Mr. Chair, I strongly agree about the ability of the Bank of Canada to affect interest rates when the underlying pressures that we're dealing with--dramatic escalation in terms of commodity prices, particularly in the energy field, and the weakness of the American dollar--put very strong upward pressure on the Canadian dollar. My colleagues have talked as well about the mixed impacts there are in the economy. The fundamental question we should be asking ourselves is where should we be looking for action?
The Bank of Canada has relatively restricted room to manoeuvre on this, because the pressures are largely external. The real issue now is for governments and for business alike to make sure that we have our house in order, and to focus with laser-like precision on the whole issue of competitiveness. Governments, both federal and provincial, can take action now that can help to ensure that all businesses across Canada can be more competitive. Businesses themselves have to reinvest in capital and equipment. They have to reinvest in upgrading the skills of their workers. They have to develop new business plans, unconventional partnerships, and do a whole range of other things. But we need to have a sense of urgency on that.
To the extent to which the focus is on the Bank of Canada, I think we're diverting our attention from the fundamental issue, which is the productivity in Canada and the underlying competitiveness of us relative to our trading partners.