It's a run-down part of St. Laurent Blvd. that is due for a face-lift -- the $160-million Carre St. Laurent was to include shops, condos and offices for 700 Quebec public servants.

That is, until the Liberal government pulled out of the project Thursday.

“The public workers that would have been displaced in this operation would be in a building where we would pay at least $2 to $2.5 million a year more,” said Martin Coiteux, Treasury Board President.

Pulling out as the anchor tenant leaves the project’s future up in the air.

The Liberals say they'll support Montreal in other ways – namely with the celebration of the city’s 375th birthday and investments in infrastructure.

This latest decision is part of a massive turn-around in priorities for the Liberals.

During a five-hour hearing on government spending estimates, Premier Philippe Couillard was accused of being both vague and too draconian.

The opposition estimates there could be $7-billion a year cut from programs like prescription drug insurance and parental leave.

“The plan is to turn Quebec into Alberta” with fewer social programs, said Parti Quebecois Leader Stephane Bedard.

But the premier refutes that claim.

“On the contrary, we want to make those programs more solid and more sustainable. If they are not sitting on sound public finances and economic growth they do not exist,” he said.

Couillard also commented on the possibility of raising the sales tax, saying an eventual hike may come if a committee of experts recommends it.

Two committees have been appointed to review the usefulness of all government programs and the entire taxation system, hoping it gives the goverment some options for the tough road ahead.

The CAQ says Couillard is being evasive.

“It doesn't make sense that the (premier) cannot answer the question clearly, will (he) increase the sales tax or not,” said leader Francois Legault.