DEBT FINANCING. Recession threat demands 'immediate action,' NDP says

Investing in infrastructure and green energy programs would give the economy the kickstart it needs more than corporate tax cuts, the NDP said Thursday.
The economy was once again front and centre in the House of Commons as MPs debated a motion from the NDP that calls on the Conservative government to take "immediate action" to avoid another recession, create jobs, guarantee pension security, and invest in deteriorating infrastructure. It was an opposition day Thursday, meaning the NDP controlled the subject matter of the day's debate.
Before the debate got underway, Peggy Nash, the party's finance critic, said experts are warning of another recession and that Canadians are worried about rising unemployment and falling markets. "While all the signs are clear, this out-of-touch Conservative government has no plan to deal with this new reality," the Toronto MP said.
She criticized the government for not introducing any economy-related bills since Parliament resumed for the fall session two weeks ago. Finance Minister Jim Flaherty said on Wednesday that he hopes the government's second budget implementation bill will be introduced next week. He said it contains various measures from the spring budget that will help stimulate the economy such as the tax credit for small businesses when they make new hires.
The Conservatives say they are sticking to the budget plan and that it is keeping Canada on track to create jobs and grow the economy. During the debate Thursday, Tory MP Shelly Glover said the government's plan will protect and create jobs, help various economic sectors, seniors and other Canadians.
"We have a plan that will get us through, we are the envy of the world, we are going to stick to that plan," said Glover, parliamentary secretary to the minister of finance. She said cancelling the corporate tax cuts would mean higher costs passed on to consumers.
"Canadians will suffer," said Glover.
The NDP rejects the government's assertion that its economic plan is working and has been demanding that more be done.
"The time for talking about the economy is over, it's time now to kickstart job creation and help Canadian families," said Nash.
The NDP wants the coming round of corporate tax cuts cancelled and the money invested instead in infrastructure, public transit, clean drinking water in First Nations communities, and in green energy projects. She said those actions would bring more benefits to the economy and to Canadians than giving tax breaks to corporations.
Nash said Canada is way behind other nations in building a green economy and that the government should be investing in renewable energy instead of giving tax breaks to oil companies.
"We'd like to see a plan from this government. They're full of diversions," said Nash. The Toronto MP is considering entering the NDP leadership race and said Thursday she won't make a decision for at least another week.
Liberal MPs joined in the NDP's criticism of the Conservatives' action on the economy and said they would support the NDP motion. Scott Brison said the government is ignoring the advice of experts and that the coming austerity measures that will be in the next federal budget will make it harder for unemployed Canadians to find work.
The Conservatives' budget plan involves cutting spending by at least five per cent in every department and agency in order to erase the deficit by 2014 - 2015.
He said the Liberals support spending reviews, but in times of economic prosperity.

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