Perspective
A Busy Legislative Agenda
FROM:
NOV-DEC 2004 ISSUE | BY JOHN NAGY, FCGA — CHAIR, CGA-CANADA
I was in Ottawa recently meeting with newly minted Members of Parliament including our own Yasmin Ratansi, MP, CGA, elected last June in the Ontario riding of Don Valley East. Top of mind concerns for the new MPs and for all who toil in the nation's capital ultimately turn to the results of the June federal election, Paul Martin's new Cabinet, and the fall legislative agenda.
Recently, after much 11
th hour negotiation, Canada's First Ministers agreed to a
$41 billion,10-year deal on health care; a deal which promises better care, improved access, and reduced waiting times. Many observers hope this new agreement could fuel a much-needed renewal process for Canada's ailing health care system. However, from a CGA perspective, strong accountability provisions and a commitment to making information available to Canadians so we can judge progress for ourselves, are equally important elements for success.
Finance Minister Ralph Goodale assures us this new health care deal will not compromise the upcoming federal budget. He is determined to bring in a balanced budget. That document is expected to be released some time in early 2005. Without giving specifics, the
Finance Minister recently told an Ottawa audience that the fiscal situation is improving in Canada, and the numbers will be better than the Budget 2004 forecast. He hinted that targeted tax measures might be on the horizon. In general, we are pleased the Minister is committed to reducing the federal debt and keeping a good contingency reserve to protect against unexpected economic shocks.
These are reassuring signs for CGA-Canada as we prepare to present our annual pre-budget brief to the Minister and Members of Parliament. This year our brief will seek specific commitments from Ottawa to reduce the federal debt-to-GDP ratio, to maintain a minimum
$3 billion yearly contingency reserve, and to apply any contingency reserve and economic prudence surpluses against the federal debt.
CGA-Canada argues strongly that there should be a bedrock commitment to balanced budgets and to containing program spending growth at
three per cent per year. To achieve this, we will be looking to the federal civil service to better direct resources to program priorities and to ensure current and future spending generates the very highest returns in program value.
Moreover, last June, as part of the government's efforts to strengthen financial oversight across the federal government, it appointed
Charles-AntoineSt-Jean as Comptroller General of Canada. We look forward to his progress report when he speaks at the
CGA-Canada sponsored Economic News Luncheon in Ottawa this November.
On another key topic, the 2004 Federal Budget promised to introduce amendments to the
Canada Business Corporations Act on auditor independence and auditor oversight. These amendments would require auditors of publicly listed companies to participate in the Canadian Public Accountability Board (CPAB). This is good for Canada and good for audit firms as the dozen or so participating CGA firms will attest. Yet, it is important to emphasize once more that CPAB remains a flawed institution. You can be sure that we will be taking every opportunity to remind the federal government that, like its U.S. counterpart, the Public Company Accounting Oversight Board, CPAB should be legislatively sanctioned.
So without a doubt, it will be a busy fall in Ottawa. As always,
CGA-Canada will be keeping a close watch on the Hill and will be acting in the best interests of CGAs.
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