Tandem | June 30, 2000 | BACK | NEXT

MARTIN, THE POLITICS AND THE ECONOMY  
`Minister of Finance talks about taxation, Clarity, opposition parties, next elections and WHO

By Angelo Persichilli  (Versione Italiana)

Whoever is going to be the leader of Canadian Alliance is not going to be a threat to the Liberals. This is the opinion of the federal Minister of Finance, Paul Martin, on the next leader of the new   Canadian political party.

In an interview to Tandem, the minister of Finance also says that he is "surprised by the Senate action on the Clarity Bill" and he believes that "it would be to everybody's benefit that the Bill would pass and be done with". Martin says that he doesn't agree with those saying that the Bill goes beyond the Quebec issue.

The minister, who says that he is ready for an election at "anytime" and that it is his "current intention" to run again, also talks about the present economic situation, the need to cope with globalization, the negative consequences "for everybody" if Ontario goes for its own taxation system, and the World Health Organization's (WHO) rating of Canada's performance in this important sector. Martin also talks about the present political situation and how other political parties are dealing with the current changes.

Any concerns about the new leader of Canadian Alliance?
«I do not think it makes a lot of difference. I don't think that anyone would represent where the hearts and minds of Canadians are. I think that they are all pitching out there to the extreme right and that's not where Canadians are». 

Are you surprised by the Senate's resistance on the Clarity Bill?
«Yes, I am. I think that it would be to everybody's benefit that the Bill would pass and be done with».

Some say that the Bill goes beyond Quebec and weakens the Senate's role.
«No. I do not think so. The Clarity Bill deals with clarity and doesn't affect the future role of the Senate. The Clarity Bill deals exactly with what it says: essentially the necessity to have a clear and unambiguous question».

Are you surprised by the report of the World Health Organization saying that Canadian Medicare should be improved after ranking it the 30th in the world?
«I think that most medical experts would agree that there are some structural reforms which would be required and Ithink that Iwould support the first part of the statement. However, with an aging population, the development of new technology and the fact that people are living longer, more money will be required. But I do think that structural reforms, within the context of a universal health‑care system, are very important. We must better protect our current system of Medicare. Am I surprised when they say that we could do better? No. I do believe, nonetheless, that our universal system of Medic re is absolutely the best of any system. However, that doesn't mean 1hat even the best system cannot be improved upon». 

If our system is the best, why then are we ranked 30th?
«I don't know the answer to that. I haven't read the report in detail enough to know». 

Let's talk about Canadian economy. Last time we had a conversation, you expressed a lot of confidence. Do you hold the same conviction?
«I am very confident. All of the numbers that have come out since we last chatted have borne out that confidence. Our unemployment is at a 24‑year low, exports and trade surplus are almost at record height, our inflation continues to be in check. I remain very much confident and all those numbers bear that out." 

We talk a lot about globalization, but over 80 percent of o u r trade is with the United States. Is our economy really global?
«If your question is that we would like to see a higher percentage of our trade with Europe, Asia and Latin America, the answer is yes. On the other hand, the United States economy has been by far the strongest. Asia has had the Asian crisis, Europe certainly has not been strong as it could have been, and so it is only natural that o u r trade with the fastest and strongest economy is going to grow. But there is no doubt that as soon as the Asia crisis comes to a solution, you are going to see an increase of our trade with Asia».

Canada depends heavily on the revenue from Ontario. What happens if Ontario decides to go ahead with t h e implementation of a Provincial tax system?
«If Ontario went to its own taxes, that would mean that we would end up with a tax jungle. It would make the system much more complex, it would not help the country and, in fact, it would hurt Ontario because Ontario is a major contributor to the Canadian economy but also benefits from having an efficient national economy. So, if we end up with a tax jungle because of any action taken by any province, it will hurt everybody».

So you believe that Ontario Premier Mike Harris will not go ahead with this plan?
«Our officials are meeting and I really hope that we can work this out. It would make no sense for Ontario to plunge the country into the kind of tax balkanization that would occur if Ontario were on its own. I can't believe that Canadian government and Ontario Government officials cannot work this out».

When do you expect the next election?
«The Prime Minister said sometime within the next 12 months."

When you would like to have them?
«Anytime».

 Are you going to be there?
«It is my current intention». 

How do you see the Canadian left?
«I think that the problem is that the federal NDP has simply not evolved. If you take a look at the Labour government in the UK, or if you take a look at the left in Germany, you see that these political parties have evolved and kept themselves modern. ‑ Federal NDP hasn't done that. Consequently, much of its message is irrelevant. There is no relevance to the reality the Canadians live in today».

Does it still make sense nowadays to talk about left or right?
«I think that essentially the main difference is between people who are prepared to meet the challenges of globalization, to meet the challenges of new technologies and who want to build a modern society, and people who differ. This is really where the centre is. We have the Tories and on the other side we have the NDP. These parties are essentially paralyzed by the prospect of change. Consequently, in the 21st century they are still talking about a 1970‑80 philosophy».

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