Good morning.
The Quebec Employers Council would like to thank the Standing Committee on Finance for the opportunity to present its comments on the theme “Maximize job creation in consideration of the 2014-2015 federal budget preparations”.
The maximizing of jobs is, of course, predicated on the presence of competitive companies that have a favourable tax and regulatory environment. It also hinges on market innovation and openness. Equally important as the maximizing of job creation, matching available job skills and companies' needs is an essential element in raising productivity. And labour costs, including all of the mandatory contributions that add to salaries, have to be competitive.
I will start by talking about the last item, that is payroll contributions. Increasing the tax load on payrolls for employers puts the brakes on investments and job creation. In this area, the Employers Council has serious reservations about the various proposals to enhance public pension plans, meaning the Canada pension plan and the Quebec pension plan.
It is worth noting that, internationally, Canada ranks quite well in terms of retirement savings. This does not obscure the interest in promoting savings, but there isn't a generalized need. Cookie-cutter solutions such as the ones being proposed do not respond to the needs. On the contrary, this runs the risk of having adverse effects on economic activity, investments, jobs and salaries in particular. Moreover, such enhancements don't encourage the extending of an active life, an objective we should pursue.
In terms of employment insurance, which is another payroll program, we are proposing the introduction of an employment insurance credit for training expenses, which would also improve productivity and help in maintaining and creating jobs.
I would like to briefly turn to the proposal for the Canada job grant. The Employers Council hails the intention of the federal government to have more employer input by striving to have a better matching of skills training to their needs. However, we are wondering whether a more favourable course of action would be to negotiate a new agreement with the provinces so that each province remains in charge of their respective programs. The federal government could still set the national guidelines and objectives.
The area of regulations is also an important aspect to look at. Of course, businesses appreciate the continued implementation of measures designed to reduce the regulatory burden and applaud the government's desire to establish the one-for-one rule in terms of regulations. In this area, we feel that the new regulations the government plans to implement in transportation, financial services and telecommunications should adhere to the same one-for-one principle.
Quebec employers are elated by the signing of the Canada-European Union Comprehensive Economic and Trade Agreement. This agreement should come into effect in about two years' time. To maximize the benefits, we suggest taking advantage of this two-year interim to better prepare our businesses through training and information, so that they are able to effectively seize the new opportunities that will arise. The Quebec Employers Council offers its collaboration in this regard.
Investment in our transportation infrastructure continues to be a major concern in terms of ensuring optimal mobility of goods and people. We suggest that the government move ahead, without further delay, with its plans to replace the Champlain Bridge and that it promote the sustainable development of our natural resources in compliance with environmental and safety standards.
Finally, the Quebec Employers Council believes that only sound public finances will allow the government to maintain competitive tax rates and to encourage prosperity and job creation. We urge the government to continue its efforts to eliminate the deficit.
We therefore also encourage the government to introduce the balanced budget bill.
Thank you.