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Genesis of a Crisis

by Barry Weisleder / December 2008


Conservative Prime Minister Stephen Harper told the G20 countries he favours an economic stimulus plan, even if it takes a deficit to do it.  But on November 27 his Finance Minister, Jim Flaherty, presented to Parliament a fiscal update full of cuts to achieve a balanced budget.  Flaherty proposed to cut programme spending by $2 billion next year, to sell $2.3 billion worth of public assets, and to squeeze $600 million out of public service wages by suspending the right to strike for federal workers.  He also pledged to stop pay equity settlement payments to women, announced he would cut by $2.4 billion transfer payments to poorer provinces, and said he would scrap public subsidies to political parties based on the number of votes they get.
        

Needless to say, none of these measures would create or protect one job, or sustain one pension, or help one jobless or homeless person, as the country descends into economic quick sand.
        

The opposition Liberal Party, New Democratic Party and Bloc Quebecois announced that they would vote to bring down the Conservative minority government.
        

Staring defeat in the face, the Tories postponed the vote on their fiscal report from December 1 to December 8.  In a vain attempt to stop the uproar, the Tories dropped their plan to cut party subsidies and ban strikes.  Flaherty promised a new budget for January 27 to include new spending.
        

On December 3, Liberal leader Stephane Dion and NDP leader Jack Layton announced the formation of a coalition based on an economic stimulus package (though no dollar figures were indicated), and an allocation of cabinet seats (18 to go to the Liberals, plus the PM, and 6 to the NDP).  BQ leader Gilles Duceppe agreed to support the coalition for 18 months.
        

To avoid defeat in the House on December 8, Harper asked Governor General Michaelle Jean to “prorogue” Parliament, that is, to suspend it until January 26.  The GG granted the rare and controversial request, just seven weeks following the latest federal election.  This buys time for the Tories. 
        

However, Liberal MP s, in the midst of a divisive leadership race to replace the ineffective Dion, already appear to be bolting from the coalition.  Ironically, Harper may have saved Jack Layton and the NDP brass from self-amputation by suspending Parliament and exploiting Liberal internal contradictions.  But Harper’s vicious attack on “separatists”, implying that the 1.3 million Quebecois who voted for the BQ are traitors and devils, has unleashed the dogs of racist chauvinism.  While Harper’s demagogy has hurt the Conservatives in Quebec, it also undermines solidarity and working class independence across the rest of the Canadian state.  The road ahead will be rocky indeed – but passable.  Socialists, democrats and progressives should press the NDP and Labour to fight for a programme wrapped in the workers’ flag, not the maple leaf.

Human Needs, Not Profits!