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Harper tell caucus government will remain vigilant on ‘fragile’ economy

Prime Minister Stephen Harper smiles as he is applauded before the start of the Conservative caucus meeting on Parliament Hill, in Ottawa Thursday September 8 2011. THE CANADIAN PRESS/Fred Chartrand.
Prime Minister Stephen Harper smiles as he is applauded before the start of the Conservative caucus meeting on Parliament Hill, in Ottawa Thursday September 8 2011. THE CANADIAN PRESS/Fred Chartrand.

OTTAWA – Prime Minister Stephen Harper struck a familiar chord in an address to his Conservative caucus Thursday.

The economy and elimination of the deficit dominated Harper’s remarks to MPs as they gathered to plan strategy for the fall session.

The economy has created 600,000 net new jobs since July 2009, Harper said, but he warned that the global economy is still fragile and the government must remain vigilant.

“In managing the economy, circumstances demand that we listen carefully to Canadians and that we be flexible when necessary,” he said.

“We will work prudently and responsibly, acting on the clear and strong mandate we received from Canadians.”

While the economy will be priority one on the government’s agenda, the Conservatives also intend to follow through on other measures, including introducing an omnibus justice bill within the first 100 sitting days of Parliament.

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Axing the long-gun registry, subsidies for political parties and new copyright legislation are also high on their legislative wish list.

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But for now, it’s about implementing their June budget, which will target seniors, students, new Canadians, older workers and businesses trying to avoid layoffs.

Harper said the government will continue with tax credits for new hires by small businesses and tax incentives for manufacturers to boost employment.

He also reminded his MPs that the deficit must remain a priority as government departments review their spending.

But Harper told caucus that if they work hard, keep their promises and remain faithful to their undertakings, then the party’s – and the country’s – best days lie ahead.

“Let’s not forget the cause towards which our party is now aimed – to promote our country, the best country in the world, in this period of worldwide change,” he said.

How the government will cut spending should be a political hot potato, but interim NDP Leader Nycole Turmel didn’t directly come out against the deficit-elimination plan.

“We understand there is a deficit, we understand that it is difficult,” she said.

“But we believe that in creating jobs, it could help the economy and it could help eliminate the deficit as well because you’ll have more taxes coming in.”

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She called for a plan similar to one put in place by U.S. President Barack Obama that includes job training and investment in clean energy technology and infrastructure.

At the same time, Turmel questioned Harper’s approach to the economy, saying he ignored the signs of the coming recession in 2008 and as a result plunged the country into deficit.

She said Canada can’t afford a repeat.

“The question we have for Stephen Harper and his Conservative caucus is: Will they keep sitting back and waiting around for the U.S. economy to rebound?”

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