Angry in the Great White North

The conference call took place this morning at 9:30am.  John McCallum chaired the call, with various Liberal MPs and dozens of third party community groups being given a sneak peek, so that they can prepare gushing praise for the Liberal platform.

Here's the raw recording of that meeting.  It's in five parts:

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Here are rough notes of the discussion:

John McCallum (JM): A Liberal government won't put Canada into deficit. Much of platform has been announced. Some will be announced today. We will restore 3 billion of year contingency reserve each and every year – 12 billion over 4 years, which conservatives abolished. Liberals believe in careful stewardship of taxpayer money.

We commit to reallocate a certain proportion of government spending to find savings and redirect these into higher priorities.

Government must look for more efficient means of delivering savings to public.

We will find 12 billion over 4 years through more efficient delivery of programs of Canadians. That will be used to finance major portion of our spending.

We've done it before. We found 11 billion in savings in 2005. So we did it. No reason we can't do it again.

Conservatives committed to 26 billion of reallocation in last election. This is the best way to get max value of taxpayer money.

We in the past have reallocated through finding improved efficiencies on program delivery; conservatives do it differently, by cutting grants to arts and culture groups, eliminated court challenges. Their reallocation is mean-spirited that hurts most vulnerable.

We have relatively little money because the Conservatives have emptied bank to large degree.

Some of our initiatives will have to be phased in more slowly.  We must live within our means.

Kelowna and childcare will be implemented by end of full year period, but will have to be phased in gradually.

If unanticipated money, we will phase them in faster

Total cost of our platform is just over 15 billion dollars, only a third to a quarter of what platforms were in previous elections. Targeted to highest priorities.

We are fiscally responsible and transparent: we are reintroducing 3 billion contingency reserve; we are careful stewards of taxpayer money, committed to substantial savings; we will phase things in gradually, as funds permit; our platform is targeted to key priorities, relatively modest when compared to past elections.

David Smith: What about the 70 billion infrastructure over ten years?

JM: Over first 4 years we will spend 22 billion in infrastructure; same as conservatives will spend. This has zero budgetary implication over 4 years. We escalate it at 10% per year from years 4 to 10. we will make infrastructure a very high priority.

We will tackle the infrastructure deficit. 3 components: 1) 70 billion over 10 years; infrastructure bank; surpluses in excess of 3 billion dollars will be committed to infrastructure.

We will bolster access to post-secondary education

We will eliminate tax credits that are useless to so many students.
$1000 per student grant. Grants of up to $3500 for low income students. Reduce interest rate of student loans. Prime + ½. Restore cuts to arts and culture.

30% reduction in poverty over 5 years; 50% reduction in child poverty. Speed of implementing childcare promises depend on fiscal situation

Plan for we will invest in new Canadians. This is critically important. 800 million to clear up backlog. You have to put serious money into it. Tear down barriers and integrate faster into economy. Win-win. For immigrants and Canadian economy. 100% of net new addition to labour force will be immigrants, I predict.

Bring back Kelowna accord.

Help Canadians go green. 10000 dollar home retrofit and mortgages. New cost measures will ensure Canadians have cleaner air. Non-toxic consumer products.

Preserve our natural heritage. Create new national parks. This is a new promise.

Tax credit for volunteer firefighters.

EI improvements that are in the document that will benefit Quebec, Maritimes, Nova Scotia, Labrador.

Question and Answer:

JM: Conservatives inherited 12 billion surplus, which they squandered. They spent like drunken sailors. They ran a deficit in the first two months of the year. In abolishing the 3 billion contingency reserve they've increased the threat of deficit. Higher commodity prices and lower interest rates, "I think it's highly likely we will not see a deficit" (direct quote from McCallum). Andrew Coyne and John Williamson said Flaherty is most spendthrift finance minister in history.

Increase in GIS of 600 dollars a year. For low income seniors. Income tax cut for seniors. Income trust changes benefit all holders of income trusts. This plays well with seniors too.

David Pratt: Income splitting is very popular among the seniors in Ottawa West-Nepean

Q: Affordable housing?

JM: Let's have another question while I look that up.

Q: What's the total package worth.

JM: $15.1 billion over 5 years. The Green Shift is revenue neutral. It counts the infrastructure bank over 4 years but not beyond. $15.1 billion over 5 years. 40 billion of carbon tax; 40 billion of tax cuts are coming from the carbon tax.

Q: infrastructure bank doesn't take money out of government funds?

JM: Right. This isn't an element of the cost.

Q: I want to know what the total package is.

JM: It's $15.1 billion. Over the four year period there's no additional cost to our platform. We'll spend save amount as the Conservatives but we'll spend it smarter. Our budget is just for the first 4 years. A Liberal government will provide 30,000 new social housing units, and refurbishing another 30,000 (on page 40 at the end of the 30/50 poverty plan, last paragraph).

Q: So we're not calling for a national housing strategy.

JM: I suppose you could call it a national housing strategy.

Q: So we definitely have a strategy?

JM: Yes.

Q: Thank god.

Q: Waiting lists and health care.

JM: I don't know if we have anything specific on waiting times.

Q: [a Liberal MP(?) proceeds to give an answer]

JM: That's an excellent answer.

Q: Homelessness.

JM: We're extending the current government plan. I don't think we're increasing it.

Q: Democratic reform, respect for Parliament?

JM: I don't think there is. There are references to Harper government. There are no plans.

Q: On income trusts, have we factored in revenue loss?

JM: No. First of all the experts are unanimous that it won't get any revenue. There's a consensus among the experts that this Conservative tax won't raise any revenues, and in any event it won't be implemented for the next 2 years.

Q: What will we be accused of cutting?

JM: I think the Defence budget has gone up at an alarming rate. I was a Minister of Defence.

Q: Aboriginals? Is it limited to Kelowna?

JM: Well, I think a significant part of this is to discuss with aboriginals themselves the best way to proceed. We will restore the Kelowna accord. We will renew the Metis partnership in confederation. Enhance aboriginal languages initiative. Ratify UN convention.

JM: We have a far richer plan for dealing with infrastructure. We've got high praise from FCM for our infrastructure plan. We're aligned with Ontario with our 30/50 attack on poverty. Our one billion fund to invest in manufacturing is closely aligned to spirit of Ontario government position. Dwight Duncan is keen on those central components.

Q: What will fund for manufacturing do? Will it go to smaller companies?

JM: Certainly, there's no statement as to size. This will support manufacturing companies large or small. Auto sector will get money. We will honour Conservative government commitments in Windsor and St Catherines. New technology and green technology will be funded.

Q: Food safety?

JM: More food inspectors. 50 million dollars.

Some interesting points:

• Spend, spend, spend -- and the only cutting will be to the military.  I suppose we can write off Canada's North.
• National housing strategy?  Sure, call it a national housing strategy.  Why not?
• Green Shift?  What Green Shift?  McCallum never mentions the Green Shift in his presentation.  It only comes out during the Q&A.
• Infrastructure Fund?  What Infrastructure Fund?   It's just the Conservative plan.  The only difference is that after four years, the Liberals will start spending more.  But then we're in a different election cycle, so the promise won't matter.
• Eliminate tax credits for students.  Well, if they're so useless, then they must be pulling in very little money, so why eliminate the credit for those students who are benefiting (few as they might be)?
• Has Dwight Duncan, Ontario's finance minister, played a part in this?  It's not clear from the reference to Duncan being "keen" on the central components of the infrastructure plan.
• Contingency reserves and reallocation are the same, but that's a fluke.  Nevertheless, the Liberals want to spin this as careful planning.
• Childcare and aboriginal programs are low priority, since they will be phased in slowly, and the pace of the phase in will be contingent on unanticipated revenues.  I wonder if that means the doubling of the Universal Child Care Benefit is a "maybe".  Childcare spaces only if the Liberals can find money for it.
• We now know a bit more about the Green Shift.  We've always been told that the Green Shift would raise $15 billion in revenue in Year 4.  Now we know the Liberals are predicting $40 billion in revenue over all four years.  Not sure why this was never discussed before.
• Apparently the infrastructure bank, which lends money to municipalities for high speed rail and other such things, won't be funded from government revenue.  It sounds like it will be funded from the Green Shift.  How much can come back in tax cuts when you add the bank to the list of things paid for by the Green Shift?  Sounds the Green Shift is a convenient way of getting expensive things "off the books"?

I'll find time later to listen to the material more carefully.

The inevitable question:  How did I get my hands on this?  Let's just say not all Liberals are great team players, at least not with Stephane Dion in charge.

Technical glitches: Five files, not four.  And re-uploaded in order to fix what seems to be truncated files.