debt

Saturday August 3, 2019

August 3, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday August 3, 2019

New credit card payment rules for Quebecers take effect today

January 18, 2018

Quebec’s new rules on minimum credit card payments, which take effect Thursday, will likely be followed closely by other provinces, the head of a consumer advocacy group says.

The new rules require banks to set a minimum payment of at least two per cent of the balance owing starting Aug. 1. It will eventually rise to five per cent.

“I suspect that other provinces are looking at this carefully, looking to see the impact from this, [and if there are] any objections from the credit-granting community,” said Scott Hannah, president and CEO of the Credit Counselling Society.

“But really this just makes good fiscal sense. For those who’ve gotten themselves into debt, this will help them.”

May 13, 2010

Twenty years ago, a five per cent minimum payment was fairly standard, Tanguay said. But the minimum percentage has dropped since then.

Banks have the option of raising the minimum payment rate to five per cent right away, although Hannah doubts many institutions will do so because that change could have negative consequences for people with higher debts.

There are no federal rules about minimum payments, but there is nothing preventing other provinces from coming up with their own.

Consumer protection policies can happen at a provincial level, but Hannah said that there tends to be continuity between provinces on these kinds of rules.

“Other provinces in Canada will be looking at this carefully, and if they’re not seeing a lot of challenges or uproar from consumers or credit granters, they may elect to adopt similar legislation,” he said. (CBC) 

 

Friday April 12, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 12, 2019

Ontario tightens purse strings, PCs don’t plan to balance books until 2023-24

May 17, 2018

Ontario’s books won’t be balanced within the Progressive Conservatives’ mandate, but the government’s first budget serves up an era of gradual belt-tightening with a side of booze.

The Tories peg the current deficit at $11.7 billion, and they don’t expect to eliminate the red ink until 2023-24. Drastic and widespread cuts that many had feared did not materialize in this budget, but the path to balance shows that much of the heavy lifting comes at the halfway mark to the next election, and after it.

March 27, 2009

The budget constrains spending growth – and shows cuts in post-secondary and social services – but is still nearly $5 billion larger than the last budget from the previous Liberal government, who the Progressive Conservatives often slam for their spending habits.

“We have developed a reasonable path to balance,” Finance Minister Vic Fedeli said. “Our path to balance in five years is a thoughtful and a measured approach to take … Our entire premise is to protect what matters most.”

The budget contains no new taxes. In addition to tackling the deficit, the government is also taking aim at the net debt – currently pegged at $343 billion – through ensuring surpluses and unused reserve or contingency funds go to paying it down.

March 20, 2004

As well, planned legislation would require the government to develop a debt burden reduction strategy, and make the premier and finance minister pay 10 per cent of their salaries for each missed reporting deadline for documents such as the budget and quarterly economic accounts. (Source: Global News)  

 

Thursday November 22, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday November 22, 2018

Fiscal update to lay out competitiveness plan, close loop on some Liberal vows

The federal government will release a fall economic update Wednesday that will seek to close the loop on some of its outstanding mandate commitments, leaving the door open for the Liberals to use next year’s budget as their 2019 election platform.

March, 1, 2018

The document will also include Finance Minister Bill Morneau’s long-awaited plan to help Canada compete for investment dollars, which many warn has become increasingly difficult following major tax and regulatory changes in the United States.

Morneau has faced pressure to lower Canada’s corporate rate, but the government has signalled it will focus on targeted measures to accelerate investment rather than across-the-board tax cuts.

The document will likely be the Liberal government’s second-last opportunity — besides the spring budget — to deliver major policy announcements and its political pitch in package form before the October 2019 election.

February 12, 2016

As for fiscal responsibility, the official said the fall statement will show that Canada’s annual projections for the federal deficit and the debt burden will continue to slide downward on trajectories similar to those outlined in the 2018 budget.

The Liberals have faced regular criticism from the Opposition Conservatives for abandoning their 2015 vow to run only modest annual shortfalls of no more than $10 billion and to eliminate the deficit by 2019.

Instead, the Liberals have posted deficits of more than $18 billion in each of the last two years.

As its guiding principle on fiscal responsibility, the government has focused on lowering the country’s debt burden — as measured by net debt-to-GDP — rather than balancing the books.

The debt-to-GDP ratio fell to 31.3 per cent in 2017-18 from 32 per cent in 2016-17. The government has predicted the ratio to fall to 30.1 per cent in 2018-19 and continue sliding each year until it reaches 28.4 per cent in 2022-23. (Source: CTV News) 

 

Friday June 8, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday June 8, 2018

‘We have taken back Ontario’: Doug Ford leads PCs to majority government

Led by Doug Ford, Ontario’s Progressive Conservatives have secured a majority government, ending nearly 15 years of Liberal power in the province.

The NDP will form the province’s Official Opposition, while the embattled Liberals were handed a substantial rebuke from voters, losing the vast majority of their seats at Queen’s Park.

Kathleen Wynne announced she will resign as Liberal leader, as the Grits failed to pick up the eight seats necessary to maintain official party status.Buoyed by Ford — a one-term Toronto city councillor and businessman — the PCs ran a populist campaign long on commitments but short on fiscal details, promising a tax cut for the middle class and corporations and a drastic reduction in the price of hydro and gasoline.

“My friends, this victory belongs to you. This victory belongs to the people. And tonight, the people of Ontario have spoken,” Ford said in a victory speech to supporters at an event in Toronto.

“I promised to deliver a strong, stable majority government and together we did that. Together we made history. We have taken back Ontario, we have delivered a government that is for the people,” he continued.

As was expected, NDP Leader Andrea Horwath held onto her seat in Hamilton Centre, where she has served as an MPP since 2004. Heading into election day, polls suggested that the NDP had a slim chance of eking out a win. While such an improbably scenario never materialized, the New Democrats manged to take 39 seat, up from the 18 they held when the campaign began. 

Wynne, Ontario’s first female and openly LGBT premier, was re-elected in Don Valley West, though the race was much tighter than it has been in previous years. The incumbent Liberals, who enjoyed a majority since 2014, suffered a stunning collapse. 

The party only managed to secure seven seats, which means they have lost official party status in the Legislature.  (Source: CBC) 

Back up Cartoons

On election night it’s always a good idea for cartoonists to have cartoons drawn up in advance in case the results don’t go quite as planned. For last night I drew the above one for a healthy PC victory. I had components ready for a minority NDP result ready to go, which I felt was unlikely. Here are the others… for a weak PC majority/minority and a PC landslide

     
Time machine back to the back up cartoons from 2014 election

The Results vs. the Polls

The Results of the 2018 Ontario Provincial Election (voter turnout 58%)

PC: 76 seats, 40.49%   NDP: 40 seats, 33.57%   LIB: 7 seats, 19.59%  

Green: 1 seat, 4.6%

This election has been very well polled and nicely aggregated by the CBC through it’s poll tracker. In recent elections surveys have been pretty unreliable in forecasting the outcomes in Canada’s recent federal election, and especially the Brexit referendum, the U.S. Presidential and the French elections. Knowing the site will likely be refreshed soon, here is a screen graph of all the findings right up to a day before voting day 2018.

Letter to the Editor, The Hamilton Spectator Published, June 13, 2018

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Friday April 6, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 6, 2018

Federal infrastructure plan behind schedule: PBO

The Parliamentary Budget Officer says federal infrastructure spending created up to 11,000 new jobs over the past year and added 0.1 per cent to Canada’s GDP, falling short of Liberal government projections as the program falls behind schedule.

Parliamentary Budget Officer Jean-Denis Fréchette also cautions that rising interest rates are starting to offset the positive economic effects of infrastructure spending.

The PBO released a report Thursday that examines the impact of what the Liberal government calls its first phase of infrastructure spending. The plan was announced in the 2016 budget and initially promised about $12-billion over five years for projects that are primarily focused on repairs of existing assets. The PBO report looks at how spending from that budget – and top-ups announced in the 2016 fall update – will be spread over nine years, bringing the total to $14.4-billion.

In an interview, Mr. Fréchette said the amount of economic stimulus and employment created from the first phase of spending is relatively modest when compared with the promises made by the Liberals.

Thursday’s PBO report said phase 1 infrastructure spending added 0.1 per cent to Canada’s GDP in the 2016-17 fiscal year and 0.1 per cent in the fiscal year that ends March 31.

The 2016 budget included estimates from the Department of Finance that the announced infrastructure spending would boost Canada’s GDP by 0.2 per cent in the first year and 0.4 per cent in the second year.

That hasn’t happened, Mr. Fréchette notes. (Source: Globe & Mail)