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. The FCCQ network extends to 158 chambers of commerce throughout Quebec and represents more than 40,000 businesses and 100,000 business people.
The financial crisis and recession have tested Quebec's economy and its private sector. Since the start of the fourth quarter of 2008, many jobs have disappeared, exports have decreased, profit margins have shrunk and government finances have deteriorated. However, the rest of the recession seems to be behind us, and economists are confident enough to talk about a recovery. As the most recent economic growth figures show, the recovery will be slow and gradual since the U.S. economy is still shaky and the Canadian dollar is gaining strength.
However, with economic conditions improving, the FCCQ no longer feels it is necessary to develop mechanisms to stimulate the economy. Instead, it encourages the government to refocus its attention on the structural problems threatening the Canadian economy. These problems include an aging population, slowdowns in productivity, uncertain government finances and reducing greenhouse gases.
One of the first ways to attack these major challenges is to use a tax system that promotes competitiveness among businesses and attracts foreign investors. Governments have seen a dramatic drop in revenue because of the recession and increased debt owing to recovery plan spending. The public and the business community anticipate that taxes and other sources of government revenue will increase in the coming months.