2009-02 (February)
Blaine Calkins MP Report
February 26, 2009
Credit Crunch
As I travelled throughout the Constituency over the last few weeks, many of the conversations I had centered on the economy. Albertans are feeling the effects the global financial crisis. Families are worried about jobs and layoffs while businesses are watching their sales fall. One key element that kept coming up was the lack of available financing.
Financing is an essential part of life in Canada. It gives businesses the flexibility to buy equipment and expand operations. It helps families purchase vehicles and homes.
Unfortunately, since the start of the global financial crisis, credit markets have become tighter as the available pool of resources has shrunk. This means that credit-worthy families and businesses have been unable to get financing for their large purchases. As a result, people are buying fewer cars and homes, and businesses are feeling the squeeze from lost revenue.
In fact, the global economic problem began as a result of poor credit conditions when a number of US and UK banks collapsed under the strain of too much bad debt. In Canada, our banks remain strong and effective, and have not had any of the problems of our foreign counterparts. In fact, many international experts cite Canada’s financial sector as the one the most sound in the world.
However, credit markets are international and banks depend on free-flowing international credit to do business. A tight international credit market has led to a tight domestic market.
Late last year, our Conservative government took action to give Canadian banks some extra room to lend money. It helped to hold off the effects of the global crisis in Canada for longer than many countries and we were able to help without giving taxpayer money to the banks.
On January 27th, Finance Minister Jim Flaherty introduced Canada’s Economic Action Plan. As part of that plan, we’re helping more families and businesses get the financing they need for big purchases. We’re providing additional support to small businesses through organizations and programs like Export Development Canada, the Business Development Bank of Canada and the Canada Small Business Financing program. We’re also helping more families get responsible mortgages by expanding the Insured Mortgage Purchase Program.
Our Plan gives banks more flexibility to access cash from the credit market. By doing this banks are then able to assist Canadian families and businesses. As a result, families and businesses can take advantage of low interest rates and make purchases that stimulate our economy.
Canada’s Economic Action Plan is a coordinated strategy to strengthen our economy and get us back on track. It provides more protection for workers who have been put at further risk while at the same time stimulating businesses and industries across the country that have been hit hard by the global credit crunch.
Please contact my Constituency office for assistance or for information on federally related matters, postage free at: #6, 4612 - 50th Street, Ponoka, T4J 1S7, tel: (403) 783-5530; toll free: 1-800-665-0865 or visit my web site: www.blainecalkinsmp.ca
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