STAR: We wanted to talk specifically about Toronto and your urban strategy. It is a city you need because you are nip and tuck for a majority. You told us earlier that you have delivered for Toronto. Can you tell us specifically what in downtown Toronto you have delivered.

SH: I could give you a list of literally hundreds of projects we’ve done in the city. I did a big announcement on the library system. We have invested in the TTC and the GO system. We’ve done investments in just about every single campus, universiy and college, through our Knowledge Infrastructure program. It’s pretty wide-ranging stuff.

STAR: You understand the perception is out there that this is hostile territory for you. You seem hesitant to appear in downtown Toronto.

SH: I don’t think it is hostile territory. There may have been that perception in the past. But I think we are very competitive in Toronto and we are going to win seats in Toronto. I think things are looking up. We’ll see on election day. But I don’t think Toronto is hostile territory at all. This is the city that just elected Rob Ford and our candidates are feeling good in every part of the city. But there’s nothing in Toronto we could take for granted. We have to work in every riding and get every vote. There are going to be a lot of tough fights.

STAR: The endorsement from the mayor. How important is that to your campaign?

SH: I’m deeply honoured the mayor would do that. I think it certainly indicates the depth of support for the Conservative party and for the direction we re taking the country and the city of Toronto. I think it is a big symbol of that. We really appreciate the mayor for doing that and for all the very practical work that he and his people are doing to help us.

I think it also indicates that we have had, it has to be conceded, even with the previous mayor, in his later years, a pretty good working relationship in terms of announcements and some of the things we did together and, I think generally, pretty good relationships with the municipalities. You will recall the Federation of Canadian Municipalities endorsed our budget. So, I think we’re on the right track with cities generally and Toronto particularly.

STAR: You’ve been across the country, campaigning on the budget. Assuming a re-election in a minority situation, you talked (earlier in this day) about how you don’t think the other side, however configured, wants to work with you. Does that mean you can see no way that you would amend that budget?

SH: Look, I always say, Tim, that I have remained Prime Minister for five years because we are able to adjust and to compromise. We try to do it in ways that we don’t feel we are compromising our principles or damaging the Canadian economy. That is certainly something I wouldn’t do. In this campaign, obviously, we are not looking for a mandate to negotiate, we are looking for a mandate to govern. We’ve laid down a pretty clear program for Canadians and one that was well-received. Virtually, most major interests, on all sides of the spectrum – the Canadian Labour Congress had good things to say about the measures in the budget. In terms of the opposition, what’s interesting about the opposition is as much as they criticize the budget in general terms, I don’t know what specific measures in the budget they actually were against. So, I think we are seeking a mandate and I hope we will have a mandate to move forward.

STAR: But, as I asked you, what about the old water in the wine argument? Could you see – in order to prevent another election, so we are not sitting here six months down the road talking about this again –

SH: But, look, you’re asking me to speculate on the outcome of the election. We’re seeking a mandate to govern. We’re seeking a mandate to pass our budget. Obviously, if we get a majority mandate, that’s pretty clear. If we don’t get a majority mandate, then we’ll have to deal with it, as we have done in the past. We’ll do it in a way that is principled and does not break our commitments to the Canadian people.

STAR: The HST is a signature achievement of your government, the Ontario government and the British Columbia government. Yet you don’t talk about it at all on the campaign trail. Is there some type of embarrassment –

SH: Provinces make the decision on the HST. We provided a framework that is very similar for all provinces. It goes back to agreements that were made in the 1990s. The provinces can decide to opt into that framework or not opt into that framework. In the case of Quebec, we are negotiating because they want something a little different and we are trying to find a way of accommodating that is consistent with the other deals of the provinces. But this is ultimately a provincial decision. British Columbia is re-examining that decision .It is their decision.

STAR: Are you mindful of the fact that it was controversial for former (British Columbia) premier Gordon Campbell and will be controversial for Premier (Dalton) McGuinty this fall?

SH: Harmonization of a provincial tax is a provincial decision. What we emphasized on the sales tax is that we reduced the federal sales tax and we will not raise it. And we have every reason to believe, if you look at the record and you look at the kind of promises they are making and statements that the other parties will, in fact, raise the federal sales tax.

STAR: I sense a little bit of frustration when you start talking about the NDP. Maybe you don’t know where this came from and maybe you’re like a lot of us who aren’t sure where it came from. Do you know what you are fighting against?

SH: What I think is interesting is that the other three parties were increasingly working together and saying increasingly NDP-like things. So, what they have effectively done, I think, is drive their support to the NDP. And, for us, that actually makes the choice pretty clear. We have been saying all along that the choice is a low-tax plan for the economy, affordable benefits, accepting trade and the reality of the global economy. The NDP is the other pole – high spending, high taxes, we don’t need trade, we can make whatever promise we can make, the money doesn’t matter because we can tax people and it doesn’t really affect anything. That is a very different view of how we are going to move our economy forward. I think it is disastrous. I will not kid you. I think the NDP economic platform would be an utter disaster for the country. I don’t think an NDP-led minority coalition would last very long, but I think it would do enormous damage every single day it is in office. I think this allows us to simplify and clarify the choice. I have believed all along this is a clear choice between what we represent and what the opposition parties have been saying collectively. The fact it is the NDP now leading the charge, just frankly, clarifies that.

STAR: A lot of Liberals are saying privately the same thing that you are saying, that they don’t want an NDP government either. Do you think there is a scenario where you can peel some of them away if you don’t win majority on Monday?

SH: I think it is interesting. You ask me questions, if you don’t mind me saying, about compromising and flexibility. We’ve been the government of Canada for five years, through a minority and through some very difficult economic times, because we’ve been realistic, because we’ve been flexible, because we have been prepared to adapt to circumstances. The one party that has not been prepared to ever do that is the NDP. Mr. Layton, one of the contradictions of Mr. Layton is that he talks about cooperation and working with others, but, in fact, Mr. Layton is the guy who also at the same time says ‘I say no to more things, I don’t make deals, I don’t work with anybody, I’m not prepared to compromise.’ And I believe that as the choice becomes clear, a lot of voters, and a lot of traditional, Liberal, moderate voters, are going to look and going to say that the Conservative platform and where the Conservative party is taking the economy is a hell of a lot closer to what I think then what the NDP has in its platform. I believe Mr. Ignatieff and the Liberal party are in trouble not because they’ve been true to liberalism, but on the contrary. I think their platform represents a departure from the Liberal party at its best. The Liberal party has been its best – now, you know, I have problems with the Liberal party, I think sometimes think flexibility becomes something else in the case of the Liberal party – but nevertheless, you have to be realistic about the economy and the NDP has not been prepared to be realistic about the world in which we are living and have economic choices that are fitting for that. I think a lot of Liberals who understand that are going to think twice and I think ultimately, rather than follow their party blindly down an alley toward the kind of merger with the NDP that Mr. Ignatieff mused about, I think they will take a hard look at voting for this party, and I welcome that.