FINA Committee Report

CONCLUSION

As noted in the Introduction, Minister of Finance John Manley asked for the Committee’s views on:

Our report fully incorporates our views on these questions. To summarize, we reiterate the following points.

On the issue of controlling expenditures, the Committee — like a number of
witnesses — believes that ongoing evaluation of programs, policies and expenditures must occur. It is only through ongoing review that the priorities of Canadians can be identified, and greater efficiencies in the delivery of desired services attained. The involvement of Canadians in the process is critical: since they are financing public services and programs through their tax dollars, they should determine the services and programs that they value.

The second issue, that of focussing on priorities, flows from our view on expenditure control. The identification of priorities can also only occur through dialogue with Canadians. In our democratic system, this dialogue occurs through periodic federal elections, the Committee’s pre-budget discussion and consultation process, and the ability of constituents to share their views with Parliamentarians. The Committee’s pre-budget discussions and consultations revealed that debt reduction, limited tax changes, measures to enhance productivity and innovation, health care, sustainable communities and assisting the most vulnerable in society — both at home and abroad — are priorities at this time.

In responding to the third issue, the Committee has consulted widely in an effort to determine the priorities of Canadians. Consequently, this report and our recommendations provide the federal government with a blueprint of how it can best align its spending to meet the priorities of Canadians.

The fourth issue, the amount of economic prudence that should be included in the upcoming budget, is something about which Committee members had divergent opinions with respect to the later years of the five-year plan. We do, however, wholeheartedly agree with the amounts set aside for economic prudence in the first three years. We also mirror the limited comments made by our witnesses about the need for this measure in order to ensure that a budget deficit does not occur.

Finally, Minister of Finance John Manley asked the Committee to consider the policies that Canadians believe are needed to ensure that Canada is a magnet for investment, skilled knowledge workers and cutting-edge research and innovation. With our recommendations, we have proposed measures that will make Canada an economic magnet. Prudent fiscal management will ensure that Canada is viewed as a favourable country in which to invest. Moreover, a focus on health care, the sustainability of our communities and caring for vulnerable Canadians will result in Canada being seen as an attractive country within which to live and work. They are also key contributors to the economic prosperity desired by all Canadians. Finally, our recommendations in the areas of research and development, and lifelong learning and skills development, will ensure that we are able to realize the cutting-edge research and innovation that are the foundation of economic growth in a knowledge economy.

With the implementation of these recommendations, Canada will be viewed worldwide as the Northern Tiger, and Canadians — as a consequence of our economic prosperity — will enjoy the quality of living that they expect and deserve.