Senators call for governments to craft a grand post-pandemic plan to grow economy
A group of senators is calling on the federal government to strike a grand economic plan with provinces, territories, businesses and civil society to drive growth coming out of the pandemic.
The report includes calls to rethink how to deliver skills-training programs, to streamline the regulatory system to encourage entrepreneurs and for companies to invest in themselves.
The document also says the federal government must come up with a more credible plan to manage the nation's burgeoning debt through new rules to guide budgetary decisions.
Senators say the Trudeau Liberals must consider finding more new sources of revenue and suggest the government increase the value of federal sales tax.
The report made public Tuesday is the culmination of work that started last November and included interviews with some 70 domestic and international experts about how Canada could avoid another era of low economic growth.
Sen. Peter Harder, one of the 12 senators who worked on the report, says the group believes the country shouldn't wait until after the pandemic to rethink how to improve Canada's economic performance.
"This is very much a national task," he said in an interview. "It's not going to be easy, but is absolutely essential if we want to improve our competitive performance."
Canada's economy faced headwinds prior to the COVID-19 pandemic, including productivity declines that mean Canadians work longer to match the output of counterparts in the G7 countries.
Waning business investment, which could reverse the productivity decline, is also lower in Canada than many peer nations.
The report from senators singles out the domestic tech sector for extra attention.
It recommends governments help improve access to capital and streamline regulatory regimes to help companies grow and compete globally.
Sen. Colin Deacon said regulatory changes wouldn't cost the government money, and allow new, innovative businesses to enter the market.
It would be a change in mentality for governments by moving "to catalyze, not control," by putting in key policy frameworks for the digital economy and regulating where needed.
Deacon said the mentality shift is possible, noting how quickly federal officials crafted emergency aid programs for workers and businesses.
"What we did see in the initial response to the pandemic was government willing to put forward a plan, examine how it was working, and iterate," he said. "And that doesn't happen. Normally, what happens in government is they put forward a plan, and then they dig in."
Any new spending will be heaped on top of the historic debt levels. The Liberals have promised to focus on having the debt decline as a proportion of the overall economy, known as the debt-to-GDP ratio.
The report recommends two alternative measures: keeping debt service costs below 10 per cent of federal revenues, an idea put forward by former Bank of Canada governor David Dodge, or cap federal program spending as a percentage of gross domestic product.
Senators say there isn't a need for austerity, but rather a need to avoid financing new programs through more debt.
The group also suggests raising the Goods and Services Tax to seven per cent from five per cent, and increase the value of the GST tax credit to offset costs for low-income households. A C.D. Howe Institute report estimated the measures could yield $15 billion annually in new tax revenues.
Harder said spending guidelines and new revenue measures would signal the government takes seriously the need to manage the debt.
"That in itself creates economic confidence going forward that governments will be responsible in their fiscal programming," he said.
This report by The Canadian Press was first published Sept. 28, 2021.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.
Local Spotlight
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Investigating the tale of Winnipeg's long-running mystery bookstore
Whether passionate about Poirot or hungry for Holmes, Winnipeg mystery obsessives have had a local haunt for over 30 years in which to search out their latest page-turners.
'Love has no boundaries': Sask. couple in their 90s and 80s get married
Eighty-two-year-old Susan Neufeldt and 90-year-old Ulrich Richter are no spring chickens, but their love blossomed over the weekend with their wedding at Pine View Manor just outside of Rosthern.
Twin Alberta Ballet dancers retire after 15 years with company
Alberta Ballet's double-bill production of 'Der Wolf' and 'The Rite of Spring' marks not only its final show of the season, but the last production for twin sisters Alexandra and Jennifer Gibson.
Video shows gaggle of geese stopping traffic on Highway 1 near Vancouver
A mother goose and her goslings caused a bit of a traffic jam on a busy stretch of the Trans-Canada Highway near Vancouver Saturday.
B.C. mayor stripped of budget, barred from committees over Indigenous residential schools book
A British Columbia mayor has been censured by city council – stripping him of his travel and lobbying budgets and removing him from city committees – for allegedly distributing a book that questions the history of Indigenous residential schools in Canada.
Three Quebec men from same family father hundreds of children
Three men in Quebec from the same family have fathered more than 600 children.
Here's how one of Sask.'s largest power plants was knocked out for 73 days, and what it took to fix it
A group of SaskPower workers recently received special recognition at the legislature – for their efforts in repairing one of Saskatchewan's largest power plants after it was knocked offline for months following a serious flood last summer.
Quebec police officer anonymously donates kidney, changes schoolteacher's life
A police officer on Montreal's South Shore anonymously donated a kidney that wound up drastically changing the life of a schoolteacher living on dialysis.