OTTAWA -- Eager to show they're a party on the move, the federal Liberals opened a two-day meeting yesterday by echoing Barack Obama's vocabulary of hope even as they talked tough on the coming federal budget.

"People are really worried about the economy," warned new leader Michael Ignatieff, who spent part of this month on what he's called a cross-Canada listening tour. "There is fear in the land.

"We all know that the only antidote to fear is hope, and this party will be the party of hope for all Canadians."

In a short speech to MPs and senators, Ignatieff said if the Conservative budget on Jan. 27 does not adequately respond to the economic crisis, Liberals should vote against it. He made no mention of a coalition with other opposition parties to try to form an alternative government.

Prime Minister Stephen Harper prorogued Parliament in December after the Liberals -- then led by Stephane Dion -- and the NDP formed a coalition they said would defeat the Tories over their economic plans. The Bloc Quebecois agreed to back the coalition.

Liberal MP Scott Brison said yesterday the coalition threat is still "an option ... it would be a mistake for Stephen Harper to underestimate the capacity for other parties to come together if he fails to provide us with a budget we can work with."

'HARPER'S RESPONSIBILITY'

Ignatieff, thought to be lukewarm about any formal coalition, nonetheless slammed Harper for projections of a deficit of more than $30 million. "This deficit is squarely Mr. Harper's responsibility. He spent us down to the red line in the good times and so we face the hard times as citizens of this great country with the cupboard bare."

Toronto MP John McCallum warned against any budget with sweeping permanent tax cuts, saying such cuts don't direct money to the "most vulnerable" and don't do much to stimulate the economy. "Permanent big tax cuts either gives you a permanent big deficit, which we don't want, or you have to make major cuts in the size of the federal government and its ability to deliver social services."

Liberals were upbeat yesterday as they met to plan strategy for the new Parliament, announcing new co-chairs for their next national campaign. Ignatieff also created a "renewal" committee and a "change" commission to examine leadership selection, party structures and how to better connect with Liberal grassroots supporters.