Ignatieff's shrinking ambition

WELLS: The Liberals find a hope of beating Harper. But will it work?

by Paul Wells on Friday, October 8, 2010 9:00am - 0 Comments

 

Ignatieff's shrinking ambition

Chris Wattie/Reuters

 

“Have you seen our home care package? It’s being unveiled as we speak,” a Liberal party guy told me outside a Starbucks in downtown Ottawa. He showed me his BlackBerry, which was displaying something official-looking. “Focus groups are jumping up and down over this.”

That wasn’t hard to believe. That morning in Gatineau, Michael Ignatieff had announced a $1-billion program to help people care for aging relatives at home. More and more of us have aging relatives, so the Liberal plan addresses a real concern. The Liberal plan would use Employment Insurance to give caregivers half a year off work with modest pay. That’s the way parental leave benefits already work. Another element in the program would pay a tax benefit of up to $1,350 a year to people providing home care. That’s how the Canada Child Tax Benefit works.

So: a program designed to address a perceptible need in an aging society. Proven delivery mechanisms. Modest cost. (No, really: on $280 billion in program spending, $1 billion is modest. It cost a lot more than that to hold a summit meeting in Toronto this summer.)

In short, on this file at least, the Ignatieff Liberals are proposing to act much the same as the Harper Conservatives did when they brought in per-child cheques to parents, instead of state-organized daycare. Imitation is the sincerest form of flattery, and it’s easy to imagine the Conservatives returning the compliment. What will you do, I asked my Liberal acquaintance, if the Conservatives swipe your policy?
“There’s no ‘if’ about it,” he said with a shrug. Ignatieff hopes simply to grab some first-mover advantage, to be the guy who suggested doing something about home care first.

I suspect this centrist move, which brings the Liberals into the field of view of middle-class families, is smart politics. It seems like decent policy. But it also shows how time and hardship have shrunk the horizons of Liberal ambition.

The home care project is not the entire Liberal election platform. There will be more proposals in other areas when the campaign comes. Still, by way of comparison: in April 2009, Ignatieff seemed ready to force an election over his demand that eligibility rules for Employment Insurance be relaxed. The cost of that would have been maybe $7 billion a year. Last week, he voted against a Bloc Québécois private member’s bill that proposed the same sort of changes.

Six months before that, Ignatieff was a Liberal candidate for Parliament, running with his colleagues under the banner of Stéphane Dion’s Green Shift. You’re forgiven if you forget the details. Dion wanted to put $15.4 billion in carbon-tax revenues toward tax cuts and social programs.

So in two years, the price tag on Liberal plans has shrunk from $15 billion to $7 billion to—well, $1 billion for now, a few billion later.

This imploding ambition reflects fiscal realities. When the Liberals’ policy conference in Montreal ended in March, Ignatieff gave a detailed speech outlining policies he’d pay for by “postponing” $5 billion to $7 billion in Conservative cuts to corporate taxes. Those tax cuts will go ahead in the next federal budget, just after the New Year. So Ignatieff won’t have the money he was counting on to pay for his springtime plans.

Ignatieff’s concession to straitened circumstance may improve his chances of winning the next election. It probably makes it harder to call him reckless. But the trend line is worth noticing. It reflects the Liberals’ painful realization that Harper won the elections in 2006 and 2008, and that he will keep winning if they don’t change their game. So they are changing to make it more like his game. The Liberals have twice pitted big dreams against managerial Harperism and lost. Now they will play a game of nuance.

As the game board shrinks, there is less room on it for issues some people used to care about. Take climate change. Lots of Canadian still believe human action can reduce the damage from global warming. Canada is far less likely to lead such change than it was two years ago. Here Harper’s good fortune stems from a simple decision: to hitch his climate-change wagon to Barack Obama.

When he was elected, Obama had great plans on climate change as on everything else. Weeks after his inauguration, he told Congress, “We need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution.”
Obama’s plan was closer to Harper’s various cap and trade schemes than to Dion’s straight carbon tax. But if it could not pass Congress, it amounted to a plan to do nothing. In announcing a “continental approach” to energy and the environment, Harper was betting Obama would fail to get anything done. Canadians have paid too little attention to the collapse this summer of climate change legislation in the U.S. Senate. It meant Harper has won his bet. Everywhere Harper looks, he sees ambitious government going out of style.
One presumes he likes the view.

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  • Richard

    Vindictive Parliamentary Press Gallery circa 2006: "The Liberals don't have a platform"
    Revisionist Parliamentary Press gallery circa 2010: "The Liberals pitted big dreams against managerial Harperism"

    • McC_

      The way I recall it, the problem wasn't that the liberals didn't have a platform, it was that they didn't have priorities, they were trying to implement every policy and program that every one of Martin and his supporters had been wanting to do for 10 years, all right now, at the same time (there was renewing the military — Martin's gov't started that btw, Kelowna, national childcare, renewed int'l development focused on Africa, the New Deal for Cities, the list went on, and there was no sense that all of these huge initiatives couldn't be implemented simultaneously).

  • keith c

    Great piece, Wells.
    I read it and immediately thought of the GST cut and the phrase "starve the beast" — tax cutting by conservatives that leaves a nasty deficit but is a deliberate attempt to scale back the ambitions and capacity of any activist government that follows. Iggy's smaller ambitions are a direct result of the GST cut.
    The way you point out the climate-change bet on Obama's waning popularity is also dead on and I hadn't considered it before.
    Harper does have a knack for seeing how things will play out two years in the future…

  • http://canadiansense.blogspot.com/ CanadianSense

    Ignatieff has had another Seinfeld moment.

    While George steps out of the shower and is toweling off, Rachel walks in on him, stares briefly, and giggles as she leaves. George looks down, then yells after her, “I was in the pool!”
    [youtube 1cUNNKzj_Nc&feature=player_embedded http://www.youtube.com/watch?v=1cUNNKzj_Nc&feature=player_embedded youtube]

    • Mulletaur

      Wow, that's juvenile. Freud much ?

      • http://canadiansense.blogspot.com/ CanadianSense

        "Ignatieff’s shrinking ambition" ….. Title?

        Iffy tells Liberal caucus: ‘frustrated’ with stagnation in polls

        Lorry Goldstein: Why are Rob Ford’s critics so angry? because they are losing…

        Why are you leftist lacking a sense of humour? The fundraising on photo of PM wearing white cowboy hat leather vest not down?

        Cheer up Mulletaur leftist pollsters predict Liberals will make gains on Layton misstep on LGR. http://www.youtube.com/watch?v=Zzyyi4smgWw

        [youtube Zzyyi4smgWw http://www.youtube.com/watch?v=Zzyyi4smgWw youtube]

        • Mulletaur

          I am neither a 'leftist' nor lacking a sense of humour. But that was juvenile. Thanks for confirming it by your overreaction.

      • http://canadiansense.blogspot.com/ CanadianSense

        How did that snuff film from 10:10 work out? Perhaps some of us don't get the British sense of humour right?

  • chet

    So just to be clear then.

    To fund the homecare plan, liberals here would prefer to take funds from international economic conferences that facilitate jobs,

    or from our basic national defence that protects our children,

    than from the Adscam funds stolen by Liberals.

    Glad we cleared that up.

    • Richard

      Outside of Tony Clement's riding, how did the G-20 facilitate jobs?

  • chet

    And I'm glad we've also cleared up the fact that the simple notion of actually returning funds stolen from Canadian taxpayers at the hands of Liberals,

    draws not only disaggreement from liberals here, but outright scorn.

    • brooster

      chet…do you know what fixed ideation is? Get help.

  • peter

    Me to Wherry the other day: peter · 3 days ago
    I'm sure i don't need to go back to your pieces on the children at home $100/month benefit to guess your feelings on that proposal. Somehow Iggy's recycling of a Conservative idea is a major policy/idea breakthrough? It is not. I must admit though that imitation is the sincerest form of flattery…nice to see the libs comin' around to some common sense thinking…and sweet to see you miss the irony. Report Reply
    10 replies · active 3 days ago

    You: In short, on this file at least, the Ignatieff Liberals are proposing to act much the same as the Harper Conservatives did when they brought in per-child cheques to parents, instead of state-organized daycare. Imitation is the sincerest form of flattery

    ps I drink Pil :)

    • brooster

      Why don't you settle your score with Wherry over on his blog? What's Wells' piece have to do with it?

      Nice of you to tell us what substance is impairing your judgment.

      • peter

        Just to give a dig to guys like you, who fail to understand the political process and are utterly blinded by unrealizable ideas (based on wishing rather than being) and think that the obvious is a conspiracy. Are you dating Emily?

        Also the similarity in phrasing is somewhat spooky, ergo the quip that Mr. Wells owes me a beer. Also the Riders are playing T.O. today, check the logo on the field…you can take the boy out of the prairie, but you can't take the prairie out of the boy.

        • brooster

          WTF?

  • Bugzy

    Probably because they are not steadily campaigning like the Reformatories Harper 2005 -2010 continuous campaign from day one as the PM and probably because the media ignores the Liberals and make up their own opinionating comments. They the Media are nothing but a joke and I hope to see them go broke but wait…. they won’t because they also have their hands in the Harpers till or should I say our pockets.

    Forget the Ad Scam excuse. That was over 15 years ago. What about lying Brians conservatives accepting money in envelopes which he confessed too. Now that’s also the past so get on with the times and quit blaming the government who is no longer in the PMO. You people sure like to dwell on the past while ignoring the now. Most of you are probably to young to remember that but I am sure you people get your talking points daily from the PM’s office.

    Try and remember that the liberals were penalized and lost the election and why you ask, simply because Canadians made them pay at the polls and so will they do the same for Harper. They know what a sham this government is and they will be at the next polls to boot his sorry a** out of there too.

  • Bugzy

    common senseless at it again. She hits everybodies blog with the same old lies. PS , their is no election called and therefore no campaigning going on by the liberals with the exception your cult leader who would sell his soul and his family to buy a majority. He has been campaigning since he was electd non stop using tax payers monies to do so and pulling the wool over your closed eyes and closed minds. Try and live in the now instead of in the past.

  • hosertohoosier

    The assessment of the costs of this bill as being modest is misleading. The costs of this bill are substantial, just not directly to the public treasury. If the number of people drawing from EI increase, then EI premiums will have to increase. Similarly, when you have employed people not working that means less economic output (and lower tax revenues), while posing a burden on employers.

    I'm not necessarily for or against this bill, I just wish we could have an honest and holistic discussion of costs in this country – one that includes concepts like opportunity costs, etc. Of course it may be the case that this bill entails insufficient funds with which to influence behaviour. In that case, it is simply a transfer of money from one group to another (much like Harper's cash for childcare program).

    Finally, some people have argued that this should be just like parental leave. I beg to differ. Child-rearing is a public good that provides benefits to society over the long-haul. The case for elder care as a public good is far far weaker. Who benefits other than the old person and presumably their caregiver? We provide elder-care out of a sense of moral duty, whereas we provide maternity leave because it pays a clear dividend (in terms of both protecting the place of women in the workforce, and in its positive impact on child development).

    Elder care is certainly laudable, but so are many things. Should we let people go on leave if they want to volunteer and help people? Why privilege filial obligations over broadly humanitarian ones?

  • sdecruz

    Cut subsidies to oil companies and farmers …that can easily pay for this and many more programs.

  • hollinm

    I agree with Wells. The one question I would ask is if this is sound policy then how will Ignatieff pay for it. Wells dismisses the $1billion as pennies in the scheme of things. However, somebody has to pay for it and if EI is going to be the vehicle how much will that increase individual and employers' premium contributions.

    Remember we just had to scale back the increase in EI because of the damage it would do to the fragile economy. I suspect there is a significant deficit in the EI fund today given the premiums have been frozen for the last two years coupled with the increased benefits given during the recession.

    So instead of just saying the policy is good and I agree it does have an appeal for those caring for elderly people etc, somehow the extra $1,350 is not going to make a significant difference in their daily lives as they look after elderly or disabled relatives.

    So lets wise up. A policy is announced. Lets announce the policy and then say how it is going to be paid for. There are always two sides to the equation Wells.

  • Out There

    One easy way to pay for this: don't build the unnecessary prisons that Vic Toews is demanding to combat the non-existent increase in crime.

  • Andrew (not PorC)

    "Remember we just had to scale back the increase in EI because of the damage it would do to the fragile economy."

    Incorrect. We had to scale it back because of the damage it would do to the fragile political fortunes of the government. There has been analysis done that indicates the hike would have little economic impact.

  • Jenn_

    This is a good question, Hollimn. I seriously do like the idea of hearing the policy announcement, and hearing how the policy would be paid for AT THE SAME TIME. Of course, Ignatieff has already said he would do away with the corporate tax cut, so that at least partly answers your question, but that isn't quite the same as your good idea.

    But you will, of course, provide us with the detailed costing when Harper steals the idea, won't you?

  • citizen_CA

    I'm not sure why people keep falling for this "non-existent increase in crime" media hype. Where I live, crime is on the rise, and going to prison is not seen as a bad thing to a lot of criminals (I heard this from a prison guard). So, I am all for those extra prisons, because we need them until we actually have laws and the kind of prison environments that will discourage criminal activity.

  • hollinm

    Ah yes…just what the Libs advocate. Release them or let them kill each other as a result of rioting because of overcrowding. Great solution. Crime is an issue and Canadians overwhelmingly support the tough on crime agenda and you know it. Better still lets release all the criminals and shut down the prison system. Think of how many billions we could save by eliminating the system.
    While we are at it lets get rid of the air force by not buying any new planes.

  • Stewart_Smith

    The one piece missing in Wells calculations is the startling transformation (starling for those of us over 45 at least) that the Conservatives are now much more comfortable than the Liberals in operating with a structural deficit for extended periods of time.

  • YYZ

    Where I live, crime is on the decline and has been for two decades. You can have prison, I'll take home care.

  • Out There

    From the Toronto Sun – Canada's crime rate falls: http://www.torontosun.com/news/canada/2010/07/20/…

    From the National Post – StatsCan: Canada’s crime rate continues to drop, but attempted murders and drunk driving are up: http://news.nationalpost.com/2010/07/20/statscan-…

    Note that these aren't "left-wing" newspapers.

    (The attempted murder rate is up from 721 to 806 – you don't need a lot of new prisons for that. Ironically, the homicide rate held steady in 2009, despite the increase in attempts.)

  • D.D.S

    yeah……..you know what….if it's a choice between homecare(I have elderly parents) and more prisons…..I choose elder care……..screw the prisons!

  • http://intensedebate.com/people/Ottawa_Centrist Ottawa_Centrist

    Let's just send old people to prison. That will fill up the prison spots being built and instead of home care, we can have Big House Care.

  • Peter

    You know, people who want endless programs from government to handle, well, life are such pathetic, dependant, weak little creatures.

  • brooster

    Hey, some of the warehouses into which we're dumping too many seniors are already like prisons, at least in Ontario.

  • brooster

    Yeah, but they still point fingers at the "tax and spend" Liberals. Some things never change.

  • Reverend_Blair

    I dunno, I'm 46 and my experience with Conservative governments, provincial and federal, has been that they can't manage fiscally at all. Tax and waste conservatives.

  • http://canadiansense.blogspot.com/ CanadianSense

    Can you link your expert opinion about this structural deficit? Same person who projections were incorrect on the Deficit, GDP, employment numbers in 2010?

  • hollinm

    With a corporate tax reduction to come Jan. 1st and no election on the horizon will Ignatieff increase the corporate tax rate back up. If all the corporate taxes have been implemented will he increase corporate taxes to pay for his social progams. Somehow I doubt it. How does he get around the fact his party supported the budget and the corporate tax reductions? Another flip flop to add to his resume of flip flops.
    Ignatieff will only have the revenue coming in at the time he is elected unless he is prepared to raise taxes. Stopping a tax reduction does not generate new revenue. If not then he will add it to the deficit, hike EI premiums etc. etc.

  • Steve

    "While we are at it lets get rid of the air force by not buying any new planes."

    I've yet to hear a credible explanation as to why Canada needs to spend $16 B on 65 stealth fighters…

  • Oliver

    If you don't think Canada needs some new planes then you're not being very honest.

    The last time we got planes was 1984: the F-18 are getting old and making them run costs a fortune.

    The real issue isn't the the new planes, it's that we might have been able to get them cheaper.

  • citizen_CA

    Are you not aware of all the provocation by the Russians with their bombers? That is only one of many good reasons.

  • brooster

    Oh, do you mean those Tu-95s, first flown in 1952 and put into service by the former Soviet Union in 1956? The ones that are expected to serve the Russian Air Force until at least 2040?

    Or do you mean their state-of-the-art Tupolev Tu-160s that entered service in 1987? All 16 of them.

  • Steve

    I'm inclined to trust NORAD over this government's often shrill explanations.

    "Both Russia and NORAD routinely exercise their capability to operate in the North. These exercises are important to both NORAD and Russia and are not cause for alarm."

    Lt. Desmond James, Canadian naval officer and NORAD spokesman

  • D.D.S

    oh brother…………that this would be believed by anyone is just….frightening….more frightening than a fake "The Ruskies are cummin"……..
    ….you know something though…….I am getting REALLY tired of the attempt by this Government to scare me

  • Keith in Brampton

    But do we need these particular planes? And at these prices? Proper procurement procedures may have found an alternate, or at least gotten us a better price. I read somewhere that Australia is buying the same planes for almst 50% less than we're paying. Either we have "sucker" written on our foreheads, or someone in the federal government is going to have one sweet nest egg in Switzerland or the Caymans.

    I think THAT'S the real issue for most who oppose the deal – it's certainly the core of my opposition. The question is: can we remedy this without ending up in the same mess we were / still are in over Chretien's cancelling of the helicopter deal?

  • chet

    In and out. Ahh yes.

    I can understand how liberals here can equate Conservatives spending their own money,

    with Liberals spending money stolen from taxpayers in the tens of millions.

    Indeed that inability to see the bright line between what is theirs, and what is not theirs, was the Liberals undoing.

    How nice to see it still running deep in the current liberal mindset.

  • brooster

    More accurately perhaps, "cut tax and waste anyway Conservatives"

  • Stewart_Smith

    My statement was not that we are in a structural deficit. However, during the height of the fiscal crisis, Harper was asked what he would do if the deficit persisted. His statement was that he would not slash programs or raise taxes and he would be patient to allow economic growth to eventually erase the deficit. At one point he was asked how long he could afford to wait and his answer was indefinitely.

    At around the same time, Ignatieff stated (at UBC, I believe) that it would be immoral for this generation to buy themselves out of a recession and leave the payments to their children. He stated that once the recession was over, eliminating the deficit had to be the priority and that as a last resort he would consider raising taxes. This of course, became the secret plan of Ignatieff to raise taxes and the Conservatives succeeded in raising the noise level to where any serious discussion of what to do if the economy stalls is no longer taking place.

    Without reaching a conclusion on which fiscal policy is preferred should the deficit become structural, I believe the above clearly indicates a greater degree of patience on the part of the Conservatives wrt allowing a deficit to persist. If you want to frame the Conservative position in a better light it would also be accurate that to say they consider the growth of the Canadian economy to be more important than balancing the government's books.

    Long ago, the Clark Conservatives and Trudeau Liberals had similar debates about a different deficit. At that time, the Conservatives position that it was fiscally irresponsible not to make deficit reduction the top priority. My comment above simply notes how the respective positions have shifted.

  • http://canadiansense.blogspot.com/ CanadianSense

    The Chretien-Martin neo-liberals who made massive cuts existed only in a majority. Paul Martin did not follow the same direction with his minority. He began massive spending programs plans in 2005?

    Projections Deficits:
    I remember reports from Kevin Page being cited by the opposition about the potential for a structural deficit. Do you believe a Federal government during a significant global recession has ever cut spending in a minority position?

    What did Kevin Page, PBO have as a figure?

    Canada’s economy will expand 3 percent this year, according to a Bloomberg survey of 13 of the 14 forecasters that Flaherty consults for the fiscal update. That’s up from a 2.6 percent forecast in the March budget and would produce about C$20 billion ($19.5 billion) more in output than earlier projected.

    I suspect the CPC will continue to have Stockwell Day (Program Review) to terminate wasteful spending, inefficient programs.

    Expanding trade, partners, deals, investment climate in Canada through policies (Yes)

    I don't have any evidence this government will enact massive cuts as the Chretien-Martin Liberals did in Education, Health and Social Services to engineer a federal "surplus".

    This government has acted differently in gutting the military, foreign aid or attacking provinces with downloading.

    I only have found partisan talking points about a "hidden agenda" to cut programs making Canada unrecognizable.

  • Stewart_Smith

    ? Why did you put this as a response to me? I mean it is still about the deficit but otherwise completely disconnected.

  • brooster

    I do believe CanadianSense has just figured out how to cut and paste. Relevance, coherence and continuity of thought seem to be of secondary (if any) importance.

  • http://canadiansense.blogspot.com/ CanadianSense

    "..Conservatives are now much more comfortable than the Liberals in operating with a structural deficit for extended periods of time. "- Stewart Smith

    "My statement was not that we are in a structural deficit. However, during the height of the fiscal crisis, Harper was asked what he would do if the deficit persisted. His statement was that he would not slash programs or raise taxes and he would be patient to allow economic growth to eventually erase the deficit. At one point he was asked how long he could afford to wait and his answer was indefinitely. " -Stewart Smith

    Hypothetical question about a structural deficit to the governing party vs action taken (track record since 2006).

    Minority vs Majority Government act differently. One requires no partner, the other does.

    Deficit slaying will not take place in a minority parliament. Can you list an example of a minority parliament being fiscally conservative?

    The Conservative Party of Canada led by Stephen Harper Jim Flaherty is not the PC Party of Joe Clark or Reform with Preston Manning at the helm.

    What frame are you trying to foist on this government?

    Q1-Q3 government balance sheet changed dramatically after Economic Update? The CPC campaign was the smallest around $ 9-10 billion vs Liberal-NDP each over $ 30-40 B?

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