Paul Martin: Borrow now, save later

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Short-term pain for long-term gain. That was former prime minister Paul Martin’s message Wednesday as he appeared at a Gatineau breakfast meeting with West Quebec Liberal candidates.

“I don’t want to see another series of six, seven eight deficits in a row, but that’s what’s going to happen if we don’t invest now in infrastructure, in basic research and development, and if we don’t invest in education,” said Martin, who as Liberal finance minister uner Jean Chrétien delivered a string of balanced budgets. “Those are the kinds of things that build an economy.”

Liberal Leader Justine Trudeau has differentiated himself from his political rivals by saying that, if elected to govern, the Liberals would run three years of modest deficits in order to pump up infrastructure spending across Canada. Both the NDP’s Tom Mulcair and Conservative Stephen Harper have stressed they will deliver balanced budgets.

Martin argued Mulcair can’t pay for his own promises “if he doesn’t go into deficit.

“This is the time to borrow,” Martin said, “when interest rates are as low as they can possibly be.”

Martin met with Liberal candidates Will Amos, Liberal candidate for the Pontiac; Greg Fergus, running in Hull-Aylmer; Stéphane Lauzon, running in Argenteuil-La Petite Nation; and Gatineau candidate Steve MacKinnon.

“Gatineau has $1.3 billion of infrastructure deficit, and that is projects like water and sewer, like street rehabilitation, public transit that the city cannot keep up with and cannot cope with,” MacKinnon. “The city has grown so quickly, and the infrastructure has not followed, and what does that do? That hurts our competitiveness and productivity.”

Amos said he appreciates Martin’s “keen understanding of when you need to slay a deficit and when you need to invest,” adding the Liberals are not interested in a multi-billion-dollar projects such as the F-35 fighter jets.

“We need responsible management of our funds,” said Amos. “It is responsible to set aside boondoggle military procurement, and it is responsible to invest in our basic infrastructure.”

Said Martin: “There’s a reason why the vast majority of economists agree with Justin Trudeau.”

pmccooey@ottawacitizen.com



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