Harper discusses 2008
This sounds grim. It's partly related to the US economy
YEAR-END INTERVIEW
Canada faces 'challenging' 2008, PM says
Economy, climate change and Afghanistan will top agenda, Harper says
Dec 20, 2007 05:00 PM
Tonda MacCharles and Bruce Campion-Smith
Ottawa Bureau
OTTAWA – Economic uncertainty in the United States and the “bite†expected once greenhouse gas cuts take effect will “challenge†the Canadian economy in the coming year, Prime Minister Stephen Harper says.
Although the country’s economic “fundamentals†are sound, Harper volunteered a warning for the year ahead in an interview with the Toronto Star this week.
He said the minority Conservatives will not offer big spending measures in a budget this spring, but will rather seek to cushion the economy from any shocks.
“There remains very serious economic uncertainty in the United States and in other parts of the world, and it’s impossible for me to see how Canada can be entirely immune from those developments,†he said in the interview at 24 Sussex.
“We will have very much a stand-pat fiscal stance focused on stability, focused on paying down debt, which is what families and businesses do when they face a period of some uncertainty,†he said.
Harper said Canadians may not anticipate the “shock†that mandated reductions in greenhouse gases will bring, once they begin to take effect this year. While the government has offered incentives for industry to use “technology opportunities†to meet targets, he said, “the fact of the matter is it will cost.â€
He began his session with the Star with an overview, saying Canadians feel “pretty good and secure†about the economy and national unity. The country is “united,†separatism on the wane, and unemployment at its lowest in 30 years.
But he made clear that the government’s view is the coming year will be “more challenging.â€
“This government will be very cautious when it comes to fiscal actions . . . As I said, we’ve taken our tax measures for the budget . . . this government will not be throwing billions of dollars around in the spring,†Harper said.
The prime minister defended his government’s actions at the climate change conference in Bali and said it’s imperative other countries accept mandatory emission caps if greenhouse gases are to be reduced.
“We’re going to have targets anyway. Our view is that we’ve got to get some other countries in on this. What’s coming out of Bali is interesting, you got a bit of a consensus but there’s a lot of chest-thumping and not very many countries willing to actually reduce emissions. That’s the reality.â€
As for Afghanistan, Harper said he is looking to the panel he appointed, led by former Liberal cabinet minister John Manley, to lay out “viable†options for Canada's mission there.
But the prime minister said that Canada accepted its Kandahar mission with no promises that other countries would take its place.
Parliament will vote on any decisions about the future mission, said Harper. But he repeated his preference that Canada not abandon the war-torn country prematurely.
Harper also suggested that Canadians don’t want a public inquiry into the Mulroney-Schreiber affair, which he emphasized had nothing to do with his government.
He said it is “almost a certainty†the government will accept the recommendatios of lawyer and academic David Johnston on the issue, however, because “we don’t want to adjudicate this ourselves.â€
