No clear recovery, Flaherty says

OTTAWA — It’s too early to be talking about economic recovery from the global recession, a cautious Finance Minister Jim Flaherty said after a meeting of finance ministers from the Group of 20.

Jim Flaherty

OTTAWA — It’s too early to be talking about economic recovery from the global recession, a cautious Finance Minister Jim Flaherty said after a meeting of finance ministers from the Group of 20.

Speaking from London, Flaherty said Saturday the ministers agreed the world economy is stabilizing but “no clear recovery is evident.”

It’s prudent to remain cautious because there are still fears of a slip back into recession, he said.

“The consensus here is that the global recovery is stabilizing but recovery is not established,” Flaherty said via teleconference.

“We agreed that we are not out of the woods and that we must stay the course. . . . We must all remain focused on fully implementing our stimulus packages.”

The G20 finance officials met in the British capital to discuss the next steps for the recovering global economy and lay the groundwork for the G20 leaders’ summit in Pittsburgh later this month.

The top finance officials from rich and developing countries agreed to curb hefty bankers’ bonuses and pledged to maintain stimulus measures such as extra government spending and low interest rates.

“The G-20 joint statement said fiscal and monetary policy will stay “expansionary” for as long as needed to reduce the risk of a so-called double-dip recession.

“I would be cautious about talking about early stages of recovery,” Flaherty said. “We’re being very cautious because we fear going back into recession.

“We’re also very concerned about unemployment.”

Canada’s latest unemployment figures, released Friday, had the rate at a 10-year high of 8.7 per cent, though Statistics Canada reported the economy created 27,100 new jobs in August.

Liberal Leader Michael Ignatieff insisted the developments would not change his plans to topple the government this fall, saying Friday he still believes the Tory government has badly mismanaged the economy and deserves to be defeated.

Both the New Democrats and Bloc Quebecois must vote with the Liberals in order to topple the minority Conservatives.

Flaherty said a federal election will only serve to “disrupt” government when Canada needs to focus on economic growth, helping the unemployed and continued stimulus to the economy.

Some reports indicate Canada’s federal deficit could balloon past its projected $50 billion this fiscal year.

Still, Flaherty said Ottawa does not plan to increase taxes — “we do not intend to increase taxes” — or reduce federal transfers to the provinces.

“We have no intention of following that terrible example of the Liberal governments of the 1990s,” when transfers were slashed and provincial health, social and educational programs suffered.

“There are other options that the government has with respect to moving towards surplus overtime, and we’re looking at those options.”

Those options include revenue from mild economic growth and spending reductions in areas “that do not include transfers to persons . . . . and provinces.”

Flaherty, who will deliver his third economic report to Parliament when MPs return from their summer break later this month, said the economy is moving in the right direction.

Just Posted

Rural transit service rolled out

2A South Regional Transit will link Innisfail and Penhold with Red Deer

Some Red Deer waste collection schedules change due to holiday season

Tuesday collections will be moved for two weeks

Red Deer ‘champion’ helps hospital by sharing ongoing petition

It’s been about three years since many physicians at Red Deer Regional… Continue reading

Red Deer Airport’s prospects are looking up for 2019

Ultra-low-cost passenger service is on the horizon

Funding down for Red Deer Christmas charities

Food hampers and toys for children going out to those in need

Alberta’s Sundial starts shipping to AGLC this week

Sundial’s Rocky View facility has received the green light from Health Canada… Continue reading

Penny Marshall dead at 75, best known as TV’s Laverne and director of ‘Big,’ ‘A League of Their Own’

Bronx-born Penny Marshall, who found ’70s sitcom success on “Laverne and Shirley”… Continue reading

Chabot scores overtime winner to lift Senators over Predators 4-3

OTTAWA — Thomas Chabot saw an opening and he took it. And… Continue reading

Canadian Marielle Thompson earns World Cup ski cross bronze in season opener

AROSA, Switzerland — Canada’s Marielle Thompson captured bronze at the opening World… Continue reading

Canada doesn’t make Oscars short list for best foreign language film

LOS ANGELES — Canada is no longer in the running for best… Continue reading

Warrant issued for arrest of ‘Schwimmer lookalike’ suspect

LONDON — A British judge has issued an arrest warrant for an… Continue reading

Moneywise: Canadian workers unhappy with pay, want pension plans

Many working Canadians are feeling underpaid and are so worried about their… Continue reading

Brazil police say faith healer has turned himself in

RIO DE JANEIRO — A celebrity faith healer accused of sexually abusing… Continue reading

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

VANCOUVER — Nicola Froese says she has always loved playing sports, but… Continue reading

Most Read