FINA Committee Report

INTRODUCTION

[T]his Committee, through public hearings, provides an important sounding board for the issues and concerns of Canadians. You are an important forum for identifying the economic and fiscal priorities that should go to the heart of our country’s policy agenda. (Minister of Finance John Manley, 19 June 2002)

In spring 2002, the House of Commons Standing Committee on Finance invited Canadians to participate once again in our pre-budget discussions and consultations, and to make recommendations that, when given legislative or policy expression, would help to ensure that Canadians can achieve the future they envision.

As we plan for our future, the Committee feels that two themes are important, and most Canadians making presentations to us focussed on:

Most commentators agree that economic prosperity depends on a number of important factors, including a high level of productivity and innovation, as well as a business environment favourable to growth. Key to attaining this prosperity is research and development, lifelong learning and skills development, appropriate taxation and other measures, and a continued commitment to debt reduction.

While economic prosperity contributes to Canadians’ quality of life, other factors are also important. Decisions that positively address environmental concerns, healthcare challenges, the needs of vulnerable Canadians and the sustainability of our communities are also needed. These measures help to create a social context within which economic prosperity can be enjoyed.

The Committee’s pre-budget discussion and consultations process — our contribution to the budget-making process — plays a key role in the decisions made in these, and other, areas. Beginning in 1993-94, pre-budget consultations have been undertaken with a broad range of Canadians, in their home communities and in Ottawa, to seek their thoughts about the contents of the next federal budget. Allowing Canadians to present their budget-related concerns and recommendations is important in helping to ensure transparency in the budget process and in providing interested Canadians with a mechanism to influence the federal budget.

Unlike the 2001 report, which was largely focussed on security, this report takes a broader, longer-term view. The results of the 2001 Census provide information that can assist us in the development of this longer-term vision, giving information about who we are as a people, and where and how we live. The first two chapters review these Census data and provide a framework for the remainder of the report. Specifically, Chapter One provides demographic information about Canadians, identifies vulnerable groups within our country, discusses the volunteer and charitable donation efforts of our nation’s residents, and describes the assistance we provide worldwide from a foreign aid and a defence perspective. Chapter Two reviews the economic context within Canada and describes where Canadians live, as well as the challenges faced by municipalities and concerns related to the environment.

The subsequent six chapters, which focus on the future, summarize what Canadians told the Committee about the future they envision for Canada and about the policies and practices needed today to realize that future. In particular, we address the broad actions that should be taken fiscally, changes to Canadian tax policy, the measures needed to stimulate productivity and innovation, the challenges facing the healthcare system, mechanisms to ensure healthy and sustainable communities, and assistance to vulnerable Canadians.

Finally, in his appearances before the Committee, Minister of Finance John Manley asked for our views on a number of issues:

The Committee’s views on these issues are presented below, and reflect what groups and individuals told us about who we are and where and how we live today, as well as the actions needed to ensure economic prosperity and a high quality of life in the future.