TORONTO, ONTARIO -- (Marketwired) -- 02/11/14 -- Financial Executives International Canada (FEI Canada), the country's leading association for senior financial executives, is encouraged that the federal government is getting closer to balancing the budget and called on the Minister of Finance to be transparent with Canadians on how it plans to invest the surplus projected in 2015-2016 and subsequent years.
"We are pleased that the government will finally achieve a balanced budget in fiscal 2016. With its surplus projections, we call on the government to outline its future investment strategy and management of our debt levels," said Michael Conway, President and CEO of FEI Canada.
"This includes decisions on allocation in areas including investing in economic growth and employment, funding of pension and other post-retirement programs for public sector plans, and making inroads into reducing the national debt. Once the Minister of Finance has explained his strategies and plans, we will be in a position to analyze the proposals and recommendations and provide feedback," Mr. Conway said.
"We believe that our governments at all levels need to continue investing in our economy and prepare for, and have the necessary fiscal tools available to deal with, the eventual next downturn in the economic cycle," said Tim Zahavich, chair of FEI Canada's Policy Forum.
FEI Canada today outlined its top issues of importance for 2014, which include:
-- Create a positive business environment through fiscal prudence and
transparency
-- Corporate income tax simplification
-- Adequate and sustainable retirement programs for Canadians
-- Removal of interprovincial barriers regarding trade and labour mobility
-- Cyber security
-- Accountability, independence and diversity on boards of directors
Financial Executives International Canada (FEI Canada) is the all industry professional membership association for senior financial executives. With eleven chapters across Canada and 1,700 members, FEI Canada provides professional development, thought leadership and advocacy services to its members. The association membership, which includes Chief Financial Officers, Audit Committee Directors and senior executives in the Finance, Controller, Treasury and Taxation functions, represents a significant number of Canada's leading and most influential corporations. www.feicanada.org
FEI Canada's top advocacy issues for 2014
1. Create a positive business environment through fiscal prudence and
transparency: Significant progress has been achieved in reducing
deficits over the past several years, to the point where the government
is forecasting a surplus position in fiscal 2015. We strongly support
this outcome, in part because we believe that our governments at all
levels need to prepare for, and have the necessary fiscal tools
available to deal with the eventual next downturn in the economic cycle.
With surplus projections, we request the federal government explain
publicly its strategy and plans for deployment, including possible
difficult decisions on allocation in areas including investing in
economic growth and employment, funding of pension and other post-
retirement programs for public sector plans, and making inroads into
reducing the national debt by establishing specific debt targets and a
strategy to achieve them. This public exposure of strategy should begin
immediately.
2. Income tax simplification: FEI Canada was an early advocate for making
tax simplification a priority. The current Income Tax Act is the largest
piece of legislation in Canada. It is overly complicated and inefficient
to administer with many sections that are irrelevant in today's economy.
In addition, reporting for income tax purposes is overly complex and
inefficient since it is based on individual legal entities. Corporations
should be allowed to report their economic entities on a consolidated
basis since that is how many businesses are managed.
3. Adequate and sustainable retirement programs for Canadians: FEI Canada
continues to encourage the Government to examine options in the
development of a national framework on adequate and sustainable
retirement programs for Canadians. One recommended option within the
framework is a modest expansion of the Canada and Quebec Pension Plans,
professionally managed and cost effective, gradually becoming a "fully-
funded" model over time. Included in this sustainability framework
should be a plan to effectively manage the unfunded shortfall of public
sector pension plans estimated to be approx. $300B (federal, provincial
and municipal). Innovative solutions to the framework and model would
ensure long term solvency of retirement programs while maintaining
stable contribution rates and preserving a fair standard of living for
Canadians.
4. Removal of interprovincial barriers regarding trade and labour mobility:
Canada is a large country that will continue to have high economic
growth is certain areas and minimal growth in others. In order to meet
labour force needs, barriers that prevent easy access to available jobs
should be removed so that overall Canadian competitiveness remains at a
high level.
5. Cyber security: The majority of all business communication and
transactions are done via the internet and there are no comprehensive,
unified security standards over these items. Any sort of security
breakdown or cyber-attack on this communication medium could have
catastrophic effects on the Canadian economy. There should be a national
framework involving government and business to protect this critical
medium.
6. Accountability, independence and diversity on boards of directors: FEI
Canada supports the renewed focus on the corporate governance practices
of modern corporations, particularly in relation to diversity. There is
an inherent need for Board oversight as it pertains to the various
policies, practices and processes within the organization in general. It
has been identified that independence and diversity are important policy
areas in corporate governance on a number of fronts, and the need to
reflect diversity within the Board of Directors is crucial moving
forward. There should be timetables for diversity actions put in place
by regulators to monitor these activities.
Contacts:
FEI Canada
Christian Bellavance
Vice President, Research & Communications
416 366 3007 Ext. 5114
cbellavance@feicanada.org
www.feicanada.org
