Wednesday, February 19, 2002
Budget, budget - THE COMMENTARY
By Joseph Planta
VANCOUVER – It's been a political junkie's nightmare. A release from the right-wing think-tank the Fraser Institute appeared on the wire this past weekend plugged the services of their analysts for yesterday's budget overload. Yes, just as federal Finance Minister John Manley wrapped up his first budget speech, the last of his boss Jean Chrétien, BC's Finance Minister Gary Collins rose in the British Columbian Legislature to deliver his own. The third Tuesday of every February is by law, in this province, set aside for the Finance minister to deliver his budget. Federal Minister Manley, earlier this month, chose this day to deliver his first budget. I'm sure the talking heads at the Fraser Institute were busy yesterday.
As a matter of style, John Manley's delivery was odd at best. He looked uncomfortable and far less adept to the process than his predecessor, Paul Martin. True, this was Mr. Manley's first and Mr. Martin did deliver something like six budgets. Manley kept downing glasses of water, whilst looking at his caucus colleagues, turning around constantly. There were many reports on how the idea of "budget secrecy" has become terribly eroded, with all the leaks. I also noticed the Finance Minister looking directly at the camera in the House of Commons chamber. Sure in a populist sort of way, it's good he's talking directly at Canadians, but that is clearly a demonstration of the bastardisation of Parliament done by this government. No longer is Parliament the decision making, or even the deliberative body it's meant to be in a constitutional democracy. Alas, it is losing its relevance to governments that want to oh so centralise power in the First Minister's office. We're seeing this now subtly with Mr. Manley's delivery, as well as overtly with the boondoggle over the gun registry and of course, the participation of, and the deployment of troops by Canada, in Iraq and elsewhere.
On the substance of his speech, this truly was a budget – though delivered by Mr. Manley – written by the Prime Minister and his handlers. It's a legacy budget that secures him some sort of place in Canadian history, and perhaps tie up the hands of his successor. I did notice as well, that Prime Minister Chrétien was rather laid back, something he hasn't been in a long time.
Federal spending is up 11.1%, the second time in history that it's been up so high. The last time was one of Pierre Trudeau's last budget's in 1981-82 when spending rose 13.6%. This increase in spending, according to the Fraser Institute's Jason Clemens, does nothing to halt the decline in average incomes, nor raise productivity and the value of the Canadian dollar. Clemens also notes that since the budget was first balanced in 1997/98, government spending has risen 30%. This can only mean that the size of government has expanded, moving Canada away from its "optimal level of government." This not only erodes provincial jurisdiction, but also, according to Clemens, "further [deteriorates] our competitive position and performance," compared to the Americans.
One headline made by Mr. Manley's speech is that over the decrease in that $24 airport fee paid by travellers on round-trip flights. It has now gone down to $14, however there's no justification as to why. Don't get me wrong, the fee made little sense considering it's one of the multitude of fees one must pay now when travelling within or outside the country. Sometimes a domestic flight would cost more in tax, than the actual fare. The fee was brought in post-September 11th with the desire to earmark those funds for greater security at the airport. However, there was not justification then as to instituting the erroneous charge. One can only surmise from the cut, that security hasn't improved all that much and that it was folly to put the charge in, something the Canadian Alliance vociferously criticised at the time.
There was some lip service paid to homelessness in the country. However, only a meagre pledge of $503 million dollars was made. A pittance if you ask me, considering there's $3 billion dollars being kept in contingency reserves, a rainy day fund if you will. $503 million dollars broken down equates to: $384 million dollars for a project co-sponsored by the provinces for housing, whilst a further $119 to "further combat homelessness." It's patronising buffoonery if you ask me. The Chrétien government, though they spent a lot in this budget, frankly insults the poor in this country with such an inane contribution.
Military funding has been increased of $800 million per year, with a special $170 for this fiscal year only. This is much needed, yet it falls far, far short of the funding our serving men and women need. It truly is shameful that the Canadian government, which puts so much pride in our forces, fails to cough up the necessary dough to equip our military. No wonder morale is down, and no wonder few want to serve. Over the dithering this government's been doing over supporting the United States on the Iraq thing, whether you're left or right, it's maddening to try and figure out where the Prime Minister stands. Shameful.
And if you were looking for tax cuts, well you got a reduction to 12 cents per $100 earned on EI premiums, corporate capital tax is being phased out over five years and a plan to normalise the taxation of resource companies. However Canada Pension Plan premiums are going up this year by 0.5%, thus the government will be collecting an extra $1.7 billion bucks by year's end.
A cornerstone of the budget is the government's pledge for greater accountability. What? This government, which decried the Mulroney Conservatives, has not been so squeaky clean? Clearly, boondoggles at Human Resources Development Canada, shady contracts at Public Works and Government Services, cost overruns at the gun registry and conflicts at the Business Development Bank and with cabinet ministers like the PM himself, Don Boudria, Lawrence MacAulay and Art Eggleton, nothing much this government can do or say now will ditch the government's reputation for mismanagement despite its unfathomable popularity.
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An archive of Joseph Planta's previous columns can be found by clicking HERE .