Cheney is out – Giuliani is in

While still just a rumour, many have commented that President Bush should dump Dick Cheney for the next presidental election and possibly pick up a running mate that will help offset some of the negative effects of not finding WMD in Iraq.

Giuliani: Bush’s dream ticket
US PRESIDENT George Bush is ready to pull off the biggest shock of this year’s election campaign by naming Rudy Giuliani as his running mate at the Republican convention in Manhattan in September.

Giuliani remains the most popular politician in the US and speculation is mounting that Bush will announce the former New York mayor as his vice presidential candidate as the country marks the third anniversary of the September 11 attacks.

Bringing Giuliani on board would be a massive boost for Bush, who is lining up to run as a ‘war President’, concentrating on the war on terror rather than the war in Iraq.

Tony Clement’s Integrity over Hydo One

Lorrie Goldstein of the Toronto Sun makes some valid points as to whether Tony Clement is the pot calling the Kettke black. If the central issue of the next federal election is integrity, and Clement manages to win the Consevative Party leadership, then Clement may find himself struggling to disassociation himself with his previous allies.

The integrity sword cuts both ways
[With] news this week that his campaign co-chair, Tom Long, and two other prominent supporters, were among four Tory consultants whose firms received big, untendered contracts from Hydro One during the Mike Harris/Ernie Eves era, he must have known the question was coming.

… Clement, asked whether he had talked to Long, co-chair of his campaign, two full days after the revelations about the Hydro One contracts appeared, responded: “I haven’t, no.” Asked if he was going to, he replied, “and say what?” Told an appropriate question might be, “what about this?” Clement responded: “I guess I could. The issue is that they feel, I suppose, in their reaction, that things are justifiable, so, unless there’s something more that comes of it, I’m not sure what else I can gain from the conversation, but I’d be happy to have that conversation.”

… since Clement acknowledged yesterday there were obviously spending programs that Harris initiated as premier that he knew nothing about as a minister (Harris is a supporter of Belinda Stronach) it stands to reason Martin can at least make the same argument about Chretien.

Federal equalization offer rejected

The federal government offered an increase in equalisation payments of $1.3bn over 5 years, amounting to $265m to be divvied up anually between the eight have-not provinces in order to provide social services on a par with Alberta and Ontario. Those provinces, however, have demanded more, claiming that the ailing Ontario economy allowed the feds to “get away with” payments lightened by between $2.2 and $3bn over the last three years.

With the Ontario economy starting to falter, and McGuinty’s government looking very unlikely to stimulate it again, this effectively leaves Alberta holding the baby for the entire country. What this amounts to is a federal policy to rob Peter in order to pay Paul, combined with the cries of Paul and his siblings that the sum Peter is being fleeced for is not enough. In other words, this is communism in action, and while communism can be effective at raising an economy over the subsistence-level hurdle, at anything more than that it is a millstone for development and society. Free federal lunches are just a discouragement for the have-not provinces to put any serious thought into economic development.

Finance ministers reject equalization proposal
The federal government has offered to increase equalization payments to the provinces by $1.3-billion over five years, but the provinces have refused to sign on, arguing the federal proposal is inadequate.

The $1.3-billion over five years works out to an average of $265-million a year to be divided among the eight provinces that receive equalization payments, so they can provide social services on a par with the country’s richest regions, Alberta and Ontario. But the provinces complain that Ottawa has saved between $2.2-billion and $3-billion in the past three years on equalization, since Ontario’s economy did so poorly. This narrowed the gap between rich and poor provinces, lowering the payments needed to put the provinces on a more equal level. The finance ministers argue that Ottawa should enrich the equalization formula by at least that amount.

McGuinty’s ever-more-numerous broken promises

While in opposition, McGuinty denounced a “mad, reckless rush” to open more casinos in Ontario. But twelve days ago, his Economic Development Minister, Joe Cordiano, pulled a complete about-face and announced that he was indeed contemplating the possibility of opening more casinos in Ontario, despite indications that the casino market in Ontario is already saturated and thus any more casinos would not generate increased overall revenues, quite apart from damaging the local economies of communities such as Niagara Falls.

Cordiano, however, has cited more casino gambling as a potential further source of revenue for the cash-strapped Ontario government facing a $5.6bn deficit. We should not be surprised if this goes ahead, McGuinty has already broken his election promise not to raise taxes and has implemented radar speed traps to further boost government revenues.

Perhaps McGuinty should stop lying through his teeth, breaking his word and levying ever-greater taxes upon an already over-burdened province, and learn from the B.C. Liberals, who were able to balance their budget not through raising taxes but through cutting budgets, streamlining government and trimming the bloated civil service ranks down to size. As it is, the only thing being trimmed down to size is McGuinty’s credibility and trustworthiness. It should be noted that even his pre-election fans are now decrying him as a liar, such as the Toronto Star, cited below.

Even more casinos? Bet on it
A seemingly innocent remark 12 days ago by Economic Development Minister Joe Cordiano about the potential for more casinos in Ontario has thrown communities across the province into a tizzy. “I’m conducting an assessment to make sure that we understand where the (gambling) industry should go, how much growth we’ve had (and) should we have future growth,” said Cordiano.

Together with the government-run lotteries, these facilities pour more than $2 billion a year into the provincial treasury. (The offsetting social and health-care costs of gambling addictions fed by this government-sanctioned betting are never factored into the revenue equation.) Latterly, however, there have been signs — including declining revenues at the Windsor and Niagara Falls operations — that the casino market in the province is pretty much saturated. Thus, any new casinos would simply “cannibalize” revenues from the existing ones rather than bring in new cash to the treasury.

In opposition, Premier Dalton McGuinty decried the “mad, reckless rush” to expand casino gambling in Ontario. But now that they are in power, the Liberals are desperately searching for new sources of revenue to bring down the deficit, just as the New Democrats did a decade ago.

Dr. Ralph’s Alberta Beef saves Paul Martin’s Canadian Bacon

With the Liberal Party lagging in the polls as of late, Alberta’s “conservative” Premier Ralph Klein has come to the rescue, providing Paul Martin with the cure to what ails him: A distraction from the quagmire of scandal he’s been floundering in for the past two weeks. Not even 24 hours after challenging the sanctity of Canada’s unofficial constitution, the Canada Health Act, by invoking the spectre of “separating” from it, Ralph and his bunch are now in full retreat on the issue:

[Ralph Klein's] communications manager, Jim Law, said that while Klein urged Martin to be flexible to allow for reforms under the Canada Health Act, the premier also made it clear that as far as Alberta was concerned, “Going it alone is the last thing that we want to do.”

While Ralph’s true motivation for his hasty retreat from his previous stance on the Canada Health Act is unknown, what is certain is that the “good Canadian-bad Albertan” routine will play well in the Golden Horseshoe for Paul Martin. This may also be a sign that the PM’s handlers have come to the conclusion that Martin has already blown any chance he had to make significant gains in Alberta. Therefore he has very little left out West to lose by playing up the “bad Alberta” stereotype, which will in turn go along way towards re-establishing his credibility in the east. Expect more of this to come…

Klein backs away from health comments after talk with PM
FLIN FLON, Man. (CP) – Prime Minister Paul Martin took time out from his western swing Friday to cross swords with Ralph Klein in a phone conversation that saw the Alberta premier back away from comments that his province may go it alone on health care.
Klein made headlines Thursday when said his government was considering charging facility fees, delisting medical procedures and privatizing more services to prop up a health system increasingly burdened under the weight of spiralling costs.

He also said Alberta would have to consider opting out of the Canada Health Act and forfeiting more that $1.2 billion in annual federal health funding.

Martin, while on a visit to Saskatchewan and Manitoba Friday, called Klein from his Challenger jet to say he’ll defend the principles of the Canada Health Act.

Klein could not be reached for comment but a release from his office said the premier told the Prime Minister he was not proposing delisting services, bringing in private user fees or opting out of the Act.

His communications manager, Jim Law, said that while Klein urged Martin to be flexible to allow for reforms under the Canada Health Act, the premier also made it clear that as far as Alberta was concerned, “Going it alone is the last thing that we want to do.”

Earlier Friday, Martin told reporters “The Canada Health Act is an essential foundation of the Canadian value system,” adding, “We are not going to a two-tier health-care system.”

In Ottawa, federal Health Minister Pierre Pettigrew said they want to work with Alberta but that the Act is non-negotiable.

“We are going to uphold the Canada Health Act and its five conditions. That is quite clear,” said Pettigrew.

When asked if that means he will fine Alberta for non-compliance, he replied, “That means that we’ll uphold the Canada Health Act. Read the Act and you’ll have your answers.”

Dr. Ralph’s prescription for healthcare

In a move that will no doubt endear him to Canadians and Albertans alike, Alberta Premier Ralph Klein is preparing to “contravene the interpretation of the principles of the Canada Health Act” in an effort to “save” health care in the province. I’d be expecting a letter from Intergovernmental Affairs in the near future…

Alta. may break Health Act to ’save’ health care: Klein  

EDMONTON (CP) – Alberta Premier Ralph Klein issued a warning Thursday that his Tory government is prepared to break the Canada Health Act in order to save public health care.

Klein said the province may look at such things as charging facility fees and delisting medical procedures or charging a deductible on doctor visits to address spiralling health costs. He said Alberta is prepared to face the consequences – including the forfeiture of federal health-care funding – in order to ensure the health system remains sustainable.

“What we do may contravene the interpretation of the principles of the Canada Health Act and we ought to be ready for a firestorm,” Klein said.

“I think we’re ready to assess the savings that might be achieved against the amount that will be lost.”

Alberta Health officials said the province would stand to lose the $1.3 billion the federal government annually contributes to its $7.35 billion health care budget.

The last time the Klein government and Ottawa got into a dispute over the province charging facility fees to patients in 1995-96, it cost Alberta $3.4 million in penalties.

“We would have to test the dispute resolution mechanism that has been put in place,” the premier said.

Klein said Alberta will only violate the Canada Health Act as a last resort, but he said that if he can’t convince his fellow premiers and the federal government that radical reforms are needed, the province will go it alone.

Taliban reduced to “cowardly” attacks

Well, it seems the war on terror is slowly being won. The Pentagon has said that the Taliban is so battered that it has been reduced to “cowardly” attacks such as kidnapping, or bicycle bombs. I think they meant to say “ineffectual”, since terrorists are cowardly by their very definition. Regardless, this should be a sign to Ottawa that a strong Canadian military would be of benefit.

Due entirely to military power, and not cultural empathy or the “soft diplomacy” so beloved of Canadian diplomats, the USA has been able to reduce Al-Queda and their Taliban hosts from organisations capable of killing 3,000 US citizens on their own soil to disorganised and decimated rabble too pre-occupied with survival to mount any attack more fearsome than a lone kidnapping or bicycle bomb. Canadians should consider this even more seriously after recent sources reported that Canadian targets were also considered by Al-Queda. To be a rich country, like Canada, without a credible military, seeking to placate everyone except the USA in foreign policy, is akin to a white man in a designer suit walking through Harlem with a big, friendly grin and a sign saying “Mug me.”

U.S. Says Taliban Reduced to ‘Cowardly’ Attacks

Afghanistan’s Taliban guerrillas have been battered so badly they are reduced to “cowardly” acts such as bicycle bombings, a senior Pentagon official said on Tuesday. U.S. Undersecretary of Defense Dov S. Zakheim, the fourth-ranking official at the Pentagon, also said on a visit to Kabul that Washington was pushing ahead with plans to pattern a national guard in Afghanistan after one being built in Iraq.

N.B. Auditor General claims public was misled over “surplus”

New Brunswick Auditor General Daryl Wilson today claimed that Bernard Lord’s Conservative government misled the public last November when it claimed a $1m surplus, when in actual fact the province ran a deficit of $109.4m. Lord’s government, which holds power by only one seat, was under attack from Liberal opposition leader Shawn Graham, who claimed that the Conservatives falsified the provincial finances in order to clinch the election. The province faces a $300m deficit in the upcoming fiscal year, part of a debt of almost $7bn.

While a case of false reporting such as this is not as serious as alleged federal Liberal embezzlement, it is crucial to successful democracy that governments must report accurately and completely to the public on their affairs. Lies and deceit from any branch of government and any political party must not be tolerated.

Auditor says N.B. government misled public by reporting phoney surplus

Premier Bernard Lord and his Conservative government have obscured New Brunswick’s true financial picture by claiming to have a surplus when they were actually deep in the red, the province’s auditor general said Wednesday.

In his annual report on New Brunswick’s finances, Daryl Wilson said the government misled the public last November when it issued a news release claiming to have managed a $1 million surplus, despite difficult times.

B.C. government balances the books

British Columbia announced a balanced budget on Tuesday, with a forecast $100m surplus this year and $275m and $300m surpluses to follow, despite an additional $1bn in costs from forest fires, floods, SARS, mad cow disease and changes to federal equalization payments.

The provinces that have not yet achieved a sound budget should take note of how this was done. No new taxes were introduced, but the B.C. government cut about 1/3 of civil service jobs and reduced ministry budgets by 25% to begin to pull itself out of a $4.4bn deficit.

Joy MacPhail, one of B.C.’s two NDP ministers, criticised the low spending of the Liberal provincial government, claiming that this balanced budget amounted to “no progress over the past three years.” MacPhail, however, has it dead wrong. It is thanks to a balanced budget and controlled government spending that Alberta has been able to become Canada’s richest and most productive province, and runaway government in the Maritimes and elsewhere has stifled economic growth. As B.C. premier Gordon Campbell said, “debt is not the foundation you build your future on… a balanced budget is.”

B.C. hits historic target by balancing books, promises proud Olympic ride

British Columbia buried its reputation as a bad money manager Tuesday and served notice it’s about to reap the rewards of ongoing surplus budgets and a triumphant Olympic ride.

Finance Minister Gary Collins presented a $30.2-billion budget that projects a $100-million surplus this year and forecasts surpluses of $275 million and $300 million for the next two years.

Liberal support falls even further

According to an Ipsos-Reid poll conducted for CTV and the Globe and Mail, support for the Liberal government of Paul Martin slid to 35%, down another 4% (a 10% drop) in only a week. Ipsos-Reid president Darrell Bricker opined that a May election would result in minority government at best and added that “I don’t think there is anybody now who would be seriously advising (Martin) to go to the polls on this basis, unless he just wants to completely roll the dice.”

Martin has vowed to resign should an inquiry he requested into the $250m government spending scandal implicate him. His opponents have demanded his resignation anyway, claiming that if he was in the know he was corrupt, and if he wasn’t, he is incompetent. There are two possible motivations behind Martin’s vow. Either Martin counts upon an independent inquiry to show that he was truly innocent of any corruption , and expects that he can prove he was not and should not have been in a position to know what was going on; or secondly, Martin was involved in the corruption, but is planning on some political jiggery-pokery to ensure he is vindicated. Any other option would be a huge gamble for Martin and not one that he would be likely to stake his entire career in public office upon.

Liberals Slide in Polls on Scandal

A government scandal has cut support for Canada’s ruling Liberals to 35 percent from 48 percent a month ago, according to an opinion poll published on Tuesday that suggested Ottawa might have to scrap plans for an early election.

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