“We recognized that as our reality, so we wanted to make sure that that next investment can be made in Canada,” Morneau said.
“Not only are we assuring that investment, but we are assuring the newest technology will be here in Canada, which means the more exciting jobs,” he said.
Morneau, who is scheduled to talk to a Toronto audience Friday about the update, said that based on “very positive feedback” from corporate leaders, he’s confident that businesses will take advantage of the measures to make job-creating investments.
“We’re making a decision for the long-term health of our economy and the exciting jobs of tomorrow. We need to do that at the same time as we think about how we assure that people who are really challenged are helped out along the way,” he said.
Morneau, who has served as Justin Trudeau’s only finance minister, has one budget left before the next election in October, 2019.
Looking ahead, Morneau said that income equality, skills training to meet the changing economy and helping the less fortunate will be priorities for the final months in office.
Morneau said the measures taken so far by the government — notably the child benefit, the Canada Workers Benefit and increases to the guaranteed income supplement — will lift 652,000 people out of poverty.
“That’s an enormous impact,” he said.
“We don’t think our job is done at all. We think we have to be continually focusing on how we ensure that middle class Canadians have optimism about the future and we need to continually be focusing on how people who are the most challenged in our society move into a better situation,” he said.
NDP MP Peter Julian (New Westminster-Burnaby) said the priorities laid out in the economic update were “completely inappropriate” and would do little to help the pocketbooks of everyday Canadians, many of whom are struggling with record levels of household debt.
“The announcements … of massive corporate write-offs is unbelievable. It just shows how out of touch this government is, given the size and scope of what Canadians are struggling through,” said Julian, the party’s finance critic.
He said the government should have moved on other initiatives, such as accelerating investments in affordable housing. “They are not doing the things that they need to do to support Canadians,” Julian said in an interview.
On Parliament Hill Thursday, Conservative MPs Pierre Poilievre and Michelle Rempel criticized Liberal plans, laid out in the economic update, to help Canadian media outlets to the tune of $595 million over five years.
The measures, which include a tax break for subscribers of digital news and tax credits to news organizations for a portion of their labour costs, are meant to assist media outlets left struggling by the downturn in ad revenues. The government said it will let an independent panel drawn from the journalism industry define eligibility for some of the measures.
But Poilievre and Rempel condemned the move, saying the government shouldn’t be underwriting media organizations. “A lot of the mainstream media outlets are not profitable. They’re not thriving and is it the role of taxpayers to bail them out?” Rempel said.
Morneau said that some details of the aid have to be confirmed in the budget, but he wanted to get the ball rolling on establishing the independent panel.
“We see it as critically important that we have confidence in the independence,” he said.
In his update, Morneau laid out a rosy economic picture with unemployment at a 40-year low, rising wages and corporate profits and continued growth. That has helped boost government revenues, but the new spending means that a return to balanced books remains out of reach for the foreseeable future.
In fact, Ottawa is now projecting higher deficit spending — about $5 billion more over the next five years — than it did in its February budget.
But Morneau says that even with the measures in the update, the debt-to-GDP ratio continues to decline and that Canada’s debt position is more favourable than other G7 countries.
The one storm cloud is the sharp drop in oil prices which hurts not just Alberta, but Ottawa’s bottom line, too. Morneau concedes there is no easy fix to depressed oil prices in Alberta, as there are roadblocks to getting oil to markets other than the U.S.
The federal government took the unusual step earlier this year of buying the Trans-Mountain pipeline in hopes of speeding construction of a second pipeline along the route, a project held up as further consultations take place.
“This is an enormous challenge. It’s a long-term challenge,” Morneau said. “We don’t have any magic solutions.
“We think the biggest single thing we can do is stay focused on what we’re trying to achieve,” he said.
Bruce Campion-Smith is an Ottawa-based reporter covering national politics. Follow him on Twitter: @yowflier