Debt and Consumption
Household debt is at an all-time high, reaching $1 trillion in 2006. And Canadians’ personal saving rate is at an all-time low dropping to 1.2 per cent in 2005. What do Canadians’ think about this state of affairs? In a recent survey, CGA-Canada found that many Canadians are in denial about their debt and believe escalating debt and lack of savings are no cause for concern.
Internal Trade and the Agreement on Internal Trade
The reduction and elimination of internal trade barriers is paramount for the efficiency of our economy. Having gained considerable experience in using the Agreement on Internal Trade to eliminate barriers to labour mobility, CGA-Canada concludes that governments need to re-think their approach to regulating domestic trade. Recommendations on how to create an open, efficient and predictable domestic market is CGA-Canada’s contribution to this debate.
Canada’s Aging Population
The graying of Canada’s workforce will have long-term repercussions on Canada’s economic and social fabric. CGA-Canada has researched, written and commented on attendant issues such as health system pressures, labour supply concerns, intergenerational relationships and the sustainability of social and private income security programs.
Productivity
CGA-Canada is concerned about the declining competitiveness and productivity in Canada. In its 2007 pre-budget submission to the House of Commons Standing Committee on Finance and subsequent research report, CGA-Canada calls on the government and the business community to take action on improving our country’s productivity. Investing in Canada’s labour force, fostering a competitive investment environment, streamlining taxation and improving regulatory efficiency are essential ingredients for the future prosperity of individuals, business and government.
Sustainability
The current corporate climate places increasing pressure on companies to improve their accountability, corporate governance and environmental performance. As a consequence, corporate sustainability reporting is growing – many stakeholders, including investors, lenders, insurers and analysts have now come to expect it. CGA-Canada supports this movement towards greater accountability, and agrees that accepted sustainability reporting guidelines are necessary to maintain efficient capital markets and allow for comparable, consistent, and credible reporting.
Pensions
CGA-Canada has produced two research reports on pensions in Canada pointing to serious funding shortfalls in defined benefit pension plans. The reality in Canada today is that our workforce is aging, and in the very near future, fewer workers will have to support a rapidly growing group of retirees. This, combined with the underfunding of defined benefits pension plans and the move to provide less generous pension plans, has the potential to negatively impact the retirement of many Canadians.
Taxation
Each year prior to the federal budget, CGA-Canada presents recommendations to be considered by the House of Commons Standing Committee on Finance in the pre-budget consultative process. CGA-Canada believes Canada’s high effective tax rate undermines our global competitiveness, and therefore has been an advocate for reduction in both personal and corporate taxes in order to fuel Canada’s productivity.
Regulatory Efficiency
CGA-Canada believes that the government should streamline, reduce and simplify the regulatory burden on small and medium-sized businesses. CGA-Canada published a report on the impact of regulation on SMEs and recommends the government assess the costs of regulation, establish reduction targets and make this information available to the public.
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