PM, premiers expected to discuss infrastructure, pensions

Prime Minister Stephen Harper met with Canada's premiers and territorial leaders on Monday to discuss the economy, with several of them expected to push for increased infrastructure spending and more federal help for manufacturing.

The prime minister's three-hour working lunch with the premiers in Ottawa comes as the country contends with a global financial crisis, which will be the lone subject of a summit of the Group of 20 major economies later this week.

While other countries have provided funds to bail out financial institutions and industries left crippled by the crisis, Harper's government has faced criticism for failing to take enough action. 

Last month, the Conservative government agreed to buy up $25 billion in bank-held mortgages in an effort to inject liquidity in the system and free up credit funds for Canadians. The auto sector and a broad coalition of industries, however — especially in hard-hit central Canada — have separately asked Ottawa for similar aid to weather the current economic storm.

Ontario Premier Dalton McGuinty and Quebec Premier Jean Charest are expected to argue hard for a rescue package for their province's battered manufacturers.

"I think there's understanding what's at stake here — 400,000 jobs, 12 Ontario communities, $28 billion in wealth generation, five per cent of our GDP — it's a pretty significant sector," McGuinty said on Monday in Ottawa.

Ahead of Monday's meeting, Manitoba Premier Gary Doer told CBC News that the leaders are seeking a "balanced approach" between the dire economic challenges and the more positive economic results occurring in Canada.

"We think we can provide some solutions to this issue if we work together in a non-partisan way," Doer said.

Over the weekend, the prime minister attempted to tamp down expectations for the meeting.  

"This is not an easy situation; there are no easy solutions," he told reporters on Saturday.

"However, we can contribute to formulating solutions in the most effective way possible if we work together. And that's exactly why I will be meeting with provincial premiers — to try and assure collaboration during a very difficult time for all Canadians."

Finance Minister Jim Flaherty, noting that the economy has worsened considerably even compared with a month ago, suggested Sunday that Ottawa and the provinces should be considering moves to stimulate growth.

There's money set aside for infrastructure projects, and those should be speeded up to boost the economy sooner rather than later, he said.

Some premiers have already asked for an infrastructure spending program to fix roads, sewers and bridges.

Ahead of Monday's meeting, Saskatchewan Premier Brad Wall told CBC News that he wants the meeting to focus on infrastructure plans.  

"It's an area where there's a lot of agreement between the provinces and, I would expect, the national government," he said.

Protect pensions, Doer urges

Manitoba's Doer also said he wants to discuss a "national approach" to protect workers as the value of their pension funds plummet.

He said he also wants the prime minister and premiers to examine provincial and federal legislation addressing pension solvency to ensure workers' pensions are protected in the case of bankruptcies.

Canadians who turn 71 this year must convert their RRSPs into retirement income funds — known as RIFs — even though the value of their plans have tumbled. Doer and other premiers have suggested the mandatory age for conversion should be increased to allow their savings to recover from the current financial turmoil.

"It's a cascading issue where we've got to look at the current circumstances and ask ourselves, 'Is the present solvency provisions actually going to create more unemployment and bankruptcies?'" he said. "That's what we've really got to be careful about."

Alberta Premier Ed Stelmach and B.C. Premier Gordon Campbell also want the federal government to remove all inter-provincial trade barriers. Stelmach is not attending, however, as he is on a trade mission to Europe.

Equalization also on table

Monday's meeting doesn't have a formal agenda, and no communiqué will be issued when it ends to sum up the premiers' prescriptions for the ailing economy.

The first ministers are also expected to discuss the federal government's recent decision to cap the growth of annual equalization payments to have-not provinces, which will now include Ontario.

NDP Leader Jack Layton said the country can't wait much longer for the federal government to act.

"We hope Mr. Harper will bring forward — finally — a plan for the Canadian economy in this economic crisis and present it to the premiers and present it to Canadians," he said.

But Wall, who said Saskatchewan was "grateful" to be among the have provinces, added that the issue of equalization would not be best served with only a three-hour meeting.

"I know finance ministers dealt with it earlier on in their meeting, and that's probably the right place for any discussions of the changes to occur," he said.