QUESTION PERIOD — Finance
Federal Fiscal Deficit--Economy
March 10, 2020
Honourable senators, my question today is again for the government leader in the Senate.
Senator Gold, in a speech last week, the Governor of the Bank of Canada made it clear that the bank’s decision to cut interest rates by half a percentage point was not only based on the economic threat posed by coronavirus.
Our economy, leader, slowed in the last quarter of 2019 to its worst performance in four years, and much of this slowdown was structural. Exports remain weak and business investment seems to get worse every day. On top of these underlying problems, we’ve had the rail blockades, a crash in the price of oil and stock market turmoil.
Leader, your government’s poor management, out-of-control spending and weak leadership have put Canada at a disadvantage at a dangerous time. How can you protect our economy and our people without going deeper and deeper into deficit?
Good question.
Thank you for your question. That Canada is going through difficult economic and turbulent times is obvious to all who are experiencing it, as indeed are the world markets. It is caused by many factors, some of which you’ve pointed out.
It’s the position of this government, however, that there remains capacity in the government to address these issues in a sensible way and that there is, in fact, fiscal capacity to respond to Canadians’ needs in an appropriate way. I’m advised the government is working hard on all fronts to ensure that the tumult that we are experiencing is mitigated to the fullest extent possible.
You’re absolutely right, leader. Some of the reasons are the reasons I pointed out. One of them is weak leadership. Business investment in Canada is getting worse, and we have this Liberal government’s weak leadership to thank or to blame.
Berkshire Hathaway, led by one of the most successful investors in the world, Warren Buffett, has reportedly decided not to invest in an LNG project in Quebec due to the current Canadian political context and the instability of recent weeks with the rail blockades. Leader, investors around the world believe that major energy projects cannot be built here in Canada.
What exactly will your government do? Please, do not just say, “We’re working hard.” What will your government do to change that view and regain the billions of dollars in investments lost since your government took office?
Thank you again for the question. I was careful to say some but not all of the reasons you cited.
It is not the position of this government that it has shown weak leadership. Quite on the contrary, the government remains committed to working with the resource sector and others to ensure that the best projects are carried out that create jobs and long-range prosperity for Canadians and long-term sustainable growth.
Around the world, global investors are increasingly concerned and are looking for projects that are as clean as possible and sustainable. That is what the world is demanding increasingly.
With regard to your question that affects me as a senator from Quebec and all Quebecers, the liquefied natural gas project, my understanding is that GNL Quebec intends to continue through the assessment process as they look for new investments in this proposed project. It’s the position of this government that it will lend its support to the fullest extent possible.
