Conservative Economic Policy — The Conservative Plan
This is a four-part economic statement by the Kerry Colborne campaign — to inform Oakville voters about matters of economic policy.
Part I — Good Jobs, Prosperity, Stability — The Conservative Plan
This is the first of a four-part economic statement by the Kerry Colborne campaign — to inform Oakville voters about matters of economic policy.
Canada’s Conservatives have a detailed plan for growth to create good jobs. It’s needed now more than ever. Canada’s economy is shrinking. While every other country in the G7 is growing and picking up speed – the U.S. is growing at 6.6 per cent, the U.K. at 4.8 per cent – Canada’s economy contracted by 1.1 per cent in the second quarter.
We’ve been through six years of stagnation and growing government spending. Canada currently has 3.7 per cent inflation, the highest rate in 20 years. Everything from housing to groceries to gasoline is getting more expensive.
A falling economy with rising inflation means Canadians are falling further behind while the cost of living keeps climbing up and up.
No Justin, the government is NOT the economic engine
We’ve witnessed Justin Trudeau’s out-of-control spending on things that don’t create any growth. The most successful job-creation programs stem from governments that create the right conditions for growth.
That’s the Conservative Canada’s Recovery Plan.
A Conservative government will:
- Deliver the Canada Job Surge Plan, a generous job growth incentive to restore the million jobs lost during the pandemic.
- Make Canada the most innovative economy in the world with ultra-competitive tax rates, innovation incentives that target Canadian benefits, and an advanced research agency to invest in promising technologies.
- Overhaul Canada’s tax system and reduce the burden of regulation to make Canada the best place in the world to invest, to manufacture, and to build a business.
- Provide financing and investment capital to small businesses so they can flourish.
- Build world-class infrastructure all across this great country, including universal high-speed Internet by 2025.
- Benefit ALL Canadians. For the first time in Canadian history, Canadian workers are the beneficiaries of this economic growth, with higher wages, more secure jobs, and better supports for families.
Next: “How we grow the economy by 3%”
Part II — Kick-starting the Canadian economy
This is the second of a four-part economic statement by the Kerry Colborne campaign — to inform Oakville voters about matters of economic policy.
Getting to 3%
Canada’s Conservatives understand the challenge of getting to three per cent growth, and are well aware of the reduced potential output growth in Canada with an aging population and slowing productivity. Most economists have a long-term real gross domestic product (GDP) growth forecast for Canada in the 1.6 per cent to 1.8 per cent range.
But that only means that the federal government should redouble efforts to improve Canadian growth, competitiveness, and productivity, because growth is the only sustainable way to guarantee wage increases and to protect the social programs Canadians treasure. We need a certain level of economic growth so that we can afford our health care and social safety net — without leaving our children huge debts.
It’s time for aggressive action targeted at real results. Canadians are unwilling to accept mediocrity and wasted tax dollars. One thing learned from Justin Trudeau is that simply spending money with no plan is not the way to improve growth.
This is a government that announced $100 billion of “stimulus” and said in Budget 2021 that it would generate a cumulative six per cent boost to GDP and one million jobs.
In fact, the Parliamentary Budget Office said the economic impact of all the Trudeau spending would be less than one per cent of GDP and it would create only 89,000 jobs. The government’s stimulus program is a failure because so little of it was spent on things that actually create growth.
Justin Trudeau may think that it is impossible to grow the economy, but Conservatives do not. Looking at economic research and examples from countries around the world, there are lots of ways to improve Canadian growth.
- Regulatory reform can boost GDP growth by 0.3 per cent per year, according to the Organisation for Economic Co-operation and Development (OECD). Canada’s Conservatives have a detailed plan to reduce regulation by:
- Appointing a Minister Responsible for Red Tape Reduction, tasked with specific targets.
- Creating an Office of Regulatory Best Practice with business members who evaluate the costs of new regulations.
- Forming Industry Councils (e.g. biotech, retail, etc.) that will provide recommendations on world-leading regulation.
- Improving cost-benefit analysis of regulatory proposals by requiring consultation with industry so that regulators understand the true impact and consider lower-impact alternatives to achieve the same result.
- Fixing the Impact Assessment process that is making it impossible to build major projects in Canada, based on the bipartisan Senate recommendations, and repeal Trudeau’s tanker ban.
- Creating a Fast Track Certification Process that provides a faster path to approval for products that have already been approved in comparable jurisdictions.
- Innovation and research and development (R&D) can significantly improve multi-factor productivity growth, and create entirely new industries, according to studies from the OECD. The Parliamentary Budget Office cites studies that show a GDP multiplier between three and eight for investments in R&D, meaning that every dollar invested by the government will create between three and eight dollars of increased economic growth.
Next: Making Canada an innovation leader
Part III — Making Canada a world-leader in innovation
This is the third of a four-part economic statement by the Kerry Colborne campaign — to inform Oakville voters about matters of economic policy.
“Very frankly, and speaking as a former senior executive with the chamber of commerce, I can assure you that the Conservative plan is the one that is going to catapult a community like Oakville, and all of Canada, to worldwide economic leadership.” — Kerry Colborne
“This is a plan that is comprehensive, farsighted, and ambitious,” says Oakville Conservative candidate Kerry Colborne. “We deserve this kind of bold and imaginative thinking from a federal government instead of that broken old tax-and-spend and kick-the-debt-down-the-road nonsense the Liberals have been trying to sell us.”
Canada’s Conservatives have a plan to make Canada an “innovation superpower” by:
- Introducing a “patent box” regime that will give Canadian innovators some of the lowest tax rates in the world.
- Establishing a Canadian Advanced Research Agency that will fund innovative and high-potential projects.
- Streamlining and accelerating the Scientific Research and Experimental Development Program to drive Canadian innovation.
- Introducing flow-through shares for tech companies to boost the availability of financing.
- Overhauling all of Canada’s R&D programs to ensure that benefits stay in Canada.
- Breaking down interprovincial trade barriers could boost Canada’s GDP by four per cent, according to the International Monetary Fund (IMF). Canada’s Conservatives have a plan to break down interprovincial trade barriers by:
- Convening a First Ministers Meeting on interprovincial trade and providing federal leadership to help move negotiations forward.
- Working with the provinces to increase standardization and mutual recognition of credentials to increase labour mobility within Canada and smooth the trade in services between provinces.
- Introducing an Admitted Free Act clarifying federal intention with respect to interprovincial trade and section 121 of the Constitution.
Next: A roaring economy
Part IV — A roaring economy that will protect our social benefits
This is the fourth of a four-part economic statement by the Kerry Colborne campaign — to inform Oakville voters about matters of economic policy
“Canada’s Conservatives have a long history of creating the conditions for economic expansion. We are now placing before Oakville and Canada the boldest and most imaginative plan to expand the economy and wealth for every Canadian.” — Kerry Colborne
The Conservative plan also creates the conditions for targeted investment in trade-enabling infrastructure that helps us get our goods and services to market. This has massive macroeconomic benefits. It improves productivity. Every dollar spent on trade-enabling infrastructure could boost private-sector output by 13-17 cents in the long term.
Canada’s Conservatives have a detailed plan for infrastructure that will:
- Immediately invest in critical projects that will put Canadians to work, cut commute times, and clean up the environment.
- Reprioritize the Investing in Canada Plan toward infrastructure projects that would have the maximum benefit for economic recovery.
- Target projects that strengthen transit and trade, and reduce congestion and gridlock.
- Reduce bureaucratic red tape in the application process so money can get out the door faster, to where it’s needed.
- Build digital infrastructure to connect all of Canada to high-speed Internet by 2025.
- Move workers to where they are most productive through the Construction Labour Mobility Tax Credit.
Incentives like the Canada Workers Benefit can increase employment and labour supply, while reducing poverty, with important gains for single-parent families. Canada is currently experiencing the dual challenge of unemployment and a labour shortage.
- Double the Canada Workers Benefit up to a maximum of $2,800 for individuals or $5,000 for families and pay it as a quarterly direct deposit, rather than a tax refund at year-end. This will provide a strong incentive to bring discouraged workers into the labour force.
- Introduce the Canada Job Surge Plan, paying up to 50 per cent of the salary of new hires for six months following the end of the Canada Emergency Wage Subsidy (CEWS) program, with added incentives for hiring the long-term unemployed.
Tax incentives can be highly effective in stimulating business investment that can boost GDP. Canada’s Conservatives have a detailed plan to accelerate investment with:
- The Canada Investment Accelerator: getting companies spending money and creating jobs by providing a five per cent investment tax credit for any capital investment made in 2022 and 2023, with the first $25,000 to be refundable for small businesses.
- The Rebuild Main Street Tax Credit: providing a 25 per cent tax credit on amounts of up to $100,000 that Canadians personally invest in a small business over the next two years, to get money flowing into main street businesses and create jobs.
And finally, a roaring economy is an economy that is firing on all cylinders, in all sectors, and in all regions of the country – including the energy industry, which represents 9.2 per cent of Canada’s GDP. Canada’s Conservatives recognize the importance of all sectors and have a detailed plan to grow all industries and thus maintain and reinforce the social safety net.
This concludes my four-part economic policy statement. Oakville, believe me, the future is bright.