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The
minority Tory government, which could be defeated if all
three opposition parties vote against its speech, also
warned it would consider using a rarely invoked federal
power to force down trade barriers between provinces.
The
Harper government, which forecasters predict will reap
$6-billion in extra revenue this year thanks to a
soaring tax take from red-hot commodity prices, pledged
broad tax relief.
"As
part of ensuring economic security for Canadians, our
government will bring forward a long-term plan of broad
based tax relief for individuals, businesses and
families, including following through on its commitment
to a further cut in the GST," the Harper government
said in its Speech from the Throne, kicking off a new
parliamentary session.
The
Tories appear to be signalling they will move beyond
targeted tax cuts - aimed at groups they consider
political supporters - to relief for a broad swathe of
taxpayers.
"All
Canadians will be impressed ... this will appeal to
Canadians," Industry Minister Jim Prentice said
later.
Yesterday's
goods-and-services-tax pledge doesn't add to what's
already been promised, but lays to rest any question of
whether the Tories would favour more income-tax cuts
instead, as some business lobbyists have recommended.
The
Conservatives reduced the GST to 6 per cent from 7 per
cent when they first took office and pledged to cut it
to 5 per cent within five years of the 2006 election,
but this will cost $5-billion annually.
The
Tories also promised to improve how the employment
insurance account is managed. They offered no specifics,
but have talked about breaking out the EI fund as a
separate entity and ensuring premiums collected match
benefits paid.
The
Harper government also vowed to ease approvals for major
mining and resource projects, vowing a "single
window" process to review them.
The
Throne Speech repeated pledges to: help researchers
bring new inventions and discoveries to market; upgrade
border crossings, highways and commercial transport
corridors; and continue promoting bio-fuels.
Tax
cut advocates welcomed the vow to offer more relief in
light of the $14-billion surplus Ottawa racked up last
year. "It's pretty simple really: surplus dollars
should be returned to taxpayers," Canadian
Taxpayers Federation head John Williamson said.
The
Throne Speech came as the Bank of Canada warned of a
significant slowdown in the Canadian economy next year,
a situation that could make it difficult for the Tories
to stage an election in 2008.
"This
is a time of economic uncertainty and volatility in the
wider world," the speech acknowledged.
Canadian
Manufacturers and Exporters president Jay Myers
applauded the tax cut pledge but said he's worried the
Tory plan to regulate greenhouse gas emissions could
outweigh any tax cut benefits.
Source
: Globe and Mail - Canada, dated 17/10/2007
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