Harper to cities: stimulus must end
Last Updated: Friday, May 28, 2010 | 6:44 PM ET Comments731Recommend165.
CBC News 
Prime Minister Stephen Harper told representatives from Canada's cities and towns on Friday that the federal government's two-year infrastructure stimulus program will end on schedule next spring.
In his address to the Federation of Canadian Municipalities in Toronto on Friday, Harper said the thousands of infrastructure projects were an important part of Canada's economic recovery, but warned mayors and other municipal representatives that they can't expect to live on stimulus funds forever.
"People can't live on adrenalin, and economies can't live on stimulus," Harper said.
The $43 billion infrastructure program must end March 31, 2011, to let the government begin reducing the deficit and lead the recovery from last year's global financial crisis, the prime minister said.
He insisted Canada "will lead the way" in the coming G8 and G20 summits to push for countries to get their fiscal houses in order.
"Canada was the last major developed country dragged into the recession, and we will be the least affected by it and will emerge from it fastest and in the strongest position of them all," Harper said.
The prime minister also praised municipal leaders for their "absolutely decisive" work in getting infrastructure projects started, saying the partnership has been "one of the best things we've had going for us."
Mayors from Canada's largest cities argued at this week's meeting that it shouldn't take a global financial crisis for municipalities to get the fiscal help they so desperately need.
Liberal Leader Michael Ignatieff criticized the prime minister and how the current government views its relationship with municipalities.
"And this relationship doesn't end on March the 30th, 2011. It's just beginning," Ignatieff told the FCM.
"The prime minister came here this morning, and he said we're turning off the taps. The stimulus is ending. And my vision of this is we're in this for a long haul, because we've got a country to build together."
Read more: http://www.cbc.ca/politics/story/2010/05/28/harper-municipalities.html#ixzz0pO2bVnfB
May 29, 2010 at 11:02 PM
In my opinion, this stimulus plan is what reignited the relationship between the federal and municipal governement, if there was one in the first place. Before, the municipal government was looked over by the provincial government, if there was a major crisis. However, this economic crisis might have been the best thing that happened to us because it brought us all closer together. Finally, the municipal and federal government had something to talk about and the federal government paid the bill for their "date". Somewhere in the billions. The spending on cities has had its benefits. There has been personal income relief, protection and creation of jobs,infrastructure stimulus and much more. For students, it would mean that there would be more summer job opportunities, which we all need. And I've acutally seen the effects of this plan. I see the ads everywhere, promising a new infrastructure in its place in a few more years and seen a few construction sites, working on infrastructure. So, in my opinion, this plan has been nothing but good news. However, if you do a little digging, there are some negative factors. For one, we're running out of money for this plan. Apparently, the money comes from accounts recievables from other countries, taxes and/or the sales of bonds, treasuries etc. With this money running out, the federal government can't afford to provide municipalities with money. But, I really like this program so I have come up with an idea to keep this program going. I'm not really sure on whether or not the feds already provide money to the cities or how often but if not, I suggest that the federal government pay cities every 2-3 years, to help support them because we all know that cities have lots of expenses and never stick to their budget. The federal government could save up some money and after 2 years, can hand that money out. Of course that idea might have its flaws, but again... it was just an idea!
I chose this article because it was a topic that I've heard of but haven't gotten a chance to learn about it. Thank god I did because this is a REALLY good program that has and will benefit Canadians and help Canada get out of this financial crisis. I think other counties should follow Canada's lead and also come up a stimulus plan, which I think some counties have such as the U.S.A. This plan is a great example of Canada, in that, we can always rebound back from a problem and shine. It shows other countries how powerful and united Canada is and we set a good example to other countries. It feels good to know that the country I live in is a good role model to others.