Perfect. Good afternoon, everyone.
With some 5.5 million owner-members, consumers and businesses alike, the Mouvement des caisses Desjardins is the leading financial institution in Quebec as well as the largest cooperative financial group in Canada. Because of its commitment to combining assets and values, Desjardins is involved in the community to an extent unmatched by any other financial institution, thereby contributing to the economic and social well-being of people and communities.
As a member of the Canadian cooperative community, Desjardins supports the joint recommendations of the Canadian cooperative sector, which you had a chance to look at last week and which we've also appended to our brief.
Canada is one of the richest countries in the world. However, to maintain this enviable position in an increasingly competitive world, Canada will face over the next few years a number of challenges. In addition to productivity is the challenge of an aging labour force. The federal government must therefore review its priorities and bring in practical measures that will help Canada maintain its enviable position on the world stage. It is important that our businesses enhance their competitiveness, that our labour force improve its skills and that our infrastructure meet present and future needs.
We feel that any views on tax and budgetary measures that the federal government could eventually put forward should first be broadened by challenging the roles of the federal government in the Canadian economy, as well as with the goods and services it provides. Since the federal government's expenditures and revenues account for close to 15% of real Canadian GDP, its impact on the overall economy is obviously major. It is essential that the government prioritize the production of goods and services in a manner more closely related to its mission: one need only think of defence, international treaties, security, diplomatic services and the environment.
We also think it important to give greater focus to private business in the production of public services, particularly through public-private partnerships, PPPs. These partnerships should of course be monitored and governed by strict rules to ensure that the quality of service will respect the standards that are currently in effect in the government.
As regards infrastructures, the federal government should establish a sinking fund not only to help ensure the funding of infrastructure replacement, but also to minimize its financial impact when needs become pressing. It is also important to adopt measures to improve the competitive position of Canadian businesses. We have observed a deterioration in our competitive position, particularly relative to the United States. This can be explained mainly by relatively low growth in the information technology sector since the beginning of the new millennium, by slower development of investments in machinery and equipment and by relatively slow economic growth in some regions of the country.
The federal government must take adequate measures to reverse this trend and in so doing help Canada be more competitive. More specifically, the government should favour tax measures that will encourage business investment. The tax burden of businesses should also be reduced in order to make it more competitive and thus facilitate investment.
In addition, the federal government could put forth tax measures that encourage innovation, which is a vital factor in improving competitiveness. Education and the development of human capital are also sectors that should be promoted.
We believe that Canada's prosperity depends on a fiscal rebalancing between the Government of Canada and those of the provinces. To do that, we feel that it is essential that the federal government restrict its budget spending to its own fields of jurisdiction. It must avoid draining its budget surpluses by increasing spending in every which way and find ways to transfer a good part of its financial leeway to the provinces.
The priorities and objectives of the federal government should also take into account the specific needs of the regions and their SMEs. We also feel that Canada must take even more advantage of its proximity with the United States in many fields, including that of venture capital.
We also believe in the need to encourage partnerships between Canadian and American universities. It would also be desirable for our young businesses, particularly those in the technology sector, to develop their business plans taking into account not only the dynamic of the Canadian market, but also that of the U.S. market.
Ultimately, efforts need to be made for the Canadian economy to increase significantly its productivity and enhance the competitiveness of its businesses and the quality of life of all Canadians.
Thank you.