Conservative leader Stephen Harper mocks Liberal Leader Justin Trudeau's plan to run 'tiny little deficits' for the next three years.

ELECTION 2015: Economic slump dominates campaign

Justin Trudeau's plan to run deficits for infrastructure spending changes focus for Thomas Mulcair, Stephen Harper

Sliding stock markets and sagging natural resource prices have raised the stakes for the Oct. 19 federal election, as parties try to position themselves as the best choice to deal with an economic slump.

Statistics Canada’s release of data showing small contractions of the Canadian economy in the first two quarters of the year sparked a prolonged exchange between party leaders over whether the country is or was in a recession.

Economists such as Central 1 Credit Union’s Helmut Pastrick have mostly agreed the downturn is primarily based on low oil and gas prices, and isn’t a full-fledged recession. Central 1 forecasts continued slow economic growth for southern B.C. based on the low Canadian dollar and improvement in the U.S. economy.

Conservative leader Stephen Harper noted that the statistics showed a return to economic growth in June, and he accused Liberal leader Justin Trudeau of over-reacting to “a couple of months of weak data” to commit his party to up to three years of deficit spending.

Trudeau’s abrupt change of position on running deficits of up to $10 billion a year has redefined the debate. Trudeau unveiled what he called the biggest infrastructure plan in Canadian history, doubling the current Conservative budget from $5 billion to $10 billion in the next two fiscal years and continuing to increase it over 10 years.

Touring the Okanagan, NDP leader Thomas Mulcair touted his plan to reduce small business taxes and provide tax breaks for manufacturing, while balancing the budget in the first full year of an NDP mandate.

Mulcair’s promises of tax cuts and spending control prompted both the Liberals and Conservatives to accuse the NDP of creating a huge revenue hole that could only be filled by spending cuts or new tax increases.

The Conservatives estimate that Mulcair’s plans for a national daycare program, increased foreign aid and other spending leave a gap of $8 billion in the first year. The Liberals estimated the NDP budget gap at $28 billion over four years, not counting unspecified increases for veterans and home care.

NDP candidate Andrew Thomson called the Conservative calculation “deliberately misleading,” inflating the NDP’s housing plan cost by more than five times.

Harper has mainly run on his government’s record, including an increase in the Universal Child Care Benefit and cutting the Goods and Services Tax. The Conservatives estimate their measures have benefited the average family by up to $6,600 a year.

 

Just Posted

Province announces $2.5-million boost to increase tourism in B.C.’s resort towns

Changes to RMI funding are bringing more money to places like Harrison and Tofino

Rossland moves forward on single-use plastic bag ban bylaw

Bylaw given first reading at last council meeting

Premier Horgan talks jobs and opportunity at Castlegar mill

Upbeat visit brings message of hope and co-operation among Kootenay forestry players

Recycle major appliances for free in Kootenay Boundary

Free service begins May 1; Refrigerant appliances not included at Greater Trail regional landfill

Gas venting from tanker at Castlegar rail yard posed no danger: officials

Argon gas discharged from a CP tanker car on Friday, April 19.

VIDEO: Killer whales hunt for seals in Vancouver harbour

Bigg’s killer whales feed on marine mammals like seals, sea lions, dolphins and even other whales

VIDEO: B.C.’s waving granny gets incredible send-off from school kids

Tinney Davidson has been waving at students on their way to school for over 11 years, but is moving in a month

Struggling B.C. adoption agency elects new board that intends to keep it open

The previous board announced that Choices would close May 31

Drug decriminalization report welcomed in East Kootenay

Provincial report recommends decriminalizing people who use illicit drugs, shift focus to treatment

New flight service an ‘angel’ for medical patients

Angel Flight East Kootenay will fly medical patients to Kelowna or Vancouver

Vancouver man, 19, charged in human trafficking case involving teen girl

The 16-year-old girl was reported missing and later discovered in Vancouver

Family dog stolen from Kootenay backyard

RCMP appealing for information on pregnant Karelian bear dog missing from Elko, B.C.

Blaine, Wash. inn owner, charged with smuggling people into B.C., granted bail

Robert Joseph Boule ordered to turn away anyone indicating a plan to enter Canada illegally

Most Read