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The Prime Minister is Reality Challenged

Author: Walter Robinson 1999/06/17
Too many years in politics would cloud the judgment of anyone, the Prime Minister (PM) is no exception. On questions of electoral reform and tax relief the PM's recent statements are completely divorced from reality. Here are just a few of the PM's gems from this month.

June 1, 1999. During Question Period NDP MP Bill Blaikie asked the PM to consider an all-party committee to look at electoral reform. The PM ducked the question and sent it to the Government House Leader. But in his supplementary, Mr. Blaikie demanded a response from the PM.

Bill Blaikie "I asked the Prime Minister a decent policy question. He complains about mud slinging. I ask him a decent policy question and he does not get up on his feet. I am asking him now. This is a decent policy question. Will he set up a committee in the fall to look at electoral reform

Rt. Hon. Jean Chretien "Mr. Speaker, we have a system that was established in Canada a long time ago. I know that for almost as long a time the NDP and its equivalent have tried to form a government and they have failed. As they cannot win with that system, they want another one. I think the one we have now has served Canada pretty well so far."

The archaic first-past-the-post system has served the PM pretty well so far. Given that he was elected with 38% of the vote (the lowest in Canadian history) in the last federal election, the reality is that 62% of Canadians who voted on June 2, 1997 are not adequately represented in Parliament. And the reality is Canada is one of only four major democracies to still use this system which enshrines tyranny of the minority.

June 9, 1999. Southam News columnist Lawrence Martin reports that the PM thinks the brain drain is a myth. It is some sort of hoax by "business people who wanted to have tax cuts." The reality is that two separate polls in as many months (Compas and Gallup) have pointed to an overwhelming majority of Canadians who think their tax burden is way too high. And the reality is that the brain drain is real. The federal Finance Committee has said as much. Still, we continue to lose more skilled professionals to the United States than we receive in return.

As for various studies pointing to equal numbers of immigration to offset emigration, the reality is that gaining Ph. D's in Philosophy and Art History does not make up for the computer scientists, engineers and scores of medical professionals still going stateside.

June 15, 1999. During his recent trade visit to Ireland the PM opened a speech to a business luncheon in Dublin as follows:

"I am delighted to be here in Ireland - one of the most exciting places in Europe today. The bustle and activity are very evident - everywhere you look. And so is the pride. So when the Irish say with pride - for the first time in 150 years, more of our people are returning home than leaving. Canada, with its 4 million Irish descendants, salutes you."

The reality is striking. Ireland is experiencing 9% annual economic growth partly because it lowered its corporate tax rate from 40% to 10% and foreign direct investment has soared by 250%.

Combine this with personal tax reductions and one (except for the PM) can quickly see why Siemens, Nortel and other corporate giants are beating a path to the Emerald Isle for regional offices with world product mandates. Instead of merely praising the Irish miracle, the PM should strive to emulate it.

But the sad reality is that with a PM that believes our voting system is fair and the brain drain is a myth, we shouldn't expect the reality of leadership from him on the tax cuts front anytime soon.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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