Finance Minister Bill Morneau rises during Question Period in the House of Commons in Ottawa on May 26, 2020. Opposition parties have laid out their demands as the federal Liberal government prepares to update Canadians on the state of the economy after four months of COVID-19. Wednesday’s fiscal snapshot will be the first public assessment of the country’s economic and financial situation since the pandemic started in earnest in March. The snapshot is expected to give an idea of how the government sees the rest of the fiscal year playing out, including figures for a potential deficit, but opposition parties want more than just numbers. THE CANADIAN PRESS/Adrian Wyld

Tories, NDP at odds over federal spending as Liberals prepare fiscal snapshot

Federal figures last week showed direct government spending on COVID-19 supports at just over $174 billion

Opposition parties have laid out their demands for the federal Liberal government as Ottawa prepares to update Canadians on the country’s finances after four months of COVID-19 — and where it expects the economy to head for the rest of the year.

Wednesday’s fiscal snapshot will be the first public assessment of the country’s economic and financial situation since the pandemic started in earnest in March, forcing provinces into lockdown and the Liberal government to start doling out billions in aid in lieu of a federal budget.

The snapshot is expected to give an idea of how the government sees the rest of the fiscal year playing out, including figures for a potential deficit.

But the Conservatives and NDP made clear Sunday that they want more than just numbers: they want action. That includes additions, changes and expansions to federal COVID-19 support programs along with more accountability and transparency.

Yet while the Conservatives also called for the Liberals to produce a plan to get government spending under control, the NDP was warning against any premature efforts to cut federal assistance.

Conservative finance critic Pierre Poilievre on Sunday blasted the Liberals’ handling of the economy while small business critic James Cumming underscored the importance of accurate fiscal projections and planning from the government for Canadian business.

“What business needs as they start to open up is some level of certainty,” Cumming said during a news conference on Parliament Hill.

“They need to understand what the government’s finances are to understand how long these programs are going to last to assist them and when they will be starting to phase out. And a lot of that has a lot to do with the financial health of the government.”

Federal figures last week showed direct government spending on COVID-19 supports at just over $174 billion, which included another increase to the budget for the Canada Emergency Response Benefit. That is now expected to cost $80 billion as eligibility increased to 24 from 16 weeks.

At the same time, Statistics Canada last week reported that the Canadian economy shrank 11.6 per cent in April — the largest monthly drop on record. That follows a 7.5 contraction in gross domestic product in March. Both are expected to hit Ottawa’s bottom line through lost tax revenue.

Parliamentary budget officer Yves Giroux has previously predicted that the increased spending and lost revenue could combine to see the federal deficit top $250 million this year.

With COVID-19 in retreat across most of the country — at least for the moment — Poilievre said it was time for the Liberals to produce a plan to start getting what he described as Ottawa’s “fiscal mess” under control.

That includes weaning Canadians off the CERB and getting them back to work by phasing out the $2,000-per-month benefit based on how much they earn rather than simply cutting off anyone who earns more than $1,000 in a month.

“The government is punishing Canadians for working,” Poilievre said. “We think that people on it should be rewarded when they make the courageous decision to go back to work and make a wage.”

Poilievre, who also demanded more money for the federal auditor general’s office to better scrutinize government spending during the pandemic, dismissed suggestions that Ottawa needs to keep the taps wide open to stimulate the economy as it starts to reopen.

He instead took aim at various Liberal policies and regulations around natural-resource development, particularly in Alberta and Saskatchewan, as having stunted economic growth and prosperity in Canada.

“Removing these government obstacles is the way you unleash growth and create a cornucopia of opportunity for our workers and businesses that will generate the wealth,” he said. “More deficit spending does not create jobs and growth.”

Yet NDP finance critic Peter Julian warned against any early cut to COVID-19 benefits and support and instead repeated longstanding calls from his party for the federal government to crack down on tax havens and tax wealthy Canadians and businesses to pay for the federal aid.

“There’s been a call for … dealing with the economic and financial fallout of the pandemic through cutting services,” Julian said in an interview.

“We actually believe that now is the time to handle the pandemic from the revenue side. We believe in tackling the tax haven problem, which is more acute in Canada than any other country. And to put in place a wealth tax.”

The NDP is also pressing for the Liberals to ease the criteria for businesses to access the federal wage subsidy, which covers up to 75 per cent of employees’ salaries, to encourage more hiring. And it wants the government to provide promised support for Canadians living with disabilities.

While the fiscal update will be presented in the House of Commons on Wednesday, Julian said the report itself will not require a vote. However, he suggested NDP support for future legislative proposals from the government could be contingent on the Liberals accepting the NDP’s requests.

The Liberals have leaned heavily on the NDP since being elected to a minority government in October. That included securing NDP support for several confidence motions in the winter and spring that, if defeated, could have triggered a federal election.

Lee Berthiaume, The Canadian Press


Like us on Facebook and follow us on Twitter.

Conservative Party of CanadaLiberalsndp

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Princeton embarks on childcare needs study

How challenging is it to find daycare in Princeton? That’s a question… Continue reading

Morning Start: Women can give birth after they die

Your morning start for Wednesday, Aug. 12, 2020

Morning Start: The Exorcist film set was haunted

Your morning start for Tuesday, Aug. 11, 2020

$45K in donations received after Pitt Meadows woman, man die in Tulameen

Sarah MacDermid, 31, and Casey Bussiere, 37, died August long weekend

B.C. records new COVID-19 death, 85 more cases; Horgan calls on celebrity help

This brings the total number of active confirmed cases to 531 across the province

Horvat scores 2 as Vancouver Canucks beat Blues 5-2 in NHL playoff opener

Game 2 in best-of-seven series goes Friday night

Federal Conservative leadership candidate skirts COVID-19 rules at Kelowna rally

Derek Sloan held a rally in Kelowna that had more than 50 people, which is against health orders from the province

Teachers to get 2 extra days to prepare for students’ return, now set for Sept. 10

Students will first start with orientation and learn rules of COVID-19 classroom policies

High-volume littering at Cape Scott draws ire from hiking groups

Popular Vancouver Island hiking spot not closing, but frustration about crowding grows

SFU to drop ‘Clan’ varsity team name

The ‘Clan’ name is shortened from ‘Clansmen,’ and was introduced roughly 55 years ago

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

South Okanagan restaurant ranked among world’s best by TripAdvisor

The Hooded Merganser was ranked within the top 10 per cent of all restaurants by TripAdvisor reviews

Highway 97 upgrade option for Peachland faces 20-year delay

Peachland council disappointed by highways department decision

Most Read