No 1817 Posted by fw, November 9, 2016
“Canadian Finance Minister Bill Morneau presented the Liberal government’s Fall Fiscal Update on Tuesday, almost one year to the day the Liberals returned to power after a decade of Conservative rule. The update was a fitting way to mark the Trudeau government’s first anniversary, since it outlined plans to accelerate the privatization of public infrastructure and allotted additional funds for aggressive military interventions abroad…. The latest economic announcements thoroughly expose the Liberals’ phony posturing as defenders of the ‘middle class.’ In Tuesday’s update Morneau still sought to frame his proposals as a way of boosting the middle class by creating good jobs. But the reality is that the government’s overriding focus is on finding a means of boosting returns for the business elite under conditions of economic stagnation…. Talk of improving Canada’s productivity, one of the central concerns of the Liberals’ advisory council, is a euphemism for stepping up the exploitation of workers by reducing labour costs.” —Roger Jordan, World Socialist Web Site
I went to sleep in Canada and woke up in Greece.
Below is a repost of Roger Jordan’s eye-opening account of Team Trudeau’s plan to sell their pig in a poke privatization plan to a skeptical public. The text of the piece is slightly abridged and significantly reorganized. As well, subheadings have been added to bring core ideas to the forefront. To read the article as it originally appears in WSWS, click on the following linked title.
Team Trudeau outlines plans to accelerate privatization of public infrastructure
Canadian Finance Minister Bill Morneau presented the Liberal government’s Fall Fiscal Update on Tuesday, almost one year to the day the Liberals returned to power after a decade of Conservative rule. The update was a fitting way to mark the Trudeau government’s first anniversary, since it outlined plans to accelerate the privatization of public infrastructure and allotted additional funds for aggressive military interventions abroad.
Trudeau uses “phony progressive rhetoric” and other deceptive tactics as smokescreen for neoliberal agenda
The Canadian ruling elite’s traditional party of government, the Liberals returned to power last fall with the support of the trade unions and the social democratic NDP, who shamelessly promoted them as a “progressive” alternative to the Conservatives. Predictably, the new government has carried out little more than cosmetic changes, while using phony progressive rhetoric and the appointment of visible minorities to high-profile positions to provide a smokescreen for expanding Canada’s role in Washington’s military-strategic offensives and for pressing forward with the dismantling of public services.
Canada’s economic prospects over next six years burdened by ongoing global economic crisis and Liberal’s deficit spending
Morneau acknowledged the deepening global crisis of capitalism and the souring of Canada’s economic prospects in his speech to the House of Commons. Total deficits were increased over the next six years by around $31 billion, with the goal of balancing the books by 2021-22 abandoned. Even after eliminating the $6 billion annual contingency fund adopted in last March’s budget, the Liberals are projecting a rise in additional government debt of $115 billion by the 2022 fiscal year.
These figures reflect the impact of the collapse of oil and commodity prices and the anemic state of Canada’s manufacturing sector despite a sharp drop in the value of the Canadian dollar. The Bank of Canada has repeatedly revised down its growth forecast over recent months, to 1.1 percent for this year and 2 percent for 2017. A number of concerns, above all the potential bursting of the housing market bubble, have led some observers to predict that still worse is to come. At its October meeting, the Bank of Canada reportedly considered the option of cutting interest rates to a historic low of 0.25 percent.
Liberals called on to concentrate on privatization, both in the form of PPPs and the outright sell-off of government assets
The Liberals’ Advisory Council on Economic Growth released a brief report containing its first set of policy recommendations in the run-up to this week’s fiscal update. It called on the government to concentrate on privatization, both in the form of PPPs and the outright sell-off of government assets. The Liberals, the report argued, should “create a flywheel of re-investment … by catalyzing the participation of institutional capital in existing assets.”
Calculating Team Trudeau frames proposals as pro-middle class; reality is they’re pro-business elites
The latest economic announcements thoroughly expose the Liberals’ phony posturing as defenders of the “middle class.” In Tuesday’s update Morneau still sought to frame his proposals as a way of boosting the middle class by creating good jobs. But the reality is that the government’s overriding focus is on finding a means of boosting returns for the business elite under conditions of economic stagnation.
When the IMF, the champion of global financial elites, praised the Trudeau plan, workers should hold onto their pocketbooks
The Liberals’ program has been hailed by no less of an organization of the global financial elite than the IMF. Managing Director Christine Lagarde praised the Trudeau government in September saying she hopes Canada’s economic policies “can actually go viral.” “If you use [fiscal space] to invest in infrastructure, that will, in the medium to long term, improve productivity of the country and in the short term will actually boost growth because it will put people to work,” she told CBC.
Trudeau’s talk of “improving worker productivity” is a euphemism for exploiting workers by reducing labour costs
Talk of improving Canada’s productivity, one of the central concerns of the Liberals’ advisory council, is a euphemism for stepping up the exploitation of workers by reducing labour costs.
Right-wing CD Howe Institute counsels Liberals on how to sell their pig in a poke to skeptical public
One of the government’s main concerns is how to sell this right-wing agenda to an overwhelmingly skeptical public. As former Bank of Canada Governor David Dodge, who played a key role in the Chretien-Martin Liberal government’s unprecedented public spending cuts in the 1990s, wrote in an open letter to Morneau on behalf of the right-wing C.D. Howe Institute, “You need to have the political courage to explain to Canadians why it is in their interest that they should pay for the use of public use infrastructure.”
[So, What Is the Government’s Advisory Council on Economic Growth Selling to Canadians?]
Establish an Infrastructure Bank to recruit Canadian and foreign investors in public infrastructure projects
The government is responding by laying the groundwork for the widespread privatization of public assets, so as to boost corporate profits and open up new business opportunities. On the recommendation of the government’s Advisory Council on Economic Growth, which is being led by the managing director of the global consultancy firm McKinsey, Dominic Barton, the Liberals have announced that they will establish an Infrastructure Bank to involve Canadian and foreign investors in public infrastructure projects. The bank is to be “seeded” by $35 billion in public money. $15 billion of this is to be drawn from infrastructure investments already announced and a further $20 billion will be raised via equities and government debt.
Investments in public infrastructure will rake in billions for corporate elites, increased fees for working people
The bank’s goal will be to attract hundreds of billions in Canadian and foreign capital to invest in everything from the country’s airports and bridges to roads, water systems, electricity suppliers and sea ports. The result will be billions in profits for the corporate elite while working people are left to bear the burden of increased user fees and tolls.
Deregulate foreign investment – Deregulate? Isn’t that what got us into 2008 crisis?
Morneau also announced the government is deregulating foreign investment, with the threshold for government reviews of foreign takeovers to be increased to $1 billion in 2017.
Sell off Canada’s 8 largest airports to the private sector
Moves to privatize Canada’s eight largest airports are already well advanced. Credit Suisse, one of the world’s largest banks, has been hired by the government to present a report on how the sell-off should proceed by the end of the year.
Create ultra low-cost airline carriers, which will likely result in an assault on wages, working conditions, and jobs
On Thursday, Transport Minister Mark Garneau announced that the government is raising the foreign investment limit in domestic airlines from 25 to 49 percent, a step which is aimed at facilitating the creation of “ultra low-cost” (ULC) carriers. In the US and other parts of the world, the establishment of ULCs has been bound up with a massive restructuring of the airline industry on the basis of a devastating assault on the wages, working conditions, and jobs of airline workers.
Saddle cities and towns with Public Private Partnerships charging 7-9% as return for private investors
Morneau and the Liberals are also touting Public Private Partnerships (PPPs) as the mechanism for cities and towns to undertake infrastructure investment projects. The involvement of private capital in the infrastructure bank will likely see municipalities forced to pay between 7 and 9 percent on funds borrowed so as to secure “suitable” returns for investors.
Use rewards from privatization to boost military spending and Canadian imperialism
As well as boosting the bottom line of global corporate giants and the banks and consultancy firms, the Trudeau Liberals intend to use the financial rewards reaped from privatization to boost military spending, so that Canadian imperialism can more aggressively assert its interests on the world stage.
Morneau’s fiscal update included $348 million to fund the presence of 450 Canadian troops in Latvia through 2020. This deployment is part of NATO’s aggressive policy of encircling Russia with 4,000 soldiers, led by contingents from the US, Britain, Germany and Canada. The financial support for the next four years makes clear that in spite of the rhetoric about rotating forces, the deployment to the Baltic state is for all intents and purposes a permanent deployment. Defence Minister Harjit Sajjan visited the Latvian capital Riga at the end of last month to discuss mission specifics with his NATO colleagues.
In addition, a further $465 million was committed to support the US puppet regime in Afghanistan, where Canadian imperialism participated for over a decade in a war of occupation. The funding will provide military and police training and other aid to the Afghan government until 2021.
In the days prior to the fiscal update, Sajjan and one of his advisers both indicated that Canada may soon reconsider re-engaging with combat operations in Syria, where the US and its Mideast allies have fomented a “regime-change” war against the Russian- and Iranian-backed regime of Bashar al-Assad. The Liberals have already expanded Canada’s role in the latest US war in the Middle East, including by tripling the number of Special Forces’ troops deployed in northern Iraq. The deployment of fighter jets or troops to Syria would draw Canada even deeper into a conflict that threatens to escalate into a direct clash between the world’s major powers.
FAIR USE NOTICE – For details click here