Article content continued
Consider that Canada has plummeted in competitiveness report cards such as the World Bank’s Ease of Doing Business report (where we dropped to 23rd in 2020 from 4th in 2007) and the latest World Economic Forum’s Global Competitiveness Report (Canada ranks 14th compared to the United States, which ranks 2nd).
Not surprisingly, from 2014 to 2019 (pre-COVID), business investment — including investment in machinery, equipment, factories and intellectual property — dropped 17.3%. Indeed, 10 of the 15 major sectors of the Canadian economy — including oil and gas, agriculture, manufacturing and retail—experienced a drop in investment. Investors (both foreign and Canadian) fled Canada for more favourable investment climates. In total, more than $185 billion in net investment left the country from 2014 to 2019.
If we truly want to “build back better,” we must reverse this trend. But how?
Well, the throne speech itself contained the answer — or at least part of it. It said that Ottawa “will ensure Canada is the most competitive jurisdiction in the world” for … wait for it … “clean technology companies.” The Trudeau government will “cut the corporate tax rate in half for these companies to create jobs and make Canada a world leader in clean technology.”
Of course, there’s nothing wrong with becoming the most competitive jurisdiction in the world for clean technology. But why stop there?
According to Statistics Canada, the environmental and clean technology sector comprises 3.2% of our economy and accounts for 1.7% of all jobs in Canada. What about the remaining 96.8% of the economy? Or the remaining 98.3% of jobs? What about construction, manufacturing, retail, wholesale trade, accommodation and food services, agriculture, mining and our energy industries? Why not make Canada the most competitive and attractive in the world, period?
