On Thursday, outside the House of Commons, Federal Finance Minister Ralph Goodale (left) took questions from journalists on the federal budget. Here is an edited transcript of his discussions.
Question: How much has the rise in the Canadian dollar changed your planning for the budget that you plan to do on [Feb] 23rd?
Hon. Ralph Goodale: Well, back in November when I released the fiscal framework and the update, I indicated that the single most troubling downside risk was the movement of currencies and that that could have an impact on our ability to export and therefore on growth, that that was a worry for the government and for the private sector economists. It would appear from some of the statistics that some of that downside risk is materializing. Now I hasten to say don't jump to conclusions but some of the statistics have indicated some weakness in export performance, for example. So that just says to me as you put together a budget keep very tightly focussed on issues like fiscal responsibility and discipline and live within the requirements of prudence to make sure that the books of this country stay solidly balanced.
Question: (Inaudible) so far with the opposition is it clear to you that you have enough support for your budget to pass?
Hon. Ralph Goodale: Oh, I wouldn't jump to conclusions on any future vote in the House of Commons. This is a minority situation and you take each vote as it comes. I've had very useful discussions with all three opposition political parties. There are points upon which we agree. There are obviously points upon which we disagree. It's obviously clear too that there are many points upon which the opposition parties disagree with each other. So trying to bring that all together in a coherent package that reflects the right kind of balance is a real challenge but the discussion thus far has been very cordial and very constructive.
Question: Will there be any broad-based tax cuts?
Hon. Ralph Goodale: Oh, I can't comment on any particular element whether it's in or whether it's not. I think you'll just have to wait and see.
Question: Does it help you politically to get this tabled as quickly as possible? Does it help you politically with negotiations?
Hon. Ralph Goodale: The budget?
Question: Yeah, negotiating — does it help you to table the budget earlier?
Hon. Ralph Goodale: Oh, this is in the normal cycle. The budget is usually the last week or so of February or the first couple of weeks of March. So the date that I've selected on the 23rd of February is completely within the normal pattern. It's important to have the federal budget within that cycle because a lot of people in the country are depending on it – provinces, for example, for transfer payments, municipalities anticipating what may be in the budget for them, various groups. So it's important to stick, unless there are truly extraordinary circumstances, to the normal pattern for the presentation of the budget and this is it.
Question: Given your comments about then being focussed and prudent, isn't this going to put a hamper on these spending plans that you and the prime minister have talked about?
Hon. Ralph Goodale: No, I believe it's very important for the government to deliver on its commitments to Canadians and that is very much on my mind as I put together the budget package. The real challenge for me is the projected profile of our revenue flows over the next five years. We have, as you know, our normal prudence and contingency factors that go into the calculation of the flows but we have a good number for this year, as we indicated in the fall update. Then we have two years in which our margin to manouevre really skinnies out and then it gets better again in year three and year four and year five. The challenge is not, to my mind, the challenge is not the global amount of flexibility over the five-year period. The challenge is the rate at which that flexibility appears. It's not a straight line projection one year after the next after the next. It's a U shape and that's what makes the challenge of this budget for me particularly acute. I've got to somehow make our investment plans and our fiscal plans fit within an unusual flow of revenue that's not progressively moving on from one year to the next.