While he didn’t use the word itself, Bank of Canada Governor Stephen Poloz essentially said that Canada is in a recession, and he cut the interest rate by another quarter of a percent, leaving prime at 0.5 percent. Poloz said that we are in a contraction, but there should be growth in non-energy sectors in the second half of the year. Nevertheless, shrinking the growth outlook for the year by a full percentage point of GDP blows billions of dollars out of the projections that were built into the government’s budget, which almost certainly will push it into real deficit territory (as opposed to the paper surplus that it was sitting in after raiding the contingency reserve and EI fund in order to pay for those family tax breaks and still make it look like there’s a surplus). Where the real kicker could come in is the fact that the Bank of Canada is trying to use monetary policy to stimulate the economy to help it grow, while the government is cutting in order to achieve its balanced budget rather than stimulating at a time of contraction to prime the pump, as it were, and there was talk about how it meant the government was basically undoing the work the Bank was trying to do. So there’s that. Also not helpful is the government then coming out to attack Justin Trudeau and Thomas Mulcair as a means of trying to distract from their economic record, so that they can make the pitch to be allowed to stay in office after the election. Maclean’s assembled an expert panel to discuss the rate cut, while Andrew Coyne fears the damage that all of the election promises will end up causing the economy by the time the vote is over.
Tag Archives: Rona Ambrose
Roundup: Unimpressed with transformation plans
Kevin Page is none too pleased with what he hears about the “Blueprint 2020” plan to reform the public service, saying it’s a lot of nothing, and that change needs to come from the bottom up rather than being imposed top-down. He’s also critical of the public service for remaining silent in the face of these changes being imposed on them, and that their expert financial and policy advice will suffer as a result.
When she was Minsiter of Public Works, Rona Ambrose approved a list of 29 historical Canadian women to be used when naming future federal buildings. Of course that list has been redacted, so we don’t know exactly which names have been approved.
Roundup: Forget the science of treating addiction, drugs are bad!
Rona Ambrose held a press conference yesterday to say that the government would be closing the “loopholes” in the Special Access Programme so that illicit drugs can no longer be prescribed for clinical purposes – never mind that the whole point of the programme that the injectable heroin was being prescribed in was because none of the other replacements worked, and that it was the safest and most effective way to preserve the health of the patient while getting them off the drug in a controlled manner. But hey, when did science matter over the ideological concerns that “drugs are bad”? Aaron Wherry talks to BC’s provincial health officer about the scientifically proven heroin-assisted treatment.
Roundup: $3.1 billion in sloppy record keeping
The Auditor General released a report yesterday, and it was a bit of a doozy, at least with regards to the revelation that some $3.1 billion in anti-terror funding is not properly accounted for. Not that it’s actually been misspent, but the recordkeeping is a bit sloppy, and some of it was victim to a “whole of government approach,” according to Tony Clement. Among other issues the AG cited – that our search and rescue infrastructure is headed for total systems failure, that they need to crack down on EI overpayments, problems with expense claims by the Old Port of Montreal, and that there are problems with the Truth and Reconciliation Commission, as it is beset by conflict with other federal departments over documents. John Ivison says the report is like ‘manna’ for the NDP, and I can hardly wait for the number of times that Thomas Mulcair gets to say “failure of good public administration” over the next several days.
Roundup: Exit McGuinty
The shocking news last night was that Ontario Premier Dalton McGuinty resigned suddenly – and prorogued the Legislature to let the dust settle. His party was facing contempt proceedings, and prorogation collapses them, but he did just resign, which is the ultimate accountability measure. Meanwhile, a team has been assembling to try to encourage him to run for federal leader for a while – not that it’s likely to happen. Here is reaction from Stephen Harper and Bob Rae. Paul Wells looks back at McGuinty’s career, and the situation his party now finds itself in.
Incidentally, I’m really not that outraged about this prorogation, possibly because I actually know what a prorogation means, and I’m not of the belief that it’s illegitimate for a government to exercise its Crown powers. He wasn’t facing a confidence motion, and it was well within his right as premier to do so – especially to allow time for the dust to settle from his resignation. I’m a little less keen if he plans to keep it prorogued until after his party’s leadership contest, but they’re planning on a quick one, so I wouldn’t expect it to be out for six months. And if anyone can tell me what exactly the piling on by opposition parties would contribute at this point when the premier has already taken that ultimate step and resigned, well, be my guest.
Roundup: Backing an east-west pipeline
Thomas Mulcair is throwing his support behind an east-west pipeline for oil in this country, so that refineries in the East can process western crude. Which of course is all well and good, but because those pipelines can’t support bitumen, that means building upgraders in Alberta at billions of dollars in cost and a much higher carbon footprint, rather than using existing facilities if we increased our capacity in shipping said bitumen south (aka Keystone XL). It also means we won’t be getting world prices for said crude if we shipped it to Asia instead.
CBSA has to phase out its K9 unit because of budget cuts. You’d think that an effective means of sniffing out illicit drugs in a quick and efficient manner would be a good thing.