Thank you, Mr. Chairman.
Welcome, Mr. Dodge and Mr. Jenkins.
We have already heard, and you, Mr. Dodge, have already pointed out, what the stresses and challenges are with regard to the manufacturing sector. Let me, then, touch on or at least ask you to address three particular issues that I think have been raised already by the manufacturing sector, especially the export sector, as they relate...I think you've already talked about them. One is the dollar, the second is interest rates, and third is obviously high energy costs and how those costs have impacted on their costs of operation.
The government has given the Bank of Canada a mandate not only to stabilize prices and control inflation, but also, as we know, so far it has done an admirable job of keeping it under 3%. But I'm not sure the same can be said with regard to the Canadian dollar, which obviously manufacturers and exporters have already indicated has seen a 30% rise in three years--10% per year. It's not so much the value of the dollar as it is the steep incline that has caused them some irreparable problems, including some incredible losses of jobs already, and in fact it may also cause some additional ones.
Let me ask you to address the dollar, which is their number one concern, second, interest rates, and third, those competitive factors or the tax environment that they feel is important. I'll ask you a question as an example. On the GST, as part of the last budget, was that the most useful way of increasing productivity and building a competitive economy? Your views on that would be much appreciated.
With regard to the high dollar and interest rates, how does a rapidly rising Canadian dollar factor into the Bank of Canada's interest rate decision-making process? Would a slower rise in the Canadian dollar, managed by the Bank of Canada, not avoid many of the layoffs and the plant closures in the manufacturing sector and therefore give us an opportunity to adjust to these increases? And what actions has the Bank of Canada taken to date to stem or slow the rise of the Canadian dollar?
Secondly, with regard to interest rates, there is no doubt--