Finance Minister Bill Morneau’s economic update moved the goal posts on national deficits, announced details of the new Canada Infrastructure Bank as well as a program intended to attract foreign investment and, of course, prompted a lot of opinions from a lot of people.
Here’s where the politicans, bankers, interest groups and advocates stand on yesterday’s “mini-budget.”
“It’s another broken promise … We’re not going to see a balanced budget any time in the next decade the way it looks.” – Interim Conservative leader Rona Ambrose
Interim Conservative Leader Rona Ambrose had no shortage of criticisms for the Liberals’ fiscal document, particularly the fact the government plans to continue spending and diving deeper into the red — a plan she says will stick Canadians with more debt and higher taxes.
“It’s a big day for the parliamentary budget office.” — Former budget officer Kevin Page
Canada’s first parliamentary budget officer, Kevin Page, said proposed legislative changes to remove many of the barriers the office experienced trying to review spending information, will help it reach the potential many have long hoped for.
“The Liberals never promised during the campaign to privatize Canadian infrastructure. They promised to invest public funds to improve infrastructure.” — NDP Leader Tom Mulcair
WATCH: Liberal deficits meant to stimulate economy aren’t working, Mulcair says
NDP Leader Tom Mulcair chided the Liberals’ infrastructure bank, which is intended to help fund major construction projects across the country. Ottawa will kick in $35 billion and is aiming to attract private-sector dollars at a ratio of $4 to $5 in private funding for every $1 of federal money. Mulcair’s criticsm lies in the government’s plan to take $15 billion “that was promised to municipalities.”
“The update provided us with some fresh ideas, which are definitely needed to get the Canadian economy out of the slow lane.” — Canadian Chamber of Commerce president Perrin Beatty
WATCH: Morneau announces ‘Canada investment bank,’ ‘invest in Canada hub’ in economic outlook
Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, said he saw good things in the update, measures that will help stimulate the sluggish economy. The chamber commended the new immigration plan and planned investments in trade and transport, and said it will keep an eye out for more information about the infrastructure bank.
“Larger deficits … and a lack of a balanced budget fiscal anchor are disappointing developments.” — RBC
WATCH: Finance Minister Bill Morneau releases economic outlook
RBC raised a red flag over the government’s decision to remove its $6-billion emergency fund, saying deficits could increase in the event of unforeseen risks. On the other side of the coin, however, the bank applauded the government’s plan to seek increased private financing to support its “ambitious” infrastructure projects.
“With no plan whatsoever to balance the budget, all Canadians will pay a heavy price for their spending spree.” — Canadian Taxpayers Federation director Aaron Wudrick
Canadian Taxpayers Federation federal director Aaron Wudrick said the Trudeau government’s move to continue spending — with no sign of when they will balance the books — illustrates an inability to make “difficult choices.”
“It’s really a good step to know we’re going to see legislation to have the parliamentary budget officer at long last an independent office.” — Green Party Leader Elizabeth May
Green Party Leader Elizabeth May praised the Liberals’ commitment to make the Office of the Parliamentary Budget Officer independent, boost the autonomy and power of the country’s chief statistician, and open Parliament’s secretive Board of Internal Economy to the public.
“These unprecedented infrastructure investments will mean more growth, more jobs and stronger communities.” — Federation of Canadian Municipalities president Clark Somerville
WATCH: Canada can handle increased debt from more infrastructure spending, says Bank of Canada governor
Federation of Canadian Municipalities president Clark Somerville said he was happy to see the next phase of the Liberals’ infrastructure spending include spending on transport — an investment he said will lead to shorter commutes, lower emissions and less gridlock.
“The weaker growth outlook and some additional spending have filled the contingency hole, leaving the broader fiscal plan little changed, but now more at the mercy of the economy.” — BMO
WATCH: Finance Minister Bill Morneau’s full speech following the release of the economic outlook
BMO analysts said the update actually provided little new information, but noted the plan’s virtual elimination of the $6-billion “contingency” fund every year leaves the books more at the economy’s mercy.
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