p “The size and the importance of the oil industry varies on whether it’s doing well or not according to Conservatives,” said NDP finance critic Nathan Cullen. Stephen Harper is playing down the impact of energy on the overall Canadian economy, noting that other sectors will help keep growth strong during hard times for the oil patch. The Prime Minister, who has previously promoted Canada abroad as an emerging energy superpower, stressed the importance of small business, manufacturing and innovation during an event in St. Catharines, one of many Southwestern Ontario communities that have lost manufacturing jobs in recent years. The Bank of Canada surprised economists by cutting its key interest rate from one per cent to 0.75 per cent. NDP Leader Tom Mulcair says the move shows Canadas economy has bigger problems than the Tories will admit. “It’s obviously significant for the Canadian economy, particularly certain sectors and regions, but the oil industry isn’t remotely the entire Canadian economy,” said Mr. Harper. “There are many benefits to other parts of the economy because of these developments and although the oil industry in those regions are going to face some pretty significant adjustments, the fact of the matter is that this is a resilient industry that knows that prices go up and down.” The Prime Minister’s comments, which followed an announcement to expand a program for small-business loans, marked his first public response since Bank of Canada Governor Stephen Poloz shocked markets Wednesday by cutting interest rates in response to lower-than-expected growth and inflation. Mr. Harper noted that while the bank is independent of the government, he supported the bank’s actions. “I should say the government has complete confidence in the Bank of Canada and the actions that it has taken. They are appropriate,” he said. “But in terms of fiscal policy, the appropriate action is to make sure that as long as the economy continues to grow, we balance our budget,” Mr. Harper added. Opposition parties say the Bank of Canada’s rate cut is a clear sign that the Canadian economy is facing serious trouble and they lay the blame on the Conservatives for placing too much importance on Canada’s energy sector at the expense of other areas, such as manufacturing. “When oil is priced very highly, the energy sector is the linchpin for the entire economy. And when oil falls dramatically, suddenly it becomes much less important from the Conservatives’ perspective.” theglobeandmail//news/politics/harper-plays-down-impact-of-energy-on-canadian-economy/article22583558/?cmpid=rss1&click=sf_globe
Posted on: Fri, 23 Jan 2015 03:54:50 +0000
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