CEOs of Leading Companies Launch Major Initiativeto Strengthen Canada’s Competitiveness and Prosperity

June 28, 2005

The chief executives of 150 leading corporations today launched a major initiative aimed at boosting Canadian productivity and positioning the country to compete more effectively in the global economy.

“As leaders of Canadian enterprise, we are concerned about the future of our country,” the business leaders say in a 3,700-word declaration titled Canada First! Taking the Lead in a Transforming Global Economy.

The statement was released by the Canadian Council of Chief Executives (CCCE) and signed by all seven members of its Executive Committee.  In addition to Thomas d’Aquino, the CCCE’s Chief Executive and President, they are Richard L. George, Dominic D’Alessandro, Paul Desmarais, Jr., Jacques Lamarre, Gwyn Morgan and Gordon Nixon, the chief executives respectively of Suncor Energy Inc., Manulife Financial, Power Corporation of Canada, SNC-Lavalin Group Inc., EnCana Corporation and Royal Bank of Canada.

The statement recognizes that by most economic and social measures, Canada appears to be in good shape.  But beneath the seemingly healthy surface, there are many disturbing signals: runaway growth in public spending, a tax structure that is biased against investment, a fragmented, costly and overly complex regulatory structure, lagging productivity, a poor record of attracting foreign investment, and declining levels of public trust in both government and business.

At the same time, intense competition from China and other emerging economic powerhouses is posing a severe challenge to the future of Canada’s manufacturing base.  In every sector of the economy, Canada faces the need to specialize and to shift toward higher value-added activities in order to protect the social services and the high quality of life that Canadians take for granted.

Against this backdrop, the business leaders say, there is an urgent need for focused leadership and strategic policy-making.  In political terms, Canada today is a nation adrift.

“If Canada is to succeed, it is essential that our politicians look beyond reactionary policies and short-term thinking, to the challenges facing our country’s future,” Mr. Morgan said.  “It is time to develop a renewed sense of national purpose and direction.”

As their contribution to that process, the business leaders intend to work together over the coming months to articulate a new national strategy and action plan, drawing on the expertise and advice of others who share their goal of a more prosperous and globally competitive Canada.  Their aim is to publish a final report and detailed recommendations before the next federal general election.

“We claim no mandate from the Canadian people and no monopoly on good ideas,” said Mr. George, who serves as Chairman of the CCCE in addition to his responsibilities at Suncor Energy.  “But Canada today is at a crossroads. We believe strongly that all citizens have a responsibility to offer their best ideas for advancing the national interest.”

Mr. D’Alessandro said that many Canadians are feeling frustrated and dismayed by the current lack of strategic policy-making at the federal level.  Rather than focusing on the long-term interests of the country, politicians and political parties are caught up in the struggle for momentary tactical advantage.

“As a society, we need to develop a clear vision of what Canada can achieve over the next five to 10 years and a bold strategy for realizing this vision in ways that will mobilize public support across all sectors and regions,” Mr. D’Alessandro said.

The Canada First! initiative will examine what can be done to improve the country’s performance in six areas that are key drivers of national prosperity:  good governance; public services and infrastructure; taxation and regulation; business investment and productivity; education and research; and immigration.

“In each of these six areas, we must commit ourselves to ensuring that Canada is first among nations,” Mr. Nixon said.  “If we pull out all the stops, there is no doubt in our minds that Canada can achieve its full potential.  But for that to happen, we must shake off our complacency as a nation and squarely face up to our challenges.”

Mr. Lamarre added, “What really matters to Canadians is not where our political parties stand in the polls five minutes from now, but what kind of country our children will inherit over the next generation.  It is time to put aside our short-term differences and think about what our country should look like by 2010 and 2015.”

For his part, Mr. Desmarais said that Canada cannot afford to stand still while its major trading partners improve their productive capacity and economic performance.  “As the rest of the world changes, we must adapt.  Governments can play a crucial role by creating an environment that encourages investment and growth.  Equally, as business leaders we must do our part by improving our productivity and by working harder to seize the opportunities of a global marketplace.”

Summing up and paraphrasing Shakespeare, Mr. d’Aquino said, “There is a swelling tide in the affairs of this country carrying with it the need for fresh ideas and new approaches.  We hope that Canada First! will help propel the tide forward.”

Founded in 1976, the Canadian Council of Chief Executives is a non-profit, non-partisan organization dedicated to making Canada “the best place in the world in which to live, to work, to invest and to grow.”

Composed of the chief executives of Canada’s leading enterprises, the CCCE has a long and proud history of contributing to important national debates, from free trade and constitutional reform to the battles against inflation and government deficits.

Member CEOs of the Council represent all sectors of the Canadian economy.  The companies they lead collectively administer close to $2.5 trillion in assets, have annual revenues of more than $600 billion, and are responsible for the vast majority of Canada’s exports, investment, research and development, and training.