Finance Committee on Oct. 2nd, 2018

[The Chair, Liberal, Wayne Easter]

To all the witnesses, welcome to our pre-budget consultations. Just so you understand what we're doing for the next few minutes, before the start of a meeting we never have enough time for all the witnesses, so when we're on the road we do open-mike sessions. We give people the opportunity to make a one-minute statement at the mikes that are on the floor. There are no questions from members on the statements, but they do go into the record of our pre-budget consultations.

We'll start the open-mike session now. Please try to keep it to about one minute, if you could.

We'll start with Mary McKenna from Fredericton.

Mary, the floor is yours.

[Professor Mary McKenna, As an Individual]

Thank you very much. My name is Mary McKenna. I'm a professor at the University of New Brunswick and a member of the coalition for healthy school food, a project of Food Secure Canada.

Did you know that recent research from the United States found that school meals provide 77% of students' total milk-group consumption? Here in Canada, today, 20% of students will participate in a school food program. These programs are largely volunteer-run and have multiple funders, including parents, schools, community groups, businesses, municipalities, territories and provinces.

We are asking your government to become a funder and invest $360 million in a cost-shared program totalling $1.8 billion. Your investment will support Senate motion number 358, introduced recently by Senator Art Eggleton, which recommends federal funding for a nutrition program. This investment will establish new programs and strengthen existing ones. Evidence shows that food programs available to all students have many health and learning benefits, create jobs, and improve local economies. Everybody wins, especially our kids.

Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you, Mary.

We'll turn now to Marie Lorraine Scott.

[Marie Lorraine Scott, National Association of Federal Retirees]

I'm Lorraine Scott. I'm president of the National Association of Federal Retirees here in the Saint John district, covering from Sussex all the way down to St. Stephen at the border.

I'm here basically to talk about pension security for seniors in regard to Bill C-27. Federal government employees have a pension. The average pension of a government employee is $23,000 per year. We're afraid of Bill C-27 being implemented, because we'll go from a deferred pension plan to a targeted pension plan, which will affect the members of the retirees association—all retirees and future retirees. Too many government employees, and many of you yourselves, could be affected by this change.

We would like to see Bill C-27 reneged. We want it removed so that the pension plans that we have will remain the same, remain targeted and be fully indexed. That is our mission from the national association.

Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you, Lorraine.

David Nelson is with Engineers Without Borders.

[David Nelson, Engineers Without Borders Canada]

Good morning. My name is David Nelson. I'm a member of the University of New Brunswick chapter of Engineers Without Borders.

In budget 2019, I'm asking that Canada commit to a 10-year timetable of predictable annual increases of 15% to the international assistance envelope. This is in keeping with the recommendation the committee made last year in regard to the pre-budget consultation, as well as to an OECD report on Canada released in mid-September.

I was really encouraged to see the Government of Canada commit to ODA in budget 2018, but despite this increase, Canada's spending is still near its historical low. We are well below many of our global peers. ODA is fundamental, as these investments support such vital services as health care and education in some of the least-developed countries. Increasing ODA through a predictable timetable in budget 2019 would show that Canada is a committed global leader that is helping to create a better world for everyone.

Thank you so much for your time.

[The Chair, Liberal, Wayne Easter]

Thank you.

Next up is Jessica Ruth Adams.

[Jessica Adams, As an Individual]

Good morning, honourable members.

My name is Jessica Adams, and I'm a Canadian citizen who believes in equality, peace and prosperity for all. I am fortunate enough to have been raised in Canada, with access to health care, a good education and a safe community to grow up in. However, I know that this is not the reality for other children around the world.

I've seen the impact of Canada's investments abroad. Far fewer people are dying around the world, and communities are thriving thanks to the development efforts. However, there is still a lot to be done. The needs are great. International assistance has a reputation for bringing about charity, but it's more than that. It's about strengthening the global community and creating sustainable opportunities.

I am encouraged by the recent increases to international assistance, but to effectively deliver on Canada's feminist international assistance policy, more must be done. Therefore, I urge you to recommend annual long-term increases to international assistance in your report to Parliament on budget 2019.

Thank you for your time.

[The Chair, Liberal, Wayne Easter]

Thank you, Jessica.

Mya.

[Mya Ryder, As an Individual]

Good morning, honourable members.

My name is Mya Ryder, and I am a student here in the Saint John area.

I believe that everyone deserves the chance to prosper, but not everyone has the resources to do so. I've had the opportunity to see first-hand that the privileges we enjoy on a daily basis, such as access to clean water and education, are not available to many vulnerable children. They lack and are in dire need of these basic human rights and services.

The impact of even small investments in communities can lead to great successes and improvements for child well-being. Generosity and kindness are Canadian values and matter to Canadians everywhere.

I am encouraged by the commitment Canada made to girls' education and protracted crises this past June. Those funds are doing so much good, yet there is still so much more that needs to be done.

Development efforts are strengthening the global community and creating sustainable opportunities. Therefore, I urge you to recommend annual, long-term increases to international assistance in your report to Parliament on budget 2019.

Thank you for your time.

[The Chair, Liberal, Wayne Easter]

Thank you very much, Mya.

There is nobody else here for the open-mike sessions.

I thank each of you for your presentation.

We'll go to the regular meeting.

I know that witnesses know this, but for the record, the finance committee is doing its pre-budget consultations for the 2019 budget. We welcome all the witnesses who are here, and we appreciate those sending in submissions prior to the August 15 deadline. Those submissions are on our iPads, and people will be referring to them from time to time. They're not playing games on their iPads.

We'll do a quick round to introduce the members so that you know where they're from.

I'm Wayne Easter, from the riding of Malpeque, Prince Edward Island. I'm a member of the government.

[Peter Fragiskatos, London North Centre, Lib.]

Good morning, everyone.

I am Peter Fragiskatos, from London, Ontario. It's great to be in your province and city this morning. I'm a member of the Liberal Party, as well. I sit on the governing side.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Good morning, everyone. Welcome.

For us, it's great to be here in New Brunswick.

I'm a member of Parliament from a riding called Vaughan—Woodbridge, which sits right on top of the city of Toronto. But I would be remiss this morning if I didn't want to be a member of Parliament for Skeena—Bulkley Valley, where I grew up, and which is represented by Nathan Cullen, with the announcement of a $40-billion investment today by LNG Canada and its partners.

It's a great day for one of the coasts of Canada, and for all Canadians.

[Greg Fergus, Liberal, Hull—Aylmer, QC]

Good morning.

My name is Greg Fergus and I am a Quebec member of the Liberal Party of Canada. I represent the riding of Hull—Aylmer, near Ottawa, just across the river.

I apologize for being late this morning, especially to the people in the audience. As you can imagine, I followed the election results in Quebec very closely yesterday. It was a historic election.

I have been a member of the Standing Committee on Finance for two years and a few months. I am very happy to be back in Saint John, which is one of my favourite Canadian cities. It is a pleasure to be here.

[Pat Kelly, Conservative, Calgary Rocky Ridge, AB]

I'm Pat Kelly. I'm the member of Parliament for Calgary Rocky Ridge, and a member of the Conservative caucus.

[Leona Alleslev, Aurora—Oak Ridges—Richmond Hill, CPC]

I am Leona Alleslev. I am a member of Parliament for Aurora—Oak Ridges—Richmond Hill, which is just north of Toronto, and also a member of the Conservative caucus.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

My name is Peter Julian. I am a member of the NDP and I represent the riding of New Westminster—Burnaby, on the other side of the country.

I am just delighted to be here in Saint John. This is an architectural mecca. Wandering around last night and seeing downtown Saint John was phenomenal.

I look forward to your testimony.

[The Chair, Liberal, Wayne Easter]

I thought you had come off that cruise ship that's parked in the harbour this morning, Peter, but anyway, I guess not.

In any event, thank you, all.

We'll start with the Canadian Communication Systems Alliance and Jay Thomson, CEO.

Welcome, Jay. The floor is yours.

[Jay Thomson, Chief Executive Officer, Canadian Communication Systems Alliance]

Thank you, Mr. Chair and members of the committee. My name is Jay Thomson. I'm the CEO of the Canadian Communication Systems Alliance. I'd like to thank all of the members of the committee for inviting me here to Saint John today to present our recommendations.

While I'm based in Ottawa, actually in Wakefield, our head office is very close to here in nearby Quispamsis. CCSA represents more than 110 independent companies that provide Internet, television and telephone services across Canada. Our members serve hundreds of thousands of Canadians in communities generally outside urban markets all across the country. In rural areas, CCSA members are sometimes the only source of essential communication services.

I come today with three recommendations that our members believe would support Canada's commitment to growing the economy, job creation and broad-based prosperity.

Our message today is essentially the same as it was when we appeared before your committee last year. In today's connected world, continued development of our broadband infrastructure is crucial to Canada's global competitiveness and economic success. Therefore, Canada's fiscal policy should support the government's objective of extending broadband service to all Canadians.

To that end, first, we ask that the Canadian government increase its investments in the country's broadband infrastructure. CCSA is pleased that the government has made important progress in this respect with the connect to innovate program, but more investments are needed. We recommend that the government continue to work with our members to identify where broadband investment can have the greatest positive impact on the lives of Canadians.

Second, we ask that the government, in making its fiscal policies, recognize the vital role that local entrepreneurs with existing networks and expertise can play in achieving Canada's broadband goals. By directing funding for locally based companies, the government can more efficiently extend broadband capabilities and increase the potential for economic growth and diversification, creating jobs and other opportunities. That's because smaller, locally based companies really know how to stretch a dollar to serve their communities.

Third, we caution the government against creating any avenue for Internet service providers to be taxed to support the production of Canadian television programming, as some parties seek. We believe that any new tax aimed at the providers of broadband services would be harmful to the government's objective of spurring economic prosperity by extending broadband services to parts of the country that currently are underserved. We, therefore. urge the government to not impose any new taxes on Internet service providers in Canada.

In conclusion, we believe that the Canadian government is well on its way to continuously growing the economy through ensuring that all Canadians regardless of where they live have access to critical broadband connectivity so that they may share in the benefits of the digital economy. By increasing investments in broadband, funding directly to locally based providers and not adding any more tax burden on those companies, the government will be able to achieve its goals more efficiently and quickly.

The CCSA and our members look forward to continuing to work with the finance committee and the government in ensuring that policies developed help grow the Canadian economy. Thank you once again for the time and I look forward to your questions.

[The Chair, Liberal, Wayne Easter]

Thank you, Jay.

We'll turn to the Canadian Crafts Federation, with Ms. Bent and Ms. Black.

[Maegen Black, Director, Canadian Crafts Federation]

Honourable Chair and esteemed members of the committee, thank you for inviting us to participate today.

The Canadian Crafts Federation represents a broad sector of artisans and makers from a wide variety of disciplines. Craft is a vibrant and active component of the larger cultural sector in Canada, and a significant contributor to the cultural economy. The culture satellite account showed that the craft sector contributed $2.8 billion to the cultural GDP in 2010. That's more than the performing arts, at $1.7 billion; architecture, at $1.2 billion; books, at $1.1 billion; and photography, at $1 billion.

Our recommendations will impact the sector's work to increase homegrown, sustainable jobs for Canadians. Rather than ask for extensive financial investment, we are largely asking for clarity and the reduction of impediments to growth for the craft sector.

First, we recommend that the government implement fair taxation regarding grant income. For years, artists have faced unclear guidelines and confusion regarding this income. This difficulty was brought to the public eye earlier this year when sculptor Steve Higgins received a $14,000 tax bill after receiving only $20,000 in grants for a specific project. This funding was then recategorized as a personal endeavour rather than a source of business income and deemed ineligible for related expenses. This is one example of wasted productivity, for Canada Revenue Agency staff and for the artists who face these audits. These could be rectified with only slight shifts in policy and training at the CRA.

The CCF also recommends that the government recommit to, and finalize, the budgetary increases already slated for the Canada Council for the Arts through to 2021. Since 2017, the CCF has directly benefited from this increase, as have many of our partner organizations and individual members across the country. We know this funding has increased employment numbers and artist fees paid out across the sector. We have seen first-hand the impact that this increased funding has already had in its first stage of implementation, and we are grateful for this long-needed injection of funding to further support our sector.

Funding for mentorship and apprenticeship programs and increased access to the federal financial incentive and tax credit programs through the Red Seal trades system could greatly assist craft artists looking to transition from training to professional practice. In August 2017, a Canadian Crafts Federation study identified 36 colleges offering 84 craft programs. The demand exists to open Red Seal opportunities to the craft sector. By encouraging Employment and Social Development Canada and the Canadian Council of Directors of Apprenticeship, the federal government can play a role in opening this door.

In order to create a new taxable income for artists in Canada, the government could amend the Canadian Copyright Act to include an artist resale right. This copyright royalty would increase income for craft artists whose work is resold, often at a higher price point as their career advances. This would come at no cost to the federal government. This type of program currently exists in 93 other countries worldwide. As average artists' incomes are below the poverty line, this amendment to the Canadian Copyright Act would have a direct impact.

Finally, the Canadian Crafts Federation recommends that the government modernize the national museum policy and identify new financial support for programming to advance indigenous reconciliation, inclusion and diversity; digitization; and infrastructure. Much like the recent review and transformation of the Canada Council for the Arts' model, Canadian museums need to be supported in their endeavours to renew and refresh their structures, content and relationship with the modern Canadian and international audience.

Craft is a sector that touches every single region in Canada, from community spaces like the Eptek Art and Culture Centre in P.E.I., the Shadbolt Centre for the Arts in Burnaby, and the Woodland Cultural Centre in Brantford, to excellent craft training programs such as the Alberta College of Art and Design in Calgary and the renowned collections in public and private galleries like Hull's Canadian Museum of History, the Jonathon Bancroft-Snell Gallery in London, and the McMichael Canadian Art Collection. Craft and culture are alive and well.

I highlight these specific cultural institutions not just because you are familiar with them, but because they are excellent examples of diverse cultural industries. They are employers, community developers, keepers of our history and place-makers of our modern time. All these organizations would benefit directly from the recommendations presented today.

Government support of artists and the cultural sector is a hand up, not a handout. Supporting the creative industries in this country creates jobs, supports small businesses, and provides opportunities for children, youth, seniors and everyone in between, regardless of their backgrounds. Statistics Canada confirmed the cultural sector generated approximately $25 billion in taxes for all levels of government in 2007, more than three times higher than the $7.9 billion that was spent on culture by all levels of government that same year.

Cultural investment has an excellent return.

Thank you very much.

[The Chair, Liberal, Wayne Easter]

Thank you, Maegen.

We turn now to Mr. Cyr and Mr. Brun, with the Coalition santé mentale et traitement des dépendances du Nouveau-Brunswick.

[Albert Cyr, Interim president, Coalition santé mentale et traitement des dépendances du Nouveau-Brunswick]

Thank you, Mr. Chair.

Equity between mental and physical health care is fundamental to ensuring productivity and economic competitiveness in Canada. The Mental Health Commission of Canada and the Canadian Mental Health Association have been very vocal on the urgent need to act.

The 2015 Provincial Mental Health Forum, held in New Brunswick and attended by more than 350 community participants, established the importance of holding a societal debate on all mental health issues, such as the need to overcome stigma and legal barriers and promote equity in access to services.

Such a transformation of services requires the participation of families, loved ones and the community. It is important to intervene early while respecting the safety and jurisdiction over culture of first nations, immigrants, refugees and linguistic minorities. Transforming mental health services is based on the values of respect, transparency, collaboration, evidence, best practices and research.

According to the Mental Health Commission of Canada, the economic losses from mental illness and substance abuse are estimated at $51 billion. For Canadians suffering from depression, the loss of productivity is estimated at $8 billion.

Mental health issues are the primary reason for disability claims. Seventy-five per cent of short-term claims result in significant costs. Only 50% of employees will return to work after a six-month disability period. The costs associated with mental health issues represent 4% to 12% of the payroll. Fifty-seven per cent of Canadian employers have made it their top priority.

According to a survey conducted by the Canadian Mental Health Association, whose report has just been published, access to mental health care, unavailability of appropriate services and stigmatization are the main barriers to good mental health.

The mental health needs of 1.6 million Canadians are not being met. The opioid crisis is the result of physical, spiritual and psychological suffering and pain related to, among other things, social inequality, colonialism, intergenerational trauma, stigmatization and inaccessibility to appropriate and effective services, as well as a lack of consistent treatment services.

In Canada, 7.2% of the health care budget is for mental health, compared to 13% in England, while the economic burden of mental health, as estimated by the OECD, is to the tune of 23%. Historically, community mental health services have been underfunded. The Government of Canada has demonstrated unprecedented leadership by recognizing significant gaps in mental health and has committed an additional $5 billion over 10 years.

Mental health issues are preventable and manageable with personalized, equitable and effective access to appropriate services and support. Eighty per cent of people depend on their family doctor for services that are usually limited to drugs and referrals.

Psychological therapy services are inaccessible in the public system, as the majority of people do not have access to private insurance plans to cover part of the costs.

We recommend the following strategies: providing evidence-based therapies from public funds; improving the quality of care; investing in promotion, prevention, early intervention, and the resolution of stigma and discrimination issues; ensuring equitable access; and increasing funding for mental health research and impact assessment. For each dollar spent, the health care system saves two dollars.

We propose to hold an Atlantic forum bringing together all community participants and decision-makers in the formal system, as a follow-up to the provincial forum held in 2015. The purpose of such a forum is to engage people with mental health challenges in their institutions, to engage their natural support networks such as family and friends, and to engage employers, professionals, researchers and policy-makers.

This is also an opportunity to demystify mental health, mental illnesses and addictions, to share evidence and best practices, but more importantly, to overcome stigma. Working with partners is essential to implementing innovative strategies, deploying appropriate and effective services, intervening early and building a healthy and dynamic economy.

The following issues cost society dearly: the rate of homelessness related to mental illness; the dependency rate related to mental health issues; the rates of chronicity and economic dependency of people who do not have access to appropriate and effective services; and the inaccessibility of care and services for those living with mental illness, as well as for their families and loved ones. The status quo has an impact on the economic health and productivity of communities.

A forum bringing together all stakeholders from the formal systems of public services, training and education institutions, community organizations, immigrant communities, first nations and the linguistic minority, in a spirit of collaboration and evidence-based information sharing, paves the way for demystifying mental illness, promotes best practices and ensures continuity of care.

A forum is a societal intervention that informs, raises awareness, and mobilizes people. It overcomes stigma and engages our communities in a partnership with formal systems and policy-makers.

The Canadian Mental Health Association recommends that legislation be passed on parity between mental and physical health, which would clarify that access to mental health services is not a privilege, but a right.

The purpose of the coalition will be to represent the interests of communities, individuals and formal services in the transformation of mental health services.

Thank you.

[The Chair, Liberal, Wayne Easter]

Thank you, Mr. Cyr.

With J.D. Irving, Limited, we have the co-chief executive officer, Mr. Irving.

Welcome.

[Jim Irving, Co-Chief Executive Officer, J.D. Irving, Limited]

Thank you, Mr. Chair and members of the Standing Committee on Finance for giving me the opportunity to appear before you today. I'm very pleased that the committee chose economic growth ensuring Canada's competitiveness as its topic, as this is a critical issue for our great country. As the gentleman from B.C. mentioned this morning about the pipeline being sanctioned or going ahead with a green light by the owners, that's just what we need in this country, more of that. That's first class.

By way of background, our organization employs approximately 18,000 people in Canada and the U.S., with the majority being in Canada. Last year we purchased goods and services from more than 4,600 businesses here in New Brunswick alone, at 1.3 billion dollars' worth of local purchases in 2017. The majority of these businesses were small, which is a critical component of the social and economic fabric of this country. In order to stay in business and continue to buy from smaller local suppliers we, as a company, need to be globally competitive. That's absolutely critical.

Exports are critical. Our New Brunswick sawmills produce enough lumber in seven days to satisfy all of New Brunswick's home construction for a year. For tissue products, it's about 50 days, and for magazine paper, it's about 12 days.

I sat this last year on the Prime Minister's resources of the future economic strategy table, and there were a number of interesting statistics that came out of that, which I wasn't fully aware of. I don't want to be negative, but I'm going to read them because I think it puts things in context about where we're headed on a competitiveness basis.

Canada ranks 34 out of 35 among the OECD countries in terms of time required to obtain a permit for a new construction project. Canada's export growth has declined significantly in the last 15 years. The productivity gap between Canada and the U.S. has more than doubled since the late 1980s. Canada ranks last of all advanced economies when it comes to the burden of government regulation and efficiency of government spending.

In a recent survey of large firms, the Business Council of Canada found that 64% of CEOs said Canada's investment climate had worsened in the last five years. Noting the growth in tax and regulatory burden, increasing red tape can discourage companies from making large investments in Canada. Meanwhile, confidence among small businesses has plummeted, according to the reports from the Canadian Federation of Independent Business. Foreign direct investment in Canada plunged last year to the lowest level since 2010.

As you undertake your pre-budget consultations, I would like to raise a few ideas for your consideration. I don't mean to be negative with those previous comments, but that's the state of affairs. We're in a great country. We have a massive amount of natural resources. The job is to know how to move forward to help ourselves be more competitive.

Taxation issues, the subject of accelerated capital cost allowance, is something I'm sure you will hear across the country from different people in the manufacturing sector, in any case, suggesting the acceleration of capital cost allowance on machinery and equipment. The U.S. currently now has 100% depreciation in the first year, an enormously important requirement because currently Canada's depreciation rate runs about seven years. At one time we could buy equipment for our manufacturing plants and it would last. It would run out its useful life. Today, with technological changes, oftentimes equipment still has a useful life but is no longer technically competitive because of the fast pace of change in the global sector of manufacturing. That's quite important.

We might even consider changing the ready for use rules. Today the capital asset has to be in production before you can claim the depreciation. In New Brunswick at one time the federal government had allowed for ready for use rules, which meant they would be waived. Once you committed to the project, you could claim the depreciation while it was under construction. This further accelerated the rate of investment in particularly hard depressed areas of the country.

We think the depreciation is quite important, and we ask that due consideration be given for the whole country, for all kinds of reasons.

As to carbon pricing and environmental regulations, we support the federal government's efforts to reduce carbon emissions. In our organization in the pulp and paper sector, we've reduced our carbon by about 50% over the last 15 years. This is a cost of doing business that rarely pays for itself, but it's something we have to do. We don't dispute that. One way to mitigate the carbon tax on companies is to separate another class of depreciation.

Where we're going to invest.... The federal government now is rewriting the environmental rules on water, air and so on, in a number of different sectors. You can only spend a dollar once. Once you've spent it on reducing your environmental footprint, you haven't got the dollars to spend on the modernization of your plant.

Perhaps we want to have a different class of depreciation, perhaps double depreciation, for those things that are specifically for environmental improvements to the country. We have to do them, fine, and the federal government will get all of its taxable revenue. It might be a year or two later, but then you're fully exposed from a depreciation point of view, and you'll pay your full tax. We think it perhaps signals the right message to the rest of the community.

With regard to analytical capacity, governments often introduce...and when I refer to governments, I mean federal and provincial. I know this is about the federal government here today, but it overlaps. Governments often introduce policy and legislative changes that may negatively impact business, although not directly. They have the best intentions but they are perhaps a bit misguided sometimes. These may be changes to environmental regulations, labour laws or a number of other government initiatives.

We need to make these changes, but the government really needs to understand the impact—what we are doing on the outcome—because it all gets back to being competitive. We often see the provinces putting regulations through with no analytics of the impact. That's particularly true in the resource sector.

That's why I am glad to see the pipeline going ahead. The Prime Minister did the right thing. He bought Kinder Morgan, and he's going to make that happen. It's the right thing. We have to make things move.

We recommend that the federal government create an internal competitiveness task force with the analytical capacity to clearly understand the impact of any policy or legislative changes in terms of global competitiveness. It affects our input cost if we put the power rates up or the gas rates up, or we change the regulations on transportation. It all adds up to how we compete globally, and that's so important.

The task force would be sector-specific. We're not talking about thousands of people. These would be people who are very familiar with the mining business, the forestry business, the oil and gas business, who really understand the global inputs and what it takes to make those businesses attractive to capital investment here in Canada. As we've often said to the premiers of New Brunswick over the last 10 years or so—as New Brunswick has lost approximately half of its pulp and paper mills—these folks didn't leave the industry, they left New Brunswick. They went and put their money where perhaps it was easier to do business.

That's gone on across Canada in these very competitive sectors. Today Canada has the Competition Bureau. We think we need a competitiveness bureau. We think we really need to understand it. Obviously being competitive keeps the standard of living up in this country. That's what we have to be able to do. We have to be able to have the tax revenue generated to pay for all the social programs and look after people who need help.

We've heard from a number of young folks here this morning who spoke very well about how we have an obligation to look after things. The only way we're going to do it is to generate cash—income for the country. The only way we're going to do that long term is to be competitive. We're blessed with all the resources in the world, so it's up to us as a country to step up on that.

Competitiveness should be the watchword on many things we're doing today.

Thank you.