The leadership Canadians deserve is in short supply

By: Perrin Beatty

 

In recent weeks, Canadians have been told repeatedly that our economic fundamentals are strong relative to other countries. This is cold comfort when the global financial crisis has become the most grave in more than half a century.

 

Canada is in a recession and Canadians are feeling the pain. Consumers are fearful for their jobs and are curtailing their spending. Businesses are cutting back on capital investments and laying off staff. No Canadian is immune. Retirees continue to see their pension savings – and their dreams - evaporate. The risk to the fundamental well-being of all Canadians grows by the hour. 

 

And what have our federal parties been doing? They have been squabbling over political spoils; actual and prospective.   Canada’s business leaders are incredulous at the manoeuvring of all the political parties to either gain or retain power, while they fight for their businesses’ lives.

 

In two communiqués our Board sent last week to all federal leaders, we implored them to set aside their political interests and focus on introducing measures that not only keep Canada’s economy from slowing further, but foster some potential for economic growth by bolstering investor and consumer confidence. Canadians need our best minds focussing on leading us out of this economic crisis, not on political one-upmanship. Partisan interests must be set aside and all Parliamentarians must – as they promised they would - work together in the interests of Canadians.

 

Canada’s businesses stand ready to be part of the solution. We urge the Government to immediately begin intensive consultations with our community, other levels of government and additional key stakeholders to map out a strategy to move us forward and out of this economic crisis. A strategy needs to be realistic in its assumptions about Canada’s economic performance, provide stimulus to move us back to economic growth and contain a clear plan to avoid a return to long-term structural deficits.

 

Canada needs a strategy that will do more than allow us to tread water during an economic storm. The Government should be looking ahead to economic recovery and growth. Such an approach will not only help Canada cope in these times, but set us up for greater success when the economic tides turn.

This is why we believe an economic strategy needs to include the acceleration of infrastructure projects that have been approved and for which environmental assessments have been – or are about to be - completed. This will not only provide quick economic stimulus, but will strengthen Canada’s competitive edge when the business cycle rebounds. 

 

Businesses have based their plans upon previously-announced corporate tax reductions and they must be allowed to proceed.

Taxes that increase the cost of capital and deter investment must be eliminated. This is why the Government needs to work with the provinces and territories to phase out provincial/territorial capital taxes. Remaining provincial and territorial retail sales taxes need to be harmonized with the GST.

Economic benefits for years to come would be created by accelerating the timetable to eliminate interprovincial/territorial barriers to trade and mobility. 

At the same time, the Bank of Canada needs to continue to ensure liquidity and affordable credit for Canadian businesses and consumers.

Canada competes globally, so our Government’s work with other countries and central banks to restore global economic growth in both the short and long-terms remains critical.

Canada’s businesses are prepared to do what is needed to move us forward. We need our political leaders to do the same.