The CCCE is the senior voice of Canada’s business community, representing 150 chief executives and leading entrepreneurs in all sectors and regions of the country.
 
“Companies across the country, in sectors ranging from energy and natural resources to construction, manufacturing and services, are finding it increasingly difficult to recruit employees with the right qualifications,” Mr. Manley said. “It’s a problem today, and if left unchecked it will only get worse, undermining opportunities for Canadian workers and contributing to slower economic growth.”
 
In today’s budget, Mr. Flaherty pledged: new funding for businesses to train unemployed and under-employed workers; expanded support for apprentices; more internships for recent post-secondary graduates; and increased assistance for groups currently under-represented in the workforce, such as disabled Canadians, Aboriginal people and immigrants. 
 
“The budget takes some important steps toward ensuring that unemployed people and young Canadians gain the skills they need to build a successful, rewarding career,” Mr. Manley said.
 
“What Canada needs now is a comprehensive strategy to better align education and training with the skills employers need. No one player can do this alone. The federal government, provinces and territories, educators, parents and students all must be part of the solution. And of course employers have a critical role to play in signaling their future needs and effectively training their workers.”
 
Among other welcome measures in the budget, Mr. Manley singled out:

At the same time, the CCCE highlighted two specific areas of concern to Canada’s business community:

While endorsing the government’s desire to increase the integrity of Canada’s tax system, Mr. Manley said the CCCE will want to take a closer look at the new business tax rules announced today to ensure they do not have unintended consequences.

“The federal government’s reforms to the corporate tax system since 2006 have dramatically improved Canada’s investment climate, creating jobs and spurring growth. It is vital to ensure that today’s announced changes do not erode our country’s international tax competitiveness,” he said.

The conference included keynote remarks by The Honourable Ken Hughes, Minister of Energy, Alberta, and Grand Chief Edward John, a Hereditary Chief of Tl’azt’en Nation in Northern BC and Chair of the United Nations Permanent Forum on Indigenous Issues.

In addition, panel discussions considered:

• the role of state-owned enterprises as investors in Canada’s oil and gas industry
• opportunities and challenges in exporting Canadian energy products to Asian markets

Panelists included:

• Hal Kvisle, President and CEO, Talisman Energy
• John Zahary, President and CEO, Sunshine Oilsands
• Paul Evans, Institute of Asian Research and Liu Institute for Global Issues, University of British Columbia
• Ray Boisvert, former assistant director, Canadian Security Intelligence Service
• Richard L. (Rick) George, Chairman, Osum Oil Sands
• Lorraine Mitchelmore, President and Canada Country Chair, Shell Canada
• Ellis Ross, Chief Councillor of the Haisla Nation, Kitamaat Village, BC
• Michal C. Moore, Professor of Economics, The School of Public Policy, University of Calgary

View a video recording of the proceedings here.

Click here to download the conference program.

This symposium was part of the CCCE’s “Canada in the Pacific Century” initiative, and follows the publication of a series of papers earlier this year as well as a two-day conference in Ottawa in September.

“The decision to approve the acquisitions of Nexen Inc. and Progress Energy Resources Corp. sends a positive signal to investors in Canada and around the world. Canada welcomes foreign investment because it is good for our economy, good for job creation and increases competition, which in turn strengthens productivity.

“Canada’s population is small relative to those of the other major advanced economies, and we have a tremendous need for capital to develop our industrial base and achieve our potential as a leading exporter of energy and advanced energy technologies. At the same time, companies looking to invest in Canada must play by our rules and respect our values, adhering to Canadian laws, regulations, and environmental and labour standards.

“Based on a preliminary review, it appears that the guidelines introduced today will safeguard the national interest while ensuring that Canadians continue to reap the benefits of a welcoming approach to foreign investment. Equally significant, the guidelines recognize the essential role of private enterprise and free market principles in driving economic growth and prosperity. The government deserves to be congratulated both for taking the necessary time to evaluate these applications and for adopting a balanced approach to the evaluation of foreign direct investment.”

The CCCE is the senior voice of Canada’s business community, representing 150 chief executives and leading entrepreneurs in all sectors and regions of the country. Its members lead companies that collectively administer $4.5 trillion in assets, employ more than 1.4 million men and women and are responsible for most of Canada’s private-sector exports, investment and training.

Overall, the poll found that Canadians are divided about the implications of Asia’s growing economic power and concerned about the impact on certain industry sectors. For example, 59 per cent of respondents agreed that Canada should be more open to foreign investment, but 76 percent said they are worried that increased foreign investment could cause Canada to lose control of its natural resources.

Ipsos Reid conducted the online survey for the Canadian Council of Chief Executives (CCCE) in advance of a conference being held today and tomorrow in Ottawa on Asia’s rise and the impact on Canada’s economic future. Titled “Canada in the Pacific Century,” the conference brings together more than 200 CEOs, senior government officials, educators, policy experts, representatives of aboriginal communities and other thought leaders from across Canadian society.

Overall, 60 percent of those polled agreed with the statement that “Asia’s growing middle class population represents an opportunity for the Canadian economy”. In contrast, 40 percent agreed that “Asia’s growing economic strength represents a threat to the Canadian economy”.

On a sector-by-sector basis, 74 percent agreed that Canada’s banks and financial sector will benefit from better access to Asian markets.  Seventy-one percent said that Canada’s energy and resources sector will benefit from better access to Asia, while 68 per cent felt that way about Canada’s manufacturing sector.

At the same time, 88 per cent agreed it is important that Canada find new markets beyond the United States for its energy and resource exports. And 74 percent said that if Canada does not get more access to Asian markets, it should limit the amount of Asian investment in Canada.

For survey methodology and detailed findings, please see www.ipsos.ca.

The CCCE is the senior voice of Canada’s business community, representing 150 chief executives and leading entrepreneurs in all sectors and regions of the country. Its members lead companies that collectively administer $4.5 trillion in assets, employ more than 1.4 million men and women and are responsible for most of Canada’s private-sector exports, investment and training.

For more information about this week’s conference, visit www.PacificCentury.ca

“BRT, CMHN and CCCE have a long history of working together to strengthen the beneficial economic ties among our respective nations.  While the North American market is huge, and trade between Canada, Mexico and the United States is healthy and growing, we need to seek ways to make our market more globally competitive.

“Over the past two decades, growth in North American trade and investment has promoted regional, cross-border supply chains that have benefited the United States, Canada and Mexico alike.  However, at a time of major change in the global economy, our organizations believe it is essential that we continue to enhance the ability of U.S., Canadian and Mexican companies and workers to compete internationally. 

“Our organizations endorse Mexico’s and Canada’s joining the United States and eight other Pacific Rim nations in the ongoing Trans Pacific Partnership (TPP) negotiations.  The TPP will not only help strengthen North American economic ties, but also holds the promise of significantly enhancing trade and investment opportunities for our three nations with other countries in the fast-growing Asia-Pacific region.

“Our three organizations will also continue to work with our respective governments to promote regulatory cooperation and to further measures that secure our borders and expedite the legitimate movement of goods and people throughout the North American market.

“Finally, North America is blessed with an abundance of energy resources.  While our three nations have a history of close cooperation on many energy matters, more can be done to reduce regulatory burdens that inhibit the quest for growth and North American energy self-reliance.

“Our three organizations are making a strong and growing North American market a priority, and urge our respective policymakers to ensure that Canada, Mexico and the United States – and the businesses, farmers, consumers and workers they represent – are positioned to compete and win in an increasingly competitive global marketplace.”

Business Roundtable (BRT) is an association of chief executive officers of leading U.S. companies with more than $7.3 trillion in annual revenues and nearly 16 million employees. BRT member companies comprise nearly a third of the total value of the U.S. stock market and invest more than $150 billion annually in research and development – equal to 61 percent of U.S. private R&D spending. Our companies pay $182 billion in dividends to shareholders and generate nearly $500 billion in sales for small and medium-sized businesses annually. BRT companies give more than $9 billion a year in combined charitable contributions. Visit the BRT at www.brt.org.

The Canadian Council of Chief Executives (CCCE) is the senior voice of Canada’s business community, representing 150 chief executives and leading entrepreneurs in all sectors and regions of the country. CCCE member companies collectively administer $4.5 trillion in assets, have annual revenues in excess of C$850 billion, employ more than 1.4 million men and women, and are responsible for most of Canada’s private sector investment, research and development and training.

The Consejo Mexicano de Hombres de Negocios (CMHN) has as its membership the CEO’s of the largest Mexican Companies. Its mandate is to provide initiatives and efforts for Mexico’s growth and development, and to promote the image of Mexico abroad. The Council has 39 members, who in the last five years invested more than $75 billion US dollars, exported more than $70 billion and provided direct employment to more than one million persons.

“Many of Canada’s richest resource and energy assets are found near Aboriginal communities,” says the report, copies of which were sent to all Canadian premiers and territorial leaders in advance of their meeting in Halifax later this month. Titled Framing an Energy Strategy for Canada, the submission offers a series of recommendations for a Canadian energy strategy.

The CCCE is the senior voice of Canadian business, representing the CEOs and entrepreneurs of 150 leading companies.

In its submission to the premiers, the CCCE acknowledges that Aboriginal peoples have “legitimate concerns” about major resource developments, “including implications for land claims, the impact on their communities and way of life, as well as on the land, air and water around them.”

At the same time, the report says that energy and other resource development projects can provide native communities with a wide array of benefits, such revenue-sharing agreements, equity interests, improved employment opportunities, training and service contracts with Aboriginal-owned businesses.

 “Aboriginal youth face chronic underemployment and are the fastest-growing segment of the Canadian population,” said The Honourable John Manley, the CCCE’s President and Chief Executive Officer. “Meanwhile, Canadian companies, particularly in resource industries, are facing skills and labour shortages. Business, Aboriginal leaders and governments should work together to find solutions that will benefit Aboriginal communities and strengthen Canada’s workforce.”

The CCCE report calls on the Premiers to help build a Canadian energy strategy that:

• promotes energy conservation;
• contributes to North American energy self-sufficiency;
• helps to diversify Canada’s energy export markets;
• promotes investments in energy infrastructure and clean energy technology;
• streamlines regulatory approval processes;
• ensures consistency in national and provincial climate policies; and
• addresses the labour market needs of Canada’s energy sector.

The CCCE brings CEOs together to shape public policy in the interests of a stronger Canada and a better world. Member CEOs and entrepreneurs represent all sectors of the Canadian economy. The companies they lead collectively administer C$4.5 trillion in assets, have annual revenues in excess of C$850 billion, and are responsible for the vast majority of Canada’s exports, investment, research and development, and training.

“By restraining the growth in public spending, reducing regulatory overlap, improving Canada’s immigration system and enhancing support for business-driven research, the government is helping to build a stronger and more competitive Canadian economy,” said The Honourable John Manley, the CCCE’s President and Chief Executive Officer.

The CCCE is the senior voice of Canadian business, representing 150 chief executives and entrepreneurs from all major sectors and regions of the country.

“Budget 2012 builds on our country’s reputation for fiscal responsibility, while at the same time establishing a more positive environment for private sector investment and growth,” Mr. Manley said.
   
The CCCE welcomes the budget’s commitments to:

• Build a faster and more flexible immigration system aimed at meeting Canada’s labour market needs;
• Reform the review process for major economic projects to establish clear timelines and reduce regulatory duplication;
• Intensify Canada’s pursuit of new and closer trade relationships, particularly in emerging markets;
• Introduce targeted improvements to the foreign ownership review process that will strengthen investor confidence and enhance transparency;
• Improve First Nations education and expand opportunities for Aboriginal peoples to participate fully in the economy;
• Enhance job opportunities for military reservists by compensating employers for the costs they incur when reservists are called to serve abroad;
• Reduce delays at the Canada-U.S. border by significantly increasing exemption limits for returning Canadian travelers.

The CCCE also welcomed the government’s commitment to streamline and simplify the broad array of programs that support business innovation, but cautioned that some of the proposed changes may reduce Canada’s attractiveness as a location for research and development. In particular, the proposal to eliminate the tax credit for research-related capital expenditures could hurt capital-intensive companies that conduct R&D in Canada.

Mr. Manley noted that a year ago, Finance Minister Jim Flaherty called on Canada’s private sector to “step up to the plate” by increasing their investments in new, productivity-enhancing machinery and equipment. In fact, Budget 2012 shows that business investment across the country has increased dramatically every year since 2009 and is on track to set a new record in 2012.

Still, Mr. Manley said he was disappointed that today’s budget fails to provide relief to federally regulated companies with costly defined-benefit pension plans. In the current low-interest-rate environment, such companies are being forced to cancel or postpone major capital investments in order to meet strict pension-solvency requirements. “By providing federally regulated employers with more flexibility in funding their pension plans, Canada could benefit from much greater private-sector investment in jobs and growth,” Mr. Manley said.
 
Founded in 1976, the CCCE is a non-partisan organization that engages in public policy research, consultation and advocacy. Its members lead companies that collectively administer $4.5 trillion in assets, employ more than 1.4 million men and women and are responsible for most of Canada’s private-sector exports, investment and training.

Despite the sensitivities that often surround such deals, the vast majority of proposed foreign acquisitions “pose no plausible threat whatsoever” to national security, writes Theodore H. Moran, a professor of international business and finance at Georgetown University in Washington, D.C, and Non-Resident Senior Fellow at the Peterson Institute for International Economics.

Dr. Moran’s paper, “Chinese Foreign Direct Investment in Canada: Threat or Opportunity”, is being published today by the Canadian Council of Chief Executives (CCCE) as part of a series of reports and articles examining the impact on Canada of Asia’s growing economic power.

The views expressed in the paper are those of the author and do not necessarily reflect the position of the CCCE or its members.

In today’s report, Dr. Moran considers two issues of central interest to Canada as Chinese foreign direct investment (FDI) grows to be a major force in the global economy:

• How does Chinese FDI affect the structure of natural resource industries around the world?
• When does the foreign acquisition of an existing firm constitute a national security threat to that firm’s home country?

On the first question, Dr. Moran rejects the suggestion that Chinese investments in the natural resource sector have the effect of “locking up” the world’s resource base. On the contrary, a review of several dozen recent Chinese acquisitions and procurement arrangements shows that most of them actually help to expand and diversify resource production and increase competition within the affected industry.

As to whether a given foreign takeover poses a risk to national security, Dr. Moran recommends the adoption of a new threat-assessment framework based on three distinct categories of undesirable foreign acquisitions:

• Takeovers that would render the home country dependent on a foreign-controlled supplier that might deny or place limits on the provision of goods or services crucial to the functioning of the home economy;
• Takeovers that would allow the transfer into foreign hands of technology or expertise that might be deployed in a manner harmful to the home country’s interests;
• Takeovers that would give the new owner’s government, or some other hostile force, a platform for espionage, surveillance or sabotage, through the provision of goods or services crucial to the functioning of the home economy.

Acquisitions that fall into any of those three categories can legitimately be rejected on national security grounds, Dr. Moran says. However, that accounts for only a small percentage of proposed foreign takeovers. The rest, he says, may or may not deserve to be blocked on other grounds, but cannot fairly be considered threats to national security.

The adoption of this three-part threat assessment framework by Canada – and other countries – would “help to dampen politicization of individual cases, enabling swift and confident approval of those acquisitions from which genuine national security threats are absent,” Dr. Moran says. The entire international economic system would benefit, he argues, if OECD countries – and non-OECD countries such as China and India – were to accept this common threat assessment methodology.

In 2009, Parliament gave the federal government the power, under the Investment Canada Act, to review foreign acquisitions that “could be injurious to national security.”  However, the Act does not contain a definition of what is considered injurious to national security and does not say what factors are to be considered as part of a review.

The CCCE is the senior voice of Canada’s business community, representing 150 chief executives and leading entrepreneurs in all sectors and regions of the country. Its members lead companies that collectively administer $4.5 trillion in assets, employ more than 1.4 million men and women and are responsible for most of Canada’s private-sector exports, investment and training.

“Better conservation practices will help to insulate Canadians from volatile energy prices, reduce costs for public institutions such as schools and hospitals, and improve the international competitiveness of Canadian companies,” says the report, released today by the Canadian Council of Chief Executives (CCCE).

The CCCE is the senior voice of Canada’s business community, representing 150 chief executives and leading entrepreneurs from all major sectors and regions of the country.

“Few Canadians deliberately waste energy, but the choices we make push us toward higher energy consumption,” said The Honourable John Manley, the CCCE’s President and Chief Executive Officer. “A renewed commitment to energy conservation would save money, reduce traffic congestion, improve productivity and make our cities more liveable.”

Today’s report, Energy-Wise Canada: Building a Culture of Energy Conservation, suggests two ways of reducing Canada’s energy consumption footprint.

First, Canadians need to become more knowledgeable about their energy choices so they can make informed decisions based on actual costs and benefits. Although most Canadians profess to be environmentally conscious, our behaviour often tells a different story. Today’s cars, for example, are typically more fuel-efficient than older models, but there are more of them and we drive many more kilometers each year.

Similarly, new building codes and better construction materials have made Canadian houses more energy-efficient, yet the average size of a new dwelling continues to increase and our homes contain many more energy-consuming appliances and devices such as computers and televisions, operating for more hours.

Second, the report says that if governments are serious about wanting to promote conservation, they should resist the populist temptation to shield voters from higher energy prices. In most provinces, the government-regulated rates paid by households and some industries for electricity do not even cover the cost of producing and delivering it. Ultimately these costs will have to be recouped through the general tax base.   

The report reiterates the CCCE’s longstanding support for a broad-based carbon pricing scheme that would help to both reduce greenhouse gas emissions and encourage conservation. “It seems clear that higher prices will influence Canadians’ behaviour in a way that public exhortation and appeals to the greater good have not.” 

The report adds, “Canadians – as business owners, farmers, building managers and individual consumers – need to see the everyday cost of inefficient use of energy and be motivated to change their energy consumption patterns and investment decisions.”

Founded in 1976, the CCCE is a non-partisan organization that engages in public policy research, consultation and advocacy. Its members lead companies that collectively administer $4.5 trillion in assets, employ more than 1.4 million men and women and are responsible for most of Canada’s private-sector exports, investment and training.