Next phase of Economic Action Plan begins with throne speech, budget in early March

December 30, 2009

OTTAWA – Prime Minister Stephen Harper today announced that the second and final phase of Canada’s Economic Action plan will be launched following the Olympic Games with a new Throne Speech on March 3 and a federal Budget on March 4.

“Our priority in the new session of Parliament will continue to be rapid and effective implementation of Canada’s Economic Action Plan to benefit communities, workers and businesses,” the Prime Minister said.  “At the same time, we are already looking ahead to future challenges.  These include restoring a balanced budget once our economy is fully recovered and building a strong foundation for our economic future.”

Almost a year ago – in the face of the deepest worldwide recession since the Second World War – the Government of Canada responded to extraordinary times with extraordinary action.  It introduced Canada’s Economic Action Plan, which included one of the most comprehensive stimulus packages in the industrialized world.
“While we see tentative, early signs that the economy is emerging from recession, the recovery is still fragile,” Prime Minister Harper said.  “Now is no time to change course.  In fact, we must press on with the second year of Canada’s Economic Action Plan.

“Our plan remains helping those who need it now, stimulating new job growth, protecting existing jobs and ensuring that our economy emerges from the recession in a stronger position than it entered it.”




Backgrounder

2009: STRONG, SECURE LEADERSHIP IN UNCERTAIN TIMES
Despite the extraordinary circumstances of worldwide recession, Canada’s Government has continued to deliver real results on issues that most matter to Canadians.  The Government’s priority was, and remains, economic action to protect existing jobs, stimulate new job creation and help families, workers and businesses cope during the downturn.  The Government is also looking ahead to ensure Canada is well-positioned for a strong recovery by returning to balanced budgets once the economy has recovered and building a strong foundation for our economic future.

The Economy
This past year was a difficult one for Canadians as our economy struggled in the face of the global recession.  Canadians from all walks of life and regions were and continue to be affected.
The Government responded quickly to the crisis by introducing Canada’s Economic Action Plan – which included the largest stimulus plan in Canadian history.  The plan provides additional help for long-tenured workers, maintains essential jobs in key industries, preserves jobs through the work-sharing program, reduces taxes on individuals, families and businesses, stimulates the construction industry through a $4-billion Infrastructure Stimulus Fund, provides help to homeowners and suppliers through the Home Renovation Tax Credit, and improves universities and colleges through the Knowledge Infrastructure Program.
The Home Renovation Tax Credit was a particular success.  Sixty-three per cent of Canadian homeowners plan to take advantage of the Home Renovation Tax Credit.  Close to half of those who plan to use the tax credit say they chose to undertake renovations because of the credit.  According to the Fourth Report to Canadians on Canada’s Economic Action Plan, about 4.6 million families in Canada are expected to take advantage of the Home Renovation Tax Credit.  Further, building permits increased 18 per cent in October, and housing starts are continuing to improve, hitting their highest levels in almost a year in November.
Through enhanced Employment Insurance benefits, skills development and training, Canada’s Economic Action Plan provided $7 billion of support for workers most affected by the global recession.  Almost 400,000 Canadian workers have benefited from an additional five weeks of regular Employment Insurance benefits.  As well, the number of workers benefiting from work-sharing has increased more than sixfold since the beginning of the year.  Enhanced Employment Insurance training programs are helping to retrain those who are out of work.
Consumer confidence is rebounding and unemployment is an impressive 1.5 percentage points lower in Canada than in the United States.  Moreover, Canada’s fiscal position continues to be the strongest among the G-7 nations.
Despite early signs of stabilization, the recovery remains fragile.  Implementing the second phase of Canada’s Economic Action plan will remain the Government’s priority in the next year.

Justice and Community Safety
The Government introduced legislation designed to tackle violent crime, to fight white collar crime, to cap the amount of credit for time served in pre-sentencing custody, to combat gang and organized crime, and to strengthen sentences imposed on those who prey on children.

Canada’s Stature in the World
The stability of Canada’s financial and regulatory system was recognized around the world.  While many industrialized countries were forced to bail out their largest financial institutions, Canada was not.  Canada served as co-chair of the G-20 Committee on Banking and Financial Regulation and Jim Flaherty, Minister of Finance, was named Finance Minister of the Year by Euromoney Magazine.   And in June, 2010, Canada will host both the G-8 and G-20 summits.  It is unprecedented for any country to host back-to-back summits.

Canada’s Government has strengthened bilateral relationships with emerging powers such as South Korea, India and China, while maintaining a balanced and principled approach that respects human rights.  The Government will work constructively with countries on issues of common concern while continuing to uphold Canadian values.

Since 2006, the Government has concluded trade agreements with eight countries and discussions have begun with the European Union and India.

Canada opened new trade offices in India and China, in addition to receiving Approved Destination Status from China, making it easier for Chinese tourists to visit Canada.

Afghanistan
The men and women of our Canadian Armed Forces perform important duties and are recognized for their capability in the field, compassion in communities and know-how in combat.  During their mission in Afghanistan, Canadian troops have helped local Afghans to assume control over the safety and security of their communities.  This Government stands behind the members of the Canadian Armed Forces.
While the Government welcomes the additional troop commitment recently made by U.S. President Obama as well by as other NATO members, the Canadian military mission will end in 2011.  Canada will continue to have a diplomatic and development role in Afghanistan.

A Responsible and Achievable Plan for Climate Change

As part of Canada's Economic Action Plan, the Government is investing more than $2 billion to protect the environment, strengthen the economy and transform Canadian technologies.  Initiatives consist of $1 billion over five years for clean energy research and demonstration projects as well as $1 billion for a Green Infrastructure Fund, which will support modern energy transmission lines and sustainable energy projects.
 
Through the Clean Energy Dialogue initiated by the Prime Minister and President Obama, Canada is working closely with the Obama Administration to reduce greenhouse gases and combat climate change.  This will be accomplished through clean energy research and development, the design and deployment of clean energy technologies – including carbon capture and storage – and by building a more efficient electricity grid based on clean and renewable energy.  Already, regulations to reduce vehicle tailpipe emissions, starting with the 2011 model year, have been developed to reduce average fuel consumption and to ensure Canada's standards are aligned with those in the United States. 
 
In December, Canada signed the Copenhagen Accord – a framework agreement signed by developed and developing nations, including China and the United States – to reduce the worldwide level of greenhouse gases. 
 
The eight countries are the EFTA countries of Iceland, Norway, Switzerland and Liechtenstein; Peru; Colombia; Jordan; and Panama.
 

 
Backgrounder

THRONE SPEECH LAUNCHES NEW SESSION OF PARLIAMENT
Each new session of Parliament begins with a Speech from the Throne.  A typical Parliament is composed of several sessions and therefore includes several Throne Speeches.  On average there are three to four Throne Speeches per Parliament, although some Parliaments have heard as many as six or seven Throne Speeches.
The call for a new session and a new Throne Speech is made by the Governor General, on the advice of the Prime Minister, either by issuing a proclamation published in the Canada Gazette or by means of a special ceremony in the Senate Chamber.

The decision to launch a new Throne Speech within the same Parliament is routine, having occurred 104 times before.
Until the new session, the Speaker, the Prime Minister, Ministers and Parliamentary Secretaries remain in office and all Members of the House of Commons retain their full rights and privileges.

The call for a new session does not remove the requirements in Orders or Addresses of the House for the tabling of government reports.  Similarly, the Government’s obligation to respond to committee reports and petitions survives from one session to another.
Comparative History of Canadian Parliaments since Confederation

Number of Throne Speeches per Parliament
Average of Previous Parliaments:  3.6 Throne Speeches
40th Parliament:  at least 3 (3rd Throne Speech to be delivered March 3, 2010)
Duration of Sessions (Days)
Average:  211 days
40th Parliament, 2nd Session:  338 days
Duration of Sessions (Sittings)
Average:  109 House of Commons sittings
40th Parliament, 2nd Session:  128 House sittings
Interval between Sessions of Same Parliament
Average:  151 days
40th Parliament:  63 days until new session

Historic averages up to and including 1st Session of 40th Parliament.

Excludes sessions ending in an election call.