QUEBEC - Liberal Premier Jean Charest is hinting strongly that he will plow ahead with his proposed tax cuts, setting up his minority government`s first major confrontation with the Action democratique du Quebec.
Charest signalled yet again on Thursday that he was undaunted by ADQ Leader Mario Dumont's lack of enthusiasm for the cuts.
"Reducing personal income tax stimulates growth and encourages work, that's what we want," Charest told a gathering of Quebec municipal leaders.
Charest outlined details of sweeping cuts for the middle class in the innaugural speech of his minority government on Wednesday.
The tax cuts will likely be the centrepiece of the minority government's first budget, to be tabled on May 24.
But earlier on Thursday, Dumont reiterated his unease about Charest's promise to use $700 million in federal transfer money for middle-class tax cuts.
"We needed this money for our hospitals and our schools," Dumont said in the legislature.
Ottawa announced the new transfer money during the recent provincial election campaign to fix the so-called fiscal imbalance.
Dumont claims that using the money to slash taxes instead of investing in Quebec's aging infrastructure will weaken the province's ability to make future demands on Ottawa.
He noted there was criticism in the rest of Canada about Charest using Alberta's oil money to buy votes in Quebec.
Dumont also blasted Charest's government for failing to stop federal spending in provincial areas of jurisdiction.
"One of the greatest brakes on Quebec's power comes from federal spending powers," Dumont said.
Federal Finance Minister Jim Flaherty has in the past defended the constitutionality of Charest's decision to use Ottawa's money for provincial tax cuts.
Charest, calling himself a "spokesperson for the middle-class," defended the cuts as necessary relief for a silent majority integral to Quebec's financial health.
"If Quebec wants to be competitive, if we want a strong economy, we have to give breathing room to the middle class," Charest said.
Given the ADQ's apparent opposition to the cuts, Charest will likely have to turn to the Parti Quebecois to pass his budget.
The PQ, which finished third with 36 seats in the election, is still reeling from the surprise resignation of Andre Boisclair as leader on Tuesday.
Many expect that with only an interim leader in place for the moment, they will opt to forgo the possibility of another election and support the Liberal budget.
The Liberals have 48 seats to the ADQ's 41.
