Related News: "Fiscal and Tax Policy"
The Canadian Council of Chief Executives (CCCE) enthusiastically welcomes the decision by federal Finance Minister Ralph Goodale to launch a federal-provincial discussion on reform of securities regulation.
“The flow of money around the world is growing with astounding speed. Canadian companies need more efficient access to capital. Canadian markets need to attract greater investment from abroad. Canadian investors need stronger protection and better access to investment opportunities,” said CCCE Chief Executive and President Thomas d’Aquino.
“Canada’s current system of 13 provincial and territorial regulators is too fragmented, too costly and too slow to manage change in this global environment. Canada needs a single regulator for its securities markets.”
The CCCE recently launched a major initiative aimed at improving Canada’s competitiveness. In a June 2005 statement signed by the Executive Committee, Canada First! Taking the Lead in a Transforming Global Economy, the CCCE highlighted the role of fragmented regulation of securities markets in reducing business investment and inhibiting productivity growth.
“We are delighted to see the government begin to focus more intensively on issues related to productivity and economic growth, and we are committed to working with the federal and provincial governments to find a way to move toward a … Read more »
CEOs of Leading Companies Launch Major Initiative to Strengthen Canada’s Competitiveness and Prosperity
The chief executives of 150 leading corporations today launched a major initiative aimed at boosting Canadian productivity and positioning the country to compete more effectively in the global economy.
“As leaders of Canadian enterprise, we are concerned about the future of our country,” the business leaders say in a 3,700-word declaration titled Canada First! Taking the Lead in a Transforming Global Economy.
The statement was released by the Canadian Council of Chief Executives (CCCE) and signed by all seven members of its Executive Committee. In addition to Thomas d’Aquino, the CCCE’s Chief Executive and President, they are Richard L. George, Dominic D’Alessandro, Paul Desmarais, Jr., Jacques Lamarre, Gwyn Morgan and Gordon Nixon, the chief executives respectively of Suncor Energy Inc., Manulife Financial, Power Corporation of Canada, SNC-Lavalin Group Inc., EnCana Corporation and Royal Bank of Canada.
The statement recognizes that by most economic and social measures, Canada appears to be in good shape. But beneath the seemingly healthy surface, there are many disturbing signals: runaway growth in public spending, a tax structure that is biased against investment, a fragmented, costly and overly complex regulatory structure, lagging productivity, a poor record of attracting foreign investment, and declining levels of public … Read more »
The federal government’s agreement in principle with the New Democratic Party to roll back corporate tax cuts sends a message to the world that Canada is losing interest in competing for investment and jobs, says the Canadian Council of Chief Executives (CCCE).
The tax cuts of the past five years have had a dramatic impact in stimulating job creation, raising incomes and boosting tax revenue for governments, but as Prime Minister Paul Martin himself has acknowledged, the world is changing quickly and radically, said the CCCE, a non-partisan organization composed of the chief executives of 150 leading Canadian enterprises.
“Governments around the world increasingly are turning to tax policy as the most effective tool in their arsenals for attracting new investment, accelerating economic growth, raising family incomes and funding social programs,” said CCCE Chief Executive and President Thomas d’Aquino.
The C.D. Howe Institute noted in a new study released today that the corporate tax cuts in the 2005 budget combined with those of earlier years will stimulate $56 billion in capital investment by Canadian businesses, raising Canada’s Gross Domestic Product by $5 billion a year and creating 340,000 jobs at little fiscal cost to Canadian governments.
Since 1997, 25 of the … Read more »
While expressing concern about the overall rate of spending growth in the federal budget tabled yesterday by Finance Minister Ralph Goodale, the Canadian Council of Chief Executives (CCCE) welcomes its bedrock commitment to fiscal prudence, its recognition of the importance of more competitive tax rates and its allocation of significant new resources to Canada’s military and international presence.
“Sound fiscal policy, debt repayment and tax cuts have been key drivers of the strong economy that has enabled the government to make so many commitments to improving the quality of life of Canadians. We need to keep reinvesting in our economy in order to sustain these commitments, and the budget takes some important steps in the right direction,” said CCCE President and Chief Executive Thomas d’Aquino. Key elements of the budget include:
Competitive corporate tax rates are the most cost-efficient way for governments to attract business investment and create jobs. The budget notes that falling corporate income tax rates in the United States threaten to erode Canada’s modest advantage in this area, and responds with the elimination of the corporate surtax, imposed to fight deficits that have not been seen in eight years, and with a further reduction of … Read more »
The following are comments by David Stewart-Patterson, Executive Vice-President of the Canadian Council of Chief Executives (CCCE), on the 2005 Federal Budget tabled today in the House of Commons by Finance Minister Ralph Goodale:
“The biggest concern for business leaders is the overall rate of spending growth. Much of the new spending is going to meet very important priorities, from improving health care to strengthening our armed forces. But overall program spending is up by 12 percent this year and has grown 44 percent over the past five years. I doubt that many Canadians have seen their paycheques rise that fast, and unless Canada continues to enjoy strong economic growth, I am worried that the government may not be able to sustain the many commitments it has made to improving social programs.
“I am encouraged that the government has recognized the importance of a competitive tax regime, and in particular of keeping Canadian corporate incomes tax rates significantly below those in the United States in order to attract more investment and jobs. The elimination of the corporate surtax and the further reduction of two percentage points in the corporate income tax rate, starting in 2008, are important steps forward. These … Read more »
The following are comments by Thomas d’Aquino, President and Chief Executive of the Canadian Council of Chief Executives (CCCE), in response to the Autumn 2004 Economic and Fiscal Update by Minister of Finance Ralph Goodale before the House of Commons Standing Committee on Finance:
“Finance Minister Ralph Goodale was right on the money when he said that running surpluses, paying down debt and cutting taxes have given Canada the best economic and job growth in the G-7. What is disappointing is how little he said about what needs to be done to reinforce this virtuous circle.
“Despite all the good news Canadians are hearing today, the minister recognized that Canada’s economy faces some real risks. The sharp rise in the Canadian dollar is slashing profits for many exporters even as they face an urgent need to invest in new technology to improve their productivity. Meanwhile, high oil prices together with huge trade and budget deficits and rising interest rates in the United States threaten to cut demand in Canada’s biggest export market.
“The degree of uncertainty in the economic outlook means that Finance Minister Goodale is absolutely right to stick to his guns in defending fiscal prudence and the benefits of … Read more »
A new round of federal tax cuts is needed to ensure that the Canadian economy can withstand the pressures of a rising Canadian dollar, more intense competition and a looming global slowdown, Canada’s business leaders say.
“In recent years Canada has enjoyed an extraordinary run of robust economic growth, but the good times will not last forever,” Thomas d’Aquino, President and Chief Executive of the Canadian Council of Chief Executives (CCCE), said in a speech today to a conference in Ottawa on Canadian international policy. The CCCE is composed of the chief executives of 150 leading Canadian corporations and is devoted to strengthening the country’s economy and society through the development of sound public policy.
Expressing deep concern about surging fiscal and trade deficits in the United States, growing protectionism, instability in oil producing states and the threat of global terrorism, Mr. d’Aquino called for a concerted strategy for enhancing Canada’s future economic growth. “Smart tax policy is the key to sustaining and improving the quality of life of Canadians. It is also the most effective way for Canada to achieve a significant competitive advantage in the global struggle to attract business investment and jobs.”
Mr. d’Aquino’s call for a … Read more »
The following are comments by Thomas d’Aquino, President and Chief Executive of the Canadian Council of Chief Executives (CCCE), after this morning’s unveiling of the new federal Cabinet by Prime Minister Paul Martin:
“The Prime Minister has retained a solid core of experienced ministers and added some excellent new talent in key portfolios. The new Cabinet points to a government that can be expected to proceed constructively in building on Canada’s economic strengths while maintaining stability and exercising sound fiscal management.”
“We look forward to working with Prime Minister Martin and his new team in pursuing the Council’s priorities in the areas of spending review and reallocation, tax policy, health care, the environment, regulatory reform, parliamentary reform, Canada-United States relations and Canada’s global influence and competitiveness.”
Fiscal Prudence and Sound Economic Policies Must Be Top Priorities of Canada’s New Parliament, Business Leaders Say
Canada’s most influential business organization, the Canadian Council of Chief Executives (CCCE), said this morning that fiscal prudence and sound economic policies must be the top priorities of Canada’s new parliament.
This message was accompanied by a six-page memorandum addressed to Prime Minister Paul Martin and the three other leaders of the major political parties.
“Canada’s economic record of the past decade has been the envy of the world,” says Thomas d’Aquino, the CCCE’s President and Chief Executive. “Strong economic growth, low inflation, robust job creation and steadily improving productivity have generated back-to-back federal surpluses and ever-rising tax revenues. These in turn have financed improvements in healthcare, social spending, defence and security.”
The London-based magazine The Economist recently referred to Canada as “an unfinished masterpiece,” Mr. d’Aquino noted. “Irresponsible spending and policies that would hurt investment and entrepreneurship will guarantee that the masterpiece will not be finished,” he said.
He added that Canadians of all walks of life have the most to lose if Canada’s new parliament fails to adhere to a responsible program of spending restraint, competitive tax rates, smarter regulation, improved Canada-United States relations and sound trade and investment policies that promote economic growth and job creation.
Referring … Read more »
The federal budget tabled today by Finance Minister Ralph Goodale restores a welcome tone of prudence to the nation’s finances, says the Canadian Council of Chief Executives (CCCE).
“The decision to return the contingency reserve and prudence factors to at least $4 billion a year, the commitment to reduce the federal debt to GDP ratio to 25 percent within 10 years and a long overdue pause in the rampant growth of program spending will all help to maintain Canada’s fiscal leadership and economic competitiveness at a time of considerable global risk and uncertainty,” said the CCCE’s President and Chief Executive, Thomas d’Aquino.
The federal government rightly acknowledges the two main risks to the Canadian economic outlook: the uncertainty surrounding the impact of the rapid rise in the Canadian dollar and the sustainability of the United States economic recovery.
Mr. d’Aquino welcomed the budget’s sharp drop in spending growth. Direct program spending, which jumped by 15 percent during the current fiscal year, will grow by just 2.3 percent in fiscal 2004/05 before moving back up to 4.9 percent in 2005/06. Within the modest spending proposals included in the budget, the Council supports the emphasis on measures to increase access to learning, … Read more »