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OTTAWA -- A two-year economic stimulus package that focuses on infrastructure, housing construction and the ailing manufacturing sector, overseen by a Finance Minister from the Liberal ranks, would be the top priority of a proposed Liberal-NDP coalition government.
Even though this might put Canada into a deficit position, the leaders say there is an agreement to undertake policies that would return Ottawa to a surplus position within four years. Moreover, the Liberal-NDP will not roll back or delay the implementation of $14-billion of corporate tax cuts set to be implemented over the next four years -- a major concession for the NDP that campaigned in the last election to eliminate the measures.
But the political leaders Monday failed to provide any more details about its fiscal stimulus plan, such as the cost and timing, saying the coalition has yet been asked to form a government.
The lack of a stimulus plan from the governing Conservatives in their most recent fiscal update is what the Liberal, NDP and Bloc Quebecois say brought them together to take down the Conservative government at the earliest possible moment and form a ruling coalition.
"We have committed not to enter a long-term deficit, but we will act now to introduce a robust, fiscal stimulus policy designed to help Canadians and businesses weather the [financial storm," said Stéphane Dion, the Liberal Leader who, on an interim basis, would lead the coalition government and become Canada's 23rd Prime Minister.
But when pressed for details, Mr. Dion said he couldn't provide them, only to assure the coalition would act "more promptly than [Prime Minister Stephen] Harper in a much more efficient way for the economy, our workers and their families."
Based on some details the coalition released, some economic analysts were less than impressed.
"There's lots of spending without immediate fiscal stimulus. Obviously, this is rushed," said Jack Mintz, professor at the University of Calgary's School of Policy Studies.
"Even if the coalition got into power, it would need a month or so to make sure it has the right package together. And that would put us into January."
The Finance Minister, Jim Flaherty, signalled that temporary stimulus measures could be in the offing when a "comprehensive" budget is tabled on Jan. 27.
As unveiled at a media conference Monday, the coalition government would be Liberal-led, but have the left-leaning NDP as its partner, and would govern until up to June 30, 2011. The coalition would have the tacit support of the Bloc Quebecois until June 30, 2010. Under the deal, the Finance Minister would be chosen among the Liberal ranks. Moreover, the NDP would get six of the 24 cabinet spots.
Based on a policy framework the coalition released, the stimulus package would focus on: accelerating existing spending, and introduce new cash, on infrastructure, with particular focus on the needs of aboriginal people; housing construction and retrofits; and investments in the ailing automotive and forest products sector, on the condition the sectors can produce restructuring plans that ensure their future viability.
There is also mention in the coalition's policy framework of the need to "facilitate" skills training by ensuring all Employment Insurance premiums are used on those efforts, and implement an income-support program for older workers who have lost their jobs – issues that have long been championed by the Bloc Quebecois.
Jack Layton, the NDP Leader, said the coalition would have a different approach to dealing with the economy.
"What we have seen unfortunately from the current government, month after month, has been essentially a denial that there's a problem and unwillingness to act. We will be taking the opposite approach by saying there is a very significant problem and that bold and rapid action is required."
Perrin Beatty, president of the Canadian Chamber of Commerce, said prior to the coalition's deal, his members had expressed concern about how the Conservative government wasn't moving quickly enough to introduce a stimulus package.
"Now our issue is how do we get this coalition to stop writing cheques," he said. "We can't be spending money to keep this coalition together."