Quebec government hangs by a thread as budget fuels standoff

Opposition parties ready to trigger snap election over tax cuts

Last Updated: Friday, May 25, 2007 | 6:20 PM ET

CBC News

Quebec Premier Jean Charest refuses to back away from promised tax cuts and warned opposition parties they will be judged harshly if they defeat the budget and bring down the government.  

Deputy Premier Nathalie Normandeau, right, and the Liberal caucus applaud Quebec Premier Jean Charest at the national assembly on Friday.
(Jacques Boissinot/Canadian Press)

Charest spent most of Friday defending Finance Minister Monique Jerôme-Forget's contentious budget, which includes $950 million in tax cuts funded in part by $700 million in federal transfer payments.

Charest insisted there is no room for compromise in the budget, despite opposition parties' distaste for it.

"We have delivered a very solid budget, we’ve worked with opposition parties, but in the end, I can’t put a gallon in a pint," he told reporters in Quebec City.  

The premier said he will push ahead with the income tax cuts despite protests from Quebec's Official Opposition Action Démocratique du Quebec and the Parti Québécois, which reaffirmed their intention to reject the budget as it stands.

A feisty Charest dared them to follow through with their plans and send Quebecers to the polls for a second time in four months.

Quebec Opposition critic for finances Gilles Taillon speaks after the budget was presented on Thursday.
(Jacques Boissinot/Canadian Press)

"I've just been through a whole election campaign in which the issue during the campaign is that you should sanction the government because they have not met their commitments on tax cuts.

"Now I have two opposition parties who say 'You know what? You should vote against the government because they respected their commitments on tax cuts.'"

"Well, if that's the campaign they want to lead, good luck."

Charest was also on the attack at the national assembly Friday morning, where he faced a barrage of criticism from the opposition.

"It didn't matter what we put in the budget, you would have voted against it," Charest shouted. "But we will defend the middle class."

If the opposition defeats the budget it could trigger the Liberals' downfall in the national assembly less than two months after the party made history as the first minority government in Quebec in more than 130 years.

ADQ Leader Mario Dumont said a vote that could trigger an election is a risk he's willing to take if it means standing by his party's beliefs.

"We have to act according to our principles, and the rest is just what I observe," he said on Friday.

Charest's budget fails to reflect his political reality and status as a minority government, Dumont warned. 

"I observe that there were negotiations between the PQ and the Liberals up to this week. And I understand Mr. Charest has not listened to anything."

Quebec Finance Minister Monique Jerôme-Forget is surrounded by reporters as she walks to question period on Friday.
(Jacques Boissinot/Canadian Press)

Jérôme-Forget insists opposition concerns factored into the budget.

"Be it transparency, be it the debt, taking care of infrastructure, taking care of the elderly. We have placed a concern that this budget reflects equally their objectives."

The ADQ is staunchly opposed to proposed tax cuts and reiterated its desire to see Quebec's transfer payment windfall used to pay down the province's growing debt and to increase spending on health care and education.

'Not in a good position'

The PQ also flatly rejected the tax cuts, calling them "irresponsible" given Quebec's health care and education needs.

"Mr. Charest is not in a good position at this point," PQ finance critic François Legault warned late Thursday night.

The ball is back in Charest's court now after house leader Michel Bissonnet ruled opposition parties can't amend the budget, according to regular national assembly procedure.

The Liberals' only recourse to avoid a possible vote against the budget is for Charest to withdraw it and draw up a new one.

"He has in his hands all the power to make the changes that are necessary in order to have our support," Legault said.

The budget will undergo three days of formal debate at the provincial legislature starting Tuesday.

Liberals promised tax cuts in the last election

"We felt this time, lowering taxes by $950 million, was the right time," Jérôme-Forget said on Thursday after she tabled her first budget as finance minister.

The Liberals were set on delivering the tax cuts after failing to fulfil tax relief promises made in the 2003 election campaign.

Then Charest drew fire in the 2007 provincial election when he announced a new round of income tax cuts after federal Finance Minister Jim Flaherty granted Quebec $700 million in transfer payments to resolve the so-called fiscal imbalance.

Charest insists tax cuts are what Quebecers want. "The Liberal party is the only party to defend the interests of the middle class." 

PQ will have to move fast

Pauline Marois is the only contender for the PQ leadership after Bloc Leader Gilles Duceppe changed his mind about running. Marois may soon be declared official leader as the PQ readies for a possible snap election.
(Ian Barrett/Canadian Press)

If the budget vote does indeed trigger an early election, the PQ will need to move quickly to avoid entering an election campaign without a permanent leader.

Former leader André Boisclair stepped down in early May after suffering a lengthy backroom flogging from party members frustrated by the PQ's losses in the last provincial election.

Former PQ cabinet minister Pauline Marois is the only candidate to step up for the job.

Quebec's election in March left the Liberals with 48 seats in the 125-seat national assembly, compared to 41 for the ADQ and 36 for the PQ.

The national assembly will vote on the budget next Friday.