John Ivison: Trudeau's 'literally frightening' spending plan has some Liberals, bureaucrats very worried

Prime Minister Justin Trudeau and his new finance minister Chrystia Freeland have signalled that they are itching to remake Canada in their own progressive image – and that means new spending. PHOTO BY CHRISTINNE MUSCHI/REUTERS

Three weeks after the government unveils its new agenda, the cracks are already beginning to appear, as Trudeau’s spending plan has some liberals and bureaucrats really worried. Likewise, he has referred to the NDP, disparagingly, as liberals in a hurry.

Notably, it has been said that the New Democrats will have to move slightly if they want to avoid being crushed by a Liberal Party moving rapidly to the left in this month’s throne address. In this way, it is appropriate to bring up the fact that a senior official described the costly schedule of social programs that are being reduced as a “structural change in the way government in this country operates”.

There’s no question that the risk for Justin Trudeau and new Finance Minister Chrystia Freeland is that spending too much, too fast, could drive away blue liberals concerned about economic growth and fiscal discipline. The details of the throne speech remain unknown to all but a few, but there are enough general indications for some MPs and liberal supporters to be genuinely concerned.

Speculation that overflows

The idea that the prime minister and the finance minister are pulling on opposite ends of the blanket took a hit under Bill Morneau. A Liberal MP called Finance a “vassal state” during Trudeau’s first term. Likewise, with Trudeau and Freeland apparently sympathetic to the plan to “rebuild better,” concerns about affordability in Finance have been trampled. In fact, a high-ranking bureaucrat stated in reference to this that, “They are fiscally conscious people but they have thrown up their hands and said, ‘How much do you want to spend.’ There is a state of discouragement that I haven ‘t seen in 25 years in Ottawa”.

On the other hand, speculation has focused on the future of Deputy Minister Paul Rochon, and rumors have arisen and increased that he could be replaced by Carolyn Wilkins, Senior Deputy Governor of the Bank of Canada. Wilkins was championed by Trudeau’s chief of staff, Katie Telford, as the next governor before Morneau opted for Tiff Macklem. Still, neither Rochon nor Freeland’s office responded to requests for comment.

Meanwhile, senior business liberals, who advocated deficit spending in 2015, say the focus should now be on economic growth, rather than redistributing borrowed money. Additionally, the new $ 400 per week Emergency Benefit (CRB) is also known to replace CERB later this month and cost $ 22 billion over the next year. However, the liberals did not rule out the change becoming permanent, effectively creating a guaranteed basic income.

Source: John Ivison | National Post