Quebec finance minister downplays chance of balanced budget
Liberal government warns lower revenues could affect spring budget
Last Updated: Tuesday, January 13, 2009 | 11:11 AM ET
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Quebec's finance minister opened the door to the possibility of a deficit budget this year as the national assembly met for a special three-day session on Tuesday.
Last November, Monique Jérôme-Forget said a special reserve of $2.3 billion accumulated in recent years would allow the province to avoid red ink this fiscal year and in 2009-10.
But on Tuesday, she took her optimism down a notch and warned Quebec will likely have lower than expected revenues.
'We will make every effort to have a balanced budget.'—Jean Charest, Quebec premier
She told reporters that as the numbers stand now, she won't have to draw on credit to maintain public services. But she said the economic situation for the province appears to be worsening.
"I will make a commitment [about the budget] at the right time and place when the situation is clear," said Jérôme-Forget when asked if she still expected to balance the books in the next budget.
Like his finance minister, Premier Jean Charest said he could not promise that the government wouldn't go into deficit when the budget is tabled in March.
The federal government and the Province of Ontario are already forecasting deficits.
"We will make every effort to have a balanced budget," Charest told reporters.
Charest makes the economy focal point of three-day sitting
Charest ordered the national assembly's 125 MNAs back to Quebec City on Tuesday for a special three-day session ahead of the usual return in the spring.
He hopes politicians will fast-track new legislation to help companies survive the global economic slowdown.
'It will also send a signal to Quebecers that the economy is the No. 1 issue for this next year.'—Quebec Premier Jean Charest
Charest said the main order of business will be adopting new legislation to help support private pensions.
He wants all-party support for a government bill that would ease mounting pressure on many companies' retirement plans because of the collapse in stock prices.
Charest said the mini-session will also demonstrate politicians are at work to help the economy.
"It will also send a signal to Quebecers that the economy is the No. 1 issue for this next year," Charest told reporters.
The Liberal government will also give Quebecers a taste of what's to come in the spring budget, said Charest. He predicted a balanced budget even though Ottawa and other provinces, including Ontario, are already forecasting deficits.
Charest said he will ask the opposition parties for consent to pass the legislation immediately.
Opposition leader wants cash from the Caisse
Opposition Parti-Québécois Leader Pauline Marois said the government must do more for the economy, and quickly.
"I think we have to act on three fronts: to help the consumer, to help workers, and to help companies," she told reporters.
'Confidence is important from the consumers, from the workers, and also from investors.'—Pauline Marois, Parti-Québécois leader
Marois argued the province should use the Caisse de dépôt et placement du Québec, the province's public pension fund manager, to create a $10-billion fund to invest exclusively in Quebec-based firms.
In the next three days, she said, lawmakers need to help Quebecers build confidence in the economy.
"Confidence is important from the consumers, from the workers, and also from investors," she said.
Long-time MNA becomes assembly's new speaker
Members of the national assembly also elected a new speaker on Tuesday.
Yvons Vallières, one of the longest-sitting members of the assembly, was voted in unanimously.
The Liberal MNA for Richmond was first elected in 1973.
He replaces former speaker, Parti-Québécois MNA François Gendron, who now moves into the role of deputy speaker.
With files from The Canadian PressShare Tools
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