Committee
Consult the user guide
For assistance, please contact us
Consult the user guide
For assistance, please contact us
Add search criteria
Results: 1 - 15 of 39
Caroline Brouillette
View Caroline Brouillette Profile
Caroline Brouillette
2021-05-06 11:23
Thank you very much, Madam Chair.
Good morning, ladies and gentlemen.
We thank you for having us appear before the committee. I join you this morning from unceded Kanien’kehá:ka lands, better known as Montreal. I will be sharing my time with my colleague Lauren Latour, the climate ambition coordinator for the network.
Climate Action Network Canada is the only network in the country that brings more than 130 labour, faith-based, indigenous and development groups together with Canada's leading environmental organizations, all of whom are working together on climate change.
The past year has taught us a lot about the vulnerability of the Canadian economy. The global health crisis and its devastating consequences place us at an historic crossroads. Will we seize this moment to build back better, through a just and green recovery that will make us more resilient to future crises, including climate, economic inequality and racism? Or will we redouble our efforts to promote the status quo?
The challenge and urgency you and your colleagues must face as lawmakers require government to take action on the economy in ambitious ways that are different from what we are all accustomed to.
Canada is the only G7 country whose emissions have increased since 1990. To contribute to the global effort to contain the temperature increase to 1.5 degrees Celsius, Canada must become massively involved in the economy. This will require more than simple incentives and voluntary programs for consumers and businesses. The magnitude of the challenge requires us to take a revolutionary, moonshot approach, much like the transformation of the Canadian economy during the Second World War, the space race, or, more recently and fresh in our memories, the global effort to rapidly develop and distribute COVID-19 vaccines.
As a first step, this will therefore require that the government adopt a regulatory approach with clear timelines, particularly in the only two Canadian sectors where greenhouse gas emissions are still on the rise: the oil and gas sector and transportation. This was pointed out by previous witnesses. For example, in the transportation sector, we have important work to do in land use planning and public transit. However, we also need to go beyond incentives for the purchase of zero-emissions vehicles and implement a national mandate that will require auto retailers to gradually increase the sales of electric vehicles to 100% of new vehicles by 2035. Quebec is doing it. It will ensure that we have assembly lines and supply chains in this crucial sector of the automotive industry in Canada.
As a second step, we must scale up climate investments. Many experts estimate that we should spend 1% to 2% of GDP per year, the equivalent of $20 billion to $40 billion, to decarbonize the economy. By way of comparison, the Canadian Centre for Policy Alternatives estimates that the amount committed to climate spending in April's budget is more like 0.25% of Canada's GDP. Yet that budget featured historic and unprecedented investments in climate.
My colleague Lauren Latour will now speak to you about the scope of these investments.
View Julie Dzerowicz Profile
Lib. (ON)
Thank you so much, Mr. Chair.
I want to thank the governor for being here. Thank you so much for making time today, and thank you so much for your service to our nation during these unprecedented times.
I'm going to continue the conversation around our labour market. As you mentioned, it has been remarkably resilient. You also mentioned that, despite the fact that we've actually had substantial job growth over the last couple of months, it still remains very difficult for many Canadians, particularly low-wage workers, young people and women. Our federal budget 2021 has invested significantly in these three key groups.
Can you talk to us about how focusing and investing in these groups is good economic policy?
Tiff Macklem
View Tiff Macklem Profile
Tiff Macklem
2021-04-27 16:19
Before I go any further, let me just underline that I am here as the Governor of the Bank of Canada to talk about our outlook, monetary policy and the actions that we're taking. It's not my role to comment on the government's budget and the individual measures. What I am prepared to talk about are the implications of fiscal policy for monetary policy. We take federal and provincial budgets, and we build those into our own projections. Certainly, over the last year through this pandemic, the fiscal supports from the federal government and from provincial governments have been instrumental in supporting Canadians. As I underlined in my previous answer, while we still have a considerable way to go, this combination of fiscal and monetary policy is working.
There is a range of measures in the budget. The budget came out, obviously, two days before our monetary policy report, so we don't have every detail in there, but from a macro perspective, we have included the essential features of the federal budget. That is built into our projections. The support that is provided in the budget is built into those projections.
View Peter Julian Profile
NDP (BC)
Just to follow up, as you mentioned earlier, you are prepared to comment on implications on monetary policy of fiscal policy.
Many people are saying that the government's fiscal policy has failed because of this creation of a very profoundly unfair tax regime. Do you feel that it has implications for monetary policy, understanding that monetary policy can't solve a bad fiscal policy but that there are implications of a bad fiscal policy on monetary policy?
Tiff Macklem
View Tiff Macklem Profile
Tiff Macklem
2021-04-27 16:39
What I would highlight, as I said before, is that fiscal policy, federal and provincial, has played an extremely important role in helping Canadians get through this pandemic. Indeed, I think fiscal policy has played a leading role.
Monetary policy has played an important role, but monetary policy does not have the ability to target certain groups. It's a broad macro tool.
Fiscal policy does have the ability to target certain groups. The supports they've given, particularly to the most vulnerable Canadians who have lost their jobs, have been very important to supporting Canadians and helping us through this recovery.
I'll leave it there.
C.T. (Manny) Jules
View C.T. (Manny) Jules Profile
C.T. (Manny) Jules
2021-04-15 12:11
Good morning, honourable members.
My name is Manny Jules. I am the chief commissioner of the First Nations Tax Commission, which is one of three institutions created by the First Nations Fiscal Management Act, or FMA. I was also chief of the Kamloops Indian Band from 1984 to 2000.
Thank you for this opportunity to address this committee as part of your study on competitiveness in Canada.
Canada's productivity challenge is real and COVID-19 has made it acute. Meeting this challenge will determine whether or not we can maintain or improve our living standards, lift first nations out of poverty, and continue to fund our social infrastructure. Despite immigration, Canada is an aging society. Service costs like health care will rise sharply. We are going to have trouble maintaining services, particularly at the provincial level, unless we can improve productivity.
There are a few factors that determine productivity. I'm going to focus on just one, which is improving the first nations' investment climate.
First nations are a younger and faster growing population than Canada as a whole. We have higher unemployment, lower pay and, often, unproductive land. Too many of our children grow up without being exposed to work opportunities and the role models those create. This puts them at a disadvantage for the rest of their lives. That is not good for Canada's competitiveness.
I have spent most of my career turning this around. I have concluded that the root of our problem is the way we are viewed.
You see a social problem that needs to be fixed with government programs. I have a different philosophy. I think our disparities are fundamentally economic. Our economic issues are a result of first nations being systematically legislated out of the economy. Government oversight has prevented investment from happening on our lands. Social problems are a result of that.
How can we fix this? We need to focus on removing the things that have taken us out of the economy. We talk about the costs of interprovincial trade barriers, and rightfully so. We also need to talk about the investment barriers that have been put up around first nation lands.
We have identified a successful, three-part formula to build a stronger first nation investment climate. It is based on putting decision-making power in first nation hands, so they can respond to opportunities. First, develop legislation that recognizes first nation jurisdiction and provides an orderly process to occupy it. Second, establish first nation institutions to provide support and standards, so that first nations implement their jurisdiction in a manner that grows their economies and enhances the economic union of Canada. Third, provide training and capacity development to first nation administrations, so they know what to do.
This approach has worked. The First Nation Fiscal Management Act is the most successful first nation-led legislative initiative in Canadian history. This committee should build on that success by supporting four proposals to improve the act.
First, first nations need more sustainable economic infrastructure. In the last year, we have worked closely with the federal government to develop the legislation for a first nation infrastructure institute. The rapid implementation of this institute will ensure that we have the foundation to compete in a competitive investment climate.
Second, we need to provide tax and decision-making power to first nations. You cannot have government decision-making power if you are entirely funded by a contribution agreement. Fiscal powers give us a strong incentive for economic success. It reward good policies in a way that program funding never will. It allows us to implement our jurisdictions so we can, in my dad's words, move at the speed of business.
This can start with two easily implemented fiscal powers: a sales tax on fuel, alcohol, tobacco, and cannabis—the FACT tax—and FACT excise tax sharing. I must note that on Monday, the Government of New Brunswick unilaterally cancelled the tax-sharing agreement with first nations in that province. The fiscal math of Canada is unrelenting. First nations need new legislated tax powers.
Third, we need to improve our resource economy competitiveness. First nations are often the only governments in a region that don't receive direct fiscal benefits from major resource projects in their territories. This makes it difficult to get our participation and support, and that means resource investment has fallen off relative to our competitors. Hundreds of billions of dollars have been diverted to other countries. We can fix this with a resource charge, supported with an offsetting federal tax credit. This would create transparent, standardized and stable first nation fiscal benefits from resource development. It could coordinate with federal and provincial tax systems.
The FNTC would support its implementation and coordination. This would provide many rural and remote first nations with economic opportunities and break the cycle of poverty that disadvantages so many children from an early age.
View Carolyn Bennett Profile
Lib. (ON)
Kwe kwe, unnusakkut, tansi, hello, bonjour.
I am speaking to you today from the traditional territory of the Mississaugas of the Credit First Nation. I wish to honour the waters they paddled and their moccasins, which walked these lands.
Mr. Chair, it is an honour to appear again before this committee today, to discuss my department's supplementary estimates (C), as well as its 2021-22 main estimates.
I am appearing with my colleague the Minister of Northern Affairs, and supported by our officials, led by Deputy Minister Daniel Quan-Watson.
The COVID-19 pandemic has presented challenges to everyone in Canada, especially people living in first nations, Inuit and Métis communities. The priority of indigenous leadership has been to keep their people safe.
From the very beginning, our government has been there to support first nations, Inuit and Métis communities through the fight against COVID-19, with daily calls with the three ministers. We are so grateful for the truly amazing public servants who are working 24-7. We'll be there as we work towards the recovery and building back better—socially, economically and environmentally.
Reconciliation and self-determination are essential to a strong recovery and represent the core of my mandate. No one wants to go back to normal. We now have the opportunity to bring all Canadians with us as we accelerate the progress to self-determination and support indigenous communities as they implement their own visions for the future.
Our commitment to advancing reconciliation and accelerating self-determination is reflected not only in the estimates being considered today but in everything we do on a day-to-day basis. The 2020-21 supplementary estimates (C) reflect a net increase of $138.6 million for CIRNAC, which brings the total budgetary authorities for 2020-21 to $6.9 billion.
Some of the key priorities that funding from the supplementary estimates (C) will support include the implementation of the Métis government recognition and self-government agreements, the implementation of Canada's collaborative self-government fiscal policy, engagement to support the introduction of Bill C-15 and the coordination and implementation of the national action plan on missing and murdered indigenous women and girls, two-spirit and LGBTQQIA+ people.
Notably, the $35.6 million to implement the Métis government recognition and self-government agreements signed with the Métis Nation of Ontario, the Métis Nation of Saskatchewan, and the Métis Nation of Alberta will support their visions of self-determination and their ability to determine their own political, economic, social and cultural development. The $8.2 million for fiscal transfer agreements with self-governing indigenous governments will support ongoing funding to these governments, as well as enforcement activities under the Teslin Tlingit Council Administration of Justice Agreement.
In addition, $5.2 million is assigned to support the engagement process of Bill C-15. The current version of the bill, built on the momentum and support from indigenous groups for the former private member's bill of Romeo Saganash, Bill C-262, is a reflection of our ongoing engagement with indigenous partners. Moving forward on Bill C-15 is the right thing to do, and I look forward to working closely with all of you during your examination of the bill over the next few weeks and on potential further improvements to the bill. We are grateful for your prestudy.
The funding of $2.6 million over three years for missing and murdered indigenous women and girls, two-spirit and LGBTQQIA+ people will help ensure that survivors and family members can continue to meaningfully participate in the development and ongoing implementation of the national action plan. The MMIWG secretariat, led out of CIRNAC, will provide support to the national family and survivors circle to ensure that it is included, supported and connected with all the working groups and at the very centre of the process.
The 2021-22 main estimates for Crown-Indigenous Relations will be approximately $4.7 billion. While this reflects a net decrease of $189 million, or 4%, compared with last year's main estimates, this is mainly due to the anticipated settlement of claims. Also, as you know, main estimates do not reflect the additional funding made available throughout the year through the supplementary estimates and cannot ever be viewed as a complete picture of intended spending.
In closing, I know you all agree that the top priority of this government during this difficult time has been the safety and physical and mental health of all Canadians, including first nations, Inuit and Métis people and especially their elders. I'm proud that even in these extraordinary times, our government has continued to advance reconciliation, right wrongs and accelerate self-determination for indigenous peoples in Canada.
Meegwetch. Qujannamiik. Marci. Thank you.
View Adam van Koeverden Profile
Lib. (ON)
Thank you. That is super helpful and very insightful.
Let's change the subject a bit, toward the collaborative self-government fiscal policy. Your reflections on this are in your opening statement.
View Carolyn Bennett Profile
Lib. (ON)
The collaborative fiscal policy is one of the most extraordinary things we've been able to do as a government. We are working with all of the self-governing nations, so they can develop the fiscal model they will need to run their own governments. It has been extraordinary to see that work done in a collaborative way. We came up with the funding model together. Most of them are now receiving more than three times what they would have gotten under the Indian Act.
A tremendous collaboration also happened as we watched these self-governing nations work in collaboration with one another throughout COVID, setting priorities that help one another, and as they moved toward their new proposal around infrastructure, which is exciting.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-03-17 16:40
Thank you.
The government has also recently abandoned the idea of fiscal anchors, even though the finance minister's mandate letter actually references fiscal anchors. In fact, they've instead used “fiscal guardrails”, which relate to the stimulus spending.
I ask you to comment on whether fiscal anchors are necessary, especially in a critical time like this, when we've just come through the worst pandemic of our lifetime. Mr. Wudrick, with the massive fiscal management challenge we're going to have, how important is it for this government to put in place fiscal anchors that will guide the government when it comes to the management of our national finances?
Aaron Wudrick
View Aaron Wudrick Profile
Aaron Wudrick
2021-03-17 16:41
I would actually disagree that they “recently” abandoned them. They abandoned them very early on, when they came into office. They promised a balanced budget. They didn't deliver it, and then the debt-to-GDP ratio started to creep up, so it's not a new phenomenon.
On the minister's insistence on fiscal guardrails, she says she's going to impose them, but she doesn't want to do it until later on. It's a bit like saying, “Well, we don't want to put guardrails where the cliff is, so we're going to wait until we get back down on level ground, and then we'll put up some guardrails.” I think it's important to have something to measure your level of risk, and not having any anchor at all....
I recognize that today a balanced budget would be a pretty aggressive one, but you need to have something. There's a similar reason that we need a budget. I think that not having one is very worrisome.
Hélène Cornellier
View Hélène Cornellier Profile
Hélène Cornellier
2021-02-18 12:51
I would add pay equity to the three important measures that Ms. Larouche mentioned.
Once again, I'm going back to the example of Quebec, because it has made progress in this area. Unfortunately, at the federal level, the Pay Equity Act isn't entirely or adequately enforced, as far as I know, and doesn't look as though it will be. So that's significant.
I would also add gendered budgets. Every policy that's introduced, whether to make changes to employment insurance, old age security or the guaranteed income supplement, must be analyzed to determine whom it affects and how so it can be adapted to women.
View Andréanne Larouche Profile
BQ (QC)
The Standing Committee on the Status of Women has already examined that issue, by the way.
Jack Mintz
View Jack Mintz Profile
Jack Mintz
2020-06-04 17:34
You're absolutely right. I do remember that time.
Thank you very much, Mr. Chair.
Let me begin with four points.
One, according to the IMF April report, Canadian consolidated public deficits—that's for all levels of government—as a share of GDP will be the second-highest amongst all advanced economies, at 11.8%. This estimate on the size of the deficit is underestimated, since it does not take into account further spending commitments announced after April 6, 2020. As it is based on national accounts methodology, it ignores certain liabilities, particularly public employee pension plan deficits.
Two, using public accounting, the federal deficit is predicted by the parliamentary budget office to be $250 billion in 2020-21, which is 11% of forecasted 2020 GDP. The provincial deficits are not known, but RBC forecasted that they will be close to $65 billion. This would mean that the consolidated public deficit on a public accounts basis—which, by the way, includes deficits of public employee pension plans—will be close to 15%, the highest in this past century.
Three, the IMF predicts Canada's public net debt as a share of GDP to rise from 25.9% to 40.7% in 2020, the highest since 2001. Canada also has the third-shortest term to maturity for public debt, at 5.4 years, amongst advanced countries. Estonia and Sweden have shorter-term structures for their public debt. This means that we roll over our public debt more often than other countries. With 23% of this debt held by non-residents, we are sensitive to international investor perceptions of Canada's fiscal responsibility.
Four, we also know that our public liabilities are more than what is currently reported as net debt. It does not include unfunded health care, long-term care and OAS liabilities, net of taxes paid on RSP and pension plan withdrawals. CPP net assets are subtracted from net debt, but future CPP obligations are ignored. Public non-financial assets, especially important at the provincial-local level, are not easily liquidated if debt rollovers must be covered. Our consolidated government net debt obligation is almost triple the official number.
We also know that much of what lies ahead is uncertain. Return of lockdowns in the fall of 2020 or spring 2021 will make recovery much more difficult. There will also be significant demands for stimulus, given that many households and businesses will be running out of cash this fall with deferrals coming due. While the 2021 fiscal deficit should not be nearly as large as 2020 because of all the temporary measures, it is more than likely that the federal and provincial deficits will be elevated for several years beyond 2020-21 fiscal year.
Now, federal as well as provincial governments will need to lay out a budget for 2020-21. At that time, the Minister of Finance will likely indicate a fiscal target, in part to bring back more financial control to the budget, as demands will be enormous for spending hikes or tax cuts. In the past, the approach has been to ensure that debt as a share of GDP should not rise. This fiscal anchor makes less sense today, with $1 trillion more in official federal net debt plus other future obligations in our aging society.
When markets become nervous over a country's fiscal path, governments often resort to fiscal rules such as expenditure limits, tax ceilings, targets for balanced budgets and debt limitations. As the IMF reports, all advanced countries use different fiscal rules depending on their circumstances. In fact, in the past 30 years, the IMF reports that half of countries have used fiscal rules of various sorts to try to deal with deficits, including Canada back before 2005.
Alongside Iceland, only Canada at the national level has no fiscal rule today. This is, I mean, pre-COVID days.
Right now I'm not sure anyone has any fiscal rules. Many fiscal rules are statutory, embedded in legislation or the Constitution. They typically allow for adjustments for cyclical effects and may exempt debt-financed public infrastructure. Some countries, such as Australia, the United Kingdom and France, use multiple rules, such as a limitation on expenditure growth, a debt-to-GDP limit and a deficit-to-GDP limitation.
The criticism of fiscal rules is that they reduce budget flexibility and discriminate against public infrastructure spending. However, studies have shown that fiscal rules improve fiscal credibility, which keeps interest rates lower and ensures investor confidence in a country's debt. A recent study by German economists found that statutory fiscal rules also result in higher economic growth rates—18% in higher GDP in the long run. Fiscal rules only based on political commitments do not have a growth impact.
When the next budget is set, the Minister of Finance will need to address how big deficits should be in the future. How much debt can be tolerated? How much spending can grow? What tax reductions are affordable? What tax increases will be needed? The minister will need some type of fiscal rule and will need to decide whether it should be supported by legislation to indicate adherence to the plan.
I would suggest to this committee, even though it is early on—we're not talking about this year's fiscal rules—that in the coming months it should study the approaches used by countries for budget planning. It is critical, since future generations, which have no influence over our decisions today, could be left with a financial mess in the future if our generation does not act fiscally prudently.
Thank you.
View Marty Morantz Profile
CPC (MB)
Thank you.
Dr. Mintz, that was a very good presentation. I want to touch on something you mentioned and discussed in your article in the Financial Post today, which was about the necessity for statutory fiscal rules. Here in Manitoba we've had balanced budget legislation for the better part of 25 years. The NDP repealed it for a while, but now it's back. Economic growth here has been strong. The GDP in Manitoba has more than doubled over that period of time.
Right now it seems as though there are no rules—none—and we're facing a $1-trillion deficit. I want to talk to you about interest as well, but first I'm wondering if you could expand on the types of fiscal rules you think the Government of Canada should be looking at in a post-COVID economy.
Results: 1 - 15 of 39 | Page: 1 of 3

1
2
3
>
>|
Export As: XML CSV RSS

For more data options, please see Open Data