Finance committee  Absolutely, because, by doing business with a country in western Europe or central Europe, for example, you're selling a product, but you're going to be looking for expertise and you'll be communicating with people. That's definitely beneficial for the Quebec and Canadian economy.

Finance committee  To promote greater long-term productivity, long-term economic growth, we have to rely on business productivity, innovation and competitiveness. There are a number of factors that will promote that, such as education levels and geographical position, but also, in large part, general taxation rates.

Finance committee  The idea of proposing certain measures as promoting innovation is mainly to send a clear message, which is not to sacrifice business productivity and competitiveness in order to return to fiscal balance. With regard to the patent royalties exemption, the figure isn't available, but the goal is really to get a clear message, that is to say that the government will support innovation and productivity.

Finance committee  As I explained earlier, the purpose in promoting a free trade agreement with the European Union is really to diversify markets and ensure we keep in mind the lessons of this recession. NAFTA has also shown that more open markets bring definite benefits. There is a very broad consensus on the economic and trade benefits that NAFTA provides, in terms of openness to the European markets.

Finance committee  Of course, the measures that the provincial and federal governments have put in place in terms of infrastructure have greatly assisted in the economic recovery and in performing better than our neighbours to the South. In that sense, infrastructure investment has helped. With its diversified economy, which is focused much less on the automotive industry, Quebec has not been hit as hard.

Finance committee  Absolutely. The purpose of that recommendation is to further diversify the markets. One of the lessons of the recession is that, when you have a single partner whose economy is not doing that well, you're harder hit. This is one of the measures we favour to encourage greater market diversification, to go international and to ensure that our economy is ultimately more diversified and in a better position to respond to economic shocks, as we have recently experienced.

Finance committee  Absolutely.

Finance committee  Our message is that you must not sacrifice business competitiveness and innovation in order to return to a balanced budget. If there has to be a revenue increase, you should favour consumption taxes rather than corporate taxes, which could undermine competitiveness, productivity and, ultimately, wealth creation and greater long-term economic stability.

Finance committee  Thank you, Mr. Chairman and committee members. The Fédération des chambres de commerce du Québec wishes to thank the Standing Committee on Finance of the Government of Canada for this opportunity to speak today and is pleased to take part in the 2009 pre-budget consultations. Over the past 100 years, the Fédération des chambres de commerce du Québec has represented the interests of business people with respect to public policy.

Finance committee  The FCCQ urges the government to resist the temptation to increase corporate taxes in its next budget. Canada has the characteristics of a small economy with a very large international component. The intensity of business competition suggests that it should rely instead on investment growth.