With a majority, Tories can be more aggressive on deficit

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Two promises coming your way!

1.) Unless there is a major economic downturn, no excuse to get rid of deficit
2.) $4 Billion/year without slashing public services


With a majority, Tories can be more aggressive on deficit


It was Stephen Harper’s surprise campaign pledge: The Conservatives would erase Canada’s deficit in three years rather than four. Now federal public servants will be under pressure to cut programs and trim staff to the tune of $11-billion over four years to deliver the Prime Minister’s promise.

The Conservatives project the deficit will drop to $29.6-billion this fiscal year and will become a surplus by 2014-15. When Parliament returns, the government is expected to introduce a 2011 budget that is largely the same as the one that failed to win support in March – but this time with a more aggressive plan for the deficit.

Blessed with a majority, the Conservatives now have more freedom to take risks.


How hard is it?

Earlier spending reviews have produced little controversy as departments invoke classic bureaucratic language, boasting of savings through “increasing efficiency” and ending “overlap.” Now with the security of a majority government, some predict harder, more visible cuts.

Andrew Graham, an expert on government spending at Queen’s University and a former federal assistant deputy minister, says he hopes a majority government will make the harder decisions that are required to meet the deficit target. “The number of agencies out there that simply should be abolished or amalgamated or changed fundamentally – that’s the next step, and that also entails somebody getting mad at you,” he said.

Former Saskatchewan finance minister Janice MacKinnon – now with the University of Saskatchewan – agrees a majority gives the government the freedom to absorb some controversy.

“Barring some major economic downtown, I think it’s not that difficult a task,” she said.


How it might work


The government’s March budget outlined a process in which a new cabinet committee chaired by the President of the Treasury Board would be in charge of cutting 5 per cent from across-the-board program spending – or $4-billion a year – by 2014-15.

Every department will have to submit two plans to cabinet: a 5-per-cent cut and a 10-per-cent cut. Cabinet will make the final decision.


Who calls the cuts?


With Stockwell Day gone, the Prime Minister must choose someone to lead this push for restraint as Treasury Board President. One option would be John Baird, the Government House Leader who is already front and centre assuaging concerns in Ottawa that public-service jobs are at risk.

“I do think out of $278-billion we spend a year, I think we could find $4-billion annually without slashing and burning the public service,” he said in an interview with The Globe and Mail, stating some programs – like subsidies to political parties – will end.

http://www.theglobeandmail.com/news...be-more-aggressive-on-deficit/article2014771/
 

Machjo

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A truly effective leader could have balanced the deficit even in a minority situation. Accept the other parties' recommendations on tax increases and spending cuts but not their recommendations on spending increases while adding Conservative spending reductions of their own. Harper does not know how to work as part of a team, and I suspect this could cause friction within his caucus in the next few years. But we'll see.
 

mentalfloss

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Jun 28, 2010
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A truly effective leader could have balanced the deficit even in a minority situation. Accept the other parties' recommendations on tax increases and spending cuts but not their recommendations on spending increases while adding Conservative spending reductions of their own. Harper does not know how to work as part of a team, and I suspect this could cause friction within his caucus in the next few years. But we'll see.

I haven't heard any scuffles between Harper and his caucus other than the dumb social conservatives wanting a voice again.
 

Machjo

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I haven't heard any scuffles between Harper and his caucus other than the dumb social conservatives wanting a voice again.

Neither have I. I'm just saying though that it's always a possibility. Judging from Harper's inability to work with other parties, I can't see why it would be so different within his own party. Consider too that a few red Tories did win in Ontario too.

Start with the 1.1 billion dollar CBC... :)

I don't know about 'start' with the CBC, but I do agree it should be cut sooner or later. So if cutting the CBC is the path of least resistance, then I'm all for cutting the CBC first.
 

coldstream

on dbl secret probation
Oct 19, 2005
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I can always tell of impending bankruptcy when any organization.. government, institutional, corporate.. focuses all its energies on reducing costs rather investing in growth.

It's sign of the policies of the corporate sludge and sycophants (to some ideology) that percolates to the top in dysfunctional organizations.. that have lost on concept of its founding mission.

The fact of the matter is you will not be able to cut costs fast enough in a collapsing economy to compensate for the loss of revenue. It Harper wasn't such an intellectual douchebag, far beyond his level of competancy.. he would know that.
 
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TenPenny

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Jun 9, 2004
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I can always tell of impending bankruptcy when any organization.. government, institutional, corporate.. focuses all its energies on reducing costs rather investing in growth.

It's sign of the policies of the corporate sludge and sycophants (to some ideology) that percolates to the top in dysfunctional organizations.. that have lost on concept of its founding mission.

The fact of the matter is you will not be able to cut costs fast enough in a collapsing economy to compensate for the loss of revenue. It Harper wasn't such an intellectual douchebag, far beyond his level of competancy.. he would know that.

Well, let's face it. The Conservatives haven't tried to cut costs. And I doubt they will.
 

Machjo

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- Foreign Aid
- Close tax loopholes
- Delay tax cuts

That's where I would start

Agreed. Free trade is a far more efficient way to help poor countries than foreign aid anyway. There is no point in giving them foreign aid and then preventing them from trading with us anyway.
 

DurkaDurka

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Mar 15, 2006
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Agreed. Free trade is a far more efficient way to help poor countries than foreign aid anyway. There is no point in giving them foreign aid and then preventing them from trading with us anyway.

Well, that's one reason. My self, I could care less about helping other countries, I'm not affected by Bono guilt. I would rather take the billions we pump into overseas shetholes and use it to fix our own country.
 

mentalfloss

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Jun 28, 2010
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Well, that's one reason. My self, I could care less about helping other countries, I'm not affected by Bono guilt. I would rather take the billions we pump into overseas shetholes and use it to fix our own country.

Actually the guilt is good. Not for our government, but for us. Without government intervention, we've helped out countless others - especially in developing nations where each dollar here does so much more over there. We really don't need the government to intervene, if we can all chip in a tiny bit ourselves.
 

Machjo

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Well, that's one reason. My self, I could care less about helping other countries, I'm not affected by Bono guilt. I would rather take the billions we pump into overseas shetholes and use it to fix our own country.

Don't forget though that though free trade helps poorer countries more than richer countries, this does not mean richer countries benefit too. So even from a standpoint of self interest, free trade is still beneficial to our economy.

Well, that's one reason. My self, I could care less about helping other countries...

Then you must be sick and tired of our involvement in Afghanistan I assume?

Also, should some Conservatives be willing to work together with the NDP, it might be possible to reform the Official Languages Act. At least some Conservatives such as Scott Reid (I think he won his riding again) want to replace our current policy with territorial bilingualism whereby federal offices would be required to offer services in the predominant local official language, French-English bilingualism applying only where both English and French are significantly spoken. The NDP now supports the idea that Bill 101 ought to apply to all federal institutions in Quebec. Honestly, the difference between these two positions is not so radical. A simple solution would be to adopt the NDP policy of allowing provincial language legislation to apply to federal institutions within each provincial jurisdiction, along with the Conservative idea (or at lest an idea held by some Conservative MPs) of territorial bilingualism where a provincial policy is absent.

This could save up to 1.6 billion per year.
 

DurkaDurka

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Actually the guilt is good. Not for our government, but for us. Without government intervention, we've helped out countless others - especially in developing nations where each dollar here does so much more over there. We really don't need the government to intervene, if we can all chip in a tiny bit ourselves.

I'm a tad cynical but how many of those dollars end up in peoples hands who need them? Opposed to admin costs for some NGO or worse, a dictators pocket.
 

mentalfloss

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I'm a tad cynical but how many of those dollars end up in peoples hands who need them? Opposed to admin costs for some NGO or worse, a dictators pocket.

True.

That goes back to the whole transparency issue.


We need receipts.


For everything.
 

DurkaDurka

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Mar 15, 2006
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Then you must be sick and tired of our involvement in Afghanistan I assume?

Also, should some Conservatives be willing to work together with the NDP, it might be possible to reform the Official Languages Act. At least some Conservatives such as Scott Reid (I think he won his riding again) want to replace our current policy with territorial bilingualism whereby federal offices would be required to offer services in the predominant local official language, French-English bilingualism applying only where both English and French are significantly spoken. The NDP now supports the idea that Bill 101 ought to apply to all federal institutions in Quebec. Honestly, the difference between these two positions is not so radical. A simple solution would be to adopt the NDP policy of allowing provincial language legislation to apply to federal institutions within each provincial jurisdiction, along with the Conservative idea (or at lest an idea held by some Conservative MPs) of territorial bilingualism where a provincial policy is absent.

This could save up to 1.6 billion per year.

I think we have done our share of fighting when it comes to Afghanistan. I don't have so much a problem with training them for a couple years after so they can stand on their own feet and then depart. It seems money we spend on non-combat initiatives generally gets blown up by the Taliban shortly thereafter as schools and wells are bad apparently.

I'm not very knowledgeable about the Official Languages Act other then the basics. It does seem silly though to have to provide french language services in areas where there are very few to no francophone.
 

Machjo

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I'm not very knowledgeable about the Official Languages Act other then the basics. It does seem silly though to have to provide french language services in areas where there are very few to no francophone.

And ditto English language services in areas where there are few to no anglophones.
 

PoliticalNick

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Mar 8, 2011
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I think foreign aid is a great place to start. Why we are shipping billions overseas when we have rising unemployment and falling standard of living in our own country is beyond me. I don't think replacing the aid with free trade is the fix that others might believe though. Free trade is rarely a benefit to the richer nation as it costs jobs and revenues at the same time. My personal opinion is closing the free trade deals we have would be a bigger benefit overall than adding new ones. Our main exports (oil, gas and grain) are going to be in demand no matter if there is free trade or not so why not take advantage of that and benefit ourselves.
 

JLM

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Two promises coming your way!

1.) Unless there is a major economic downturn, no excuse to get rid of deficit
2.) $4 Billion/year without slashing public services


With a majority, Tories can be more aggressive on deficit

It was Stephen Harper’s surprise campaign pledge: The Conservatives would erase Canada’s deficit in three years rather than four. Now federal public servants will be under pressure to cut programs and trim staff to the tune of $11-billion over four years to deliver the Prime Minister’s promise.

The Conservatives project the deficit will drop to $29.6-billion this fiscal year and will become a surplus by 2014-15. When Parliament returns, the government is expected to introduce a 2011 budget that is largely the same as the one that failed to win support in March – but this time with a more aggressive plan for the deficit.

Blessed with a majority, the Conservatives now have more freedom to take risks.


How hard is it?

Earlier spending reviews have produced little controversy as departments invoke classic bureaucratic language, boasting of savings through “increasing efficiency” and ending “overlap.” Now with the security of a majority government, some predict harder, more visible cuts.

Andrew Graham, an expert on government spending at Queen’s University and a former federal assistant deputy minister, says he hopes a majority government will make the harder decisions that are required to meet the deficit target. “The number of agencies out there that simply should be abolished or amalgamated or changed fundamentally – that’s the next step, and that also entails somebody getting mad at you,” he said.

Former Saskatchewan finance minister Janice MacKinnon – now with the University of Saskatchewan – agrees a majority gives the government the freedom to absorb some controversy.

“Barring some major economic downtown, I think it’s not that difficult a task,” she said.


How it might work

The government’s March budget outlined a process in which a new cabinet committee chaired by the President of the Treasury Board would be in charge of cutting 5 per cent from across-the-board program spending – or $4-billion a year – by 2014-15.

Every department will have to submit two plans to cabinet: a 5-per-cent cut and a 10-per-cent cut. Cabinet will make the final decision.


Who calls the cuts?

With Stockwell Day gone, the Prime Minister must choose someone to lead this push for restraint as Treasury Board President. One option would be John Baird, the Government House Leader who is already front and centre assuaging concerns in Ottawa that public-service jobs are at risk.

“I do think out of $278-billion we spend a year, I think we could find $4-billion annually without slashing and burning the public service,” he said in an interview with The Globe and Mail, stating some programs – like subsidies to political parties – will end.

With a majority, Tories can be more aggressive on deficit - The Globe and Mail

With a majority Tories can be more aggressive on anything!

I think foreign aid is a great place to start. Why we are shipping billions overseas when we have rising unemployment and falling standard of living in our own country is beyond me. I don't think replacing the aid with free trade is the fix that others might believe though. Free trade is rarely a benefit to the richer nation as it costs jobs and revenues at the same time. My personal opinion is closing the free trade deals we have would be a bigger benefit overall than adding new ones. Our main exports (oil, gas and grain) are going to be in demand no matter if there is free trade or not so why not take advantage of that and benefit ourselves.

I happen to think foreign aid is a good thing- I don't give much but I have sent a couple of bucks to Haiti. We've been damn lucky as far as natural disasters go (occasional flooding is probably the worst, and that isn't a problem unless you build below the high water mark) so we're overdue for major earthquake or Tsunami or Volcano and might welcome a little help ourselves. I'd rather help those suffering from bad luck than those suffering from "dropsy and heart fever". :lol: