Thank you very much.
Thank you very much, all of you, for your presentations.
I'll concentrate my questions on you, Mr. Brunnen—and maybe Mr. Sinclair, but you especially, as an economist. I'm an economist myself, and I'm really interested in macroeconomics. There are many issues I would like to tackle. I'll try to do that within the five minutes allocated.
In terms of productivity, we've been seeking to try to increase Canadian productivity for a long time. I still remember the free trade debates. We were told that the gap between Canadian and U.S. productivity could be reduced, or “will” be reduced, thanks to the agreement. Yet the gap never really got any slimmer between both countries.
The issue of Canadian productivity has been a problem since forever, I think. We've looked at many ways, including investment in research and development and so on, to try to improve on productivity, but nothing seems to work.
My first question—then I'll have a second question, before I give you a chance to answer—is why can't we seem to find a real solution on the issue of productivity, regardless of the prescription that is being either given or implemented by government?
The second point relates to taxation. The question is that, in especially the corporate sector, taxation has been reduced significantly since 2000, and even since 2006, since we've had this current government. At the time, I think the rate was 22%. Now it's 15%. The main argument for it is that if we are reducing tax rates, then that money will actually be reinvested and there will be economic growth in general.
It makes sense, except that in reality.... We've all heard about “dead money”. Even Mark Carney, the Governor of the Bank of Canada, has mentioned it. We also have a problem where, if we're looking at the real investment rate in this country since 2000 and since 2006, it's been pretty flat. So we don't necessarily see that money going into investments in real terms.
I just want to know why you think that is, and if you think that prescription has actually fulfilled all the potential its promoters actually put forward.