Canada’s poll result pleases businessmen

Press, 7 September 1984, Page 6

Canada’s poll result pleases businessmen

NZPA-AP Toronto Businessmen are delighted at the record-break-ing Progressive Conservative Party’s victory that will make Brian Mulroney the Canadian Prime Minister later this month.

“It’s an overwhelming majority, more than I imagined,” said John Bulloch, president of the Canadian Federation of Independent Business. “It’s a very exciting time.” But the business euphoria did not show in main stock and currency markets, apparently because most investors had been aware for weeks that a Tory landslide was developing. The Toronto and Montreal stock exchanges both lost ground in early trading yesterday, and the Canadian dollar fell by 0.3 to 76.66 U.S. cents. Conservatives won 211 of the 282 seats in Parliament in the election, the most in Canadian history. The Liberals of the Prime Minister, Mr John Turner, were battered, emerging with 40 seats. The Left-leaning New Democrats won 30 seats and one Independent was elected.

Mr Mulroney’s most immediate problem will be the Canadian economy, which is experiencing a weak recovery from recession, with 11

per cent of the workforce unemployed.

He said he would reform the Foreign Investment Review Agency to make it lure job-creating investments to Canada, rather than scare them away. Mr Mulroney, aged 45, is expected to choose a Cabinet within two weeks. His advisers have mentioned September 17 as a likely date for the new Government to take over. 1 Some of Mr Mulroney’s supporters expect him to take strong steps reminiscent of actions by President Ronald Reagan or the British Prime Minister, Mrs

Margaret Thatcher, but others believe he has moved the Conservatives to the centre and will preserve or even expand social programmes. One thing Mr Mulroney has made clear is that he intends to make Canada a closer and better friend of the United States. The former Prime Minister, Pierre Trudeau, often criticised American policies, pressing for more action to help Third World countries and more dialogue with the Soviet bloc. “We want to end the ambivalence and uncertainty with respect to our American neighbours and allies that continues to hurt this country,” Mr Mulroney said in a speech in Toronto. “Now is the time for America to know who her friends are and for Canada to more fully honour our defence and alliance responsibilities.” The Tories say they will increase Canada’s defence budget by up to 6 per cent a year after inflation and increase the size of the Armed Forces.

Mr Reagan telephoned Mr Mulroney to offer congratulations and expressed his readiness to work closely with him to the mutual benefit of both Canada and the United States.