Belinda Stronach VERBATIM Stronach’s equation: lower taxes, new investment, improved productivity = more jobs and higher living standards

No one has achieved the office of prime minister who has not spoken of his, or her, ideas of this country before the Empire and Canadian Clubs of , where Conservative leadership candidate Belinda Stronach appeared on February 24 before an overflow crowd of more than 1,000 people. While a rank novice in politics with not even a rudimentary grasp of French, the former Magna auto parts executive has drawn large crowds across the country since entering the race in January. In this month’s Verbatim, excerpted from her Empire and Canadian Club address, she scorches the Liberal government for the sponsorship scandals and proposes an economic vision for a more competitive Canada in a global economy.

Aucun des premiers ministres n’a accédé au pouvoir sans s’être exprimé au préalable devant le Empire Club et le Canadian Club de Toronto, où la candidate à la direction du Parti conservateur Belinda Stronach a justement pris la parole le 24 février devant plus de 1 000 personnes. Malgré son inexpérience politique et sa méconnaissance des premiers rudiments du français, l’ancienne dirigeante de la firme de pièces automobiles Magna a attiré partout au pays de vastes auditoires, depuis son entrée dans la course à la direction en janvier. Notre Verbatim présente un extrait de son discours où elle écorche le gouvernement libéral à propos du scandale des commandites et propose sa vision d’un Canada plus compétitif dans une économie mondialisée.

want to talk about my vision for running a business. And I think many The Liberals took your money — our country, why I seek to become of you here would agree: Ottawa could money that could have gone toward I the leader of the Conservative use a little more business sense when the purchase of state-of-the-art diag- Party of Canada, why I believe I have it comes to the management of our nostic technology for our hospitals or the qualifications to lead Canada in tax dollars. new military vehicles for our soldiers. the 21st century, and why my leader- The day the auditor general They took your money and they spent ship will lead the Conservative Party released her findings on the public it on their friends. to victory against the Liberals in the works scandal was a sad day for I do know this as a former CEO: if upcoming election. Canada. And Canadians right across I ran my company the way Canadians have had enough of our country are still angry. This was ran the finances of this country, I politics as usual. Ever since I entered not just about mismanagement or would have been fired. You cannot run the race, a number of people have waste — although there’s been plenty from your own track record. Paul pointed out that I lack political expe- of that in Ottawa these past ten years. Martin wants us to believe that he was rience. But isn’t it funny: when politi- It was about corruption and contempt a stowaway on the good ship Chrétien cians become ministers in charge of for the Canadian taxpayer. It was when in fact he was the first mate. billion-dollar budgets, no one ever about a lack of competence and a lack Canada deserves better. Canadians asks them if they have any experience of leadership. deserve better. That’s why it’s impor-

POLICY OPTIONS 11 MARCH 2004 Belinda Stronach VERBATIM

CP Photo Belinda Stronach spoke to an overflow audience of more than 1,000 at the Empire and Canadian Clubs in Toronto. “If I ran my company the way Paul Martin ran the finances of this country, I would have been fired,” said the former Magna CEO, who talked up themes of productivity, tax cuts and investments as the key to Canadian competitiveness. The audience rewarded her with a standing ovation.

tant that we propose solutions that And I would establish permanent, in neutral. There was no united and will restore Canadians’ confidence in independent legal counsel to assist effective opposition. For those of us their government and those they and advise both the auditor general who wanted a strong and clear alterna- choose to lead them. As prime minis- and the independent ethics commis- tive, there was little hope that any- ter, I would go beyond the appoint- sioner. Finally, I believe we should thing would change any time soon. ment of an independent ethics consider legislation that would Canada had effectively become a commissioner who would report remove members of Parliament from one-party state, with all of the stagna- directly to Parliament. I would ensure office who have been found to breach tion you will find in a country where that the office was truly effective by the code of ethics. there is no effective democratic process, giving the commissioner broader pow- where there are no checks and balances. ers to investigate unethical conduct as here is hope. There is another Like many of you, I got tired of well as the resources needed to achieve T way, a better way, a new alterna- watching our country lose out on this mandate. tive. I submit to you that the investment opportunities and jobs I would immediately strengthen Conservative Party — renewed and because we lacked an economic strate- the code of ethics — with penalties for revitalized — is ready to take up the gy — a strategy on how to compete in unethical behaviour. I would increase challenge of governing our country. this new and fiercely competitive glob- both the powers and the resources of I ask you to think back, if you al economy. And I decided to do some- the auditor general and extend her would, to the period that existed in thing about it. mandate to include the arms-length this country about a year ago. The Let me briefly recount the part I trust fund set up by the Chrétien- Liberals were riding high in the polls. played in the historic union of the PC Martin government. And the Tories and Alliance were stuck and Alliance parties. In June of last

12 OPTIONS POLITIQUES MARS 2004 Stronach’s equation VERBATIM year I asked , leader of he question that Canada needs to ty and has become the biggest off- the party, and Peter T ask itself is: In the new global shore developer of software in the MacKay, leader of the Progressive economy, how are we going to com- world, ahead of even India. While Conservative Party, to come together. pete? How are we going to not only Canada maintained or increased I felt that if I could make a contri- maintain but also improve our living already high corporate tax rates, the bution to improve the welfare of standards? Are we going to do it on the Republic of Ireland slashed their cor- Canadians, then I would do so. I entered back of a low dollar? Are we going to porate tax rates to attract new invest- the process of uniting the two parties as do it on the back of low wages for ment and encourage the start-up of a concerned citizen who wanted to see Canadian workers? I don’t think so. new businesses. As prime minister, I The Liberals took your money — money that could have gone would give Canada the toward the purchase of state-of-the-art diagnostic technology most competitive tax struc- ture in the world. To start for our hospitals or new military vehicles for our soldiers. They with, I would scrap the tax took your money and they spent it on their friends. on capital investment. To lower corporate and per- Canada strong and prosperous. And in We are going to do it by creating sonal tax rates, I would streamline gov- order for that to happen, we needed a world-class value-added products and ernment and cut the fat out of strong and united opposition. In services made and supplied by highly government spending. October, after several months of long skilled Canadian workers. We are The fact is, we are overgoverned. and hard negotiations, in a spirit of going to do it by attracting new invest- The United States, with a population good faith and compromise, we collec- ment and by boosting Canadian pro- ten times the size of Canada, has 16 tively concluded a merger agreement, ductivity and skills. cabinet secretaries, while Canada, and in so doing we achieved something Consider the experience of with just over 30 million people, has that few Canadians thought possible: Ireland. Fifteen years ago, the Republic 39 cabinet ministers — 26 times we restored the party of Sir John A. of Ireland had a gross domestic prod- more per capita than our neighbour Macdonald. The party that gave Canada uct per capita that was among the low- to the south! free trade. The party that has champi- est in Europe. But in the past several oned free enterprise, equal opportunity, years, Ireland has surpassed Canada in s prime minister, I would create a and the entrepreneurial spirit that built terms of GDP per capita average annu- A citizen’s evaluation committee. this great country. al growth. Its mandate: to identify areas where we I have one overriding goal, and What happened? How did can reduce government spending and that is to improve the living standards Ireland leapfrog Canada? The overhead. We would throw open the of Canadians and to bring to this answer, ladies and gentlemen, is that government books. And the commit- country a level of eco- nomic prosperity that I do know this as a former CEO: if I ran my company the way we have never yet fully Paul Martin ran the finances of this country, I would have been realized. Can Canada compete? Can we raise fired. You cannot run from your own track record. Paul Martin living standards in the wants us to believe that he was a stowaway on the good ship face of increased global Chrétien when in fact he was the first mate. competition? I believe we can. I believe we have Ireland looked at what was going on tee would comb through the financial the resources and the energy and the in the world and decided that it was records of all government departments ingenuity to make our economy one going to aggressively attract new to identify areas of waste, duplication of the strongest in the world. In my business and create an economic and mismanagement. former role as president and CEO of infrastructure. I would also introduce a system of Magna, I regularly travelled the And it did this by creating one of financial rewards for government world. I saw first-hand and up-close the most competitive corporate tax employees who identify waste and where investment is flowing and environments in the world. Today, inefficiency and bring forward sugges- where manufacturing jobs are being corporate tax rates for small and medi- tions for improvement. To create more created. I saw manufacturing jobs um-sized businesses in the Republic of and better paying jobs, we need to being sucked out of this country at an Ireland are 12.5 percent. The Celtic stimulate greater manufacturing and alarming rate. And that job drain con- Tiger has grown at a rate four times production here in Canada. tinues today. higher than the European Communi- In plain English, we need to pro-

POLICY OPTIONS 13 MARCH 2004 Belinda Stronach VERBATIM duce more value-added products that reminded me: “Canada has been good ty and decency. If Parliament wants we can export around the world. We to you, Belinda. Make sure you are to be respected as the boardroom of have the resources. We have the skills good to Canada.” the nation, then it must begin to act and the knowledge and the capital. I consider it a privilege to be able in a manner that befits the serious- What we need is the right economic to offer up my skills and experience in ness of conducting the country’s environment — one that will help us the service of our country. And I would business. Canadians deserve better turn our warehouses into factories, be extremely honoured to serve as an than to watch their elected officials biotech laboratories and high-tech elected member of Parliament and as trading personal insults and indigni- ties on the floor of the There was no united and effective opposition. For those of House of Commons. Par- us who wanted a strong and clear alternative, there was liament should be a forum little hope that anything would change any time soon. for the exchange of ideas — not insults. Canada had effectively become a one-party state, with all of And I will do my best the stagnation you will find in a country where there is no to create a climate of civili- effective democratic process, where there are no checks ty and a process that and balances. encourages innovative ideas and welcomes good R&D centres. I would therefore estab- the leader of the new Conservative policy, regardless of party affiliation. lish tax incentives for Canadian com- Party. I believe I can help shape the During my time in business, I was panies to create more made-in-Canada vision and values of the new always most proud of my ability to products. Conservative Party. We need it to be a bring people together. To not only be a I would also like to see a Canada party of mainstream Canadians and team player but to be a team builder, where more employees own shares in mainstream policies. to reach out and draw in the best and the companies they work for and I am doing my best to ensure that the brightest. where workers get a piece of the this does not become a regional party, action through profit-sharing. a party with a narrow base. It’s been can bring the change and fresh Employee share ownership and profit- down that road too often. And it’s a I approach Canadians deserve. Like sharing will create greater productivi- road that leads to electoral defeat. I many Canadians — like many of you ty because ownership gives employees a strong stake in The question that Canada needs to ask itself is: In the new the outcome of the busi- global economy, how are we going to compete? How are we nesses they work for. going to not only maintain but also improve our living Bottom line: I understand the economy. I understand standards? Are we going to do it on the back of a low dollar? what it takes to create jobs, Are we going to do in on the back of low wages for Canadian to spend money wisely, and workers? I don’t think so. to invest in the future. want to throw open the doors of this — I want to open the windows of the ver since I announced my intention party to people from all regions and House of Commons and let in some E to seek the leadership of the all backgrounds. We need a new fresh air and some fresh ideas. Conservative Party, people have asked leader who can appeal to all I believe Canada can deliver a why I am running. Canadians. A leader who will invite great future for all her people, that we Why would I leave the world of all citizens from all corners of our can again be a shining example for the business for the world of politics, country to participate in the renewal world as a place of honesty and oppor- where a scrum with the Parliament of Canada. tunity, a place of peace, order and press gallery makes a contentious I want our party to focus on giv- good government. And this is my shareholder meeting look like tea and ing Canadians the tools they need to pledge to you: I will lead a government cookies with two grannies? build better lives instead of telling as good as its people. I’ve been very fortunate in life. Canadians how to live their lives. And I want to give back to my coun- If there is anything else I believe Belinda Stronach, former president and try and my community — the com- that I can bring to this new party and CEO of , is a candi- munity where I was born and raised to Ottawa, it is this: a passionate date for the leadership of the and where I still live with my two belief that we can go about the busi- Conservative Party of Canada. children. As my parents always ness of governing with greater civili- www.belinda.ca

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