Mandate for Leadership for the New Prime Minister

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Mandate for Leadership for the New Prime Minister PUBLIC POLICY SOURCES Number 75 Mandate for Leadership for the New Prime Minister Contents Executive Summary ............................................... 3 Principles of Good Economic Governance ............................... 6 Taxation ....................................................... 8 Labour ........................................................ 11 Regional Policy .................................................. 14 Internal Trade ................................................... 17 International Trade and Foreign Aid ................................... 20 Security and Trade ................................................ 23 Bank of Canada and the Exchange Rate ................................ 26 Regulation ...................................................... 29 Environment .................................................... 31 Health Policy .................................................... 34 Aboriginal Policy ................................................. 37 Defence ........................................................ 40 Immigration and Refugee Policy ...................................... 43 Governance ..................................................... 46 Judiciary ....................................................... 49 A FRASER INSTITUTE OCCASIONAL PAPER Public Policy Sources is published periodically throughout the year by The Fraser Institute, Vancouver, B.C., Canada. The Fraser Institute is an independent Canadian economic and social research and educational organi- zation. It has as its objective the redirection of public attention to the role of competitive markets in pro- viding for the well-being of Canadians. Where markets work, the Institute’s interest lies in trying to discover prospects for improvement. Where markets do not work, its interest lies in finding the reasons. Where competitive markets have been replaced by government control, the interest of the Institute lies in documenting objectively the nature of the improvement or deterioration resulting from government intervention. The work of the Institute is assisted by an Editorial Advisory Board of internationally re- nowned economists. The Fraser Institute is a national, federally chartered non-profit organization fi- nanced by the sale of its publications and the tax-deductible contributions of its members, foundations, and other supporters; it receives no government funding. For information about Fraser Institute membership, please call the Development Department in Van- couver at (604) 688-0221, or from Toronto: (416) 363-6575, or from Calgary: (403) 216-7175. Editor & Designer: Kristin McCahon For media information, please contact Suzanne Walters, Director of Communications, (604) 688-0221, ext. 582, or from Toronto: (416) 363-6575, ext. 582. To order additional copies, write or call The Fraser Institute, 4th Floor, 1770 Burrard Street, Vancouver, B.C., V6J 3G7 Toll-free order line: 1-800-665-3558; Telephone: (604) 688-0221, ext. 580; Fax: (604) 688-8539 In Toronto, call (416) 363-6575, ext. 580; Fax: (416) 601-7322 In Calgary, call (403) 216-7175; Fax: (403) 234-9010 Visit our Web site at http://www.fraserinstitute.ca Copyright 8 2003 The Fraser Institute. All rights reserved. No part of this monograph may be repro- duced in any manner whatsoever without written permission except in the case of brief quotations em- bodied in critical articles and reviews. The authors of this study have worked independently and opinions expressed by them are, therefore, their own, and do not necessarily reflect the opinions of the members or trustees of The Fraser Institute. Printed and bound in Canada. ISSN 1206-6257 Date of issue: November 2003 Executive Summary n November 14th, the ruling Liberal Party Regional Policy of Canada will elect a new leader, who al- O • most certainly will become Canada’s prime minis- End regionally extended Employment Insur- ter a short time later. An election will likely follow ance, which suppresses job creation in poorer in the new year. This changing of the guard carries regions. with it a unique opportunity for new approaches • Abolish industrial policy: Canadian taxpay- to economic policy. ers should not be subsidizing business. The purpose of this document is to convey to the • Replace equalization payments with tax new prime minister and his government sets of points to encourage provinces to reduce policy recommendations for some of the most im- taxes, leading to increased economic growth. portant areas of federal jurisdiction. The authors of these recommendations are experts in their fields. This executive summary presents key rec- Internal Trade ommendations in each of the areas examined. • Harmonize rules and regulations that limit in- ternal trade to create a Canadian common Taxation market. • Tax less: Canada’s heavy burden of taxation • Streamline process that handles complaints negatively affects job and wealth creation in against internal trade barriers to reduce costs Canada. to complainants and speed decisions. • Tax smarter: Eliminate or reduce particularly • destructive taxes by, for example, accelerat- Allow individuals and firms to sue provinces ing the current five-year plan to eliminate the for damages if trade barriers remain in place. Corporate Capital Tax. International Trade and • Maintain fiscal discipline. Foreign Aid Labour • Negotiate more effective and timely dispute settlement mechanisms through NAFTA and • Increase flexibility in labour market by, for ex- the World Trade Organization. ample, introducing worker choice legislation for those covered by federal labour laws. • Remove Canadian regulations that restrict • Reduce public-sector employment to increase free trade (unilaterally if necessary), such as efficiency by the use of markets to provide the Wheat Board. public services. • Tie foreign aid to a nation’s level of economic • Fix the Employment Insurance system by freedom, which has been shown to increase basing it as much as possible on insurance prosperity and promote democracy and other principles. freedoms. The Fraser Institute 3 Mandate for Leadership PUBLIC POLICY SOURCES, NUMBER 75 Security and Trade with centralized, command-and-control ap- proaches as the last resort. • Provide more financial resources to strengthen the counter-terrorist forces in the Environment RCMP, CSIS, coast guard and customs agency. • Except where federal oversight is required to manage international affairs, oversight of • Create a new overseas intelligence service to fisheries, provincial waterways, and provin- coordinate counter-terrorism efforts. cial wilderness areas should be transferred to provincial agencies. • Develop policies in cooperation with the United States to assure that trade and people • Establish process for prioritizing environ- can continue to move across the border easily, mental risks based on magnitude and cost of while it is closed to terrorists and other secu- remediation to maximize net return on invest- rity threats. ment. • Withdraw from the Kyoto Protocol and focus The Bank of Canada and on real environmental issues facing Canadi- Exchange Rate ans, such as air pollution, water supply prob- lems, water pollution problems, fishery • Create a currency union modeled after the depletion, forest overgrowth, and wildlife European Monetary Union through agree- management. ment with the United States and Mexico. • Or, create a hard fix unilaterally and without Health Policy the need for international treaties. • Repeal or change the Canada Health Act to re- • Remove the Bank of Canada’s power to set in- move limits on provincial autonomy over terest rates and leave as its main responsibil- health care, as recognized by the constitution. ity the convertibility of Canadian into US • Allow competition in health-care delivery, in- dollars at par. cluding, private insurance, for-profit and non-profit hospitals, and private surgery and Regulation other treatment facilities. • Establish a committee to identify regulations • Eliminate lags in the introduction of new that are obsolete or in conflict with other regu- drugs by abandoning the Canadian approval lations and repeal them; have 10-year sunset agency; accept approvals in other developed clause for new regulations. countries. • All proposed (and renewed) regulations Aboriginal Policies should be accompanied by complete cost-benefit analyses, and be subject to ques- • Restructure aboriginal policy to empower the tion and debate in the House of Commons. individual, not band elites. • Make flexible, incentive-based, market- • Reform band election procedures to improve friendly regulatory structures the first resort, accountability of band leadership. Mandate for Leadership 4 The Fraser Institute PUBLIC POLICY SOURCES, NUMBER 75 • Strengthen private property rights for per- officers; detain undocumented claimants un- sonal belongings and residential land claims til bona fides are established. on mineral, timber and other natural re- sources. Governance Defence • Adopt a more muscular Freedom of Informa- • Increase Canadian Forces spending by: $3 bil- tion Act, covering all government depart- lion in capital expenditures over the next 5 ments, boards, commissions, foundations, years and $5 billion spending annually in and corporations. other areas. • Study alternative electoral rules through pro- • Replace outmoded policy based on 1994 cess similar to that adopted in BC. White Paper and determine the appropriate capabilities for conventional wars, fighting • Reform Parliament by, among other things,
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