Election platforms are like a football coach’s game plan. The plan is important, but it has to adjust to circumstances and there are always a few surprises. Last night voters chose Justin Trudeau’s Liberal plan for Canada and here are a few key plays taxpayers should watch closely.
Mr. Trudeau’s opening play is to run deficits of up to $10 billion each year for the next three years. The problem is that Canada’s debt is already nearly $613 billion. It costs $26 billion every year just to cover the interest payments on that massive debt. If Mr. Trudeau runs up another $30 billion in debt, those interest costs will go up by at least a couple hundred million dollars a year. We need to start getting out of debt rather than digging deeper.
But hopefully there’s some shrewdness beneath Mr. Trudeau’s renowned mop of hair. The Liberal platform states that they will run deficits of “less than” $10 billion. That “less than” provides important wiggle room. Mr. Trudeau’s deficit comments came in response to the economy’s slip into recession. It turns out that slip was almost imperceptibly small. Even better, it’s likely the economy has already recovered and started growing again. That must at least partially negate any perceived necessity to continue falling into debt.
The Liberals also need to make a strong push for accountability. The situation of people in many First Nations communities is a disgrace. The reasons are plentiful and complex. However, the impact of small steps forward cannot be underestimated. The First Nations Financial Transparency Act requires First Nations leaders to publish their salaries and expenses and the band’s basic financial information.
“Why not open the books on band management?” Asked Richard Wagamese, a prominent First Nations journalist and author. “Why not allow Canadians and their own people to see how much they are paid, how much they ring up on expenses, and how the fiscal dollars directed toward the community is divided and spent? Honesty and accountability are traditional principles after all and the notion of self-government implies that a people are mature enough to govern openly.”
Mr. Trudeau has said he’ll repeal the First Nations Financial Transparency Act and meet with First Nations leaders to jointly map a way forward.
Dialog is fine. But accountability is no more debateable than deciding which side of the road to drive on. Financial transparency is a basic requirement for all levels of government. Real dialog is based on respect and Mr. Trudeau must maintain fundamental principles of accountability as he opens lines of communication.
Lastly, the Liberals have a golden opportunity for a big win on international trade. The Liberals plan on the Trans-Pacific Partnership (TPP) is a play they’ve carefully kept under wraps. The TPP is a trade agreement including major economies such as Canada, the U.S., Japan and Australia. It would allow citizens of those countries to buy and sell to citizens of other signatory nations with less government interference. Mr. Trudeau has refused to say what he’ll do with this outstanding trade opportunity, but he’s emphatically stated that Liberals are pro-trade. Expanding trade is the best way to grow the Canadian economy and the new Liberal government needs to ratify the TPP deal as soon as possible.
Canadians have bought into Mr. Trudeau’s game plan. His best move would be to minimize his promised deficits, forget about his previous musing about gutting accountability legislation and approve the TPP. Mr. Trudeau’s Liberals have an excellent opportunity to get wins on all of these fronts.
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey