Business Leaders Applaud Speech from the Throne, Call for Cooperation to Strengthen Economy

October 17, 2007

Broadly based tax cuts, improved border infrastructure and increased support for innovation are among the keys to securing Canada’s economic prosperity and fostering more and better jobs for Canadians, says theCanadian Council of Chief Executives (CCCE).

“The federal government addressed these issues squarely in last night’s Speech from the Throne,” said Thomas d’Aquino, Chief Executive and President of the CCCE. “At a time when many Canadian companies are being challenged by a high dollar, a weakening United States economy, high energy prices and intense competition from emerging economies such as China and India, the future prosperity of all Canadians is at stake. We urge parliamentarians from all parties to work together to make Canadian communities better places to invest and to create well-paying jobs.”

In particular, Mr. d’Aquino applauded the government’s commitment in the Throne Speech to bringing forward, as early as this autumn, a long-term plan of broadly based reductions in personal and corporate income tax rates. At the same time, he noted the important speech made last week by Liberal Party Leader Stéphane Dion calling for significant new corporate tax cuts.

“As Mr. Dion pointed out, corporate tax cuts are the best way to drive investment and productivity, to compete with other countries around the world and to strengthen Canada’s economic sovereignty,” Mr. d’Aquino said. “Canada’s business leaders are greatly encouraged by what seems to be an emerging consensus on the need for urgent action on this front.”

The Speech from the Throne also addressed other issues that will be important in strengthening Canada’s competitiveness and economic growth. Mr. d’Aquino highlighted the commitment to invest in key transportation and trade-related infrastructure, including the Windsor-Detroit corridor and the Atlantic and Pacific gateways. “International trade underpins much of Canada’s economy, and all Canadians have a stake in ensuring that goods and services can move efficiently to and from markets around the world.”

Another important theme was the need to reinforce Canadian investment in research and to do more to move Canadian discoveries successfully into the marketplace. “In this regard, we support particularly the government’s commitment to strengthen the protection of intellectual property rights, a central driver of business investment and innovation,” Mr. d’Aquino said.

He also praised the government’s determination to strengthen Canada’s economic union and to improve the management and governance of the Employment Insurance system. “These are all issues on which we see the potential for agreement across party lines.”

Even on more contentious issues such as the environment and climate change, Mr. d’Aquino noted elements of consensus. Two weeks ago, the CCCE released a Policy Declaration on climate change that called for a coherent national plan, a focus on new technologies, the use of targets and market-based mechanisms that encourage investment and Canadian leadership on the international stage.

“The Speech from the Throne makes clear that the government agrees with many of the points that we made, and yet our Declaration also was endorsed publicly by the Green Party,” Mr. d’Aquino pointed out. “On the environment as on the economy, this Parliament clearly can work.”

The CCCE is a non-partisan organization composed of 150 chief executives and leading entrepreneurs from all major sectors and regions of Canada. Member chief executives lead companies that collectively administer $3.5 trillion in assets, have annual revenues of more than $800 billion, and are responsible for the vast majority of Canada’s exports, investment, research and development, and training.

In addition to Mr. d’Aquino, the members of the CCCE’s Executive Committee are:  Chair, Gordon M. Nixon, President and Chief Executive Officer, Royal Bank of Canada; Honorary Chair Richard L. George, President and Chief Executive Officer of Suncor Energy Inc.; and Vice Chairs Dominic D’Alessandro, Paul Desmarais, Jr., Jacques Lamarre, Hartley T. Richardson and Annette Verschuren, the chief executives respectively of Manulife Financial, Power Corporation of Canada, SNC-Lavalin Group Inc., James Richardson & Sons, Limited and The Home Depot Canada.