PM grabs NDP lifeline

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This article was published 27/04/2005 (7711 days ago), so information in it may no longer be current.

OTTAWA — Prime Minister Paul Martin has bought himself what he hopes will be a $4.6-billion political lifeline.

Martin’s Liberals reached an “agreement in principle” yesterday with the NDP that will see the New Democrats support the fragile minority government against efforts by the Conservatives and Bloc Québécois to bring it down.

But the deal comes at a heavy cost — $4.6 billion in new investment over two years for the environment, affordable housing, foreign aid, and post-secondary education and training.

That provided ammunition for Conservative Leader Stephen Harper and business groups who slammed the pact.

NDP Leader Jack Layton had demanded the Liberals eliminate $4.6 billion in proposed business tax cuts so the money could be spent on social programs. But the deal only calls for the tax cuts for big corporations to be put off.

Promised cuts for small- and medium-sized businesses will remain.

Martin called the agreement “fiscally responsible” and said he made it on the condition that the government not go into deficit and continue to pay down debt.

“Under no circumstances will we go back into deficit,” he said. “The fiscal integrity of this country… remains a fundamental element of our ability to finance social programs and our ability to create jobs.”

“And why are we doing it? We’re doing it to make Parliament work.”

The government remains committed to paying down at least $4 billion from the national debt over two years, Martin said.

Layton also defended the pact, saying it aims at keeping Parliament working and doing good things for Canadians.

“I promised to listen to Canadians and I have,” he said. “It’s not an exercise just in the interest of the political parties here. This isn’t a game that we’re playing here. We have work to do.”

The agreement will see $1.6 billion for affordable housing, with a fund set up to assist aboriginal home construction.

Transfer payments to provinces and territories will be boosted by $1.5 billion to reduce tuition fees for university and college students and help train unemployed workers.

Another $900 million will be put toward environmental initiatives, including a one-cent increase in the money municipalities receive from the federal per-litre gas tax to fund public transit.

The deal includes $500 million to increase Canadian foreign aid and another $100 million to establish a pension protection fund.

The breakthrough followed Liberal efforts to broker a deal with the NDP in hopes of staving off a snap election. The Tories and Bloc are widely expected to try to bring down the government next month in the budget vote or another confidence vote.

The parties are hoping to take advantage of public anger about the sponsorship scandal and polls showing support for the Liberals way down.

Even with NDP support, the Liberal government’s survival is uncertain.

The Liberals would need all their 131 votes, the NDP’s 19, and possibly those of all three Independents, allowing the Liberal Speaker to cast the deciding ballot to bring the tally to 154.

That’s the magic number because of a vacancy in the 308-seat House of Commons. The number could be lower, however, depending on how many MPs actually vote.

Of the three Independents, Chuck Cadman has suggested he would vote with the Tories — his former party. Carolyn Parrish has said she’ll support the Liberals, while David Kilgour is believed to be leaning toward the Tories.

Martin sidestepped questions about the cost of the deal considering that the government may still be defeated. He said it allows his government to work between now and the vote on the budget implementation bill next month.

Harper, who was on a campaign-style swing yesterday through southwestern Ontario, was less than impressed with word of the agreement and hinted it won’t discourage him from triggering an election.

“Mr. Martin and Mr. Layton think $4.6 billion in taxpayers’ money is the price to make corruption go away,” Harper said.

“I wonder if the taxpayers of Canada are going to think the same thing.”

The Canadian Chamber of Commerce called it “an egregious move on the part of the government to take promised corporate tax relief out of the budget in the hopes of getting the budget passed.”

“The government’s decision to rescind its commitment to tax relief for all businesses will threaten Canada’s credibility with business and with investors,” said chamber president Nancy Hughes Anthony.

“Canada’s reputation as a place to do business and invest will be tarnished by this decision.”

— Canadian Press, with files from CanWest News Service