02/09/2024 | News release | Distributed by Public on 02/09/2024 11:02
On February 8, 2024, the Canadian Chamber of Commerce submitted a comprehensive pre-budget proposal to the Deputy Prime Minister and Minister of Finance, the Honorable Chrystia Freeland. With a firm focus on bolstering Canada's competitiveness and fostering sustainable growth, the submission outlines key measures essential for driving economic prosperity.
The letter and full submission can be found below.
February 8, 2024
Hon. Chrystia Freeland, P.C., M.P.
Deputy Prime Minister and Minister of Finance
80 Wellington Street
Ottawa, Ontario K1A 0A3
Sent by Email: [email protected]
Dear Deputy Prime Minister:
Canada's competitiveness is slipping. Our productivity continues to decline. This means Canadians are poorer overall, have fewer opportunities to pursue their personal goals, and have to pay more just to stay where they are. We must pursue growth if we are to maintain our standard of living and continue to provide the services Canadians require.
The Canadian Chamber continues to urge the Government of Canada to focus on growth driven by the private sector: many of the measures included in our submission, including regulatory reform and dismantling internal trade barriers, will cost little or nothing, but will generate future wealth and investment. Canada's economy is also founded on small business, many of which face unique challenges: the time is now for a dedicated national strategy for SMEs. Budget 2024 is the opportunity to attract the investment needed for strong, sustainable growth, a successful net-zero transition, while fostering businesses of all sizes.
Geopolitical conditions have introduced insecurity, disrupted traditional trading relationships, and undermined the rule of law. While Canada is also exposed to this problem, we are unique among free societies in our potential to underwrite global economic security through our abundant natural resources. And though our international competitors currently outpace us, the opportunities for Canada are still in reach. An essential first step is for Canada to invest in our most important trade and security relationship as the U.S. enters a critical election cycle and the CUSMA deal is considered for renewal.
We need to show the world we can, quite literally, deliver the goods.
The Canadian Chamber of Commerce's pre-budget submission has been shaped by our member councils and committees, on behalf of our broader membership of 200,000 businesses of every size, from all regions and economic sectors of Canada.
The Canadian Chamber of Commerce is eager to partner with government on the strategy that will allow us to respond to this moment. Given the headwinds we face, collaboration between policymakers and the business community is more critical than ever before.
Sincerely,
Hon. Perrin Beatty, P.C., O.C.
President and Chief Executive Officer
The evolving role of transportation and logistics is critical to countries' competitive success, but Canada's supply chains remain only as strong as their weakest link. The challenges and costs presented by climate shocks such as frequent floods and wildfires have demonstrated how fragile many of our supply chain systems and structures are. And, in the context of a highly restive labour environment, key points in our trade corridors have experienced repeated or prolonged strikes, putting further strain on a precarious system and compromising our reputation as a reliable place to do business.
Increasingly, attention has turned to supply chain resiliency, on-shoring or near-shoring, and new data systems and infrastructure as critical factors to ensure trading nations like Canada remain competitive and relevant. Canadians are frustrated by the affordability crisis and want to see elected officials work with business to ensure products move and prices are stable while our economy is growing.
As the pace of change facing Canadian businesses accelerates, companies must be agile and adapt to remain competitive. The right policy environment can help businesses succeed in this rapidly changing context and generate long-term economic growth. Making Canada an attractive destination for business investment that supports economic growth requires getting the fundamentals right.
At a time when inflation is persistent, government and the private sector must look at new ways to make Canada more competitive. Governments in the past have attempted to regulate our industries into a more competitive frame, but this has had the opposite effect as the costs of starting and growing a business act as disincentives to investment. To avoid losing the next generation of talent and innovation to competing nations, government and businesses must work together to foster an economy that values innovation, new entrants, and growth.
Canada's resource sector - natural gas and oil, hydro, mining, forestry - can deliver low-emission energy and other products to meet global needs, while developing new clean technologies that can deliver emission reduction in Canada and abroad. Canadians can and should be proud of our natural resources. We recognize and welcome the Government's strong commitment to fighting climate change.
How we get to net zero matters to ensure Canada's pathway is competitive, enhances investment, creates jobs for Canadians and promotes innovation. Investments that support business-led transitions, offset market development, and foster a predictable business environment are crucial to meeting these goals. Canada's business community is eager to lead the development of the net-zero framework to enable the greatest economic opportunity for the next generation.
Canadian businesses are well-placed to lead in high-growth sectors, but to maintain this competitive edge, we must capitalize on our advantages in Artificial Intelligence (AI), cybersecurity, and digital health.
Attracting and retaining critical talent while increasing productivity is vital to Canadian businesses. However, many sectors struggle to find and retain the talent needed to grow. Canada needs a forward-looking National Workforce Strategy to attract, retain and develop a skilled and resilient workforce ready to respond to today's labour needs and successfully navigate the transition to the skills demands of the future.