Friday, February 27, 2009

On rush requests

The Cons' demand for a $3 billion slush fund naturally figures to be a major story at least until such time as the Libs decide to cave in. So let's take a bit more of a look at just what they're asking for - and what it says that it's showing up out of the blue now:
Prime Minister Stephen Harper is demanding MPs let his government bypass normal approval processes for $3-billion of stimulus spending, saying it's imperative to rush aid as the economy falters, and warning he's willing to head to another election should opposition parties block it.

The Tories are proposing the fund's cash be spent over 90 days between April 1 and June 30 and want to take shortcuts in allocating it – although they promise to report back afterward on its disbursement. Under normal procedures, money wouldn't have started flowing until June...

Details of government spending are normally reviewed by MPs before being approved by parliamentary votes.

In this case, however, a lump sum from the Budget 2009 stimulus package will be handed to Treasury Board, as Ottawa's cash manager, to allocate money as it sees fit. It will later report back to Parliament on how the cash was spent.

Treasury Board officials defended the accountability of the fund, saying departments are “better equipped” to oversee this spending “than in previous years.”

The $3-billion short-term stimulus fund unveiled by Treasury Board president Vic Toews is not earmarked for any specific program, but is set up so departments can draw on it to expedite stimulus projects, officials said.
Now, it's worth remembering the process that the Con/Lib budget has followed so far. Remember that last fall's fiscal update showdown was based in large part on the fact that Deficit Jim refused both to introduce any stimulus at that time, and to move up the timing of this year's budget. And in turn, the fact that the Cons introduced the budget in January was supposed to represent some acknowledgment on their part that Canadians couldn't afford to wait for stimulus to start flowing.

It would seem obvious that if the timing of the introduction and passage of the budget was being advanced for the sole purpose of getting money moving into the economy earlier, then the rest of the process to get money flowing would also have to be moved up from the beginning as well. But apparently the Cons didn't bother to do any such thing - so all we have now is a budget being passed earlier than usual, with no way to actually get money moving faster.

That would seem to leave two ways to explain the fact that the Cons managed to end up in the situation where they're now trying to change the spending process after the fact. And neither looks anything but damning for a government which is supposed to be trying to help resuscitate Canada's economy.

It could be that the Cons realized only recently that their hurried budget didn't actually include any mechanism to speed up the stimulus - making the new supply bill a panicked reaction intended to paper over the failure to plan ahead. Which could hardly inspire confidence that the Cons can be trusted to competently manage anything, let alone a $3 billion fund in the absence of oversight.

Or, it's equally possible that the Cons knew all along that they hadn't actually set up the process to move money faster than usual, but figured they'd like the convenience of not having to answer for the spending of billions of public dollars. Which would seem even more dangerous, since any premeditation in wanting to free large amounts of spending from any oversight can only serve as notice that Canadians aren't going to be happy with what the money gets diverted to.

If anything, the nature of the Cons' request would seem to suggest the latter. Rather than at least trying to set up some temporary but more flexible means of oversight, their goal seems to be to make sure that nobody but the Harper cabinet table has a clue how the money is being spent.

But either way, the latest demand should offer even more reason to doubt that the Harper government can be trusted to handle a blank cheque. And if Deceivin' Stephen expects any sympathy in declaring that he's prepared to force an election over a slush fund, any opposition party worthy of the title should be glad to call that bluff.

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