Canada Budget 2012: Harper Government's Budget Bill Poised To Clear Major Legislative Hurdle

CP  |  By Posted: 05/14/2012 1:41 pm Updated: 05/15/2012 12:18 pm

OTTAWA - The Harper government's massive budget implementation bill cleared its first major legislative hurdle Monday without further attempts by the NDP to delay the vote.

The Conservatives used their majority to give the bill approval in principle by a vote of 149 to 132. It will now be sent to the Commons finance committee for more detailed examination.

New Democrats tied the House of Commons in procedural knots last Wednesday in a bid to put off the vote and pressure the government to split up the 425-page bill into more manageable chunks.

But NDP House leader Nathan Cullen conceded there was little the official Opposition could do to block Monday's second-reading vote — barring extreme tactics like pulling the fire alarms, which the NDP didn't want to employ.

Still, he said there will be more procedural ploys in the days ahead as the bill wends its way through committee and, eventually, back to the Commons.

Cullen said the objective is to buy as much time as possible to rally public opinion against the bill, which is stuffed with a host of non-budgetary measures including controversial overhauls of environmental assessment, immigration and Employment Insurance laws.

"There's a certain inevitability about today," Cullen said in an interview before the vote.

"There are some very, very extreme tactics available but we're not taking them. We made our point last week, got some more hours in the day to debate this and increased awareness across the country."

Once the bill returns to the Commons from the finance committee, the NDP, the Liberals and Green Party Leader Elizabeth May are all vowing to introduce potentially hundreds of amendments that could tie up the bill for days or weeks.

In the meantime, Cullen said the NDP will unveil Tuesday "novel" ways to engage the public in the debate.

"We think knowledge is power on this one. The more people understand, the more people want to resist."

Interim Liberal leader Bob Rae said his party is also trying to mobilize public opinion, hoping to "shame the government" into ensuring that affected groups have a chance to be heard during finance committee hearings on the bill. So far, he said, it appears the government is determined to exclude many people.

The Conservatives and even the Liberals criticized the NDP last week for creating a parliamentary circus that would do little to delay today's vote to give the bill approval in principle. Although they agree with splitting up the bill and are equally opposed to its contents, the Liberals complained that the NDP tactics prevented eight MPs from speaking during debate on the bill last Wednesday.

The criticism continued Monday with Foreign Affairs Minister John Baird saying the government is "focused like a laser on the economy." By contrast, he said the NDP is "making a mockery of Parliament" with its "partisan games."

"Shame on the New Democratic Party," Baird told the Commons, standing in for Prime Minister Stephen Harper.

However, Cullen said the NDP's tactics have been responsible and actually gained a full day of budget debate.

"We've been blamed for a lot of theatrics that haven't been there," he said.

"It'd be a pretty boring circus if this were the circus. I mean, what did we do? We had a couple of votes and we got a few more hours of debate on the bill. That's what everyone's setting their hair on fire about. My goodness."

Given economic turbulence in Europe that could yet tip the world into another recession, Finance Minister Jim Flaherty argued that speedy passage of the bill is essential for Canada's economic well-being.

"It is important to pass this bill and continue with our work, particularly in the light of what is happening in the eurozone," he told reporters shortly before the vote.

"We see the results of delay and inaction in Europe today. So I encourage the opposition to be wary of counter-productive political theatre at this serious and fragile time."

However, Rae said there's no plausible reason why non-budgetary measures included in the bill need be rushed through. He pointed out that one major element — raising the age of eligibility for Old Age Security to 67 from 65 — isn't to go into effect until 2023.

"What they hell is the rush? Why not take that out and say, 'OK, let's study that for a longer period of time?' I mean there's no need for the government to railroad these things through."

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OTTAWA - The Harper government's massive budget implementation bill cleared its first major legislative hurdle Monday without further attempts by the NDP to delay the vote.The Conservatives used their...
OTTAWA - The Harper government's massive budget implementation bill cleared its first major legislative hurdle Monday without further attempts by the NDP to delay the vote.The Conservatives used their...
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Donna Meness
www.findmaisyandshannon.com
10:53 AM on 05/15/2012
I remember how Jim Flaherty hid over 5 Billion in debt when he was the Finance Minister of Ontario during the Harris years, ever since then I cannot bring myself to trust this man.

Look at him would you buy a car from him?
Donna Meness
www.findmaisyandshannon.com
10:42 AM on 05/15/2012
How will these massive borrowed operating deficits be paid back?

Any combination of inflation, tax increases, devaluation, collapse of an entire monetary system are all possible and likely scenarios. History is littered with societies ruined by currency inflation as we saw in the 1977-1980 period where interest rates/mortgage rate rose to 12%-24%, followed by a dramatic recession and high unemployment. What are called essential services to Canadians get severely curtailed; health care, hospitals, and doctors get starved for funds; schools, universities, and transit systems see massive cuts in funding; and infrastructure projects are cancelled as money flows toward a huge debt buildup. Transfer payments to the provinces get severely curtailed requiring provincial governments to raise taxes or curtail services. This is what the Liberals had to do from 1994-1999 in order to operate the federal government without deficits. Then from 1998-2005, the Liberals were able to make considerable headway paying down the accumulated National Debt that the Mulroney years inflamed with deficit spending.

Nonetheless, Stephen Harper says it will be five years before the Conservative government has a balanced budget; massive deficits are to incur a national debt on a scale comparable or worse than the Mulroney years, which is what got Stephen Harper and Preston Manning into politics in the first place.
Donna Meness
www.findmaisyandshannon.com
10:41 AM on 05/15/2012
But it's worse than just a massive delayed tax when the Gov't borrows money; it sucks that money out of circulation for the use of private enterprise. Businesses that need to borrow for expansion, construction, capitalization, research and development, new machinery, and exploration, find that money available for loans is scarce and often unavailable because government has borrowed $56 billion in one year that would have been available to business.

With all European and North American governments operating with deficits at state and federal levels, there is very little money available for the industries and business that actually provide long-term productive jobs that reflect market demand and grow economics. With governments of the world in debt by about $22 trillion USD (the US alone has a debt of $12 trillion), who is lending them the $600 billion a year just to cover the interest on this debt? I don't think there is nearly enough private investment capital liquid enough in a recession to actually cover these loans. I think government is printing money out of the thin air, inflating the currency, setting absurd and unsustainable low-interest rates, and printing their way out of debt.

This is how the massive US Federal Government deficits are being accounted for, printing massive quantities of paper money. When this happens, the value of paper money drops relative to commodities like oil, gold, metals and other commodities, which are going up in price during a recession and high unemployment.
Donna Meness
www.findmaisyandshannon.com
10:40 AM on 05/15/2012
Harper the lobbyist, Harper the neophyte Reform candidate in 1993 and Harper the Prime Minister in 2008 railed against deficits, and for good reason. Deficits are a tax on future generations because banks lend governments the money to cover operational budget shortfalls and this borrowed money must be repaid, along with onerous interest payments.

There are about 24,000,000 Canadians (out of a total population of 31,000,000) over the age of 17 paying income taxes on their earnings. A $56 billion operating deficit for just one year must be borrowed from banks, pension funds, individuals who buy government "bonds" such as Canada saving bonds or treasury bonds, and other financial instruments.

This debt is directly payable only by Canadian taxpayers. This year's debt alone is $56 billion, which is a $2,350 debt for the average taxpayer – you! In just one year of government deficit!

http://www.cannabisculture.com/v2/content/stephen-harper-and-end-days-canada-we-know-it
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08:33 PM on 05/14/2012
Reich Chancellor Harper has spoken!
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Norma Ward
06:11 PM on 05/14/2012
Not to worry Canada. As shown here, at least 10 percent of our overpaid MPs are unlikely to even show up for the vote:

http://viableopposition.blogspot.ca/2012/05/canadas-absentee-mps-case-of.html

Apparently, it doesn't really matter how important the issue, Canada's MPs have more pressing business than sitting in the House, voting on legislation that will impact our futures.
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Taylor Jay
I don't align myself with any political party.
06:13 PM on 05/14/2012
makes me wonder how many of these MPs are to busy running contractors & other secondary sources of income which benifits from their political situation. Harper government works really well for those employed by it. Unless you get scapegoated out
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Spanky McFarlane
ILLEGITIMUS NON CARBORUNDUM.
05:38 PM on 05/14/2012
Has anyone noticed that despite being in DEFICIT for several years & continuing to have to BORROWto finance their follythese 'stewards of our economy' have never have had to bring a Budget borrowing Bill before the people of Canada via the House of Commons?

* This is because deep within a previous budget bill they buried this provision that removed the requirement for any Government to do so

The only thing the Conservatives spend time managing -is their image.
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waynerism
04:27 PM on 05/14/2012
What a wonderful time to be a Tory and watch the complete disarray and total ineffectiveness of the opposition! In a way I kind of feel sorry for the left in Canada at present - however - we now have a real choice. The likelihood of the Liberals chance of improving their lot only helps us Conservatives on the other hand is more likely to be of little use - canadians are now parking their voice with the NDP if they don;' like Harper - little realizing this is the whole strategy - I wonder how many out there realize that it will be their very dislike of harper that will continue to make the very likelihood of his staying in the PM's chair liley = hahaha!
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Warren Yuill
Jesus Built My Hot-Rod
04:08 PM on 05/14/2012
The thing to remember is.....' Harper owns the economy'.
If it tanks....so does Harper.
If it goes gangbusters...Steve's popularity will soar.
It's the only thing that's likely to bring him down.
Robo-calls are a dead issue.
F-35's untill 2013....are a dead issue.
The overwhelming majority of canadians consider the economy to be their number 1 priority.
All the "nuts and bolts" issues pale before the bread and butter issue.
So it makes you wonder why the opposition has little or nothing to say about the conservatives economic strategy.
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Spanky McFarlane
ILLEGITIMUS NON CARBORUNDUM.
05:46 PM on 05/14/2012
Spreading PORK around is not an 'economic strategy'
06:05 PM on 05/14/2012
haroie would like to have a singkle issue election ---less to answer for ---

too bad you took the bait hook line and sinker

F 35'S ----aol-----election fraud --------he would like you to forget all that
03:59 PM on 05/14/2012
Please, if you live in Ottawa go demonstrate agains this abuse of power by the Harper Cons.
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Kristopher Leang
training to take down the elite
03:59 PM on 05/14/2012
"But NDP House leader Nathan Cullen says there's little the official Opposition can do to block the vote — barring extreme tactics like pulling the fire alarms, which the NDP doesn't want to employ."

did any of the NDP even suggest such a tactic or is the media getting ahead of itself as usual trying to bias the reader and slander those the article is about.
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sdgreen
11:08 PM on 05/14/2012
The real problem for the NDP is they can not multi-task.
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Kristopher Leang
training to take down the elite
11:39 PM on 05/14/2012
cant multitask?? if you can suggest a way the opposition can block a majority then by all means go ahead.
03:57 PM on 05/14/2012
I was beginning to think the NDP and Mulcair were a one man show. Is Mulcair’s Shadow Cabinet even allowed to speak? Enough of the Kabuki Theater Cullen.
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Runey
religion is why we can't have nice things.
03:47 PM on 05/14/2012
The issue is today's liberals and cons are mirror images of eachother with a different looking smirk on their clown faces.. cry foul for any attempt at transparency.
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Kristopher Leang
training to take down the elite
04:00 PM on 05/14/2012
umm the liberal scandals that took place over 4+ decades may equal or infact be less than that of the cons since 2006. thats a much different time frame..
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William Muller
03:32 PM on 05/14/2012
Omnibus bills ware passed before by the Liberals but all aspects were related to that bill.
This is the first time in Canadian history that 18 items in a budget bill have no relation to that bill and should not be allowed in there.
To top it off the Cons restrict debate on it.
This is democracy Harper style.
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AuntiFascist
Taking back our democracy
06:16 PM on 05/14/2012
This is the American model where unpalatable items are hidden within bigger and unrelated bills. Harper's US handler's have no doubt taught this technique to him. It's a sad day for Canada and our tattered democracy.
03:28 PM on 05/14/2012
THE CRIME OF THE CANADIAN BANKING SYSTEM
With Bill Abram
http://www.youtube.com/watch?v=O8Zl1Wax8MI

Over the past 4 years [2003-07], the Canadian people have paid $137.4 billion in interest on money borrowed from private banks whereas the Bank of Canada could legally print the public's money into existence rather than borrowing it at interest. "They've paid out this huge sum because our government has failed to abide by the law." Abram, a retired high school teacher and activist on Vancouver Island, B.C., explicates the trick of fractional reserve banking.

The fractional reserve banking system and private banks

95% of our money supply is borrowed into circulation and created by the private banking sector as interest-bearing debt through a system called fractional reserve banking. This is a process where private banks can leverage and loan out 10 to 20 times the amount of money in their deposits.

This means nearly all money is simply virtual – computer entries by privately-owned banks which create money out of thin air. They are allowed to lend their capital up to twenty times and collect interest on it each time. Still worse, many of the loans are made to hedge funds and the financial industry which makes huge profits without creating any new real wealth that is tangible or useful.

http://actionparty.ca/campaigns/monetary-reform-bank-of-canada/