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Excerpt from article..
"The $600-million purchase of eight-wheel Stryker vehicles and hundreds of millions of dollars for 741 G-Wagen jeeps for the Armed Forces have also been frozen, as has $500-million in renovations to federal buildings across the country."
And the purchase to replace the Sea Kings HAVE NOT been frozen...
"The capital freeze will not apply to the long-awaited $3-billion purchase of new helicopters for the military, Mr. Martin said."
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Martin freezes Chretien projects
Says every cent is needed to give to provinces for health
Robert Fife, Ottawa Bureau Chief
CanWest News Service
December 17, 2003
OTTAWA - Paul Martin yesterday called an immediate halt to billions of dollars in capital spending projects, froze the size of the public service and promised detailed scrutiny of every federal expenditure over the next three months.
The Prime Minister said the moves are necessary in order to pay $2-billion promised to the provinces for health care and to secure a $1-billion rainy-day fund.
"Our number one priority is health care," Mr. Martin said after a Cabinet meeting yesterday. "Given the fact that our margin of manoeuvre is so narrow, [we are] putting ourselves in a position to ensure ... the transfer of that money for health care."
Among the projects put on hold are several that are considered part of former prime minister Jean Chretien‘s legacy, including $700-million for VIA Rail, a new $275.8-million building on Parliament Hill, $90-million for a proposed political history museum and a new $151-million Federal Court of Canada building in Ottawa.
The $600-million purchase of eight-wheel Stryker vehicles and hundreds of millions of dollars for 741 G-Wagen jeeps for the Armed Forces have also been frozen, as has $500-million in renovations to federal buildings across the country.
The capital freeze will not apply to the long-awaited $3-billion purchase of new helicopters for the military, Mr. Martin said.
"When you send your troops either into a theatre of war or when, in fact, you are doing rescue operations here in Canada or dealing with national crises here in Canada, what you want to make sure is that our military has the best equipment possible," Mr. Martin said.
The capital projects put on hold will face the scrutiny of the new Cabinet‘s powerful expenditure review committee over the next three months. After April 1, the committee will subject all federal spending to a review and report to Mr. Martin in the fall for implementation in the 2005 budget.
"There is a new normal around here, and the new normal is we don‘t spend what we don‘t need to, and we don‘t spend too much on priorities that are too insignificant," a senior federal official said.
Stephen Harper, the Canadian Alliance leader, who yesterday announced he will seek the leadership of the new Conservative Party, called Mr. Martin‘s capital spending freeze a "flip-flop." Most of the spending now under review was committed to during Mr. Martin‘s tenure as finance minister, Mr. Harper said, adding that Mr. Martin is trying to distance himself from those decisions by spending on aboriginals, health care and the cities.
Normally the government has a yearly $3-billion contingency fund that is used to pay down the $508-billion national debt and another $1-billion "prudence" fund for special emergencies.
Ralph Goodale, the Minister of Finance, said Mr. Chretien left the Martin government with a surplus of $2.3-billion, which amounts to a "razor-thin" $300-million once $2-billion is transferred to the provinces for health care before the fiscal year ending March 31.
Mr. Martin also announced a ban on reclassification of government workers to stop the practice of civil servants moving into higher pay scales without changing jobs.
Reg Alcock, the Treasury Board president, said Cabinet decided to freeze the size of the public service until he has implemented planned changes, although senior bureaucrats are free to hire providing they do not go over the cap.
Jack Layton, the NDP leader, said there would be no need for the spending freeze if Mr. Martin would cancel $1.1-billion in corporate tax cuts on Jan. 1 and if Ottawa had not paid down $7-billion of the national debt this year.
"There is, in fact, funds available if the government has the will to put a stop to the huge corporate giveaway that is taking place just after Christmas," Mr. Layton said. "He wants to give it to his corporate buddies and now he is trying to cry poor with a great fanfare and flourish that there is a freeze on absolutely everything."
Cabinet had no option but to freeze capital projects and comb through the books for savings to ensure there is enough money to deal with crises that might arise and avoid a deficit, Mr. Goodale said.
"The reserve that we have at the moment is razor-thin," he said. "We will need a very tight hand on the finances of the government for the balance of this current year."
Next fiscal year, the government will once again build up a $3- billion contingency fund to pay down the national debt and maintain a $1-billion prudence fund.
"The $600-million purchase of eight-wheel Stryker vehicles and hundreds of millions of dollars for 741 G-Wagen jeeps for the Armed Forces have also been frozen, as has $500-million in renovations to federal buildings across the country."
And the purchase to replace the Sea Kings HAVE NOT been frozen...
"The capital freeze will not apply to the long-awaited $3-billion purchase of new helicopters for the military, Mr. Martin said."
----------------------------------------------
Martin freezes Chretien projects
Says every cent is needed to give to provinces for health
Robert Fife, Ottawa Bureau Chief
CanWest News Service
December 17, 2003
OTTAWA - Paul Martin yesterday called an immediate halt to billions of dollars in capital spending projects, froze the size of the public service and promised detailed scrutiny of every federal expenditure over the next three months.
The Prime Minister said the moves are necessary in order to pay $2-billion promised to the provinces for health care and to secure a $1-billion rainy-day fund.
"Our number one priority is health care," Mr. Martin said after a Cabinet meeting yesterday. "Given the fact that our margin of manoeuvre is so narrow, [we are] putting ourselves in a position to ensure ... the transfer of that money for health care."
Among the projects put on hold are several that are considered part of former prime minister Jean Chretien‘s legacy, including $700-million for VIA Rail, a new $275.8-million building on Parliament Hill, $90-million for a proposed political history museum and a new $151-million Federal Court of Canada building in Ottawa.
The $600-million purchase of eight-wheel Stryker vehicles and hundreds of millions of dollars for 741 G-Wagen jeeps for the Armed Forces have also been frozen, as has $500-million in renovations to federal buildings across the country.
The capital freeze will not apply to the long-awaited $3-billion purchase of new helicopters for the military, Mr. Martin said.
"When you send your troops either into a theatre of war or when, in fact, you are doing rescue operations here in Canada or dealing with national crises here in Canada, what you want to make sure is that our military has the best equipment possible," Mr. Martin said.
The capital projects put on hold will face the scrutiny of the new Cabinet‘s powerful expenditure review committee over the next three months. After April 1, the committee will subject all federal spending to a review and report to Mr. Martin in the fall for implementation in the 2005 budget.
"There is a new normal around here, and the new normal is we don‘t spend what we don‘t need to, and we don‘t spend too much on priorities that are too insignificant," a senior federal official said.
Stephen Harper, the Canadian Alliance leader, who yesterday announced he will seek the leadership of the new Conservative Party, called Mr. Martin‘s capital spending freeze a "flip-flop." Most of the spending now under review was committed to during Mr. Martin‘s tenure as finance minister, Mr. Harper said, adding that Mr. Martin is trying to distance himself from those decisions by spending on aboriginals, health care and the cities.
Normally the government has a yearly $3-billion contingency fund that is used to pay down the $508-billion national debt and another $1-billion "prudence" fund for special emergencies.
Ralph Goodale, the Minister of Finance, said Mr. Chretien left the Martin government with a surplus of $2.3-billion, which amounts to a "razor-thin" $300-million once $2-billion is transferred to the provinces for health care before the fiscal year ending March 31.
Mr. Martin also announced a ban on reclassification of government workers to stop the practice of civil servants moving into higher pay scales without changing jobs.
Reg Alcock, the Treasury Board president, said Cabinet decided to freeze the size of the public service until he has implemented planned changes, although senior bureaucrats are free to hire providing they do not go over the cap.
Jack Layton, the NDP leader, said there would be no need for the spending freeze if Mr. Martin would cancel $1.1-billion in corporate tax cuts on Jan. 1 and if Ottawa had not paid down $7-billion of the national debt this year.
"There is, in fact, funds available if the government has the will to put a stop to the huge corporate giveaway that is taking place just after Christmas," Mr. Layton said. "He wants to give it to his corporate buddies and now he is trying to cry poor with a great fanfare and flourish that there is a freeze on absolutely everything."
Cabinet had no option but to freeze capital projects and comb through the books for savings to ensure there is enough money to deal with crises that might arise and avoid a deficit, Mr. Goodale said.
"The reserve that we have at the moment is razor-thin," he said. "We will need a very tight hand on the finances of the government for the balance of this current year."
Next fiscal year, the government will once again build up a $3- billion contingency fund to pay down the national debt and maintain a $1-billion prudence fund.
