-- CTF Comments on Economic Statement --

OTTAWA: Canadian Taxpayers Federation (CTF) federal director Walter Robinson responded to the Economic Statement delivered by the Finance Minister in Ottawa today.

On a positive note, Robinson stated, "we are encouraged that the feds applied last year's $3.5 billion surplus to debt reduction. And the Minister went to great pains to tell international money traders that we are more than hewers of wood and drawers of water. He drew attention to our booming high tech sector and a thriving manufacturing base. This straight talk is long overdue." Robinson added, "this should have a positive effect on our undervalued dollar."

However, the CTF is critical of the main focus of Mr. Martin's statement.

"The Finance Minister has all but declared war on Canadian employers and workers - it is now clear that he plans to change the Employment Insurance (EI) Act and confiscate the $7 billion surplus in the EI fund," said Robinson. "Last year, during his Vancouver economic statement, Mr. Martin assured us that the government had cut up its credit card. With his plastic in pieces, he is now eyeing the EI surplus as his new line of credit."

The CTF maintains that monies paid into the EI account are given by workers and employers in trust for the sole purpose of Employment Insurance benefits and should not be used for other purposes.

"As for offering a concrete plan on tax cuts and debt reduction, nothing is on the table," stated Robinson. "The Finance Minister characterized groups such as ours that advocate tax relief as 'reckless drivers'. Honk, Honk Paul, you've got it backwards. Taxpayers are stuck in the mud because they still languish under the highest personal tax burden among the G-7. CPP premium increases and inaction on bracket creep, courtesy of Paul Martin, ensure that Canadians families will continue to spin their wheels and go nowhere fast."

"And the government has once again cowered away from a legislated schedule of debt reduction and chosen instead for flimsy, non-binding debt-to-GDP targets," added Robinson.

"It is possible to provide tax relief, reduce our debt and still address national priorities such as health care and we will outline our plan to the Finance Committee later this month," concluded Robinson.