OTTAWA — The Harper government is warning Canadians to start thinking what was unthinkable just weeks ago — the country may have to run a deficit to weather the economic downturn.
The Conservatives used today’s throne speech to announce a five-point plan they hope will protect Canada from the global economic crisis — and insulate the government from the political fallout of a deteriorating economy.
The plan promises sound budgeting to ensure that the country avoids “ongoing, unsustainable structural deficits.” But it appears resigned to the prospect of deficits in the short-term.
“In a historic global downturn, it would be misguided to commit to a balanced budget in the short term at any cost because that cost would ultimately be borne by Canadian families,” Governor General Michaëlle Jean read from the speech in the Senate chamber.
It’s a long way from last year’s throne speech, in which the cash-rich government — flush with a multibillion-dollar surplus — promised big tax cuts.
The Tory plan also promises to secure jobs through training and further unspecified support for the troubled auto and aerospace industries.
“Our government is committed to Canada’s continued success at this time of global economic instability,” the speech says. “All its energy will be directed to addressing the challenges Canadian families, businesses and workers face, both today and in the future.”
The five-point plan is rounded out with commitments to help reform global finance, expand investment and trade, and make government more efficient and effective.
As usual, the throne speech offers plans and directions, but few specifics. Those specifics will come in a fiscal update next week, the government said.
NDP Leader Jack Layton called the plan “very timid” and said his party will vote against the throne speech.
“We expected bold action. We have an unprecedented crisis here,” he said.
He said New Democrats wanted to see “a real stimulus package” and got instead “more of what they’ve done before.”
Liberal Leader Stéphane Dion also said the speech fell short of what’s needed to revive the faltering economy, but he said it would be irresponsible for Liberals to defeat the minority government over it, plunging the country into another election.
Outside of its economic plan, the government highlighted other priorities, including tougher crime legislation and food safety rules, and securing Canada’s energy future by developing resources.
The government also reiterated its commitment to reduce greenhouse emissions 20 per cent by 2020. Prime Minister Stephen Harper made the commitment after declaring that Canada could not meet its greenhouse-gas reduction targets under the Kyoto protocol.
And the Tories repeated a promise from last year’s speech to put limits on the federal spending power for new shared-cost programs in areas controlled by the provinces.
The Governor General was welcomed to Parliament with a traditional 21-gun artillery salute. She then inspected a ceremonial guard of honour before being led into the Senate by the Usher of the Black Rod.