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FINA Committee Report

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CHAPTER EIGHT: COMMITTEE RECOMMENDATIONS

BALANCING THE FEDERAL BUDGET TO ENSURE FISCAL SUSTAINABILITY AND ECONOMIC GROWTH

1. That the federal government remain focused on its plan to return to budgetary balance and introduce balanced budget legislation to ensure future fiscal and spending restraint.

2. That, recognizing the fragile global economic situation that includes commodity price volatility, the federal government maintain its commitment to fiscal sustainability.

3. That the federal government continue to scrutinize and review the spending of taxpayers’ dollars in order to eliminate waste and inefficiencies. As part of this effort, the government should undertake an ongoing review of federal assets to ensure the most effective and efficient use of government resources, and – thereby – value for taxpayers.

4. That the federal government continue to review federal public sector compensation and benefits to ensure their ongoing financial sustainability and fairness, and to make them more competitive with other public- and private-sector employers.

5. That the federal government and the Bank of Canada continue to support the current inflation-targeting framework.

6. That the federal government build on its recent successes and historic free trade agreements, such as those reached with the European Union and South Korea, and continue to pursue an aggressive trade agenda in order to enhance economic growth and help bring Canadian goods and services to new international markets.

SUPPORTING FAMILIES AND HELPING VULNERABLE CANADIANS BY FOCUSING ON HEALTH, EDUCATION AND TRAINING

7. That the federal government both maintain its trend of record-high transfers to the provinces and ensure there are no reductions to health care, social services and education.

8. That the federal government continue to promote the importance of health, sport and an active lifestyle. As part of these efforts, the government should ensure the existence of support for amateur athletes, organizations that promote healthy living for children and adults, and Canadian families wishing to place their children in sports or other fitness activities.

9. That, in an effort to improve the health care system for all Canadians, the federal government  continue to support health-related research and medical discovery.

10. That the federal government continue to provide targeted and results-focused support and funding to health, disease and disability charities. In recognizing the important research and initiatives that are being undertaken, the government – in partnership with the public sectors and the private sector – should consider providing funding to some issues that are increasingly prevalent, such as dementia, support for the blind, mental health, and eating disorders.

11. That the federal government examine ways to help Canadians save for long-term care. Moreover, the government should examine innovative means by which to support retirement security for seniors, such as through modifications to registered retirement income fund withdrawal rates.

12. That the federal government – in partnership with the provinces and territories – consider evaluating success metrics of post-secondary education transfers to the provinces and territories for universities. As well, the government should work with the provinces and territories to improve labour market information.

13. That the federal government help Canadian students by considering an exemption for additional in-study income when assets are being assessed for purposes of the Canada Student Loans Program.

14. That the federal government continue to provide funding in order to increase participation in the First Nations Land Management Regime, which has been successful in promoting First Nations autonomy and economic development.

15. That the federal government adjust the federal funding approach to on-reserve housing to incentivize projects that promote jobs and skills training, partnerships with other funding organizations, and a higher quality of housing.

16. That, in recognizing the increasing costs of raising a family, the federal government build on its record of putting more money back into the pockets of Canadian families. Furthermore, by providing benefits directly to families – such as the increase to the Universal Child Care Benefit and the proposed family tax cut – the government should continue to demonstrate a commitment to lowering taxes.

17. That the federal government continue building on successful initiatives that encourage charitable giving. In this regard, the government should explore measures that would prompt higher levels of charitable donations, such as a stretch tax credit.

18. That, recognizing its importance to the prosperity and well-being of all Canadians, the federal government continue to promote financial literacy. In that regard, the government should ensure that Canadians are able to access the resources, tools and information that are needed for them to make smart financial decisions.

INCREASING THE COMPETITIVENESS OF CANADIAN BUSINESSES THROUGH RESEARCH, DEVELOPMENT, INNOVATION AND COMMERCIALIZATION

19. That the federal government continue to build on its record support for research, innovation and development in Canada, and expand on its Canada First Research Excellence Fund. Moreover, recognizing support for the indirect costs of research, the government should provide stable and predictable funding for the research councils with a view to strengthening research partnerships with Canadian post-secondary institutions.

20. That the federal government encourage and support Canadian businesses to develop made-in-Canada solutions. As well, the government should work with these businesses in fostering a culture of innovation, such as through aiding small- and medium-sized businesses that wish to access the Scientific Research & Experimental Development investment tax credit and through exploring the feasibility of a “patent box.” Subsequently, the government should champion the growth of innovative Canadian companies and expanding research internships for the benefit of businesses and students. Finally, the government should encourage greater investments by the private sector in research and development.

21. That the federal government address productivity challenges by helping Canadian small- and medium-sized enterprises grow into global champions, notably by encouraging access to capital funds and pre-commercialization support.

22. That the federal government, in its support for skilled trades and all forms of post-secondary institutions and communities across Canada, consider an increase in the College and Community Innovation Program for polytechnics and colleges.

23. That the federal government consider new ways to increase support for the Canadian aerospace industry. As part of these efforts, the government should consider all options that would enhance related research, project development and job creation in Canada, specifically the creation of innovation hubs.

24. That the federal government renew the Targeted Geoscience Initiative.

ENSURING PROSPEROUS AND SECURE COMMUNITIES, INCLUDING THROUGH SUPPORT FOR INFRASTRUCTURE

25. That, recognizing proven successes to date and the high value for taxpayers’ dollars, the federal government continue to promote public–private partnership projects for public infrastructure.

26. That, with a view to promoting job creation and economic growth and building on the recent $5.8 billion in new federal infrastructure investments, the federal government encourage all provinces and territories to participate in the process of establishing infrastructure projects across the country under the New Building Canada Plan.

27. That the federal government continue to invest in infrastructure for municipalities and small communities, with special consideration given to natural disaster mitigation.

28. That the federal government examine ways to enhance the protection of electricity and energy-critical infrastructure, including efforts to combat copper theft.

29. That the federal government consider ways to encourage private-sector investment in natural gas vehicles and related infrastructure. As well, the government should make efforts to ensure that Canadian communities have access to affordable natural gas.

30. That the federal government build on its contributions and protection of Canada's environment and remain committed to its National Conservation Plan.

IMPROVING CANADA’S TAXATION AND REGULATORY REGIMES

31. That the federal government reaffirm its already strong commitment to keep taxes low and not impose new taxes on Canadians. In particular, any form of a carbon tax that would harm key sectors of the economy or be passed on to Canadian families in the form of higher prices should be avoided. As well, the government should continue to ensure the existence of a competitive tax system in order to promote job creation and attract new investments. In this regard, the government should ensure a continued commitment to small businesses and competitive personal income tax rates.

32. That the federal government increase tax fairness and equality in the tax system, and build on its strong record of combatting tax evasion – especially international tax evasion – and closing tax loopholes to ensure that all Canadians pay their fair share of taxes.

33. That the federal government explore new ways to simplify the Income Tax Act to reduce its complexity and the burden on Canadian taxpayers.

34. That the federal government remain vigilant in its efforts to reduce the burden of “red tape” on businesses and comply with its “One-for-One” rule. In addition to its focus on reducing regulation, the government should direct efforts to modernization, such as reducing the use of paper and utilizing the benefits of technology and digital solutions.

35. That, in an effort to strengthen Canada’s economy, the federal government continue to encourage the provinces and territories to eliminate internal barriers to trade and consider incentives to facilitate labour mobility within Canada.

36. That, in an effort to protect and promote the integrity of Canada’s financial system and enhance the country’s capital markets, the federal government continue to work co-operatively with willing provinces and territories on the establishment of a robust single common securities regulator that would protect and promote the integrity of Canada’s financial system and enhance Canada’s capital markets.

37. That, to safeguard the reputation of Canada’s banking system as the soundest in the world, the federal government continually review all relevant legislation and regulations to ensure the safety and security of the country’s financial sector. Moreover, the government should continue in its efforts to protect, and ensure accessibility and affordability for consumers of financial products and services.

38. That, in recognizing their importance as financial institutions and their place in Canadian communities, the federal government support credit unions and caisse populaires that are considering the transition to become federally regulated. As well, the government should examine means by which credit unions and caisse populaires could be on a level playing field with Canada’s large financial institutions.

39. That the federal government either extend the accelerated capital cost allowance (ACCA) or create similar tax incentives. As well, with a view to providing Canadian sectors – such as manufacturing, energy and clean technology – with a competitive advantage in the North American marketplace, the government should explore the feasibility of a longer horizon for the ACCA.

40. That, in an effort to support junior mineral exploration, the federal government consider making the 15% Mineral Exploration Tax Credit for flow-through share investors permanent.

41. That the federal government work with the provinces and territories to explore ways to allow interested airports and provinces to participate in an arrivals duty-free pilot project.

42. That the federal government continue to reduce or eliminate tariffs that apply to retail goods sold in Canada, beginning with the tariffs that are the lowest.

MAXIMIZING THE NUMBER AND TYPES OF JOBS FOR CANADIANS

43. That the federal government, in collaboration with the provinces, territories and industry, continue to promote the skilled trades. As well, the government should facilitate an increase in apprenticeship completion rates through incentives or continued reforms of the job market for apprentices.

44. That the federal government continue to identify ways in which to increase the labour market and economic participation of vulnerable Canadians, including youth, new Canadians, Aboriginal Canadians and persons with a disability, and continue to promote gender equality.

45. That, in relation to Canada’s youth, the federal government build on its strong record of assisting them with job and skills training, connecting them with employment, and creating internship and work experience opportunities for them. As well, the government should act on the recommendations in the report on youth employment in Canada by the House of Commons Standing Committee on Finance.

46. That the federal government support youth business mentorship and consider new incentives to invest in young entrepreneurs.

47. That the federal government maintain its strong support for veterans by providing key investments and services, and by exploring new ways to connect veterans with jobs after their service, such as a military skills translator.