Thank you, Mr. Chair and members of the committee. It's a pleasure to be here today.
The Government of Canada and, indeed, all members of Parliament must be recognized for the work that they have done in providing support to businesses and Canadians during this unprecedented and very uncertain time.
The emergency supports that have been provided have spared many Canadian businesses from economic disaster and will help many Canadians through another challenging year. These pandemic-related fiscal supports have also come at an enormous price, and their cost will continue to mount for the coming months and beyond. Focusing government spending on the programs and policies that will encourage growth, create jobs and help businesses recover will provide the greatest return on investment for all Canadians. Doing so will allow us to produce the revenue needed to offset the extraordinary amount of public spending we have incurred and will help Canada achieve an economic recovery that is fiscally sound.
All of us understand the need for emergency spending to support people and businesses through the crisis, but we must avoid creating structural deficits that will mortgage the future of the next generation of Canadians. Despite the recent third wave of the pandemic, our strong GDP growth this year gives Canadians a taste of the economic rebound to come once vaccines are widely available.
Robust government stimulus spending to jump-start growth in the short term will likely be unnecessary, since pent-up demand is ready to be released once the pandemic subsides. That doesn’t mean the government needs to turn off the taps or start cutting critical programs, but this is not a typical recession that is a result of problems with economic fundamentals; therefore, it will not require traditional stimulus injections to help spur growth.
Instead, our economic recovery plan, including next week’s federal budget, should focus on addressing Canada’s competitiveness, such as our issues with productivity, business investment, and interprovincial trade and regulatory barriers. Addressing these issues will be the key to transforming our high growth rates from this year’s initial rebound into longer-term prosperity, job creation and an inclusive economic recovery.
At the same time, we cannot lose sight of the fact that more than one year into the pandemic, businesses, especially small businesses and those in the hardest-hit sectors, continue to struggle. These sectors will require continued support to ensure they can help propel job creation going forward.
I am joined today by my colleague, Alla Drigola, director of parliamentary affairs and SME policy, who will speak to the types of targeted support that will help businesses that need it most.