The TSX is looking a little better these days. Is the optimism too much too soon? I mean we have made quite an improvement here.

I for one wont fret for a marked increase in my financial health but calls for the end of THE END OF THE RECESSION are a bit premature. Hang on to your hats folks, the market is a wild ride.

It’s official. The opposition has united to defeat the government and the policies presented by the Minister of Finance. Uncharted territory here. Amazing to see how fast differing viewpoints could draft an agreement and proposal to stimulate the economy over the weekend. Mr. Flaherty has called it “a deal with the devil”?

Canada is stronger together, perhaps a coalition government might actually work together toward rebuilding Canada during these trying times. I think that we are in for more concrete action than the Conservatives are willing to admit since ALL opposition parties have committed to unite until June 30, 2011! (The Bloc are supportive of this coalition for 18 months and can extend support after that time since they are not formally part of the coalition). The economy and the environment are front and centre. The coalition will pursue prudent policies to stimulate the economy through investments in infrastructure, boosts to struggling economic sectors as well as home construction and retrofit (low income housing? green tax breaks?). Most important, long term deficits are not in the interest of the coalition.

“Today we respectfully inform the Governor General that, as soon as the appropriate opportunity arises, she should call on the Leader of the Official Opposition to form a new government, supported as set out in the accompanying accords by all three of our parties.

– from the agreement signed by Bloc Québécois Leader Gilles Duceppe, NDP Leader Jack Layton and Liberal Leader Stephane Dion on Parliament Hill, in Ottawa, on Monday Dec. 1, 2008

It will be interesting to see how the Right Honourable Michaëlle Jean, Governor General of Canada reacts.

As predicted Mr. Flaherty’s financial update and call for the cancellation of polical party funding was the enough to bring war cries from across the bench. The Conservatives are now backtracking from their calls to end of party funding linked to the proportion of federal votes (political parties currently receive a rate of $1.95 per vote in a federal election). Much like the cuts to Arts funding proposed during the election campaign and later retracted these proposed political funding cuts are getting swept away after public outcry.

Has it come to this? In two short years there is now talk of forming a coalition with NDP, Liberals and the Bloc. This is sobering and signals a potential search for a new Conservative leader. A separatist party is so dissatisfied with the current government (most notably with respect to the environment and crime) that they are willing to chum with their arch enemies the Liberals? The NDP who campaigned as an alternative to rule would consider to help form a coalition?

Mr. Flaherty and Mr. Harper have nowhere to run now. Talk of a strong economy, a technical recession, then a crisis “unlike and potentially as dangerous as anything we have faced since 1929”. A lot can change in a matter of weeks and the majority of elected MP’s look as though they will push Mr. Harper out of power based on mismanagement and myopic vision. Perhaps the “new” government will now be forced to bring in a sound budget and policies that will strengthen Canada during this recession. If elected MP’s can serve Canada as a whole, leave their party colours at home and form consensus despite differences we are better off. True blue Conservatives would be wise to join with this consensus. I’m hoping the “dream” of a government that can “meet in the middle” happens whether or not a coalition is formed after this tipping point. A multi-party coalition can’t be any worse than leadership that blatantly dropped the ball on the state of the economy and increased government spending more than 20% (some $40 Billion) putting us into a deficit after years of surpluses.

The editorial by Alberta premier Ed Stelmach in the Toronto Star peaked my interest. Not because it tries to re-stoke the tired Ontario vs. Alberta debate. Not because it overlooks the reality of oil sands and the disruptive environmental damage that continues. That may be considered offensive but is not unexpected considering the source. Alberta is an economic engine, as is Quebec, Newfoundland,… etc. Alberta has and continues to carry some heavy baggage.

Mr. Stelmach talks of some efforts to lessen enviromental impacts and carbon capture and storage. Yes there have been some small steps in Alberta to reduce emissions and environmental impacts but not enough to change the downward spiral. Carbon capture and storage research and development is in its infancy. It remains to be seen if a solution of “hiding” CO2 underground will work. American big coal have touted this as a potential solution for years. The safety of storing massive amounts of an odorless gases that can asphyxiate seem daunting or near impossible at best. New technology, the geology of the storage sites and time will tell.

Ralph Klein was not a poster child of sound economic development nor is Ed Stelmach. By having no plan for oil sands development, up to 50%+ of Albertas economy demanded most of if not all of employment and other resources. With only modest reinvestment in infrastructure like roads and housing the tide slowly started to turn. The modest royalties during the boom period looked to be eclipsing demand for services. With several years worth of surplus at risk the Alberta government saw this and Stelmach helped to implement an increases to Alberta royalties last year. Now with the price of oil falling and the viability of Tar Sands expansion in jeopordy we have calls for special “royalty discounts” and high profile editorials. Mismanagement of the royalty program alerted the public to the problem at hand and created the pressure to increase rates in the first place. During the period from 2004 to 2007 it was found that Alberta was short paid about $1 Billion per year in royalties. Stelmach wasn’t concerned then since $22 Billion in government debt had been repaid under the old system. Continuing under this flawed logic not paying your taxes would be OK as long as you bought goods and services in Canada rather than while vacationing abroad (the money is still spent in Canada right?) Whatever?!!!

Stelmach misses the point once again. It matters not which province is in the economic lead, we are on the same team. TEAM CANADA. By squandering surplus funds, allowing growth without planning, and failing to protect the business and living environment the premier shows he has little to offer Alberta let alone Ontario. Hmm, what could he and his colleagues at The Canadian Council for Public-Private Partnerships be lobbying for? Surely the runaway blank cheque approach should not form the basis of Public-Private Partnerships as well.

Taxpayers feel the pain of industry windfalls or shortfalls and elected officials should be more mindful of this than anyone. How much tax revenue will closed industries pay into the government? What are a governments costs of benefits paid to those put out of work and who are paying less or no income tax? How real is a deficit in these trying circumstances?

Am I calling for the end of the Tar Sands, the closing of Ford or a planned economy? No, no, and no. Your opinion is welcome Ed but your bias is a little bit transparent. Personally when it comes to infrastructure, resources, and industry I like to see return on my investment. The Canadian Council for Public-Private Partnerships’ Toronto event, which Mr. Stelmach is attending, focuses on Canadian, U.S. and Mexican perspectives on infrastructure. Mr. Stelmach you seem to be running Alberta like a thirsty bloated furnace rather than well tuned engine. Thanks but no thanks. Canadians are calling for a much needed rebuilding of our infrastructure, not another puff of hot air.