In an attempt to cover up two years of costly spending promises, Liberal finance critic John McCallum is disputing items in the Conservative Party’s costing of Liberal spending promises. Unfortunately for McCallum – and his tax-and-spend leader – he is wrong.

What John McCallum is saying:

Mr. McCallum is making three specific complaints about the costing. He says that the Liberal war on poverty will not cost $5.5 billion a year. He claims the corporate tax cuts promised by the Liberals have already been delivered by the Conservatives. And he argues that the promise of an Advanced Manufacturing Prosperity Fund and to match Ontario's investment in the Next Generation Jobs Fund are double-counting the same money.

The Facts: But here is what Liberal leader Stéphane Dion actually said:

FACT: Stéphane Dion has made it clear that he would spend $5.5 billion per year to fight poverty.

* Mr. Dion said on April 4, 2007: "We need to give every child in Canada a decent start in life. The next GST tax cut that Mr. Harper wants to undertake would cost $5.5 billion. I will not make that cut. Instead of making that cut, I will invest in the child tax benefit and other social programs to lift Canadian children out of poverty." ( http://www.liberal.ca/story_12662_e.aspx )

* In a March 2, 2007 speech in Dartmouth, Mr. Dion said: “We have decreased the percentage of children in poverty. But we still have one million children in poverty in Canada. One million. That means, for Canada, 17% of children live in poverty; 18% in Nova Scotia. But if you look at aboriginal children, it's 40%. For new Canadians, 40% of children live in poverty. If we wanted to be sure that no child lives below the poverty line, how much would it cost? According to the statistics that I have here, it would cost $5.5 billion to give all the children in Canada – with their parents – a decent start in life. $5.5 billion. The next GST tax cut that Mr. Harper wants to make would cost $5.5 billion. I will not make that cut. I will invest in the child tax benefit and the other social programs, to lift the children of Canada out of poverty." ( http://www.liberal.ca/story_12308_e.aspx)

* Mr. Dion would repeat this promise in a speech to the Federation of Canadian Municipalities on June 3, 2007: “If we wanted to ensure that no child lives below the poverty line, how much would it cost? It would cost $5.5 billion to give all the children in Canada – with their parents – a decent start in life. The next GST tax cut that Mr. Harper wants to make would cost $5.5 billion every year. I will not make that cut. Instead, I will invest that money in things that make a difference for people, like income support for the people in need, and housing. And I will do it with you." ( http://www.liberal.ca/story_12837_e.aspx)

John McCallum must believe that Canadians are fools if he thinks that the public believes Mr. Dion’s poverty objectives can be met with $5.5 billion over five years. Unfortunately for him, his leader has already given Canadians the real answer.

FACT: The Liberals have left the door open to additional costly corporate tax cuts

McCallum`s leader has also promised that the Liberals would deliver a “corporate tax advantage” by reducing corporate income taxes more than planned by the Conservatives. ( http://www.liberal.ca/story_13206_e.aspx ) This promise was not costed because Dion did not say how much further he would go. Since the Liberals have not released a costing of this promise it was only prudent to include it in the costing as a Category IV promise. It does not impact the minimum $62.5 billion in new debt interim total.

The onus is on John McCallum and Stéphane Dion to tell Canadians if they would cut corporate taxes more than the Conservative Government has. And if so, where is the money going to come from.

FACT: Stéphane Dion’s own words imply that his manufacturing promises are very different commitments. If there is confusion about the commitments on the Advanced Manufacturing Prosperity Fund and matching Ontario's $1.5 billion Next Generation Jobs Fund it is due to a lack of clarity by Mr. Dion himself.

* On January 18, 2008 Stéphane Dion announced: "That’s why I am pleased to announce that upon winning the next election a Liberal Government will create the $1 billion Advanced Manufacturing Prosperity Fund - the AMP Fund. This fund will support major investments in manufacturing and R&D facilities that will serve as an anchor for clusters of economic activity.” ( http://www.liberal.ca/story_13494_e.aspx )

* Then on January 25, 2008 the Toronto Star reported: ``Dion also expressed support for McGuinty's bid to get Ottawa to match provincial funding for manufacturers and other businesses hurt by the high Canadian dollar and soaring energy costs.`` (Toronto Star. January 25, 2008)

* Since Premier McGuinty’s request was for $1.5 billion for the Next Generation Jobs Fund a straightforward reading of the Dion commitment would be that a Dion government would invest $1.5 billion over five years in the Next Generation Jobs Fund. It is fair to conclude that $1 billion for a different fund that would presumably apply across Canada would not be equate to a matching of Ontario's investment.

* Premier McGuinty has been asking for $1.5 billion for the Next Generation Jobs Fund. Stéphane Dion said he supported McGuinty`s request. The costing simply assumes that Dion understand what he was committing to when he made those remarks.

Only now, when Mr. Dion is being called on the price tag of all of these spending commitments, is John McCallum trying to spin the fact that these distinct promises are being double counted.

SORRY JOHN, YOU MAY BE AN ECONOMIST BUT MR. DION IS NOT A LEADER