Posthaste: What Trudeau’s new cabinet must do to revive Canada’s economic fortunes. Plus, what Bay Street fears the most
C.D. Howe Institute recently published a laundry list of issues Canada’s incoming cabinet must address to revive business confidence in the country.
A sample of the to-do list:
Improve personal income tax competitiveness in order to make Canada a more attractive location for top talent
Initiate a comprehensive tax system review
Review domestic barriers that impede Canadian trade success, including barriers to Canada maximizing its competitive advantages
Provide certainty that the TMX pipeline will be completed, and expediently resolve ongoing legal challenges
Given perception of increased political risk for approvals under the new legislation, Natural Resources Ministry’s Major Project Management Office must streamline handoffs, eliminate duplication and enforce accountability through federal approval processes
Revisit the governance of the Canada Infrastructure Bank
Rethink the ownership model of airports and seaport. It could raise as much as $16.6 billion
The new minority government must also calm the nerves of Bay Street that’s in an increasingly apprehensive mood, according to the latest Bank of Canada survey.
“The overall perception of risk has increased over the past six months, continuing the upward trend from previous surveys,” the bank said. “Respondents cited a deterioration in the global economic outlook, a cyber incident and geopolitical risk as key risks to the Canadian financial system. At the same time, confidence in the resilience of Canada’s financial system remains high.”
Among the respondents, 63 per cent stated there was a slight to material increase in the probability that a high-impact event with the potential to severely impair the financial system would occur in the next one to three years, representing a further increase in risk perceptions compared with the Bank’s Spring 2019 Survey, where 40 per cent of respondents noted a slight to material increase in risks.
Ottawa and Bay Street, however, can see eye to eye on on issue, at least: Canada Inc. is also increasingly worried about the impact of climate change risk.
“The main channel for transition risk was damage to reputation (e.g., negative perception or stigmatization by stakeholders). It was cited by 80 per cent of participants as either important or very important,” the bank said. “Banks and asset managers were the most concerned by climate-related reputational risk.”
Here’s what you need to know this morning:
Gov. Gen. Julie Payette will preside over the swearing-in ceremony of members of the 29th Canadian Ministry in Ottawa at 1.30 p.m. ET
The Gordie Howe International Bridge project team is hosting a vendor summit for local businesses to learn about contracting opportunities in Detroit
Statistics Canada to release its consumer price index for October at 8:30 a.m. ET
Alberta Agriculture and Forestry Minister Devin Dreeshen is to give details about the newly introduced Farm Freedom and Safety Act in Edmonton
Notable Earnings: Metro Inc.
True to form, Quebec is leading the electric vehicle revolution in the country. Just under 4% of cars registered in Quebec were of the zero-emission kind, as the province aims to reduce its carbon footprint.
Overall, electric vehicle sales have jumped nine-fold over the past eight years in Canada. Those accelerations rates will have to continue though, of the industry is to challenge the reign of the internal combustion engine. The International Energy Agency forecasts 30% of cars sold in Canada by 2030 will be zero-emissions.