Budget

Wednesday November 2, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Wednesday November 2, 2016 Fiscal update boosts Liberal infrastructure plans but offers no path back to balance Justin Trudeau's Liberal government is responding to the sluggish global economy with a fall economic update that puts a even greater focus on infrastructure spending than in its spring budget, while making it easier for private sector investors to add their money to the government's already considerable funding pot. While the projected deficit for 2016-17 has moved down to $25.1 billion from the $29.4 billion forecast in the spring budget, the new figure no longer has any kind of a safety cushion built in. Absent that cushion, the deficit has actually grown thanks to some $1.7 billion in new spending since last spring. The deficit situation improves toward the end of the government's five-year horizon, to $16.8 billion in 2020-21. The projected debt-to-GDP ratio Ñ the key measure of the affordability of a government's debt Ñ by then returns to the 31 per cent mark, where it was in 2015-16 as the Liberal government took office. Morneau told reporters his government made the right decision in preparing itself for what is happening to the economy. But Interim Conservative leader Rona Ambrose said the Liberals' massive spending has created no new jobs and has led to a stalled economy. "They think this failed plan is somehow working, and they're doubling down on it," she said. Repeating the party's line that the Conservatives are the voice of taxpayers, Ambrose accused the government of "making lives more expensive for Canadians.Ó "Canadians are worse off today than they were a year ago," Ambrose said. "But instead of action, we hear excuses.Ó (Source: CBC)Êhttp://www.cbc.ca/news/politics/fall-economic-update-bill-morneau-1.3831080 Canada, Bill Morneau, budget, economy, deficit, statement, update, economic, dragon, spending

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday November 2, 2016

Fiscal update boosts Liberal infrastructure plans but offers no path back to balance

Justin Trudeau’s Liberal government is responding to the sluggish global economy with a fall economic update that puts a even greater focus on infrastructure spending than in its spring budget, while making it easier for private sector investors to add their money to the government’s already considerable funding pot.

While the projected deficit for 2016-17 has moved down to $25.1 billion from the $29.4 billion forecast in the spring budget, the new figure no longer has any kind of a safety cushion built in. Absent that cushion, the deficit has actually grown thanks to some $1.7 billion in new spending since last spring.

The deficit situation improves toward the end of the government’s five-year horizon, to $16.8 billion in 2020-21. The projected debt-to-GDP ratio — the key measure of the affordability of a government’s debt — by then returns to the 31 per cent mark, where it was in 2015-16 as the Liberal government took office.

Morneau told reporters his government made the right decision in preparing itself for what is happening to the economy.

But Interim Conservative leader Rona Ambrose said the Liberals’ massive spending has created no new jobs and has led to a stalled economy.

“They think this failed plan is somehow working, and they’re doubling down on it,” she said.

Repeating the party’s line that the Conservatives are the voice of taxpayers, Ambrose accused the government of “making lives more expensive for Canadians.”

“Canadians are worse off today than they were a year ago,” Ambrose said. “But instead of action, we hear excuses.” (Source: CBC)

 

Tuesday May 10, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Tuesday May 10, 2016 Ontario Health Coalition holding unofficial referendum on healthcare funding Healthcare workers and community activists are hoping an Ontario-wide unofficial referendum will raise awareness of the concerns they have about provincial funding. The Ontario Health Coalition, a group of activists working to improve the public healthcare system, is launching their campaign in communities such as Toronto, Ottawa, Windsor, Sudbury and Guelph on Monday. "The cuts have been severe in OntarioÉ we're doing a referendum because this has pretty much happened by stealth or by talk of not enough resources to go around," said Albert Dupuis, co-chair of the local Ottawa coalition organizing the campaign in that city. The group will be distributing ballot boxes to businesses, workplaces and community centres across the province. The unofficial referendum will ask people if they're for or against the idea "Ontario's government must stop the cuts to our community hospitals and restore services, funding and staff to meet our communities' needs for care.Ó The group says healthcare in Ontario has been under-funded for years and is below the Canadian per capita average by about $350 per person. The Liberals ended a four-year hospital base funding freeze in its latest budget promising to spend $60 million on hospital budgets along with $75 million for palliative care and $130 million for cancer care, but the Ontario Health Coalition has said that isn't enough.(Source: CBC News)Êhttp://www.cbc.ca/news/canada/ottawa/ontario-health-coalition-funding-referendum-1.3551852 Ontario, health, cuts, austerity, budget, Eric Hoskins, Kathleen Wynne, doctor

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday May 10, 2016

Ontario Health Coalition holding unofficial referendum on healthcare funding

Healthcare workers and community activists are hoping an Ontario-wide unofficial referendum will raise awareness of the concerns they have about provincial funding.

The Ontario Health Coalition, a group of activists working to improve the public healthcare system, is launching their campaign in communities such as Toronto, Ottawa, Windsor, Sudbury and Guelph on Monday.

“The cuts have been severe in Ontario… we’re doing a referendum because this has pretty much happened by stealth or by talk of not enough resources to go around,” said Albert Dupuis, co-chair of the local Ottawa coalition organizing the campaign in that city.

The group will be distributing ballot boxes to businesses, workplaces and community centres across the province.

The unofficial referendum will ask people if they’re for or against the idea “Ontario’s government must stop the cuts to our community hospitals and restore services, funding and staff to meet our communities’ needs for care.”

The group says healthcare in Ontario has been under-funded for years and is below the Canadian per capita average by about $350 per person.

The Liberals ended a four-year hospital base funding freeze in its latest budget promising to spend $60 million on hospital budgets along with $75 million for palliative care and $130 million for cancer care, but the Ontario Health Coalition has said that isn’t enough.(Source: CBC News)

 

Thursday March 24, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator - Thursday March 24, 2016 Canada government tries to fend off critics worried about deficits Canada's government on Wednesday sought to deflect criticism that it had condemned the country to years of budget deficits, saying it could balance the books within five years if efforts to boost the economy succeed. The ruling Liberals on Tuesday projected a C$29.4 billion ($22.3 billion) deficit for fiscal 2016-17, nearly three times larger than what they promised during last year's election campaign. The Liberals, who say the spending will help boost growth, gave no target date for returning to balance, with the budget still expected to show a deficit of C$14.3 billion in 2020-21. Opposition politicians and influential media commentators said they feared Canada would face a long string of shortfalls of the kind it has not seen in two decades. This could cause problems for Prime Minister Justin Trudeau. "We're hoping to increase the growth rates," Trudeau told CBC Radio on Wednesday. If the government can stimulate the economy, "we get to balance in the coming five years," he said. "There is a track to that if we increase the growth in the economy." Trudeau faces no immediate political threat, since he only took power last November and is sitting high in the polls. But the longer the deficits last, the greater the potential political risk. (Source: Reuters) http://ca.reuters.com/article/domesticNews/idCAKCN0WP1R2 Canada, Justin Trudeau, Bill Morneau, growth, economy, budget, debt, spending, government

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday March 24, 2016

Canada government tries to fend off critics worried about deficits

Canada’s government on Wednesday sought to deflect criticism that it had condemned the country to years of budget deficits, saying it could balance the books within five years if efforts to boost the economy succeed.

The ruling Liberals on Tuesday projected a C$29.4 billion ($22.3 billion) deficit for fiscal 2016-17, nearly three times larger than what they promised during last year’s election campaign.

The Liberals, who say the spending will help boost growth, gave no target date for returning to balance, with the budget still expected to show a deficit of C$14.3 billion in 2020-21.

Opposition politicians and influential media commentators said they feared Canada would face a long string of shortfalls of the kind it has not seen in two decades. This could cause problems for Prime Minister Justin Trudeau.

“We’re hoping to increase the growth rates,” Trudeau told CBC Radio on Wednesday.

If the government can stimulate the economy, “we get to balance in the coming five years,” he said. “There is a track to that if we increase the growth in the economy.”

Trudeau faces no immediate political threat, since he only took power last November and is sitting high in the polls.

But the longer the deficits last, the greater the potential political risk.  (Source: Reuters)

 

Tuesday March 22, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Tuesday March 22, 2016 OttawaÕs deficit-spending budget WhoÕd have thought that a governmentÕs deficit-spending budget would garner such universal support? But most business groups, usually the shrillest of critics, are behind the Liberal governmentÕs plans. This backing includes support from the Canadian Chamber of Commerce, Canadian Manufacturers and Exporters, economists at the big banks and several think tanks. And this, even though the budget may see a $30 billion deficit when unveiled in Ottawa Tuesday. It says a lot about how the world has changed. In the past decade, many economic assumptions have been turned upside down. Many attitudes have also changed. Who would have once thought that our central bank would be trying to stoke inflation, rather than crush it? Or that instead of worrying about rising interest rates killing the economy, weÕd be worried that falling rates killing the economy? Or that it would okay for central banks to create trillions of dollars out of thin air? This new consensus is really a capitulation. It says that, after eight years of manipulating interest rates, that policy hasnÕt worked. No amount of pushing on that string has created growth. So itÕs time to pull lever number two, fiscal policy. You spend money you donÕt have (but promise to pay back). You hope to stimulate demand so that businesses will follow along and economic activity will increase. Central banker Stephen Poloz delayed cutting CanadaÕs key rate again in January from its lofty one half of one per cent for this reason. He wanted to see what Ottawa planned to do. The frantic effort to get something going is as much about the future as the present. The concern is that when the next recession arrives Ñ which inevitably it will Ñ there will be nothing central banks can do. ThereÕll be no ammunition left in the rate-cut gun. Most economic expansions last between five and seven years. The current one i

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday March 22, 2016

Ottawa’s deficit-spending budget

Who’d have thought that a government’s deficit-spending budget would garner such universal support?

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator - Friday February 12, 2016 Trudeau shies away from Liberals' balanced-budget vow, cites fading economy Prime Minister Justin Trudeau is backing away from a campaign vow to balance the public books before the end of his government's four-year mandate Ñ a promise that was central to the Liberal election platform. As a result of a weakening economy, the government's upcoming 2016-17 budget plan will show a deficit larger than the Liberals' promised $10-billion shortfall cap, Trudeau told Montreal's La Presse newspaper. Just how big that deficit will be remains unclear. If the economy continues to deteriorate, it will be difficult for the Liberals to live up to their pledge to balance the books in 2019-20, Trudeau said in an interview published Thursday. Less than two months ago, Trudeau insisted that the Liberal plan to make good on that key balanced-budget promise was "very" cast in stone. The doubts raised by Trudeau offer a glimpse of the fiscal pressure faced by the Finance Department as it crafts the government's first federal budget, expected late next month. "If we look at the growth projections for the next three or four years, it will be difficult (to return to balance)," Trudeau was quoted by La Presse as saying. "But everything we're doing is aimed at creating economic growth. When predicting the level of growth four years in advance, governments often miss the target." During the fall election campaign, Trudeau promised to keep deficits below the $10-billion mark in 2016-17 and 2017-18 unless the economic situation got radically worse. "Yes, we will go over $10 billion," Trudeau told La Presse. "By how much? We are in the process of examining that." In recent months, the Canadian economy has sputtered in large part due to the steep drop in commodity prices. On Wednesday, a National Bank of Canada report said the country's fading economic prospects could put the Liberal government on tra

Friday February 12, 2016

But most business groups, usually the shrillest of critics, are behind the Liberal government’s plans. This backing includes support from the Canadian Chamber of Commerce, Canadian Manufacturers and Exporters, economists at the big banks and several think tanks. And this, even though the budget may see a $30 billion deficit when unveiled in Ottawa Tuesday.

It says a lot about how the world has changed. In the past decade, many economic assumptions have been turned upside down. Many attitudes have also changed.

Who would have once thought that our central bank would be trying to stoke inflation, rather than crush it? Or that instead of worrying about rising interest rates killing the economy, we’d be worried that falling rates killing the economy? Or that it would okay for central banks to create trillions of dollars out of thin air?

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Thursday February 18, 2016 Canada to lose 2,830 jobs as Bombardier slashes workforce Bombardier Inc. says it will cut 7,000 positions over the next two years including 2,000 contractors in both aerospace and train divisions Ð almost 10 per cent of its global work force. Most of the job losses will be in Canada and Europe, but will be partly offset by hiring in certain growth areas as production ramps up for the new CSeries aircraft. ÒWe are taking this difficult decision to make Bombardier strong,Ó said Bombardier CEO Alain Bellemare on a conference call with analysts on Wednesday after reporting weak fourth quarter earnings. The Montreal-based aerospace and rail equipment company says the cuts will begin in the coming weeks and be completed by 2017. It was not immediately clear where the job cuts will be, though 2,830 will be in Canada. Of those, 430 will be in Ontario and 2,400 in Quebec. In Canada, 400 jobs will be eliminated in the transportation division and 2,430 in the aerospace division. Transport Minister Marc Garneau says he has mixed feelings about the job cuts and the Air Canada deal. The minister sang the praises of BombardierÕs new aircraft, but he did not immediately commit to helping the troubled company out of its financial difficulties. The Quebec government is putting up $1 billion (U.S.) for a 49.5 per cent stake in the CSeries program, while the Caisse de depots et placement du Quebec, the pension plan, spent $1.5 billion (U.S.) for a 30 per cent stake in the companyÕs train division. Bombardier has asked the federal government to join in with financial assistance for the CSeries, but like Garneau, Navdeep Bains, minister of innovation, science and economic development, said Ottawa is still studying the idea. ÒAny action the government takes with respect to Bombardier will be first and foremost in the interest of Canadians,Ó Bains said in a statement. ÒWe have been clear th

Thursday February 18, 2016

This new consensus is really a capitulation. It says that, after eight years of manipulating interest rates, that policy hasn’t worked. No amount of pushing on that string has created growth.

So it’s time to pull lever number two, fiscal policy. You spend money you don’t have (but promise to pay back). You hope to stimulate demand so that businesses will follow along and economic activity will increase.

Central banker Stephen Poloz delayed cutting Canada’s key rate again in January from its lofty one half of one per cent for this reason. He wanted to see what Ottawa planned to do.

Saturday August 29, 2015The frantic effort to get something going is as much about the future as the present. The concern is that when the next recession arrives — which inevitably it will — there will be nothing central banks can do. There’ll be no ammunition left in the rate-cut gun.

Most economic expansions last between five and seven years. The current one is weak, but is still in its seventh year. For the U.S., it’s the fourth-longest period of growth recorded.

There’s nothing to suggest any downturn is imminent, though early in the new year many wondered. Things are looking a lot better than they did then. A low dollar has perked up manufacturing. Retail sales surprised in the latest reading. American unemployment is low. (Continued: Toronto Star)

 

Thursday March 17, 2016

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Thursday March 17, 2016 ÔFreeÕ tuition in Ontario doesnÕt mean there are no costs to students Ontario Premier Kathleen Wynne says she worries about her government pitching a new student grant program as providing ÒfreeÓ tuition, because there are caveats. The Liberal government announced in its recent budget that it is combining existing programs to create an Ontario Student Grant, which would pay for average college or university tuition for students from families with incomes of $50,000 or less. But in a question-and-answer session with student leaders on Tuesday, Wynne was asked why the program is being marketed as free tuition, when students who qualify would still incur some costs. It is expected that students will still pay $3,000 toward their overall costs, such as living expenses, to supplement the tuition grant. ÒI have worried about the same thing, that itÕs free with some explanation required,Ó she said. ÒI think at the same time, if weÕre talking about tuition, average tuition, the grant will cover that, so that will be free.Ó The language around the new grant will likely Òevolve,Ó she said. The $3,000 figure was arrived at because staff determined it was a Òreasonable amountÓ that a student could make at a summer job, the premier said. Under the new program, half of students from families with incomes of $83,000 will qualify for non-repayable grants to cover their tuition and no student will receive less than they can currently receive. The government is defining average college tuition as $2,768 and average university tuition as $6,160, for arts and science programs. Wynne conceded the Ontario Student Grant is targeted at full-time, not part-time, students. ÒI donÕt think we actually have the plan for part-time students that we need,Ó she said. ÒThere are some supports in place through the Canada Student Assistance Grants, but I think that thereÕs more that we have to do.Ó She a

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday March 17, 2016

‘Free’ tuition in Ontario doesn’t mean there are no costs to students

Ontario Premier Kathleen Wynne says she worries about her government pitching a new student grant program as providing “free” tuition, because there are caveats.

The Liberal government announced in its recent budget that it is combining existing programs to create an Ontario Student Grant, which would pay for average college or university tuition for students from families with incomes of $50,000 or less.

But in a question-and-answer session with student leaders on Tuesday, Wynne was asked why the program is being marketed as free tuition, when students who qualify would still incur some costs.

It is expected that students will still pay $3,000 toward their overall costs, such as living expenses, to supplement the tuition grant.

“I have worried about the same thing, that it’s free with some explanation required,” she said. “I think at the same time, if we’re talking about tuition, average tuition, the grant will cover that, so that will be free.”

The language around the new grant will likely “evolve,” she said.

The $3,000 figure was arrived at because staff determined it was a “reasonable amount” that a student could make at a summer job, the premier said.

Under the new program, half of students from families with incomes of $83,000 will qualify for non-repayable grants to cover their tuition and no student will receive less than they can currently receive.

The government is defining average college tuition as $2,768 and average university tuition as $6,160, for arts and science programs.

Wynne conceded the Ontario Student Grant is targeted at full-time, not part-time, students.

“I don’t think we actually have the plan for part-time students that we need,” she said. “There are some supports in place through the Canada Student Assistance Grants, but I think that there’s more that we have to do.”

She also acknowledged there are calls from some corners for free tuition for every student. Wynne said she was open to the discussion, but at the moment the government can pay for the new student grant through combining several programs and eliminating some tax credits.

“In an ideal world we might actually move there,” she said. “I don’t know at this point how we would do that.” (Canadian Press)