility and trade barriers that constrain movement and undermine the economy.
Newfoundland Premier Danny Williams, who like McGuinty has been urging an increase in employment insurance (EI) benefits, said there is a lot of goodwill in the conference room.
"This is a Canadian effort. This is not about partisan politics or any differences, whether petty or otherwise, between leaders. We're here to contribute," said Williams, noting that last night's meeting between the first ministers and aboriginal leaders started the two-day summit off on the right foot.
"I think the Prime Minister and the finance minister are here to get our advice, to hear what we've got to say," he said.
Yesterday, the premiers and big city mayors, who also met in Ottawa to discuss infrastructure spending, urged the federal government to cut red tape to get money out the door faster.
"We need action today. We don't need red tape. We don't need funds created that are never spent, like the Building Canada Fund," said Toronto Mayor David Miller, referring to Ottawa's maligned seven-year $33-billion infrastructure scheme.
Mississauga Mayor Hazel McCallion echoed the need for urgent action.
"The federal government has announced programs but with the red tape and the strings that are attached to it, the money never flows," McCallion said here.
"If they want the cities to get on with projects to provide jobs, the money has got to start to flow. It can't be tied up in environmental assessment both at the provincial and federal level."
