PC NEWS RELEASE

FOR IMMEDIATE RELEASE: May 5, 2006


Political expediency priority one.

Toronto, ON – The Progressive Canadian Party believes that the Harper Government has crafted a budget designed to maximize short range support within the electorate rather than present any vision for the future. The first budget of the new Conservative Party reflects the absence of progressive thought. It focuses on tax cuts and giveaways designed more to buy votes than solve either long or short term national problems.

"The $1200.00 renewal of the Baby Bonus will not increase the availability of day care spaces, nor transit tax credits have more than minimal effect on degrading of the atmosphere," stated Party Leader Tracy Parsons. "The abrogation of the Kelowna Agreement, for whatever reason, may be received as a challenge to native peoples already unsettled by confrontations in Caledonia."

Chris Schnurr, Health Critic for the Progressive Canadian Party, sees very little in this budget to ensure that provinces effectively manage federal dollars appropriately. "What we are seeing is increased funding to health care at nearly three times the inflation rate, with the 6% annual escalator to the Canada Health Transfer payments, with no safeguards to ensure that our tax dollars are used appropriately by the provinces."

"This is basically throwing billions of dollars at problems without addressing how the system is managed by individual provinces," he continued. "With over $20-billion in tax cuts, I also am concerned at how sustainable this funding is, especially if Canada slips into a recession."

The decrease in GST at the expense of increases in income tax disproportionately benefits high income earners.

The budget of 2006 is a document directed at the short rather than longer range well being of Canadians. With a strong economy and surplus revenue this is the time to embark on an exciting new program to meet climate change and a rapidly changing world economy. We need public investment in education, training, and research to develop new technologies for meeting the challenges ahead. The time has come to stop simply handing back money to a corporate sector that continues to take profits rather than invest in new ideas.

That the Prime Minister would be pleased to take this budget to the electorate is apparent. An election precipitated by challenging the other party leaders to defeat it in the House of Commons evaporated when the Bloc declared support. Rather than being pleased to go forward with the business of running the country, the Prime Minister’s immediate reaction was to shift his challenge to the Liberal controlled Senate.

"Make no mistake about it, with the polls indicating increasing support, priority one is to get thrown out of office. Harper’s challenge appears to be driven by desperation for the power flowing from a parliamentary majority," concluded Jim Love, Progressive Canadian (PC) Party President.