Conservative Leader Stephen Harper reassured Canadian consumers amid economic turmoil in the United States that there will be no federal bailout of Canada's big banks.
Harper, speaking at a campaign stop in Farnham, Quebec on Friday, responded to word that the U.S. government bailouts of troubled financial firms will cost taxpayers in that country hundreds of billions of dollars.
He said the Canadian financial system is strong and its banks and insurance companies don't need any financial aid.
"We don't anticipate any crisis in the Canadian financial system," Harper said. "I think there is some evidence that credit has been tightening in Canada over the past year, but that said, I certainly would not urge consumers to panic."
While money is tighter these days, Harper said, consumers shouldn't panic and stop spending since they're the reason for the Canadian economy's strength.
The Conservative Leader said this robust consumer spending is what has helped protect Canada from the same type of trouble currently affixing itself to the United States, and says his party's policies should be credited for encouraging this spending.
"Some of the things we've done, in particular the tax changes we did... the lowering of the GST, the lowering of the lowest personal income tax rate, the raising of the basic personal exemption," Harper said. "These have been important in sustaining strong consumer spending in this country. That's why these were good policies.
"Canadian consumer spending has been a rock that has sustained the economy and we anticipate that that will continue," Harper said.
Harper contrasted the Conservative plans for the economy with the Liberal "Green Shift" plan that he said will do the reverse - squash consumer spending by adding a new tax.
"The central policy of the opposition party is to raise consumer taxes through the carbon tax, and through raising the GST back up. That's why these are unwise policies," he said.
Harper added that they are watching the U.S. situation very closely, but do not anticipate a "spill-over" effect into the Canadian economy.
