Canada will emerge from slump faster, stronger: PM

Prime Minister Stephen Harper used his first major speech on the recession to urge the opposition to co-operate with his government, saying budgetary measures will help boost Canada's strong economic situation and help it emerge from the economic downturn faster than the rest of the world.

Harper delivered a luncheon speech in Brampton, Ont., to the Brampton and Mississauga boards of trade. Officials said the location was chosen because southern Ontario's manufacturing sector has been particularly hard hit by the recession.

The prime minister, who has been criticized by some within his own party for not being visible enough amid a steady stream of grim economic news and massive layoffs, said his minority government is working to cut red tape to speed up infrastructure spending, as promised in the budget.

The budget, delivered in January and currently before the Liberal-dominated Senate, will provide help to workers, homeowners, businesses and cities and towns, he said.

"We are responding with unprecedented speed because we are in a global recession, that has arrived with unprecedented speed," he said.

'We cannot have the opposition in Parliament replacing bureaucratic red tape with political red tape.' —Prime Minister Stephen Harper

"We are, as I’ve said, cutting bureaucratic red tape. And we need Parliament to cut its red tape, too. We cannot have the opposition in Parliament replacing bureaucratic red tape with political red tape."

Harper said he's been "very frustrated" by what he said are opposition efforts to delay the budget's passage.

"Some in the opposition are even suggesting that the government should provide notice or even approval for each individual spending project," said the prime minister.

"That is not realistic — ever. And certainly not realistic in today’s world."

Opposition MPs have asked for a list of infrastructure projects the government is prepared to immediately fund. Treasury Board President Vic Toews has said the projects are not yet allocated.

Earlier Tuesday, Finance Minister Jim Flaherty told the Senate finance committee that the economy will likely worsen and unemployment will rise in the coming months before any improvement is noticed. He urged the Senate to pass the budget before it goes on vacation next week.

Canada not caught skinny-dipping, says PM

Despite the economic difficulties, Canada is in a position of strength, said the prime minister.

He quoted American investor Warren Buffet, who said: "It is only when the tide goes out that you know who was swimming naked."

"The global economic crisis has revealed quite a few skinny-dippers, but Canada is not one of them," said the prime minister, adding that the American economy has been hit twice as hard and Japan's economy four times as hard as Canada's.

U.S. President Barack Obama recently forecast a deficit of $1.75 trillion for 2009, the largest since the Second World War.

'The global economic crisis has revealed quite a few skinny-dippers, but Canada is not one of them.' —Prime Minister Stephen Harper

Flaherty recently said Canada's current debt-to-GDP ratio of roughly 29 per cent could rise to 32 per cent over the next three years as the country goes into deficit to pay for stimulus spending.

The ratio compares the country's debt to its gross domestic product, or the total of all economic activity.

The average ratio for G7 countries is expected to rise above 50 per cent, according to economic forecasters.

Recession an 'opportunity'

Harper also praised the country's banking system, saying the World Economic Forum believes it is the strongest banking system in the world.

No Canadian bank has received any cash from government, although the federal government has extended its program to buy mortgages from the banks at a faster rate than they could be sold on the open market.

Harper also had approving words for the Bank of Canada's "stellar record of low and stable inflation," and the country's "highly educated, skilled, largely mobile, modern workforce."

"Finally, we have real economic diversity, including commodities that will be in high demand as the global economy recovers," he said.

The prime minister stressed that the government's long-term plan will lower taxes, open markets to trade — both globally and domestically — and establish national securities regulation.

Harper said the crisis does offer an opportunity for the country.

"Ultimately, it is an opportunity to position ourselves so that when the recovery comes, we're among the first to catch the wave."

Canada was the last "advanced country" to fall into recession, he said.

"I say to you, as businesspeople, as community-builders, as citizens, if there ever was a time to put away that legendary Canadian modesty, it is now," he told the audience, which responded with applause.

Harper reportedly wrote the full 3,330-word address himself, one of the rare occasions when he has written a speech from start to finish.

PM singing 'happy song,' says Ignatieff

The government also released the first of its budget report cards demanded by the Liberals in exchange for their support of the budget.

The reports, which detail the budget's implementation and costs, are to be delivered this March, June and December ahead of opposition days in Parliament. This would give opposition parties the chance to move a no-confidence motion against the government if they wanted to trigger an election.

Ignatieff, who said he hadn't yet read the budget report card, accused the prime minister of underestimating the severity of the economic crisis.

"Canadians are losing jobs at twice the rate of the Americans right now, and it’s not good enough to go to Canadians and sing them happy songs," he said."They want their prime minister to tell them the truth and I think he’s being economical with the truth about the Canadian economy."

NDP Leader Jack Layton said the prime minister's speech proves he doesn't understand the nature of the recession.

"He should be calling in the banks and saying that they absolutely must let the credit flow," said Layton.

"He should be taking much bolder action to move money fast into the municipalities so they can get their infrastructure projects going."

Jobless rate was 7.2% for January

Canada lost 129,000 jobs in January, as the jobless rate rose by 0.6 percentage points to 7.2 per cent from the month prior.

Unemployment figures for February are due to be released on Friday.

The Canadian economy contracted in the fourth quarter of 2008, with its gross domestic product shrinking at an annualized rate of 3.4 per cent, as reported by Statistics Canada last week.

The public address marked the first major statement Harper made on the recession and came after some Conservative MPs complained the prime minister had not been visible enough to Canadians who are worried about the economic future.