By Karl Gotthardt– Canadian Politics and Military Affairs Editor
UK Prime Minister addressed a joint session of the Canadian Parliament last week and made clear that governments must get their spending and deficits under control. Cameron warned that Europeans and the U.S. must get their spending under control. “This is not a traditional, cyclical recession, it’s a debt crisis.” His comments are very much in line with what the GOP advocates in the United States.
Canada’s corporate tax rate is one of the most competitive corporate tax rates at 16%, while the U.S. has a 35% corporate tax rate.
Cameron said that the UK priorities were in infrastructure and science. He also talked about establishing an apprenticeship program, which would arm young Britain’s with new skills. Instead of going along with those that feel new regulatory institutions are needed, Cameron said it is “political will” we need.
Cameron also praised Canadian Prime Minister Stephen Harper for his leadership, particularly at the G8 and G20. He said look at the facts:
Look at the facts.
Not a single Canadian bank fell or faltered during the global banking crisis. Canada got to grips with its deficit and was running surpluses and paying down debt before the recession, fixing the roof while the sun was shining.
Your economic leadership has helped the Canadian economy to weather the global storms far better than many of your international competitors. The way in which you have integrated people from many different backgrounds into a mature democracy is a model from which we can all learn.
And Canada is preparing now for a better future.
Alberta is the jurisdiction with the best educational results of any English speaking jurisdiction in the world. From Blackberry to Canadarm, the robot arm used on 90 space shuttle missions, yours is a home of innovation and technology. In fact, Blackberry presented Her Majesty the Queen with one of their smart phones when she visited them last year but Her Majesty already had one!
Canada displays moral clarity and political leadership.
Cameron’s speech quickly came under criticism by the Opposition parties both in Canada and in the UK. Both the Labour Party and the New Democratic Party believe that corporate taxes are too low and that another round of stimulus is needed.
Prime Minister Stephen Harper, his Finance Minister Jim Flaherty and Bank of Canada Governor James Carney had a rare meeting in the Prime Minister’s office and they all agreed to stay on the present course, while monitoring the situation closely. For now Canada is on target to erase the deficit by 2015.
Canada is vulnerable due to the situation of the U.S. economy and of course the situation in the Eurozone. Having the U.S. as the largest trading partner, cannot put it into a a bubble of isolation. While the housing market is still doing relatively well, it is showing signs of slowing. Canada will most certainly have to reach out to new markets in Asia and South America.
The full text of David Cameron’s Speech Here