OTTAWA - With Europe on the verge of a new recession and the rest of the world facing economic uncertainty, Prime Minister Stephen Harper warns that 2012 will undoubtedly be another challenging year for Canada.

But he wants Canadians to know that he feels their pain.

"Canadians have consistently told us the economy is their top priority," Harper wrote Sunday in a letter to Conservative MPs.

"They are concerned about their jobs, their families and their financial security. We have listened to their concerns and we have acted with Canada’s Economic Action Plan."

But creating those jobs won't be easy, and Harper warns that "tough, important choices" will have to be made to keep the Canadian economy growing.

"We must make those choices – choices that will lead to greater prosperity - but we must make them together with the Canadian people," Harper said.

The federal government has increased spending every year for the last five years, but while 1.4 million Canadians are unemployed, Finance Minister Jim Flaherty has said such spending schemes will increase deficits and raise taxes.

Flaherty has warned that the budgets of several departments could be cut by more than 10 per cent as the government reviews all spending in federal departments and agencies. He's also said that issues such as pension reform and other benefits for public servants are under the microscope.

A special committee from Treasury Board has been looking over each department and agency and will come up with recommendations on what can be cut as part of the budget process.

Harper is taking that process a step further by asking for input from entrepreneurs, workers, small businesses and ordinary Canadians.

"Therefore, I am requesting that ministers take time in the coming weeks to travel the country and consult with Canadians on Economic Action Plan 2012."

Harper says the new budget will focus on five key areas, including — expanding trade and opening new markets, investing in research and development, contributing to skills training, eliminating red tape, keeping taxes low and controlling debt and deficits.

What the Tories did during the fall sitting

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C-10 -- The omnibus crime bill, combining all the justice measures the Conservatives tried to pass when they had a minority government, is at second reading debate in the Senate and expected to pass in 2012. With files from CBC

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C-10 -- The omnibus crime bill, combining all the justice measures the Conservatives tried to pass when they had a minority government, is at second reading debate in the Senate and expected to pass in 2012.

With files from CBC

MORE SLIDESHOWS NEXT >   |   < PREV

Brands That Will Disappear In 2014

Countries With The Most Rich People

Florida's Small-Town Downtowns

Wildest, Most Expensive 'Cottages' For Sale In Canada

The Power of Distributed Generation

Cities With Fewer Jobs Than Before Recession

What the Tories did during the fall sitting

 

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C-10 -- The omnibus crime bill, combining all the justice measures the Conservatives tried to pass when they had a minority government, is at second reading debate in the Senate and expected to pass in 2012. With files from CBC

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