Job creation has to be put back onto the agenda, Canada’s incoming federal government is being told.
But it’s not the only item on the business community’s wish list as the country’s next Parliament gets ready to be sworn in later this summer.
Health care, tax concerns, infrastructure requirements and improved Canada-U.S. relations are also issues that a new government should deal with, according to provincial business officials.
Speaking before federal election ballots were to be cast, the Calgary and Edmonton chambers of commerce, along with the Canadian Federation of Independent Business (CFIB), weighed in on what a new government should do if it wants to ensure that both the province and the nation are to grow and expand.
For the CFIB, job creation is the key to a growing, prosperous economy, said Corrine Pohlmann.
“The big issue is essentially that there’s no vision for small business or job creation,” said Pohlmann, the CFIB’s director of provincial affairs for Alberta.
“We need to remember that in Canada, small businesses have kept the economy active and strong. We need to continue to grow that prosperity, but there doesn’t seem to be any vision at this point. Nobody is talking about job creation.”
Turning to Alberta, Pohlmann said alleviating businesses’ tax burden is the No. 1 priority for the province’s small employers.
“Much of that focus is on the federal level. They (taxes) are falling somewhat at the federal level but that’s on the general corporate income tax rate, not the small business side,” she said.
Another provincial priority, one that comes with Canadawide implications, is a wakeup call to cut red tape.
“The huge regulatory and paper burden is one of the barriers to growth for small business,” said Pohlmann. “It takes a government with some initiative, and someone who needs to champion it.”
From Calgary’s perspective, chamber of commerce members want a new federal government to concentrate on creating and maintaining favourable and competitive tax environments for businesses to work in.
“Business would look for any future Canadian government to send strong signals to the business community. We would want that to happen in order to continue to attract foreign investment and capital,” said Calgary chamber chair David Swanson. “Business, and in particular foreign capital, does not like and does not react well to uncertainty. It does not like mixed signals.”
As such, in the event of a minority government, regardless of who leads it, “they would need to exercise fiscal responsibility,” said Swanson.
“Obviously business likes stability. The chamber would prefer to see the kind of business environment which falls out of majority governments, but having said that, Canada will still be Canada whether we have a minority or majority government, as the underpinnings of our economy are well entrenched,” said Swanson.
The comment was echoed by Pohlmann, who pointed out that while stability is always preferable, “historically, minority governments haven’t had a major effect on business confidence or the economy.”
Three other campaign issues have come up on the Calgary chamber’s radar screen.
“We think that the next federal government should also address health-care reform, fiscal management and strengthening U.S.-Canada relations,” said Swanson. “Those areas need to be addressed in order to create a strong business environment.”
Though a series of six recommendations, the Calgary chamber is seeking a health-care system that contributes to a competitive advantage, addresses fiscal sustainability, and builds and supports a healthy population.
It wants care guarantees regarding timely access, to be engaged in the development of workplace health and wellness initiatives, and an opportunity for private-sector delivery.
The recommendations call for the modernization of the Canada Health Act and provide specific direction to government. “For too long, the debate has been restricted to health-care delivery,” said Swanson. “Maintaining the status quo is detrimental to our global competitiveness. These recommendations provide a call to action to address the economic impact of unrestricted spending and political posturing.”
Debt reduction is also paramount in order to strengthen the economy, the chamber says. Meanwhile, it would not want to see a new federal government send any negative signals that could hamper relations with Canada’s major trading partner, the United States.
In Edmonton, that city’s chamber of commerce’s main thrust is that a new federal government should put the needs of large urban centres front and centre.
“What we’re concerned about is ensuring that the infrastructure in large urban centres functions well and supports the needs of business,” said Paul Byrne, chair of the board for the Edmonton Chamber of Commerce. “The federal government needs to find ways to work collaboratively with municipal and provincial governments.”
Another area of interest is the question of human capital and mobility, he said. “We need to move our workforce to where the needs are, and there are numerous areas that inhibit that mobility of the workforce in Canada,” observed Byrne.
“In Alberta, we have great opportunity and needs. We need a federal government to assist in providing for mobility and portability. The oilsands are a great example, there will be a real spiking and peaking of human-capital needs,” said Byrne. “At the same time, this type of ball may bounce somewhere else in the country.”
Paraphrasing a Wayne Gretzky line, Byrne said, “We’ve got to go to where the puck is going to be, not where it is now.”
Other issues the Edmonton chamber would like to see the new federal government act upon include:
* Moves to strengthen the city’s growing air service market by removing or reducing airport rents paid to Ottawa and downsizing security charges along with aviation fuel taxes.
* Strengthening Western Economic Diversification Canada, which is headquartered in Edmonton.
* Maintaining or growing the strong local military presence that has become an important part of Edmonton.
* Ensuring proper services and educational opportunities are put in place to enable the city’s aboriginal community to become fully engaged in creating a strong economic and social future for the West.
Overall, the business community wants the new government to maintain prudence in its fiscal management, said Jack Grant, an independent Calgary chartered accountant specializing in the corporate tax sector.
“Business in general is looking for what you might call ‘steady-as-you-go,’ ” said Grant. “There have been tax reductions legislated, so those have been built into business plans and expectations. You wouldn’t want something to happen as did in Ontario when the new (provincial) government came in and reversed the prior changes.”
