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01 Cover Page and Inside Page E TOWARDS PROSPERITY: FEDERAL BUDGETARY PRIORITIES FOR PEOPLE, BUSINESSES AND COMMUNITIES Report of the Standing Committee on Finance James Rajotte Chair DECEMBER 2014 41st PARLIAMENT, SECOND SESSION Published under the authority of the Speaker of the House of Commons SPEAKER’S PERMISSION Reproduction of the proceedings of the House of Commons and its Committees, in whole or in part and in any medium, is hereby permitted provided that the reproduction is accurate and is not presented as official. This permission does not extend to reproduction, distribution or use for commercial purpose of financial gain. Reproduction or use outside this permission or without authorization may be treated as copyright infringement in accordance with the Copyright Act. Authorization may be obtained on written application to the Office of the Speaker of the House of Commons. Reproduction in accordance with this permission does not constitute publication under the authority of the House of Commons. The absolute privilege that applies to the proceedings of the House of Commons does not extend to these permitted reproductions. Where a reproduction includes briefs to a Standing Committee of the House of Commons, authorization for reproduction may be required from the authors in accordance with the Copyright Act. Nothing in this permission abrogates or derogates from the privileges, powers, immunities and rights of the House of Commons and its Committees. For greater certainty, this permission does not affect the prohibition against impeaching or questioning the proceedings of the House of Commons in courts or otherwise. The House of Commons retains the right and privilege to find users in contempt of Parliament if a reproduction or use is not in accordance with this permission. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca TOWARDS PROSPERITY: FEDERAL BUDGETARY PRIORITIES FOR PEOPLE, BUSINESSES AND COMMUNITIES Report of the Standing Committee on Finance James Rajotte Chair DECEMBER 2014 41st PARLIAMENT, FIRST SESSION STANDING COMMITTEE ON FINANCE CHAIR James Rajotte VICE-CHAIRS Nathan Cullen Hon. Scott Brison MEMBERS Mark Adler Murray Rankin Mike Allen Andrew Saxton Guy Caron Dave Van Kesteren Gerald Keddy OTHER MEMBERS OF PARLIAMENT WHO PARTICIPATED Malcolm Allen Matthew Dubé Marjolaine Boutin-Sweet Richard M. Harris Arnold Chan Ted Hsu Robert Chisholm Alexandrine Latendresse Raymond Côté Chungsen Leung Patricia Davidson Laurin Liu Don Davies Phil McColeman Libby Davies Rick Norlock Rosane Doré Lefebvre Bev Shipley iii CLERK OF THE COMMITTEE Christine Lafrance LIBRARY OF PARLIAMENT Parliamentary Information and Research Service Mark Mahabir, Analyst Michaël Lambert-Racine, Analyst In Collaboration With: Raphaëlle Deraspe, Analyst James Gauthier, Anaylst iv THE STANDING COMMITTEE ON FINANCE has the honour to present its EIGHTH REPORT Pursuant to its mandate under Standing Order 83.1 the Committee has studied proposals in the budgetary policy of the government and has agreed to report the following: v TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION ................................................................................. 1 CHAPTER TWO: BALANCING THE FEDERAL BUDGET TO ENSURE FISCAL SUSTAINABILITY AND ECONOMIC GROWTH ............................................................ 3 A. Background ........................................................................................................... 3 1. Fiscal Conditions and Projections ..................................................................... 3 2. Economic Conditions and Projections .............................................................. 5 B. Changes Proposed by Witnesses Invited to Address “Balancing the Federal Budget to Ensure Fiscal Sustainability and Economic Growth” ............................. 7 1. Federal Budgetary Policy.................................................................................. 7 2. Balanced Budget Legislation ............................................................................ 8 3. Fiscal Reporting ................................................................................................ 8 C. Changes Proposed by Witnesses Invited to Address Topics Other Than “Balancing the Federal Budget to Ensure Fiscal Sustainability and Economic Growth” .................................................................................................................. 8 1. “Supporting Families and Helping Vulnerable Canadians by Focusing on Health, Education and Training” Witnesses ..................................................... 8 2. “Increasing the Competitiveness of Canadian Businesses Through Research, Development, Innovation and Commercialization” Witnesses ........ 8 3. “Ensuring Prosperous and Secure Communities, Including Through Support for Infrastructure” Witnesses ............................................................... 8 4. “Improving Canada’s Taxation and Regulatory Regimes” Witnesses ............... 9 5. “Maximizing the Number and Types of Jobs for Canadians” Witnesses ........... 9 CHAPTER THREE: SUPPORTING FAMILIES AND HELPING VULNERABLE CANADIANS BY FOCUSING ON HEALTH, EDUCATION AND TRAINING ................. 11 A. Background ......................................................................................................... 11 1. Health ............................................................................................................. 11 2. Education and Training ................................................................................... 13 B. Changes Proposed by Witnesses Invited to Address “Supporting Families and Helping Vulnerable Canadians by Focusing on Health, Education and Training” ....................................................................................................... 15 1. Health ............................................................................................................. 15 a. Caregiving .............................................................................................. 15 b. Neurological, Cardiovascular, Eating and Mental Health Disorders ....... 15 vii c. Management and Accountability ............................................................. 16 d. Health Needs of Aboriginal People ......................................................... 17 e. Other Health-related Issues .................................................................... 17 2. Education and Training ................................................................................... 18 a. Financial and Other Support for Students and Educational Institutions .............................................................................................. 18 b. Education and Training Needs of Aboriginal People .............................. 19 c. Supporting Education for People with a Visual Disability through Alternative Format Material .................................................................... 19 C. Changes Proposed by Witnesses Invited to Address Topics Other Than “Supporting Families and Helping Vulnerable Canadians by Focusing on Health, Education and Training” .......................................................................... 20 1. “Balancing the Federal Budget to Ensure Fiscal Sustainability and Economic Growth” Witnesses ........................................................................ 20 2. “Increasing the Competitiveness of Canadian Businesses Through Research, Development, Innovation and Commercialization” Witnesses ...... 21 3. “Ensuring Prosperous and Secure Communities, Including Through Support for Infrastructure” Witnesses ............................................................. 21 4. “Improving Canada’s Taxation and Regulatory Regimes” Witnesses ............. 21 5. “Maximizing the Number and Types of Jobs for Canadians” Witnesses ......... 22 CHAPTER FOUR: INCREASING THE COMPETITIVENESS OF CANADIAN BUSINESSES THROUGH RESEARCH, DEVELOPMENT, INNOVATION AND COMMERCIALIZATION ....................................................................................... 23 A. Background ......................................................................................................... 23 B. Changes Proposed by Witnesses Invited to Address “Increasing the Competitiveness of Canadian Businesses Through Research, Development, Innovation and Commercialization” ..................................................................... 27 1. Tax Measures ................................................................................................. 28 2. Federal Funding ............................................................................................. 28 3. Other Supports and Measures ........................................................................ 30 C. Changes Proposed by Witnesses Invited to Address Topics Other Than “Increasing the Competitiveness of Canadian Businesses Through Research, Development, Innovation and Commercialization” .............................................. 30 1. “Balancing the Federal Budget to Ensure Fiscal Sustainability and Economic Growth” Witnesses ........................................................................ 30 2. “Supporting Families and Helping Vulnerable Canadians by Focusing on Health, Education and Training” Witnesses ................................................... 30 viii 3. “Ensuring Prosperous and Secure Communities, Including Through Support for Infrastructure” Witnesses ............................................................
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