Business leaders differ on stimulus

Business leaders are giving conflicting advice to the federal politicians who are embroiled in a dispute about whether to stimulate the economy quickly.

Perrin Beatty, head of the Canadian Chamber of Commerce, said Wednesday that a stimulus package should be put forward "as rapidly as possible" and before the Jan. 27 budget date set by the Conservative government.

Montreal investment advisor Stephen Jarislowsky also said the federal government should undertake a huge stimulus package to offset the recession. That implies running a deficit.

But Catherine Swift, president of the Canadian Federation of Independent Business (CFIB), said in an open letter to party leaders Wednesday that avoiding deficits is a priority, because "they never do any good."

She also said the government should cut spending, especially pay for civil servants, and avoid expensive bailout packages, such as the money being sought by the auto industry.

Swift didn't name names, but her recommendations line up with the approach of the Conservative government led by Stephen Harper, which is reluctant to introduce a stimulus package at the moment. That has prompted the opposition to form a coalition, and threaten to defeat the government to introduce such a package.

Jarislowsky backs the stimulus idea.

"Contrary to Mr. Harper, if you don't spend that kind of amount and if you don't print that enormous amount of money, you're going to deepen the recession, so it has to be done," he told the Board of Trade of Metropolitan Montreal.

Jarislowsky, chairman and CEO of investment advisor Jarislowsky Fraser and a wealthy man, blamed the financial crisis on greed and the fact that politicians, bankers, and business leaders ignored history by supporting policies and business activities that undermined markets.

"I feel certain, especially today, that a disconnect with the past largely explains the disaster we are now facing," he said.

Jarislowsky, a shareholder rights advocate who joined the board of the Foundation for the Advancement of Investor Rights when it launched in September, also said some chief executives were overpaid.

With files from the Canadian Press