Q & A: critical experts wade in on the OAS debate

By John Geddes - Friday, February 3, 2012 at 12:30 PM - 0 Comments

A tough, detailed appraisal of the government’s plan to somehow curb Old Age Security spending is available today both on 3D Policy’s webite and over at iPolitics as a featured opinion.

It’s by two former senior finance department mandarins, Scott Clark and Peter DeVries, and brings badly needed clarity to the debate sparked by Prime Minister Stephen Harper’s surprise remark about his intention to reform pensions in his “major transformations” speech last week at the World Economic Forum in Davos, Switzerland.

Clark and DeVries argue that since the government has already clamped down on spending growth in big-ticket areas like defence and health, the projected rise in OAS costs isn’t by itself large enough to pose any real threat to federal finances.

Their commentary is well worth reading, but I also took the opportunity to interview Clark this morning for a less formal sense of how he sees this volatile debate unfolding. He brings the unique perspective of a former deputy minister of finance, and a key insider during the fight to eliminate the deficit back in the 1990s—when the Liberals decided against cutting seniors benefits as too politically risky.

Here’s part of our conversation, edited and condensed:

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The Commons: Having it both ways

By Aaron Wherry - Monday, January 30, 2012 at 6:28 PM - 0 Comments

The Scene. For the benefit of the House, Nycole Turmel relayed what she’d taken from what the Prime Minister said last week when he was some 6,264 kilometres from here.

“Mr. Speaker, Canadians are bracing themselves for the deepest round of cuts since Paul Martin, cuts to services Canadians need, like the OAS and EI,” she offered.

Members of the government side audibly whined at this reference to the previous prime minister.

“These cuts will hurt people, hurt seniors, hurt jobs and hurt our communities,” Ms. Turmel continued. “When will the Prime Minister tell Canadians the bad news, on his next trip to Switzerland or somewhere else in the world?”

Last week, so far away from this place, the Prime Minister had been full of dramatic phrasing. “Major transformations,” he said. Demographics posed a “threat” to that which we “cherished.” The deep holes of Europe and the United States threatened to grow deeper. The very future of our society hung in the proverbial balance. Continue…

What does it all mean?

By Aaron Wherry - Thursday, January 26, 2012 at 5:08 PM - 0 Comments

On the same day the Prime Minister promises “major transformation,” Tony Clement hints at deeper budget cuts.

Paul thinks we just heard a Throne Speech. Mark Kennedy figures the age of eligibility for Old Age Security will be raised from 65 to 67. Peter Julian and Scott Brison are worried.

“Now, he’s threatening … seems to be trying to precondition us to cuts to the OAS, which is there to help the lowest income Canadians,” charged Mr. Brison. “At a time when other global leaders at Davos are addressing income inequality not only is Harper ignoring it he’s threatening to make it worse.” Mr. Brison asserted the OAS is “very important for low income seniors and one of the reasons why Canada is successful economically is because we are progressive socially and we help vulnerable people.”

Tangentially, Susan Delacourt notes that the Prime Minister was recently advised to think “big.”

And for whatever insight might be gleaned into where this is all going—or at least what the next little while is going to sound like—here are the official Conservative talking points on the Prime Minister’s speech. Continue…

‘To seize and to master our future’

By Aaron Wherry - Thursday, January 26, 2012 at 2:39 PM - 0 Comments

The prepared text of the Prime Minister’s remarks in Davos today.

“Thank you Professor Schwab for that kind introduction, I also want to thank you particularly for the invitation to speak here that you extended to me earlier this year.  But more than that, Professor, you have made the World Economic Forum an indispensable part of the global conversation among leaders in politics, business, and civil society.  And in the face of continuing global economic instability, the opportunity this gathering provides is now more valuable than ever.  So I know everyone here joins me in thanking you for, in service of the common good, your vision and your leadership.

“My Greetings to Ambassador Santi; to the Governor General of the Bank of Canada, known internationally as Chair of the Financial Stability Board, Mark Carney; to our hard-working Minister of International Trade, Ed Fast; and to the best finance minister on the planet, Jim Flaherty.  And let me just say that I’m especially proud to see so many outstanding Canadian business leaders making their presence felt here in Davos.

“Ladies and gentlemen, I will use my time today to highlight Canada’s economic strengths and to frame the choices we face as we work to secure long-term prosperity for our citizens in a difficult global environment that is likely to remain so.

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Harper promises “major transformations” in Davos speech

By Alex Ballingall - Thursday, January 26, 2012 at 2:16 PM - 0 Comments

Prime Minister Stephen Harper said Thursday that his government plans to revamp Canada’s immigration, pensions and research and development policies. “In the months to come, our government will undertake major transformations to position Canada for growth over the next generation,” Harper told the 2,600 government and business leaders attending the World Economic Forum in Davos. In delivering the keynote speech of the conference, Harper was widely expected to touch on the key aspects of the Conservative government’s upcoming budget. Many of the specific policy points were left unsaid, but Harper did say that, when it comes to immigration, Ottawa will emphasize attracting those with the labour skills that Canada needs. Harper also warned developing countries not to assume that their relative prosperity compared with countries in Africa, South America and Asia is “somehow the natural order of things.” He asked “whether the creation of economic growth, and therefore jobs, really is the No. 1 policy priority for everyone,” adding that his government is working to ensure Canada’s economic stability and expansion. He also emphasized his support for increased trade with Asia, especially when it comes to oil.

The Globe and Mail

Harper to deliver keynote speech in Davos

By Alex Ballingall - Thursday, January 26, 2012 at 10:21 AM - 0 Comments

With his standing among world leaders bolstered by a relatively healthy domestic economy and a stable banking sector that’s the envy of debt-riddled Europe, Prime Minister Stephen Harper will deliver the keynote speech on Thursday at the World Economic Forum in Davos, Switzerland. World leaders and business moguls are gathered there this week to discuss issues in the global economy, such as the threats presented by the European debt crisis and potential for profit and growth in developing countries.

Harper is expected to touch on those issues in his speech. But he’s also slated to outline key provisions of his government’s upcoming budget, which is expected to include signficant austerity measures, The Globe and Mail reported Thursday morning. Harper will also try to drum up enthusiasm for foreign investment in Canada, which he hopes will drive economic activity as his government pulls back on stimulus spending. British Prime Minister David Cameron notably used his address to support Canada-EU free trade agreement, another expected talking point in Harper’s address.

Harper has long touted Canada as having a strong economic foundation. In a statement released by the PMO on Thursday, the Conservative government claimed that “thanks to Canada’s economic action plan,” the national economy “has recovered from the global recession better than most countries.”

It should be noted that such a cheery tone may not be fully justified. According a report written by Canadian Autoworkers economist Jim Stanford, released Wednesday, Canadian GDP and job growth haven’t recovered to pre-recession levels, at least on a per-capita basis. “The self-congratulatory tone of so many official pronouncements in Canada is clearly unjustified,” Stanford concludes.

The Globe and Mail

Harper to address stagnant capital in Davos

By macleans.ca - Wednesday, January 25, 2012 at 1:17 PM - 0 Comments

Prime Minister Stephen Harper is in Davos, Switzerland to attend the World Economic Forum, a gathering of more than 2,600 business and government leaders. On Wednesday, Harper is meeting with Canadian business leaders, including the CEOs of Desjardins Group, Barrick Gold, Jim Leech of the Ontario Teachers’ Pension Plan and Charles Sirois, chairman of CIBC. Unease about the health of the global banking system and world economy is encouraging large companies to hoard their capital, rather than invest it new projects, a topic Harper has touched on in the past. The prime minister is expected to try and find ways to encourage such companies to invest stagnant capital, which would create jobs and spur economic activity. Harper is also expected to hold discussions with leaders from developing economies as he seeks to find new customers for the Canadian oil industry. On Thursday, Harper will deliver a speech to the forum, where he will frame the key points of his government’s upcoming budget, which is expected to include significant austerity measures, according to the CBC.

CBC

Please remain seated

By Aaron Wherry - Friday, January 29, 2010 at 3:47 PM - 58 Comments

Stephen Harper, Nov. 21, 2009. We believe strongly that Canadians’ freedom is enhanced when journalists are free to pursue the truth, to shine light into dark corners and assist the process of holding government’s accountable.

CBC, today. Harper flew back from Switzerland today.  While in the air his office announced the appointment of five new Senators and the Supreme Court ruled he has the power to decide to ask if Omar Khadr could be repatriated. What does Harper have to say about these developments? Nothing. Journalists travelling with Harper are being kept on the plane to ensure the Prime Minister doesn’t face any questions in his short jaunt from the bottom of the staircase to his waiting limousine.

'Accountability, ladies and gentlemen, is the prerequisite for progress'

By Aaron Wherry - Thursday, January 28, 2010 at 3:34 PM - 40 Comments

The prepared text of the Prime Minister’s speech in Davos today.

“It’s great to be here in Davos and to have this opportunity to contribute to your discussions on some of the vital issues confronting the world today.  Some of them are complex and they may, at times, seem abstract.  But for ordinary men and women everywhere, the substance of what we talk about here translates into simple realities like a home, food on the table, or a better life for their children.  So, it’s an important debate that we’re delighted to be part of.

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