Surviving the Downturn – Remarks by Thomas d’Aquino on CBC Radio’s "The House"

January 18, 2009

Following is a transcript of remarks broadcast on the CBC Radio program "The House," January 18, 2009. Mr. d’Aquino was asked to summarize his advice to the federal government as it prepares this month’s budget.

My name is Tom d’Aquino, and I am the Chief Executive and President of the Canadian Council of Chief Executives.

To begin with, I think we need to pay attention to the context of this recession. Canadians are better off than many other people around the world, that’s true. But despite that our country is being side-swiped by events beyond our control — falling resource prices, tight credit markets and the sharp economic downturn in the United States.

So, yes, we need to help those who are losing their jobs and their businesses, and that will mean higher government spending and larger deficits.

But at the same time, I don’t think we should ever forget the lessons of the past. Entrenched deficits are recipes for a return to higher inflation, higher interest rates, rising taxes and brutal cuts to public services — the type of cuts that Canadians suffered through in the 1990s.

The most immediate challenge is to keep credit flowing. Right now, consumers and businesses are finding it harder to borrow. Governments must ensure that companies with viable plans for the future can get the financing they need to survive the downturn and to rebuild during the recovery.

I think we also need a stimulus strategy — but the stimulus must not be open-ended and must pave the way for long-term growth.

In my view, temporary federal spending should focus on five areas:

Public infrastructure.

Help for the unemployed

Support for business innovation.

Tax breaks to promote consumer spending.

And last, but not least, support for charities, whose services are needed now more than ever.