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Justin Trudeau, Fresh From Majority Liberal Win, Now Must Turn To Implementing Plan

Darpan News Desk The Canadian Press, 20 Oct, 2015 10:42 AM
    OTTAWA — Justin Trudeau, who confidently guided his Liberal party to a convincing majority victory, now faces several pressing priorities and a raft of longer-term promises.
     
    The immediate issues for the prime minister-designate include a major international conference on climate change, a military mission in the Middle East he has pledged to end and the still-churning refugee crisis enveloping Europe.
     
    On the horizon loom keystone promises from his party's successful campaign: lower taxes for the middle class, the legalization of marijuana, and a slate of democratic reforms including a new electoral system to replace the venerable first-past-the-post regime under which he swept to power.
     
    Trudeau will no doubt be riding an electoral high from the 184 seats the Liberals captured — a whopping 149-riding increase from the last election — but he will already be facing tough questions on how and when he will implement his plan.
     
    Some answers are expected to come at a news conference later today after he addresses party faithful at a rally in Ottawa.
     
    Governments plan to gather in Paris in December for a global summit on climate change. That leaves the Liberals just weeks to come up with a national position based on the party's promise to join with the provinces and territories to take action on climate change, put a price on carbon and reduce carbon pollution.
     
     
    The Liberals have also committed to ending Canada's combat mission in Iraq against rampaging radical militants — instead focusing Canada's military contribution in the region on the training of local forces, while providing more humanitarian support and immediately welcoming 25,000 more refugees from Syria.
     
    Trudeau has said that the first piece of legislation his government would put forward is one to lower taxes for the middle class and raise taxes for the wealthiest Canadians.
     
    A Liberal government is also committed to revamping the recently enacted omnibus security bill, known as C-51, that gave Canada's spy agency substantial new powers and angered civil libertarians.
     
    Trudeau has also promised the largest new infrastructure investment in Canadian history. The plan would nearly double federal spending on public transit, affordable housing, recreational facilities and other items to almost $125 billion over the next decade.
     
    The Liberal party becomes the first to vault directly from third-party status to government. Even the party's own pollster, who foresaw a majority, hadn't imagined a total so high.
     
     
    Elections Canada says 68.5 per cent of eligible voters cast ballots, the largest turnout since the 1993 federal election.
     
    Preliminary figures indicate the Liberals captured 39.5 per cent of the vote, the Conservatives 31.9 per cent and the New Democrats 19.7.
     
    Trudeau, 43, completes the first father-son dynasty in Canada's federal government history, as the first-born of Pierre Elliott Trudeau follows in his father's footsteps to 24 Sussex Drive.
     
    Trudeau faced more than two years of Conservative attack ads before defeating Harper, including a barrage of "just not ready" ads so ubiquitous that school-age children could recite them.
     
    Notwithstanding an appeal to Canadians' "better angels" in his victory speech, the Liberal leader made a lengthy denunciation of what he called the politics of division and fear, including a defence of veiled Muslim women who became an unlikely wedge issue during the campaign.
     
    "Canadians have spoken," Trudeau told beaming supporters in his Montreal riding.
     
    "You want a government with a vision and an agenda for this country that is positive and ambitious and hopeful. Well, my friends, I promise you tonight that I will lead that government. … I will be that prime minister."
     
     
    During the October Crisis of 1970, Pierre Trudeau famously told an inquiring reporter "Just watch me," when asked how far he would go in limiting civil liberties to combat separatist terrorists. The elder Trudeau went on to shape much of the modern Canadian state that Prime Minister Stephen Harper came to power in 2006 in part to remake.
     
    The Conservative leader called the 78-day election, the longest in modern Canadian history, on Aug. 2 after almost 10 years in power. His party will form the official Opposition with 99 seats — 60 fewer than when Parliament was dissolved.
     
    With the magnitude of the loss still sinking in, Harper is stepping down as Conservative leader, according to a statement from party president John Walsh.
     
    "The prime minister indicated that he will continue to sit as a member of Parliament and asks that a process to both select an interim leader and initiate the leadership selection process in our party begin immediately," says the Walsh letter.
     
    Harper, 56, did not announce his resignation in a concession speech to party faithful in Calgary, stating only that the "disappointment you also feel is my responsibility and mine alone."
     
    But he offered gracious congratulations to his younger opponent. 
     
    "While tonight's result is certainly not the one we had hoped for, the people are never wrong," said the prime minister, adding he had called Trudeau and "assured him of my full co-operation during the process of transition in the coming days."
     
    Finance Minister Joe Oliver, Immigration Minister Chris Alexander, Fisheries Minister Gail Shea, Veterans Minister Julian Fantino and Aboriginal Affairs Minister Bernard Valcourt were among the Conservative cabinet ministers rejected by voters.
     
     
    New Democratic Party Leader Tom Mulcair, who had aspired to lead Canada's first NDP federal government, instead dropped to 44 seats from 95 — losing the party's hard-won 2011 grip on official Opposition status.
     
    Mulcair, however, managed to hold on to his Montreal seat.
     
    NDP stars including deputy leader Megan Leslie and foreign affairs critic Paul Dewar fell to Liberal challengers. Olivia Chow, whose late husband Jack Layton led the NDP's so-called "orange crush" four years ago, succumbed to Liberal Adam Vaughan in Toronto.
     
    Green Leader Elizabeth May was re-elected on Vancouver Island but the party lost its only other incumbent — Ontario's Bruce Hyer — and failed to make a long-awaited breakthrough.
     
    Bloc Quebecois Leader Gilles Duceppe went down to defeat, but his party emerged with 10 seats, injecting new life into a party that had almost withered after once holding official Opposition status.
     
    TURNOUT IN FEDERAL ELECTION HITS 68.5 PER CENT, LARGEST SINCE 1993 ELECTION
     
     
    OTTAWA — Elections Canada says 68.5 per cent of eligible voters cast ballots in Monday's federal election, the largest turnout of voters in more than 20 years.
     
    Of the 25.6 million people registered to vote, close to 17.6 million turned up at polls across the country in an election that handed the Liberals led by Justin Trudeau a majority victory.
     
    That kind of turnout hasn't been seen since the 1993 election, a campaign that also resulted in a sweeping Liberal win under the stewardship of Jean Chretien.
     
    The swell in numbers was partly due to the 3.6 million Canadians who cast ballots during the four-day advance polling period on the Thanksgiving long weekend — an increase of 71 per cent over the 2011 election, when only three days of advance polls were held.
     
    CONGRATULATIONS START ROLLING IN FROM WORLD LEADERS ON TRUDEAU WIN
     
    WASHINGTON — The first congratulations from fellow world leaders have rolled in for Canada's next prime minister.
     
    The leaders of Mexico, India, Italy sent laudatory messages to Justin Trudeau, as did a number of left-leaning American critics of the now-defeated Conservative government.
     
    Mexico's Enrique Pena Nieto called the future prime minister and tweeted congratulations in Spanish: "Canada and Mexico have the opportunity to start a new chapter in their relationship." As noted by the Washington Post, this is the first time since 2000 that the continent is led by three left-of-centre governments.
     
    Italy's Matteo Renzi sent a Twitter message to Trudeau: "Looking forward to seeing you at G20; will work together to make the bonds between Canada and Italy ever stronger. Good luck."
     
     
    Narendra Modi of India tweeted: "I have fond memories of my visit to Canada in April 2015 and my meeting with you. It was also great meeting your daughter, whom you had woken up early that day. Best wishes."
     
    The Chinese government expressed hope of building on existing relations.
     
    "Since the establishment of diplomatic ties 45 years ago, bilateral relations have made substantial progress thanks to the concerted efforts of both sides," said foreign ministry spokeswoman Hua Chunying.
     
    "It is proved that a sustainable and steady development of China-Canada relations not only serves the fundamental interests of the two countries and two peoples."
     
    In Washington, the White House is expected to comment later in the day. But several political operatives close to President Barack Obama made their feelings clear in the days leading up to the election, wishing Trudeau luck.
     
     
    One persistent critic of Conservative climate-change policies expressed delight about a potential change in Canadian policy in time for next month's climate talks.
     
    "I'm hopeful tonight's election will put Canada back in a leadership position," said former vice-president and presidential candidate Al Gore. "Congratulations."
     
    World media ran stories speculating on what a Trudeau win might mean. Most pieces invariably mentioned the father-son dynamic, in Canada's first multi-generational prime ministerial dynasty.
     
    The Associated Press informed readers worldwide about the Richard Nixon prophecy. At a state dinner in 1972, when Trudeau was a few months old, the then-president toasted the baby's arrival and joked that he'd become prime minister someday.
     
    The BBC listed seven things Trudeau believes. Making the list: possibly ending Canada's air attacks in Iraq, closer relations with Obama, more refugees from Syrian, fighting climate change, better relations with Iran, marijuana legalization, and an inquiry into missing and murdered aboriginal women.
     
    Time magazine's website mentioned several of those, as well as Trudeau's promise to reform the voting system.
     
     
    The Guardian newspaper in Britain explained that while he's a prime minister's son, Trudeau took a "circuitous" path to power — fighting for his nomination in Papineau riding and then climbing back from third place in national polls. 
     
     
    STAR LIBERAL CANDIDATES EXPECTED TO SIT IN JUSTIN TRUDEAU'S CABINET
     
    OTTAWA — Now that he has secured a majority Liberal government, Justin Trudeau will likely turn to star members of his caucus — including former military leader Andrew Leslie and former Toronto police chief Bill Blair — to fill out his front bench.
     
    Leslie, a former Canadian Forces lieutenant-general, will be among 184 Liberal MPs heading to the House of Commons after Monday's stunning election victory.
     
    Trudeau's success was the result of having built a strong team around him, Leslie told supporters during a victory speech in east-end Ottawa.
     
    "To our leader, Justin Trudeau, sir, thank you," Leslie said. "I just want to point out that the victory is in no small measure his."
     
    Leslie said he hasn't discussed a possible cabinet position with Trudeau, although he didn't rule it out.
     
    "First and foremost, my absolute focus is on the citizens of Orleans," Leslie said.
     
     
    "Tomorrow will bring tomorrow's events. Mr. Trudeau will make that decision ... Mr. Trudeau is way too smart to talk about it and I'm smart enough not to ask."
     
    Other high-profile Liberal newbies elected on Monday include former Assembly of First Nations regional chief Jody Wilson-Raybould, Ottawa social justice lawyer Catherine McKenna and Quebec lawyer Melanie Joly.
     
    Trudeau will also be joined by stars such as former Ugandan Asian refugee Arif Virani, Winnipeg's Robert-Falcon Ouellette and Lt. Col. Harjit Singh Sajjan, who could all be in the running for prized cabinet posts.
     
    The Liberal leader has promised to ensure his front bench is 50 per cent women and 50 per cent men.
     
    Experienced Liberal veterans, including Ralph Goodale and Scott Brison, are also expected to play a key role in the new government.
     
    Leslie, who began his partnership with the Liberals by providing military advice to Trudeau, is expected to play a critical role in the party's promise to scrap a plan to buy F-35 stealth fighters to replace the aging CF-18 fleet.
     
    "The F-35 is a bad deal for Canada," Leslie said. "It costs a great deal of money and it is unproven technology with unknown sustainability costs."
     
     
    Leslie says a new Liberal majority government will instead focus its efforts on supporting the Navy, which he has described as being in a state of "crisis."
     
    "The plan is to essentially cap the expenditure levels on a new fighter program and use the savings and direct it all towards the Navy," Leslie said.
     
    "Very, very tough calls to make — but it can be done."
     
    HIGH-INCOME EARNERS FACE HIGHER TAXES, LOWER CHILD BENEFITS UNDER LIBERALS
     
    Canada's highest income earners face the prospect of higher taxes under a new Liberal government, but those in the middle can expect a break.
     
    The Liberals have promised to cut the middle income tax bracket to 20.5 per cent from 22 per cent.
     
    However, to help pay for the cut, the party has promised to create a new tax bracket of 33 per cent for those earning more than $200,000.
     
    High-income earners can also expect to receive less from the government under the Liberals' plan to eliminate the universal child-care benefit and replace it with a new Canada child benefit that reduces the amount families receive as household income rises.
     
     
    The party has also promised to eliminate the Conservatives' controversial income-splitting plan for families and to roll back this year's increase in the tax-free savings account contribution limit from $5,500 to $10,000.
     
    The Liberals are also expected to restore the eligibility age for old age security and guaranteed income supplement to 65. The Conservatives had introduced a plan to raise it gradually to 67.
     
    CORPORATE CANADA SIZES UP LIBERAL VICTORY AND WHAT IT MEANS FOR BOTTOM LINE
     
    Corporate Canada is sizing up the Liberal majority and what it could mean for their bottom lines, with the construction industry particularly poised to benefit from Justin Trudeau's promises to boost infrastructure spending.
     
    The Liberal leader has vowed to inject billions of dollars into repairing roads, building bridges and improving waste water treatment plants across the country, among other projects — all commitments that could cement big profits for the bricks and mortar industry.
     
    Economists said Trudeau's plan, which would see the government borrow money by selling bonds, will inject much needed fiscal stimulus into Canada's lagging economy, at least in the near term.
     
    "The net fiscal boost — and we can all debate the appropriateness of running deficits — will give at least a short-term lift to economic growth, with most of the impact landing in 2016," BMO economist Douglas Porter said Tuesday in a note to clients.
     
     
    "At best, the stimulus would lift GDP growth by a bit more than 0.5 per cent next year," he added, noting that even if the effects prove temporary, they would keep the potential for another rate cut from the Bank of Canada at bay and could even lead to a rate hike.
     
    One company that could benefit is SNC-Lavalin, which has landed multimillion-dollar contracts with various levels of government in the past.
     
    But the Montreal-based engineering giant, which declined to comment Tuesday, could be banned from bidding on federal contracts for 10 years it if is convicted of fraud for work in Libya. The company's case is still before the courts. It has said it will plead not guilty.
     
    The Canadian Federation of Independent Business was quick to congratulate Trudeau early Tuesday but emphasized that its top priority is to reduce the corporate tax rate for small businesses as well as to control the overall burden of payroll taxes.
     
    "We are eager to sit down with Justin Trudeau and the Liberal party and get to work on the issues that matter most to Canada's small businesses," CFIB president Dan Kelly said in a statement.
     
    Trudeau has promised to reduce the small business tax race from 11 to nine per cent. But he caused a stir during the campaign when he said that more than half of small businesses were actually an avenue for wealthy Canadians to reduce their income tax bill.
     
    The Canadian Federation of Independent Business fired back, saying it had no evidence to that effect.
     
    Medical marijuana stocks surged on news of Trudeau's win, with Canopy Growth Corp. (TSXV:CGC) up more than 10 per cent in morning trading.
     
     
    Licensed producers are preparing for the likelihood that the new government will permit recreational access to the drug as the Liberals have promised — a move that would fuel rapid growth in Canada's burgeoning cannabis industry.
     
    Canopy, a combined company formed by Tweed Marijuana Inc. and Bedrocan Cannabis Corp., was trading at $2.40, up 22 cents on Tuesday. The company's shares have soared more than 40 per cent over the past five days.
     
    "I think what you'll see perhaps, after this election ... is a recognition that there is an opportunity to collect taxes on something that is already being sold into the market illegally or illicitly," said Bruce Linton, the CEO of Canopy Growth Corp.
     
    Shares of Mettrum Health Corp. (TSXV:MT), another licensed producer of medical cannabis, shot up Tuesday by more than eight per cent, or 15 cents, to $1.99.
     
    SERIES OF INTERNATIONAL SUMMITS GIVES TRUDEAU LITTLE TIME TO SETTLE IN AS PM
     
    Justin Trudeau's fledgling government will have less than a month to get up and running before the new prime minister takes off for the first in a whirlwind series of international summits.
     
    The international schedule will drive the speed with which the transition from Stephen Harper's Conservatives to Trudeau's Liberals takes place.
     
    First up is the G20 summit in Turkey, from Nov. 15-16.
     
    That's followed immediately by the leader's summit for Pacific Rim countries, in the Philippines on Nov. 18 and 19.
     
     
    The Commonwealth heads of government summit is scheduled for Nov. 27-29 in Malta.
     
    And then there's the United Nations climate change conference in Paris, Nov. 30 to Dec. 11.
     
    At some point prior to that conference, Trudeau will have to squeeze in a meeting with Canada's premiers, with whom he's promised to develop a national plan for cutting carbon emissions in time for Paris.
     
    All that suggests Trudeau will want to swear in his cabinet and get down to business as quickly as possible. Neither he nor his ministers will be able to get briefings from deputy ministers until they've been sworn in.
     
    Building his cabinet will be the first priority and one of the most difficult tasks. In addition to balancing representation from the various regions across the country, Trudeau has vowed to have as many women ministers as men.
     
    He has plenty of new recruits and a number of old hands to choose from; and many of them are likely to be disappointed if, as expected, Trudeau opts for a relatively small cabinet. In a controversial email that sparked his resignation as Liberal campaign co-chair last week, Dan Gagnier predicted a cabinet of just 25 members.
     
    Given the hectic international schedule, it remains to be seen whether Trudeau can squeeze in a date with Parliament before Christmas, with all the pomp and circumstance of a throne speech, which is required to open a new session.
     
    For symbolic purposes — to be seen to be delivering on his key election promises — he may want to open Parliament quickly and introduce legislation implementing his promised tax cut for middle income earners and a tax hike for the wealthiest one per cent.
     
     
    Trudeau has put together a team to guide the transition but the make-up of the team and its plans have been a closely guarded secret as Liberal insiders sought to avoid any perception that they were taking Monday's win for granted.

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