FINA Committee Report

The Committee launched its pre-budget consultations in June 2011. With this report, we conclude our 2011 consultations in an international setting in which a number of countries and regions are experiencing economic turmoil. Canada is a small, open economy: what happens internationally affects our nation as well as its citizens and businesses.

As discussed in Chapter 1, the federal government often implements public policy measures designed to strengthen federal finances, businesses, communities and people. Moreover, as also noted in that chapter, the Committee believes that strength in each of these four areas contributes to a resilient nation and a sustained recovery from the global economic downturn. In turbulent times, and with continued economic challenges abroad, actions should be taken to promote strong federal finances, businesses, communities and people.

The resiliency of a nation is sustained by sound federal finances. In this context, the Committee made recommendations in relation to continued support for jobs and growth, financial literacy, constrained spending, a review of spending to ensure efficiency and effectiveness, and federal budgetary balance. These recommendations are designed to ensure federal finances that will enable the federal government to stimulate economic growth, as required, and that will ensure that future generations do not face the burden of ever-increasing debt.

The nation’s resiliency and economic recovery will be influenced by the prosperity of Canada’s businesses. A country’s businesses are the engines of economic growth because they employ people, provide the goods and services that society wants, and make investments that increase productive capacity and productivity. In seeking to support the nation’s businesses, the Committee made recommendations about corporate taxation, tax evasion, regulations, support for particular industries, internal and international trade, and research and development. In our view, implementation of these recommendations would enhance the ability of Canadian businesses to prosper, for both their own benefit and that of the nation.

As well, Canada is more resilient when communities support the people and businesses that live, work and operate in them. Communities include infrastructure, the environment, housing and property ownership, domestic and international charitable giving and aid, support for selected industries and limits on certain activities that are either illegal and/or undesirable. The Committee made recommendations in each of these areas, believing that their implementation would enhance the strength of communities.

Canada’s sustained recovery depends in part on the ability of people to contribute to their country, as family members, employees and community members. In an effort to support Canadians, the Committee made recommendations in the areas of personal taxation, health, education, job support, and retirement savings and income. These recommendations are designed to contribute to Canada’s prosperity.

In conclusion, the Committee feels that Canada’s strength is enhanced by strong federal finances, businesses, communities and people, and that resiliency will help to sustain the economic recovery that is under way in Canada but that remains vulnerable to the turmoil being experienced in a number of nations worldwide. Canada needs a sustained recovery for the benefit of its businesses, communities and people, and we believe that implementation of the recommendations in this report will help to bring about the strength needed for a prosperous future.