Image Credit - CFJC Today / File

By Dave Barry

COVID-19

MP McLeod concerned federal government is spending without a good plan

Jul 9, 2020 | 11:04 AM

KAMLOOPS – “Frightening.” That was the reaction of Kamloops-Thompson-Cariboo MP Cathy McLeod when she learned the federal government was forecasting a deficit of $343 billion this year. The figure was announced this week by Finance Minister Bill Morneau.

McLeod said the government was forced to support Canadians when the COVID-19 pandemic struck, but she says the programs don’t seem well planned and lack incentives to get Canadians back to work. “More disappointing was the lack of vision for how we’re going to move forward,” McLeod told CFJC Today.

Wednesday’s report said $212 billion in federal aid was paid out to individuals and businesses as a result of the COVID-19 pandemic. And 5.5 million Canadians were laid off or had their hours cut between February and April.

McLeod believes federal programs are preventing small businesses from getting back to normal because the programs lack incentives for Canadians to get back to work. “The way it’s structured right now is creating real challenges as they (small business) try to reopen their doors,” said McLeod. “People will have to ensure they don’t make over a thousand bucks or all of a sudden, they lose everything.”

Since the deficit expectation was released, Canada’s credit rating dropped from “AAA” to “AA”. McLeod says that will negatively impact the cost of borrowing money for the federal government. But it will also hurt investment across the country. “They do look at credit ratings in terms of, how stable is the financial situation in the country.”

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McLeod isn’t sure where the government goes from here with programs that aren’t giving Canadians a good value. “It was not forward-looking at all,” said McLeod. She is concerned that spending will continue to spiral out of control until the Trudeau government comes up with a long term plan to get the country back on its feet.