Achi news desk-
Former federal finance minister Bill Moreno and former Quebec premier Jean Charest are both calling on the federal government to focus on economic growth ahead of the April 16 federal budget.
In a joint interview that aired Sunday, CTV Question Period host Vasi Kaplos asked the two former politicians from different political parties what they see as the biggest challenge facing the Canadian economy right now.
Moreno told Caplos that while there is an incentive for the government to focus on short-term challenges like inflation, there is also a need to “think about the long term.”
“What we really need to be focused on is growth. We need to recognize that more investment is extremely important. In particular, more investment from sources other than the government. We need to encourage businesses to invest. This should be a focus of attention,” said the former finance minister.
Charest agreed with Moreno and said that “growth is also increasing productivity.”
“Canada has a very real problem in terms of increasing our productivity, which really means more growth and more value added in our economy,” Charest said.
In a speech in Halifax on March 26, Bank of Canada Senior Deputy Governor Carolyn Rogers referred to Canada’s weak productivity as an “emergency” and said productivity in Canada’s business sector is “more or less unchanged from where it was seven years ago.”
“You know those signs that say ‘In case of emergency, break the glass?’ Well, it’s time to break the glass,” Rogers said.
According to Statistics Canada, Canadian productivity – a measure of the economy’s output – fell for six consecutive quarters before posting a small gain at the end of 2023.
Charest also says the federal government needs to find ways to deal with the deficit.
In the 2023 Fall Economic Statement, the federal deficit was projected at $40 billion for the 2023-24 fiscal year. But unlike last fall’s economic update, there is no way to break even at any point in the next six years. The fall economic statement also said Ottawa will spend $46.5 billion on debt service in 2023-2024.
“It’s something that’s going to creep up on us. Maybe not tomorrow, but could creep up on us very quickly in the future if we don’t keep a very tight rein on our public finances,” Charest said.
Moreno also emphasized fiscal responsibility.
“Obviously there will be short-term things that the government will want to do, to try to find a way to be both fiscally responsible, and thinking about growth is important right now,” Moreno said.
Ahead of Budget Day, the federal government made several early budget announcements that promise billions of dollars in spending and borrowing to address Canada’s housing crisis, create a national school meal program and create more child care spaces.
A call to politeness
Moreno and Charest also spoke with Caplos about their call to political leaders in Canada to improve civility in public discourse.
In an open letter published in The Globe and Mail on April 2, both Moreno and Charest joined a group of more than 50 former politicians, human rights advocates, religious leaders and artists to urge political leaders “to urgently address the rise of public brutality. Aggression and open hatred that undermines the peace and security of Canadian life.”
The letter claims that geopolitical events such as the Israel-Hamas war and internal issues such as the truck convoy protests helped fuel the growing dispute.
The letter goes on to say: “We call on you, Canada’s senior political leadership, to put political affiliation and partisanship aside and demonstrate your shared commitment to fostering a safer, more cohesive and more respectful Canada where hate has no home.”
When asked by Caplos what could be at stake if the public discourse doesn’t improve, Moreno says “we have to think about the long-term damage we could have.”
“Canada is a safe haven for people from all over the world. It’s a place where people want to come and invest. They want to invest because it’s a nation that has been able to resolve disputes for generations,” Moreno said.
Kapelos also asked Charest whether there is an incentive for politicians to be less civil because of the effects and reach of social media.
Charest said “in the short term, it might get you clips,” but added “every time I’ve made that effort to reach out and be more agreeable, and acknowledge my opponents’ arguments, it’s always paid off big. Not just for the debate, but for me politically as well selfish”.
