LARRY'S CORNER- Hamilton's Former Mayor Speaks

The Federal Budget Deserves Support

By Larry Di Ianni
(posted January 28, 2009)

As I was listening to some pundits discuss the pros and cons of the newly announced Federal budget, I received a phone call from Michael Ignatieff’s office. What did I think? What observations did I have? What a nice touch, I thought, that the new Liberal leader is actually doing what he said he would do: canvass the grass roots for input into major policy decisions. And whether he supports the budget or not is a major decision! It will mean one of three things: continued life for the Conservative regime, a coalition with the NDP with support from the Bloc, or another election for the people of Canada.

I knew this, so I measured my words carefully. It was almost as if it was my decision to go in one of the described directions.

What is the substance of the budget? The facts are well-reported: a $40B stimulus package with new spending and tax cuts, tax relief for those at the low end of the economic spectrum as well as the middle class defined by those earning less than $80K per year, seniors savings, incentives for first time home buyers and home renos, longer EI benefits for those unemployed, $500M to fix and build pools and arenas, thawing frozen credit to allow for liquidity in the market, incentives to buy or lease vehicles, credit card interest rate assistance, mortgage help for home buyers, $12B for infrastructure support. The list is long, expensive and impressive in its breadth. So, is the budget worth supporting? What about the details, where as they say, the devil lives?

Ignatieff’s own test for the budget was threefold: does it help the marginalized; does it help create jobs immediately; does it have a longer term vision for the country?

He might have added, “does it stay away from neocon ideology?”

The budget certainly stays away from any ideological bent, and that is a good thing. What does it do for the major Ignatieff tests? And what does it do for Hamilton?

I looked to some experts on the major questions. The Hamilton Spectator Editorial Board supports the budget. Jerry Rubin, a major economist says that Ignatieff would have to be mad to not support it. FCM, the federal/municipal lobbying group supports the budget. How about other politicians? The provincial finance minister seemed to like the budget. Our local MP Wayne Marston, predictably panned the budget as did his boss Jack Layton. The Bloc failed it. Carl Zehr, the Mayor of Kitchener supported it cautiously in an interview I heard on the radio. Apparently Mayor Miller didn’t like it, according to Jim Flaherty who told the Mayor of Toronto to ‘get with the program’, our own Mayor’s words were, well, a bit confusing. He liked the numbers quoted in the budget but frets that the dollars will get bogged down and if the city has to match dollars with the Province and Feds, Hamilton won’t be able to do it. No champagne uncorked for him just yet according to the news.

Here is my take and here is my advice to the leader who as I write this is about to announce what the Liberals will do in parliament.

Firstly, I indicated that Canadians do NOT want an election. The focus should be on helping the economy, not having partisan fights. Let the NDP and the Bloc stay in bed with each other. They are the marginalized parties of Confederation and have marginalized themselves even more with their stand to not support the budget announced several months ago even before they had had a chance to see it.

Secondly, I feel there is enough in the budget to support. There is massive spending and tax cuts. If the Liberals were to be in government, others have predicted that the budget wouldn’t look appreciatively different. In real terms I don’t think the Liberals want to go into an election having said no to help for the economy, help for seniors, and tax cuts for the poor and the middle class.

Thirdly, I believe that this is a tough time for anyone to govern. Some are saying to let the Conservatives wear the bad times for a while. This may not be a principled stand, but it is a strategic one. If Harper succeeds, it will be good for all of us; if he fails, then he will have to answer to the public in 2 years’ time.

As for the Hamilton conundrum, I offer the following. The Mayor is correct that finding extra dollars to put into infrastructure may not be easy. The Feds seem to be leaving it up to the province to decide whether municipalities are forced to pony up. If the province gives cities a pass, it will have to contribute more. Some creativity is needed. I would be lobbying to have any capital dollar already in the budget count towards the one third municipal contribution, If need be, the municipality can earmark their money towards a particular project, say Water/Wastewater plant improvements, and then when the Federal/Provincial portions come in, shuffle the money back to the other infrastructure works being done. It will essentially be a paper entry which will also allow for real work to be done at the local level, meeting local needs and creating local jobs.

According to some economists the Conservatives did not improve EI rules appreciably. As I listened to the news this morning, the Liberals may ask for some changes to the budget in order to secure support. This would be a smart move. When asked Mr. Flaherty, the finance minister has already stated that he would look at whatever is suggested.

It sounds to me that the Conservatives may be willing to play fair ball. If this is the case, they deserve the chance to implement their budget. At least, those were my two cents. Time will tell.

BACK TO LARRY'S CORNER

HOME