Tories court Bloc and NDP in bid to hold onto power

[jdobbin]

It's always maddening to me when it appears our government (Liberal or Conservative) is cowtowing to Quebec...

Since the word in and around Ottawa is that Harper is looking to ally with the NDP and the BQ, this looks like one of those items that is set to try and seal the deal.

[Smallc]

Reform!!!!!!

[Keepitsimple]

Since the word in and around Ottawa is that Harper is looking to ally with the NDP and the BQ, this looks like one of those items that is set to try and seal the deal.

There is always "spin" - by the Conservatives, by the Opposition, and by the media....but it's very plain that the Conservatives have been trying to drive Harmonization, the lifting of inter-provincial trade barriers, and a single security regulator for a long time. All are supported by economists as being very important.

[August1991]

It's always maddening to me when it appears our government (Liberal or Conservative) is cowtowing to Quebec.....

In the wake out of a federal bailout to Chrysler of around $2 billion or so, that sounds amusing.

From the link in the OP:

On Wednesday, Parliament witnessed a bizarre move when the Conservatives voted in favour of a Bloc motion that transfers $2.6 billion to Quebec and allows the province to administer its own sales tax.

From your Global link:

Gilles Duceppe, leader of the Bloc Québécois, said Monday he suspects the reason Finance Minister Jim Flaherty is giving Ontario $4.3 billion, to harmonize its sales tax with the federal goods and services tax, is that the federal Conservatives want to gain votes in Ontario.

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Some background. When the GST was first introduced in the 1980s, only Quebec agreed to harmonize its PST on the GST - and it did this without any one-off incentive payment. At most, Bourassa arranged for Quebec's Ministry of Revenue to collect both taxes and send the federal portion to Ottawa. (Quebec is compensated annually for this tax collection service.) Incidentally, in Quebec, the two taxes (GST and PST) are identified separately on receipts but are essentially the same.

The feds have always wanted to harmonize our sales taxes and offered incentives for provinces to agree. Under Chretien, NS, NL and NB took the bait and got a one off payment. In these provinces, the HST is collected by the feds which then sends the provincial share to the provinces.

Enter Ontario. McGuinty, desperate for cash, decides to take the bait, gets a one-off payment of $4.3 billion to harmonize Ontario's PST on the GST.

A one-off payment to the Maritimes is one thing but $4.3 billion to Ontario is another. Quebec (Jerome-Forget) then asks rightly, "Why didn't Quebec get a one-off payment all those years ago when Bourassa accepted harmonization?"

It's a good question and if I were Charest, I'd ask for interest on the amount too.

----

Back to the thread title. I suspect that Harper/Flaherty knew about this all along and have decided that now (given the Chrysler bailout) is a good time to make amends and compensate Quebec as the Feds did the other provinces.

Of course, Alberta will never get any cash. It has no PST to harmonize.

Edited May 1, 2009 by August1991

[jdobbin]

There is always "spin" - by the Conservatives, by the Opposition, and by the media....but it's very plain that the Conservatives have been trying to drive Harmonization, the lifting of inter-provincial trade barriers, and a single security regulator for a long time. All are supported by economists as being very important.

No doubt. But some of the push for this is tor salvage the devastation they face in Quebec for calling the BQ and by extension those who voted for the BQ separatists.

[Topaz]

I watched the vote that day and the reason I think that the Tories voted yes was the other 3 parties would be voting yes would pass anyway and Harper needs Quebec in a election. Also that day, Tories voted no but the other voted yes to get rid of the 2 weeks waiting period for EI. The bill that didn't pass was to get rid of replacement workers when there is a strike. I'm not sure if this is for Fed. workers only or if it means within Canada.

[normanchateau]

All are supported by economists as being very important.

Sure, Harper supporters really care about the opinions of economists.

Most economists thought that cutting personal income tax rates would stimulate the economy more than cutting the GST. Harper totally ignored them.

Personal income tax rates in Canada were last lowered in 2005.

"Economist" Harper learned nothing from Preston Manning other than to join the same fundamentalist Evangelical church denomination, the Christian and Missionary Alliance.

[jdobbin]

From the Macleans:

http://www2.macleans.ca/2009/04/30/new-fears-of-sedition/

Stephen Harper, Dec. 3. “The Liberal Party leader proposes to help the economy by signing a pact with the Quebec sovereignists to govern the country. This is not a plan to improve the economy; it is a plan to destroy this country, which is why he should withdraw his proposal.”

Canadian Press, tonight. “The Harper government has sketched out a road map that would see it avoid an election in this recession year and survive to bask in the glory of the 2010 Olympic Games … The Tories need to stave off defeat in confidence votes until then and are considering ways to secure support from the NDP and Bloc Quebecois on a case-by-case basis … The Bloc will table its own list of economic demands Thursday, and they have been pushing for EI changes as well as a tax-harmonization deal for Quebec … One senior Conservative said there will be plenty of ways for the parties to work together. ‘We’re hopeful they’d want to work with us. … Maybe cooler heads will prevail,’ he said.”

The new Conservative/BQ coalition is starting to form.

[normanchateau]

From the Macleans:

http://www2.macleans.ca/2009/04/30/new-fears-of-sedition/

The new Conservative/BQ coalition is starting to form.

Short term gain only. It will allow Harper to hold on to power a little longer but ultimately will help the Liberals win a majority.

Who can forget how the Conservatives rose dramatically in the polls in December when the other coalition threatened to run the country.

[jbg]

The perennial power hungry Conservative Party of Canada better not even try to force another unnecessary election on the Canadian people or they better be prepared to be soundly defeated.

We don't want or need an election.

Did you want or need the Coup Attempt of December 2008?