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'We're not an island,' Harper says of financial crisis

06.10.2008 18:05 Shopping - Source: cbc.ca

Conservative Leader Stephen Harper acknowledged Monday that Canada could be touched by the growing financial crisis and insisted his party has a backup plan if necessary.

Victoria Varner, 3, runs around Conservative Leader Stephen Harper as he answers reporters' questions at a daycare in Ottawa.Victoria Varner, 3, runs around Conservative Leader Stephen Harper as he answers reporters' questions at a daycare in Ottawa.(Tom Hanson/Canadian Press)"Look, we're not an island. We can't pretend, and we're not pretending, that we will escape effects of world developments," said Harper at a campaign announcement in Ottawa about child-care benefit improvements.

But he added that the Conservatives have put mechanisms in place to help people find jobs and hold on to much of their income.

Harper said he is watching developments around the world very closely for any possible rebound effects on Canada.

The Conservatives have a Plan B to assist the Canadian banking system if the crisis spreads here, Harper said, but insisted Canada remains in a better situation than elsewhere.

The Conservative leader was responding to news that world markets plummeted again Monday as government bank bailouts in the U.S. and Europe failed to calm fears of a global financial crisis.

Germany joined Ireland and Greece on Sunday in guaranteeing all private bank accounts as governments across Europe scrambled to save failing banks.

NDP Leader Jack Layton panned Harper's economic record, saying the Conservatives have done nothing during nearly three years in office.

Harper isn't going to do anything to protect jobs and savings, Layton told a crowd gathered in the Vancouver-Kingsway riding.

"Pull one thread and the whole sweater unravels, and it's the people in Canada who get left out in the cold," Layton said, referring to ads showing Harper clad in sweaters to soften his image.

The latest poll results from Canadian Press-Harris/Decima indicated another drop in support for the Conservatives over concerns about the economy. Harris/Decima president Bruce Anderson said Harper risks being perceived as "too measured in his reaction."

Minor improvements to child benefit

At the campaign stop at Ottawa's Gymboree Play & Music centre, Harper pledged small upgrades of the universal child-care benefit.

"We're only making promises that we know we can keep," Harper stressed.

Harper said a Conservative government would index the $100 monthly child care benefit to inflation, adding several dollars a month and returning about $50 million per year to parents on top of the $2.4 billion under the current system.

"This will ensure that the value of the benefit does not erode over time," he said.

The taxable benefit introduced by the Tories is available to families for each child under the age of six and replaced the Liberals' five-year national $5-billion child care plan.

Sole-support, single-income parents will also get the child-care benefit tax free, a measure that would save families another $50 million, Harper said.

"We're not pretending that the government of Canada is paying all child-care expenses," Harper said.

"What we're saying is we're prepared to give help to families that we know the taxpayers can afford and that we'll assist with child-care costs."

War of words with Duceppe

Harper also continued his war of words with Bloc Qubcois Leader Gilles Duceppe on Monday in attempts to win the key battleground of Quebec.

Duceppe delivered a scathing criticism of Harper in a speech in Montreal on Sunday, where he slammed Harper's economic and foreign policy and called him a "cheater" for giving a speech in 2003 that contained passages lifted directly from an address given earlier that year by Australia's then-prime minister, John Howard.

He dismissed Duceppe's comment, saying it was too late to paint him as the "devil incarnate" after Duceppe supported the Tories on a regular basis during their first two years in office.

"This type of personal attack does not really represent true character of the Quebec nation," Harper added, saying Quebecers would see through the comment.

Duceppe rejected suggestions that the back-and-forth jabs could affect how the two work together once the election over.

"An election campaign is a struggle," he said. "When the time comes to decide, to take decisions on the basis of citizens we'll all have to take those interests into account."

Harper will later travel to Quebec, which is central to his hopes for a majority government, to try to arrest falling support in opinion polls there in the final leg of the five-week election campaign, said CBC's Julie Van Dusen.

Harper will attend a rally in Laval, Que., where "he will be arguing that the Bloc Qubcois is a big waste of time and that voters should rethink their support for the Bloc," said Van Dusen.

"And as we have seen, because the Bloc support is surging, he will be spending a lot of time there for sure."

Duceppe is expected to continue an election strategy theme of attacking Harper as he travels through Quebec on Monday in campaigning for the Oct. 14 vote, said Van Dusen.

Dion, Layton in B.C., May in N.S.

Liberal Leader Stphane Dion and NDP Leader Jack Layton, meanwhile, were making their pitches to British Columbians, as both spend the day campaigning in the province.

Dion began his day in Sidney before heading to Victoria for the majority of his day.

"Stphane Dion is going to make the argument that all kinds of left-leaning or progressive voters should come to him to stop Stephen Harper," said Van Dusen.

Green Leader Elizabeth May was campaigning in Antigonish and New Glasgow, both in Nova Scotia.

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YOUR VIEW: What do you want to hear from party leaders during the final full week of the campaign?Duceppe directs harsh attack at HarperIN DEPTH: Canada Votes 2008

Canada Votes Headlines »

'We're not an island,' Harper says of financial crisisConservative Leader Stephen Harper took time during a child-care benefit announcement to acknowledge that Canada could be touched by the growing financial crisis.Tories drop further as race tightens: pollSupport for the Conservatives plunged in the days following the leaders' debates amid worries about Harper's approach to the economy, a pollster suggests.Artists across Canada practising political theatreA theatre group called the Wrecking Ball, with chapters in 10 cities across the country, will be presenting an evening of political drama on Monday night.More cars damaged as election vandalism spreads in TorontoA criminal investigation is underway following more reports of potentially life-threatening vandalism, apparently connected to the federal election campaign in Toronto.Labrador Green candidate takes campaign to coast ... of B.C. The Green party candidate in Labrador has finally found the resources to travel, but not to the riding where she's actually a candidate.   

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