Canadians Will Be Hurt by Federal Cuts

CLC president warns against slashing public services


OTTAWA, ONTARIO--(Marketwire - June 6, 2011) - Individual Canadians will suffer if the federal government makes deep cuts to public services, says Ken Georgetti, president of the Canadian Labour Congress. He was commenting on the federal budget, which was tabled in the House of Commons on June 6th.

"We are concerned that the government will slash public services that are essential to the quality of life of Canadians," says Georgetti. "This could include things like airport security, meat inspection, passport services and the needs of veterans."

Georgetti says that shedding public service jobs would be a mistake. "When people have jobs, they spend money in the community and they pay taxes that hike government revenue. That is the best way to eliminate deficits."

Georgetti criticized the government's intention to go ahead with tax cuts to corporations. "The banks and other corporations created the recent financial crisis which led to the government's deficit spending and now they get tax cuts while we pay the bill for the financial disaster they caused."

Georgetti adds that he is also concerned by the weakening economy in the United States. "The American economy is struggling and they are the largest market for our exports. In Canada, the private sector has not been able to create the jobs needed for us to make a full economic recovery from the Great Recession. Our government should be investing in a strategy that helps to create good and long term jobs in manufacturing and other sectors."

Georgetti also criticized the government's plan to remove public grants to political parties. "The CLC supported the per vote grant when it was introduced and we still think it is a good idea. The estimated $27 million to be cut here is miniscule in terms of the overall federal budget, but it is a key source of income to keep the playing field level for political parties. This is important for democracy."

For a CLC analysis of the budget released on March 22, 2011 please see: http://www.canadianlabour.ca/news-room/publications/clc-analysis-2011-federal-budget

Contact Information:

Dennis Gruending
CLC Communications
613-526-7431
Mobile: 613-878-6040
dgruending@clc-ctc.ca