OTTAWA -- Canada's top politicians hope to bolster the faltering economy by creating thousands of construction jobs, stabilizing pensions plans and exploring options to rescue the crashing auto sector.
But there were no concrete commitments from Monday's first ministers meeting and it remains to be seen how quickly action will come -- or if it will be enough -- to head off a recession.
Stephen Harper and the premiers emerged from their meeting agreeing to put aside partisan bickering and tackle the country's problems with a united front.
"It is clear for the foreseeable future we have a very significant problem and politics as usual just will not cut it," said the prime minister.
"Unless we commit to a cohesive and co-operative approach ... the country will be short-changed."
No specific timetable was released for fast-tracking infrastructure spending, but some premiers suggested the first projects could see the light of day in a matter of weeks.
Harper also said he expects to see action soon to help retirees hurt by the stock market collapse.
The premiers are asking Ottawa to increase or eliminate the mandatory age -- now 71 -- for converting RRSP savings to retirement income funds that require seniors to withdraw portions regardless of whether they will be taking a loss on their stock portfolios.
Eliminating the requirement would allow seniors to control when they must liquidate their investments.
As well, Harper said the government is asking the Office of the Superintendent of Financial Institutions to look at extending the five-year time limit for covering funding shortfalls so that firms are not pushed into serious difficulties financing their plans.
One of the main goals of the meeting was to give the prime minister ideas before he heads to Washington this weekend for a meeting of G20 leaders on the global economic and financial crisis -- and Harper said he was taking a unified policy to Washington.
On most issues, the first ministers expressed confidence that action will be taken going forward, suggesting concrete steps may be formulated at a second meeting early next year.
"This wasn't a meeting where the federal government came to make commitments ... there was never a question of signing any agreements," said Quebec Premier Jean Charest.
Ontario's Dalton McGuinty came to Ottawa with the most specific demand for aid to the province's auto sector in the form of more than a billion dollars in loan guarantees.
Harper was non-commital, saying he had not ruled anything out or in.
"We all agree we want to see a strong auto sector in Canada and we are prepared to look at options to achieve that," he told a news conference.
"(But) we do not want to see a sector permanently supported by the government that would otherwise not be financially viable."
McGuinty apparently heard something different inside the room and said he was now hopeful.
"I think there's an opening here for us. I think the prime minister understands that right now we have an unlevel playing field," he said.
He noted that the U.S. has already committed US$25 billion for its auto sector, Australia has offered help, and Europe is considering a 40-billion euro lifeline.
The prime minister's concerns about future viability of Ontario's auto plants is understandable, he said, "but I'm convinced we can find a way to address those."
McGuinty said the province and country simply could not afford to let the auto sector fail, saying it represented 400,000 direct and indirect jobs and generating $28 billion of wealth.
But the discussions about a lifeline for the auto sector was called inadequate by Jayson Myers, president of the Canadian Manufacturers and Exporters, who said other sectors of the economy had been ignore.
"The auto sector will be hit first, but the downturn is going to hit all sectors of manufacturers -- in fact all sectors of Canadian business -- and our government should be well out in front with a plan of action that goes beyond simply how do you divvy up money among jurisdictions," he said.
The danger in easing the regulations, said Robin Banerjee of the C.D. Howe Institute, is that it risks pension funds remaining underfunded for a longer period.
B.C. Premier Gordon Campbell said the agreement on infrastructure projects -- everything from construction of bridges to roads and sewers -- would create thousands of jobs and has the potential to give a quick lift to the economy.
"Some of it can happen now, some if it can take place in four weeks, some of will take place in two months ... but let's get on with it," he said.
The Federation of Canadian Municipalities welcomed the progress, saying the agreement lays the groundwork for repairing Canada's crumbling infrastructure.
But economists warn that politicians should not rush into spending they have not properly assessed.
Global Insight managing director Dale Orr pointed out that infrastructure spending can be good for an ailing economy, but can also become a tool for pork-barrel politics as politicians push for projects in their regions.
"For anybody who thinks infrastructure spending is a panacea I welcome them to take a walk through Mirabel airport."
