2008 THRONE SPEECH FOCUSES ON ECONOMY, NATIONAL

C O N F I D E N T I A L SECTION 01 OF 02 OTTAWA 001470

SIPDIS

E.O. 12958: DECL: 11/19/2018
TAGS: PGOV PREL ECON PHUM MARR AF CA
SUBJECT: 2008 THRONE SPEECH FOCUSES ON ECONOMY, NATIONAL
SECURITY

REF: A. OTTAWA 1455

B. 07 OTTAWA 1924

Classified By: PolMinCouns Scott Bellard, reason 1.4 (d)


1. (C) Summary and comment. The second Harper government's
Throne Speech on November 19 lived down to expectations of a
fairly modest agenda, primarily focused on dealing with the
domestic impact of the global economic crisis. The
government did not indicate any plans for a major economic
stimulus package, apart from vague promises of new assistance
to the auto and aerospace sectors. It pledged to work with
the new U.S. Administration to improve North American
competitiveness. It indicated a probable detour into a
federal budget deficit over the coming year, along with a
resolute opposition to a new era of structural deficits.
More details will emerge during the week of November 24 with
the government's new Fiscal and Economic Statement, but it
appears that Canada has so far chosen a relatively modest
package somewhat different than many had anticipated in the
wake of the G-20 Summit. The opposition parties have
criticized the speech as being too "timid," but Liberal Party
leader Stephane Dion made explicit that it would be
"irresponsible" to force a new election any time soon. End
summary and comment.

It's the economy, stupid
--------------


2. (C) Governor General Michaelle Jean delivered the
government's "Speech from the Throne" in a packed Senate
chamber in Parliament on November 19. (Ref b reported on the
2007 "Speech from the Throne.") The speech highlighted
"uncertain economic times," the "extraordinary global
economic challenges and uncertainty," the "global economic
slowdown," and pressure on the global financial system "not
seen in decades," while insisting that "in face of
uncertainty...Canadians will prevail." Citing Canadian
resilience over the decades spanning from World War I to the
present, the speech promised that Canadians will confront the
current challenges with the "same spirit, determination, and
resolve" as always, and will "emerge stronger than ever."


3. (C) While reserving for the Fiscal and Economic
Statement (promised for the week of November 24) actual
details of the exact impact on Canada and the specific
measures/legislation the government of Prime Minster Stephen
Harper will pursue, the government's speech indicated its
broad intentions on the economic front to:
-- keep spending under control, while recognizing that in a
time of economic downturn it would be "misguided" to remain
ideologically committed to a balanced budget "at any price,"
while confirming that "unsustainable deficits" are
"unacceptable" to Canadians and that "structural deficits
must never return;"
-- provide assistance to key manufacturing sectors, notably
automobile and aerospace, as well as aid to the fishing,
mining, and forestry sectors;
-- work with "partners" to address the international crisis
and also provide a "strong model of financial regulation to
lead the world in restructuring;"
-- work with provinces and territories to set up a common
securities regulator;
-- invest in science and technology to keep the Canadian
economy competitive;
-- support workers in transition, strengthen the workforce
for the future, and provide greater assistance to students
and skilled trade apprentices;
-- support Canada's farmers, including through the existing
supply management system;
-- re-introduce legislation to modernize copyright laws and
ensure better protection of intellectual property rights;
-- undertake new trade agreements in Asia and the Americas
Q-- undertake new trade agreements in Asia and the Americas
as well as with the European Union, and ratify free trade
agreements with the European Free Trade Area, Peru, Colombia,
and Jordan;
-- work with the new U.S. Administration on addressing
shared challenges and seek opportunities to enhance North
American competitiveness;
-- encourage companies to invest in new machinery and
equipment; and,
-- work with provinces and territories to remove internal
barriers on labor and investment across the country.

Environment counts, too
--------------


4. (C) Noting a vital link between protection of the
environment and economic performance, the speech promised to
continue a "realistic, responsible approach to climate
change," including reduction of greenhouse gas emissions by
20 pct by 2020 and to work with provincial governments and

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partners to develop and implement a North American
cap-and-trade system for greenhouse gas as well as an
international protocol for the post-2012 period. It set out
a new objective of meeting 90 pct of its electricity from
non-emitting sources -- hydro, nuclear, clean coal, etc. --
by 2020, and to continue to promote alternative fuels
including biofuels and wind power.

National and international security
--------------


5. (C) Toward the end of the speech, the government
highlighted that national security was the "most fundamental
duty of a national government" and it promised to table a
national security statement in the House of Commons to
explain how Canada intends to balance "new threats and
challenges" with the need for "oversight, accountability, and
protection of civil liberties." It promised Canada would
contribute to "vigorous and concrete action" to build a
"better and more secure world," including promotion of the
respect for freedom, democracy, human rights, and the rule of
law. It pledged to establish of a new non-partisan
democratic promotion agency to work throughout the world on
would-be or emerging democracies.


6. (C) The speech reiterated Canada's commitment to
Afghanistan as well as its decision that the military role in
Kandahar would end in 2011. It repeated the decision
ratified by the Parliament in March 2008 that Canada's
efforts in Afghanistan should turn more and more to
reconstruction and development. It expressed Canada's hope
to leave Afghanistan a "lasting legacy" as a more secure and
peaceful country with better governance.


7. (C) The government promised to ensure that the Canadian
Forces have the "best equipment" and to renew all major sea,
air, and surface fleets over the next 20 years. It also
admitted problems with Canada's procurement system across the
board, which the government will seek to make simpler and
more streamlined, noting the "especially critical" problem of
military procurement.

Getting along
--------------


8. (C) The government admitted that the electorate in
October 20008, while entrusting this government with a
"renewed and strengthened mandate," had also chosen to elect
a minority government, which had a special obligation to be
"responsible and accountable." It promised to work within
Parliament with all parties to adopt "sensible policies." It
promised to pursue Senate reform and proportional
representation in the Commons for Ontario, British Columbia,
and Alberta.

Visit Canada,s Economy and Environment Forum at
http://www.intelink.gov/communities/state/can ada

WILKINS