Quebec ready to weather U.S. recession, premier says

Quebec premier Jean Charest says he's not worried about the province falling into deficit despite the spectre of recession in the United States.

The province's revenues won't be necessarily affected even if an economic slowdown south of the border brings more layoffs in manufacturing and forestry, Charest said at the close of a special two-day meeting with his Liberal caucus in Sherbrooke.

"Balancing the budget is law, and it's an obligation, and we are going to balance our budget," he said on Thursday.

Investment in energy production and plans to rebuild Quebec's highway system will help secure jobs if other sectors of the economy are rattled by a slowdown in exports, Charest said.

New agreement with France in the works

Plans are underway to secure trade and labour agreements with Europe that will make Quebec less dependent on U.S. trade, he explained.

"We are going to pursue negotiations for a mobility [of labour] agreement between France and Quebec," Charest said.

But Quebec's revenues won't necessarily meet the province's predictions, warned finance minister Monique Jérome-Forget. "We will see," she said when asked how her revenues looked this year.

There is no talk of raising fees such as the province's vaunted $7 per day public daycare, said family minister Michelle Courchesne. "It's not on our radar screen right now — at all," she said on Thursday.

Quebec will also introduce legislation to allow progressive retirement, which would enable seniors to work part-time.

No mood for elections, Charest says

The province's Liberal minority government plans to work with opposition parties to secure Quebec's economy and make sure the upcoming budget will pass, Charest said.

The premier said he doesn't anticipate any elections this year. The province is celebrating Quebec City's 400th anniversary this year and no one is interested in an election, Charest said.