OTTAWA - Canada's two top political parties are jockeying to be seen as the champion of workers in pre-budget manoeuvring that could serve as a major theme in a future election.
With the economy showing signs of a jobless recovery, Prime Minister Harper and his economic ministers are stressing they won't sound the all-clear until Canada has recouped all the employment losses from the recession.
But the Conservatives appear to have left themselves vulnerable to a charge they are not sensitive enough to the plight of the unemployed with talk that the upcoming March 4 budget would outline plans for reining in government spending.
Transport Minister John Baird moved to try and counter that perception at a news conference Wednesday in which he extolled the virtues of Ottawa's $46-billion stimulus program, which he said was creating "countless jobs."
And Baird hinted strongly the upcoming budget may include an expansion of the popular work-sharing program designed to reduce lay-offs at troubled companies.
Liberal Leader Michael Ignatieff upped the ante Wednesday issuing three specific proposals he said would help put Canadians back to work.
Tackling the $56 billion deficit was important, he said, but creating jobs should take precedence in the next budget.
Employment in Canada remains 323,000 below the pre-recession peak and economists expect the unemployment rate will stay above eight per cent throughout 2010.
-Offer firms cash advances to purchase new equipment to boost productivity and create jobs. Currently, the rules allow firms to claim a capital cost allowance when they become profitable, but Ignatieff said the battered manufacturing sector needs access to cash or credit to make needed investments.
-Offer employers temporary incentives to hire young workers and boost the summer jobs program. Ignatieff called the youth unemployment rate of 16 per cent, almost twice the national average, "a scandal."
-Provide new tax incentives to attract venture capital needed to create new enterprises in emerging industries such as clean energy and life sciences.
"That's how we get this place humming," Ignatieff said.
"It should be perfectly obvious, anybody who wants an attack on the deficit has got to get Canadians back to work."
The Liberals say the measures would cost $125-$270 million a year.
But the Conservatives quickly pounced on comments by Liberal infrastructure critic Gerard Kennedy which they say shows the Grits would raise taxes if they formed government.
Earlier in the day the Toronto MP accused the government of having squandered the goodwill of Canadians to pay at a later time for spending now on job creation.
In an interview, Kennedy noted money currently being injected into the economy is borrowed and would need to be repaid at a future date, but that could mean reduced services to Canadians, not necessarily higher taxes.
Ignatieff said "the last thing you want to do in a recession, when Canadians are struggling, is raise their taxes."
Baird's hint that the budget could include a provision for expanding the work-sharing program is an indication Finance Minister Jim Flaherty may be preparing to include new measures to stimulate the economy, although he has said there will be no significant new spending programs.
"The work-sharing agreements have probably been one of the single most constructive parts of our economic action plan," Baird said.
"It has consistently come up, certainly in the discussions I've had, as being an important thing to maintain jobs."
An official with Human Resources Minister Diane Finley said about 165,000 Canadians are taking advantage of the program which allows firms to reduce the work week of their employees instead of outright layoffs. Those on work-share qualify for employment insurance, thereby softening the pay-shock, for the days they have agreed to be idle.
Jayson Myers of the Canadian Manufacturers and Exporters said the program, which was extended by 14 weeks to a maximum 52 weeks in last January's budget, has been a big success with many companies.
With some of the job-sharing agreements due to expire as early as March, Myers said industry is asking Flaherty to extend the program to 18 months and to make other adjustments to make it easier for firms to hold on to employees during slow periods.
