Opposition MPs threatened to topple the Conservatives Thursday after the government said it would put off a new economic stimulus package until next year and would slash funding to political parties.
Not long after Finance Minister Jim Flaherty announced his contentious proposal, opposition parties entered into talks focusing on defeating the government and creating a coalition, sources told 麻豆影视.
NDP Leader Jack Layton also abruptly cancelled a trip to Vancouver in order to stay in Ottawa for those coalition talks, reported CTV's deputy Ottawa bureau chief Rosemary Thompson.
Meanwhile, some Liberal insiders are exploring ways to get rid of Leader Stephane Dion in advance of a planned leadership convention in May, The Canadian Press reported.
Defeating the Tory bill in Parliament could also trigger another federal election.
"This is not the way to govern on the edge of Niagara Falls," said Liberal MP Michael Ignatieff, referring to the country's teetering economy.
"Nobody wants to play political chicken," Ignatieff added. "I'm thinking of the workers in the forestry sector, in the automobile sector: what they are crying out for is a government that doesn't play games with us, comes back to us and says, 'how can we make this work?'"
The government will cut about $5.9 billion out of the federal budget and will post a small surplus of about $100 million this year, said Finance Minister Jim Flaherty.
He added that any new stimulus plan could throw the country's balance book into the red.
"Without a doubt, these are difficult times that require difficult choices," Flaherty said in Parliament Thursday. "All countries are struggling to cope with this crisis."
The new measures will go to a vote in the House of Commons early next week.
The Tories also predict that the recession will continue until April of next year and that Canada's jobless rate will rise from 6.2 per cent to 6.9 per cent over the next 12 months.
Other highlights from the government's fiscal update include selling off $2.3 billion worth of federal assets, limiting raises for public servants and slashing close to $30 million of federal funding for political parties.
Under the new proposal, this is how much the parties stand to lose:
- Conservatives: $10 million
- Liberals: $7.7 million
- NDP: $4.9 million
- Bloc Quebecois: $2.6 million
- Green Party: $1.8 million
While the Conservatives would lose the most money, it would be a smaller share of their overall revenue because they get most of their funding through private donations.
"The Conservatives have much better grassroots organizations and are much better at raising money," CTV's Ottawa Bureau Chief Robert Fife said Thursday.
But opposition MPs slammed the proposed Conservative legislation as a cynical move intended to weaken other parties.
"Instead of an immediate stimulus package to attack the recession, this government is apparently going to attack democracy," said NDP Leader Jack Layton during question period Thursday afternoon.
"I'm asking the Prime Minister, how such an attack is going to create one job or protect one pension? Why are they protecting the Conservative party?"
Liberal Leader Stephane Dion said that Harper was out of touch with Canadians and added that he has no plan to steer the country out of a deepening economic meltdown.
"Is this Prime Minster even able to move beyond cheap political games and do anything for what matters to Canadians: the economy and their jobs?" said Dion.
Responding to opposition MPs, Harper said Canada is in a relatively strong economic position, despite the global downturn.
"This country has the strongest fiscal and economic position of the G7," he said. "This country is virtually alone at this moment in continuing to run a surplus."
Meanwhile, Harper said the proposed cutbacks are essential in trimming government spending during lean economic times.
"Parliamentarians, beginning with Conservatives, will lead by example," said Harper.
In 2007, the Conservative Party received just 37 per cent of its funding from the public subsidy. In contrast, the Bloc Quebecois receives 86 per cent, Green Party 65 per cent, Liberals 63 per cent, and 57 per cent for the NDP.
"They're going to have a hell of a fight on their hands. This is not the way to behave in a democracy," Liberal leadership contender Bob Rae told 麻豆影视.
Other opposition members also said the Conservatives should rein in their own spending, noting that Harper's cabinet has increased in size from 26 members to 37.
