Conservative leader Stephen Harper mocks Liberal Leader Justin Trudeau's plan to run 'tiny little deficits' for the next three years.

Conservative leader Stephen Harper mocks Liberal Leader Justin Trudeau's plan to run 'tiny little deficits' for the next three years.

ELECTION 2015: Economic slump dominates campaign

Justin Trudeau's plan to run deficits for infrastructure spending changes focus for Thomas Mulcair, Stephen Harper

Sliding stock markets and sagging natural resource prices have raised the stakes for the Oct. 19 federal election, as parties try to position themselves as the best choice to deal with an economic slump.

Statistics Canada’s release of data showing small contractions of the Canadian economy in the first two quarters of the year sparked a prolonged exchange between party leaders over whether the country is or was in a recession.

Economists such as Central 1 Credit Union’s Helmut Pastrick have mostly agreed the downturn is primarily based on low oil and gas prices, and isn’t a full-fledged recession. Central 1 forecasts continued slow economic growth for southern B.C. based on the low Canadian dollar and improvement in the U.S. economy.

Conservative leader Stephen Harper noted that the statistics showed a return to economic growth in June, and he accused Liberal leader Justin Trudeau of over-reacting to “a couple of months of weak data” to commit his party to up to three years of deficit spending.

Trudeau’s abrupt change of position on running deficits of up to $10 billion a year has redefined the debate. Trudeau unveiled what he called the biggest infrastructure plan in Canadian history, doubling the current Conservative budget from $5 billion to $10 billion in the next two fiscal years and continuing to increase it over 10 years.

Touring the Okanagan, NDP leader Thomas Mulcair touted his plan to reduce small business taxes and provide tax breaks for manufacturing, while balancing the budget in the first full year of an NDP mandate.

Mulcair’s promises of tax cuts and spending control prompted both the Liberals and Conservatives to accuse the NDP of creating a huge revenue hole that could only be filled by spending cuts or new tax increases.

The Conservatives estimate that Mulcair’s plans for a national daycare program, increased foreign aid and other spending leave a gap of $8 billion in the first year. The Liberals estimated the NDP budget gap at $28 billion over four years, not counting unspecified increases for veterans and home care.

NDP candidate Andrew Thomson called the Conservative calculation “deliberately misleading,” inflating the NDP’s housing plan cost by more than five times.

Harper has mainly run on his government’s record, including an increase in the Universal Child Care Benefit and cutting the Goods and Services Tax. The Conservatives estimate their measures have benefited the average family by up to $6,600 a year.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A tip from the public helped Victoria police located and arrest wanted men Jonathon Muzychka and Dean Reber. (Courtesy of Victoria Police Department)
Tips lead police to arrest convicted killer, robber near downtown Victoria

Two men were at large after failing to return to community facility

Police are warning people of flu shot and vaccination frauds. (Black Press Media file photo)
Flu shot fraud charges West Shore resident for non-existent appointments

Fraudulent email claimed to be from London Drugs

A Cessna 170 airplane similar to the one pictured above is reported to be missing off the waters between Victoria and Washington State. Twitter photo/USCG
UPDATE: No sign of small plane that went down in Juan de Fuca Strait

Searchers out on both sides of border between Victoria and Port Angeles

Leila Bui with her parents Tuan (left) and Kairry Nguyen on Jan. 27, 2020 after Tenessa Nikirk was found guilty for striking Bui in a Saanich crosswalk. (Nina Grossman/News Staff)
Driver convicted of dangerous driving after hitting Leila Bui out on bail

Tennesa Nikirk was convicted for striking then 11-year-old Leila Bui with her car

Keygan Power with brother Quintin and mom Allison while camping the weekend before Keygan’s brain hemorrhage on Aug. 2, 2020. (Photo Allison Power)
Saanich teen ‘locked inside,’ regaining speech after severe brain hemorrhage

16-year-old suffers traumatic loss of function, still plays a mean game of chess

(Twitter/Ateachersaurus)
The Pachena Bay shoreline in 2013. (Twitter/Ateachersaurus)
This week in history: 9.0 magnitude quake struck under what is now called Vancouver Island

According to First Nations elders, the 9.0-magnitude quake in 1700 CE kick-started a tsunami

An Island Health graph showing COVID-19 cases in the central Island by local health area between Dec. 27 and Jan. 23. (Island Health image)
Central Island’s COVID-19 case spike shifting, says Island Health

Cowichan Valley has seen the highest number of cases, but Nanaimo and south Island seeing upticks

Rodney and Ekaterina Baker have been ticketed and charged under the Yukon’s Civil Emergency Measures Act for breaking isolation requirements in order to sneak into a vaccine clinic and receive Moderna vaccine doses in Beaver Creek. (Facebook/Submitted)
B.C. couple who travelled to Yukon for COVID vaccine ineligible for 2nd dose until summer

The province is ensuring those eligible to receive the vaccine get the second shot within 42 days

(File)
Mask dispute in court leaves Vancouver cop with broken leg

Man allegedly refused to put on a mask and resisted arrest

(Kraft Dinner/Twitter)
Kraft Dinner launches candy-flavoured mac and cheese just in time for Valentine’s Day

Sweet and cheesy treat will be here just in time for the cheesiest holiday of the year

Extensive water on No. 4 and 5 at the Mount Brenton Golf Course following heavy rains earlier this month. (Photo submitted)
Island golf course does a booming business in 2020

A total of 15,000 more rounds played than the previous year at Mount Brenton

SAR crews worked late into the night Tuesday to rescue an injured snowboarder in North Vancouver. (Facebook/North Shore Rescue)
Complicated, dangerous rescue saves man in avalanche near Cypress Mountain

North Shore SAR team braves considerable conditions to reach injured snowboarder

The Pacific Rim Whale Festival is breaching for a COVID-safe return in March. (Poster photo by Owen Crosby)
Pacific Rim Whale Festival aims for virtual return in March

Educational celebration scheduled to arrive in Tofino-Ucluelet on March 15.

In this undated image made from a video taken by the Duke of Sussex and posted on @SaveChildrenUK by the Duke of Sussex and Meghan, Duchess of Sussex, shows the Duchess of Sussex reading the book “Duck! Rabbit!” to their son Archie who celebrates his first birthday on Wednesday May 6, 2020. The Canadian Paediatric Society is reminding families that the process of raising a reader starts from birth. (Duke of Sussex/@SaveChildrenUK)
Canadian Paediatric Society says raising a reader starts from birth

CPS says literacy is one of the strongest predictors of lifelong health outcomes

Most Read