Story Tools: PRINT | Text Size: S M L XL | REPORT TYPO | SEND YOUR FEEDBACK

In Depth

Federal Budget 2007

Making census of federal budget

Harper brews up suburban-minded fiscal plan

March 19, 2007

Canadians have learned a couple of things about Prime Minister Stephen Harper in the past year or so.

First and most important, he does nothing by accident and everything by design. Second, he'll take risks, confident he can persuade enough people he's right to end up winning.

Both are evident in the federal budget introduced Monday, but to understand his strategy, you need to read two other documents. One is Harper's speech on March 18 to about 5,000 Conservative supporters in the Toronto area after a pre-election boot camp for candidates and workers. The other is Statistics Canada's Portrait of the Canadian Population 2006, released on March 13, that was based on 2006 census data.

The census confirmed that the growth in Canada is not in the cities but with the families in the surrounding suburban communities in large part thanks to immigration. It is Brampton, Vaughan, Whitby, Markham and Richmond Hill around Toronto; St-Basil-le-Grand, Blainville, Mirabel, Terrebonne, Candiac and La Prairie circling Montreal; and Maple Ridge, Langley, Surrey and Port Moody east of Vancouver. Most have grown more than 20 per cent in the past five years – more than four times the national average.

It's a world of Tim Hortons not Starbucks, and right now, the suburbanites elect mostly Liberal, New Democrat and Bloc MPs. Some may even be thinking Green.

Tories take small practical steps

It's these voters Harper challenged his party in his speech in Toronto to capture as supporters. He called them Canadians “in the broad middle . . . the quiet people you don't see on the nightly news.” They're also the voters he needs to satisfy his short- and long-term political objectives.

That's why the second Conservative budget, like last year's first, is full not of large grandiose measures, but small practical steps all aimed squarely at that suburban middle class and their children.

It's a safe bet that no one at Tim Hortons will be talking equalization, the fiscal balance or imbalance. That's all just numbers and debating points for the political classes. Maybe at Starbucks they pretend to understand it or can see how it relates to their daily lives.

Last year, the talk at Tim's was the GST cut, the $100 a month per child under six for child care and tax credits for kids in sports.

This year, the budget offers even more to discuss that relates to the daily lives of all those who live in the growing communities that circle Montreal, Toronto and Vancouver:

  • The $2,000 per child tax credit that will produce $310 in tax savings for each child under 18 for almost all families.
  • Higher tax deductions for non-working spouses or dependents.
  • The increase to $400 in duty-free goods you can bring back when in the U.S. more than 48 hours, as these communities are all within two hours of the border.
  • Larger RESP grants and more room for contributions.
  • Extending RRSPs to age 71 from the current 69.
  • The rebate of up to $2,000 for new flexible fuel and high fuel-efficiency vehicles.
  • New taxes of $1,000 to $4,000 on gas guzzlers.
  • Payments to scrap pre-1995 high-emission vehicles.

Traditional Conservative fold out in cold

Will all this lead suburbanites and immigrants to abandon past voting habits and back Harper and the Conservatives?

It may not, and that's the risk that accompanies Harper's design, for the budget also leaves some traditional Conservative backers out in the cold. There's not much for those without children or whose children have grown up. They were hoping for an across-the-board tax cut but they didn't get it.

The promised tax exemption for reinvested capital gains is nowhere to be seen, with the finance minister left saying something will happen some time.

There's also nothing here for that breed of Conservative who believes the best government is the one that spends and does least – standing aside to let people get on with their lives as they see fit. They will have to be satisfied with another $9 billion put against the national debt.

Social Conservatives will come up empty in looking for anything in this budget that helps their cause. That could be a campaigning advantage for Harper as the Liberals may have trouble rolling out the ghost of former Ontario premier Mike Harris for one more encore.

However, Harper's eye is really on a longer-term goal. The Conservatives are blessed with an economy that continues to grow and produce tax revenue at an unprecedented rate, giving the government extraordinary flexibility in crafting budgets. He is aware how dramatically Canada is changing as the census demonstrates.

In a political career characterized by reaching goals through slow and steady progress, Harper believes he has a historic opportunity in the suburbs to change the country's voting traditions. The objective is to replace the Liberals as the naturally governing party for generations to come.

He has designed this budget, like the one before it, as a step down that road. Armed with it, Harper believes he will succeed in persuading more and more suburban residents to support his Conservatives whenever the next election is held.

Go to the Top

Story Tools: PRINT | Text Size: S M L XL | REPORT TYPO | SEND YOUR FEEDBACK

World »

Whitney Houston's funeral to be held Saturday video
Pop star Whitney Houston's funeral service will be held Saturday in the New Jersey church where she first showcased her singing talents as a child.
Eurozone meeting on Greek bailout cancelled video
A meeting of the finance chiefs of the 17 euro countries to discuss Greece's second multibillion bailout planned for Wednesday was called off after Athens failed to deliver on several demands made by its partners in the currency union.
CN blamed for fatal train derailment in Illinois
CN is being blamed for a 2009 train derailment in Illinois, in which several cars went off the tracks and caught fire, killing one person and injuring seven others.
more »

Canada »

updated Legalize pot, say former B.C. attorneys general video
Four former B.C. attorneys general are joining a coalition of health and justice experts calling for the legalization of marijuana.
Online surveillance bill targets child porn: Toews video
A bill that would give police and intelligence agencies new powers to access Canadians' electronic communications is needed to protect against child pornography, says Public Safety Minister Vic Toews.
breaking Botox injected by unlicensed practitioners
Some Vancouver-area medical spas are ignoring Health Canada regulations that Botox be prescribed and injected by a physician, a CBC News investigation has revealed.
more »

Politics »

Trudeau says sovereignty less of a bogeyman now video
Justin Trudeau says sovereignty is less of a bogeyman than it once was as he defends himself against accusations he's sympathetic to the desire to leave Canada.
Online surveillance bill targets child porn: Toews video
A bill that would give police and intelligence agencies new powers to access Canadians' electronic communications is needed to protect against child pornography, says Public Safety Minister Vic Toews.
MacKay says submarine fleet has 'spotty' history
The ongoing maintenance for Canada's troubled submarine fleet is "on track" despite the damage suffered by HMCS Corner Brook from a crash last year, Defence Minister Peter MacKay says, adding that the history of the fleet is "spotty."
more »

Health »

Chronic fatigue may be reversed with exercise
Taking it easy is not the best treatment for chronic fatigue syndrome, rather exercise and behaviour therapy are, a large study finds.
AT&T buys T-Mobile USA for $39B US
AT&T Inc. said Sunday it will buy T-Mobile USA from Deutsche Telekom AG in a cash-and-stock deal valued at $39 billion US, becoming the largest cellphone company in the U.S.
Milky Way home to 50 billion planets: NASA
Scientists have compiled the first cosmic census of planets in our galaxy: at least 50 billion planets are estimated to call the Milky Way home.
more »

Arts & Entertainment»

audio Regent Park dance studio heralds culture of change audio
A Toronto dance company opens its new home Tuesday in Regent Park β€” the neighbourhood with Canada's biggest social housing project.
Whitney Houston's funeral to be held Saturday video
Pop star Whitney Houston's funeral service will be held Saturday in the New Jersey church where she first showcased her singing talents as a child.
Prospective WSO maestros unveiled
The Windsor Symphony Orchestra unveiled a shortlist of prospective music directors on Tuesday, and the public will have a hand in selecting the finalist.
more »

Technology & Science »

Online surveillance bill targets child porn: Toews video
A bill that would give police and intelligence agencies new powers to access Canadians' electronic communications is needed to protect against child pornography, says Public Safety Minister Vic Toews.
New iPad anticipated in March
The latest version of Apple's iPad tablet will launch in early March, according to blog and media reports this week.
Higgs boson hunt aided by energy boost
The world's largest particle accelerator is ramping up its beam energy in hopes that scientists will learn definitively this year whether the last undiscovered particle in the Standard Model of Physics exists.
more »

Money »

Eurozone meeting on Greek bailout cancelled video
A meeting of the finance chiefs of the 17 euro countries to discuss Greece's second multibillion bailout planned for Wednesday was called off after Athens failed to deliver on several demands made by its partners in the currency union.
Air Canada confident it can reach deal with pilots
Travellers flying Air Canada can keep booking their flights as negotiations continue with a new federally appointed mediator to help resolve an ongoing contract dispute between the airline and its pilots.
CPP invests $1.8B in U.S. malls
The Canada Pension Plan Investment Board is making a whopping $1.8-billion investment in shopping malls in the U.S. with a new joint venture agreement with the Westfield Group in its biggest real estate deal to date.
more »

Consumer Life »

Honda recalls Fit subcompacts
Honda Canada says it will recall 14,640 of its 2009 and 2010 Fit subcompact cars to replace lost motion springs.
U.S. travel fee proposal criticized by Harper
Prime Minister Stephen Harper says he doesn't think much of a new border tax that's being proposed by the United States, calling it a cash grab designed to help a budget crisis.
Bell class action suit approved by Que. court
A Quebec Superior Court judge has authorized a class action lawsuit to go ahead against Bell Mobility.
more »

Sports »

Scores: NHL NBA

blog Oilers face difficult decisions with Hemsky, Gagner
The Edmonton Oilers could use some blue-line help and with a plethora of forwards, like Ales Hemsky and Sam Gagner, general manager Steve Tambellini has some options on trade deadline day, writes CBCSports.ca senior hockey writer Tim Wharnsby.
Colts owner to meet with Manning this week
Jim Irsay expects to meet with Peyton Manning in the next seven days, and the Colts owner tells The Indianapolis Star the return of the four-time MVP depends on his willingness to restructure his contract.
Messi, Barcelona master Leverkusen: Champions League video
Lionel Messi helped Barcelona shake off its domestic troubles in Spain by inspiring the defending champions to a 3-1 victory at Bayer Leverkusen in the round of 16 of the Champions League.
more »

Diversions »

[an error occurred while processing this directive]
more »