Prime Minister Stephen Harper says he'll have some advice for the country's provincial and territorial leaders when he meets them for a working dinner on Friday at his Ottawa residence.
In a one-on-one interview with CTV Atlantic anchor Steve Murphy, the prime minister said he'll advise the leaders not to undertake long-term expenditures or tax reductions. He said the U.S. and global economies appear to be slowing down and so Canadian leaders will need to be financially cautious.
The recent rise of the Canadian dollar, high oil prices, and a slowing housing market and economy in the U.S. have already affected some sectors of the Canadian economy, including forestry and the manufacturing industries. On Thursday, Harper announced a $1-billion aid package to help workers in towns and industries that are struggling with chronic unemployment or layoffs.
"My advice to the premiers when we put this kind of community trust money on the table, when they get their enhanced equalization, as some will get: use that money for short term transitional stuff. Don't commit yourself to longer term things you may not be able to sustain," he said.
Although Harper said he believes that Canada is well-positioned to deal with a potential downturn in the economy, he said that in the long-term, Canadians will have to deal with an issue that's already starting to manifest itself -- a skilled labour shortage.
"The labour shortage is already a problem in the trades and several regions and sectors of our economy and it is going to be a growing problem over the next generation," Harper said.
"Let's not allow the immediate difficulties to cloud our longer-term thinking."
Critics say the possibility that the economy may worsen in the months and years ahead deserves more attention than a four-hour dinner meeting between Harper and provincial and territorial leaders.
"We have major issues here," Liberal Sen. Marie Poulin told Â鶹´«Ã½net's Mike Duffy Live.
"I don't call this a meeting. I call this a dinner. And I think our country is more complex and deserves a well-planned, well-organized meeting with the premiers."
Former B.C. New Democratic leader Joy MacPhail said Harper has not acted swiftly enough to tackle growing economic concerns.
"We ended (2007) with the Prime Minister saying, 'Oh, my gosh, the economy is a big problem," MacPhail said.
"It's the first time we heard from him and now we will have a casual dinner where there will be a bunch of men sitting around the table, eating and having a glass of wine, and saying, 'Gosh, we have got this problem, what should we do?'"
Former New Brunswick premier Bernard Lord said Friday's meeting will not be the only opportunity for provincial and territorial leaders to discuss economic issues with Stephen Harper.
"I know when I was premier, when I needed to talk to the prime minister, you pick up the phone and talk to them," said Lord, a current Conservative strategist.
"I know it's the same currently with Prime Minister Harper. There's more than one dinner a year for premiers and the prime minister to talk to each other."
A skeptical MacPhail responded: "Not with this prime minister, there hasn't been."
