Thank you, Mr. Chair.
Good morning, members of the committee.
Canada's economy appears to be moving away from one of the most difficult and challenging setbacks in our lifetime. While the recession may technically be over, the road to recovery is expected to be gradual and long, with economic uncertainty and market volatility remaining high, especially in the short to medium term.
In light of this, it is imperative that the government continue with its ongoing efforts to implement the announced stimulus measures promptly and effectively. Concerted effort is needed by all levels of government to ensure that committed funds get out the door. Restoring and maintaining confidence, growth, and jobs should remain the government's top priority.
Second, we must chart a path back to fiscal discipline. Big government deficits are back federally and provincially. Rising debt and interest burdens will reduce our ability to act in areas that are crucial to long-term competitiveness--in particular, tackling high marginal personal income tax rates, meeting the challenges posed by an aging population, and investing in education and skills training. I'm sure you would agree that we cannot run deficits indefinitely without eroding our competitive standing, our productivity, and our future prosperity.
The one point we would like to stress today is that in order to build confidence in the future, the government must present Canadians with a viable plan on how it will balance its books and avoid structural deficits. Repairing federal finances will not be achieved overnight. It will require significant program restraint and a fresh look at programs, such as the employment insurance program, to ensure that they are designed to maximize long-term growth and minimize labour market distortions.
We must commit to dedicating surpluses, once balanced budgets are achieved, to repay deficits accumulated since fiscal 2008-09 so that the federal debt does not rise further.
Finally, we must avoid raising taxes, a move that would weaken our global competitiveness.
Besides doing whatever we can to mitigate the severity of the downturn and to speed recovery, the government must ensure that Canada's economy remains internationally competitive over the long term. It must focus on building a skilled and competitive workforce, eliminating internal barriers to trade and mobility; creating new market opportunities for Canadian companies; implementing the competition policy review panel's recommendations with respect to the Investment Canada Act; establishing a Canadian strategy that reconciles our need for secure and affordable energy with our desire for a clean and healthy environment; eliminating overlapping regulations; ensuring the coordinated and timely maintenance and development of our border resources to meet the commercial and security needs of the Canada-U.S. relationship and to make Canada a competitive gateway for North America; developing and implementing an objective-based national transportation strategy that embodies a North American vision; and championing a strong intellectual property rights regime. It is imperative that the government not lose sight of these long-term issues.
Preserving the public's trust in the sustainability of public finances is essential. This is why it's imperative that you ensure that we take the needed measures to avoid structural deficits. It is also essential that we implement smart policies that promote work, savings, and investment; encourage entrepreneurship; stimulate technological progress; boost productivity and economic growth; and enhance our long-term competitiveness. While we keep an eye on reviving the economy, we must focus on the long term and implement policies with an eye on the future.
We wish the House of Commons finance committee every success as it conducts pre-budget consultations.
Thank you for your attention. We would be pleased to answer any questions you may have.