Institut C.D. HOWE Institute
Annual Report 2014 Our Mission
The C. D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. It is Canada’s trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review. It is considered by many to be Canada’s most influential think tank.
Board of Directors
Chair N. Murray Edwards Gilles G. Ouellette President, Edco Financial Holdings Ltd. President and Chief Executive Officer, Hugh L. MacKinnon Private Client Group, BMO Financial Sheldon Elman, M.D. Chairman and Chief Executive Officer, Group, and Deputy Chair, Chairman and Chief Executive Officer, Bennett Jones LLP BMO Nesbitt Burns Medisys Health Group Inc. Steve Parker Gordon J. Fyfe Chairman and Chief Executive Officer, Vice-Chair Chief Executive Officer/Chief Investment The CCL Group Brian M. Levitt Officer, BC Investment Management Partner & Co-Chair, Osler, Hoskin & Corporation (bcIMC) Aaron Regent Founder & Managing Partner, Magris Harcourt LLP Blake C. Goldring, M.S.M., CFA Resources Inc. Chairman and Chief Executive Officer, President and Chief AGF Management Ltd. Donald S. Reimer Chairman, President and Chief Executive Bruce Gordon Executive Officer Officer, Reimer Express World Corp. Chairman, Manulife Bank, Manulife Trust William B.P. Robson Tracy Redies Paul J. Hill C.D. Howe Institute President and Chief Executive Officer, Chairman, President and Chief Executive Coast Capital Savings Credit Union Officer, Harvard Developments Inc., A Hill Directors Company Stephen Smith Chairman, President & Co-founder, First Elyse Allan Dallas Howe National Financial LP President and Chief Executive Officer, Chair, Potash Corporation of GE Canada Inc. Saskatchewan Catherine Swift Charles Brindamour Tom Jenkins, O.C. William B. Thomas, FCPA, FCA President & Chief Executive Officer, Executive Chairman and Chief Strategy Chief Executive Officer and Senior Intact Financial Corporation Officer, Open Text Corporation Partner, KPMG LLP Scott Burns Richard Legault, CPA, CA Leonard Waverman Chairman and Chief Executive Officer, President & Chief Executive Officer, Dean, DeGroote School of Business, BURNCO Group of Companies Brookfield Renewable Power McMaster University Dianne Craig Jeffrey Lozon, C.M. Alfred G. Wirth President and Chief Executive Officer, Chief Executive Officer, Lozon Associates President and Chief Investment Officer, HNW Management Inc. Ford Motor Company of Canada, Limited Gerald T. McCaughey Philip C. Deck President and Chief Executive Officer, President, Extuple Inc. Canadian Imperial Bank of Commerce Hélène Desmarais, C.M. Al Monaco Chairman and Chief Executive Officer, President, Enbridge Inc. Centre d’entreprises et d’innovation de William Morneau Montréal Executive Chairman, Morneau Shepell Victor Dodig President & CEO, CIBC
CREDITS: Communications Coordinators Alex McBrien AND Kyle Murphy; DESIGN BY YANG ZHAO; STAFF PHOTOS, NICK SPECTOR Message from the Chairman
ndependent, non-partisan, evidence-driven intelligence defines the C.D. Howe Institute. Every research study undergoes the industry’s most rigorous external review by academics and independent experts drawn from the public Iand private sector. This non-partisan position enables the Institute to work with policy leaders at every level and of every stripe. As a result, the Institute continues to have enormous impact on public policy discussions across Canada. As Chair of the Board, I help oversee the Institute’s governance on behalf of its primary stakeholders – the individuals, associations, corporations, postsecondary institutions and foundations that give so generously to support our policy work. As this report indicates, the Institute made an impressive range of contributions to Canadian public discourse in 2014, holding a record 70 policy events and publishing 51 research studies. On behalf of the Board, I would like to thank the Institute’s President & CEO, Bill Robson, for his vigilant pursuit of evidence-driven policy options for Canadians and Duncan Munn, the Institute’s Senior VP & COO, who continues to play an essential role in ensuring the Institute operates as efficiently and effectively as possible. Thanks are also due to the outstanding research team, scholars and staff of the Institute for another terrific year of achievement. Sadly, the Institute lost two close friends in the past year. Joseph Rotman, who served on the Board from 1999 to 2012 and on the National Council from 2014 to 2015, was a passionate supporter of the Institute and believed firmly that non-partisan research was critical to Canada’s success. Russell Harrison, Board member from 1981 to 1984, was also an important supporter of the Institute’s mission. We will miss them both. It is my pleasure to acknowledge Philip C. Deck, Gordon J. Fyfe, Gerald T. McCaughey, William Morneau and Tracy Redies who stepped down from the Board in 2014 and thank them for their invaluable service. We welcome Victor Dodig, who joined the Board in 2014. Finally, we pay tribute to Institute’s members and friends. Your commitment to building a better Canada makes the Institute’s work possible. Every charitable dollar enables our scholars to respond decisively to the most pressing issues facing Canada. Thank you.
Hugh L. MacKinnon Chair, C.D. Howe Institute
2014 Annual Report / C.D. Howe Institute 1 Message from the President & CEO Message from the President & CEO From Mayors John Tory and Naheed Nenshi, through former provincial “leaders from finance minister Dwight Duncan and Ontario NDP Leader Andrea Horwath, to Federal Ministers Chris Alexander, Rona Ambrose, and Kevin Sorenson, every level of was an exciting and successful year for the C.D. Howe leaders from every level of government and political persuasion engaged Institute Institute. Among the year’s innovations was the launch members, and energized the Institute’s research, with rich discussion. government of the Institute’s National Council, a group of eminent Canada faced many challenges in 2014, and the C.D. Howe Institute is proud 2014Canadians tasked with advising the overall research program. A key theme to have prefigured so many of the able policy responses that helped Canada meet and political in the National Council’s discussions has been the centrality of human capital those challenges in its work. I am proud to acknowledge the contributions to – the quality of people – in Canada’s success, and the critical importance of the accomplishments documented in this Annual Report by so many eminent persuasion developing and attracting it in the future. members of the Institute’s community. I salute my colleagues, the Institute’s What is true on a national level is true at the level of businesses, public fellows, its Board members, and the many leaders in business, the public sector, engaged institutions, and organizations such as the C.D. Howe Institute. So it seems academia and the professions who contribute to our work. To our members, especially apt for me to highlight the extraordinary caliber of the people who subscribers and donors, I extend my sincere gratitude. Together, you are a Institute have helped the C.D. Howe Institute in its mission to provide Canadians with group of outstanding Canadians supporting work that will foster Canada’s long- top-quality and influential public policy analysis. term prosperity. members I’ll start with the National Council itself. Chaired by former Bank of Canada Governor David Dodge, the Council comprises business leaders such as in 2014” Kathleen Taylor and Jeff Orr, top-flight academics such as Indira Samarasekera and Steve Ambler, and former public officials such as Leo de Bever and Gordon Thiessen. 2014 also saw the launch of the Institute’s Energy and Policy Council – for that, we were able to draw on the talents of one of Canada’s most outstanding corporate leaders, Elyse Allan, President and CEO, GE Canada, to chair the group. Former Superintendent of Financial Institutions Nicholas Le Pan became co-chair of the Financial Services Research Initiative, a multi-year program to report and advise on public policy affecting Canada’s financial sector. Former federal Deputy Minister of Finance Michael Horgan became chair of the Institute’s Fiscal and Tax Competitiveness Council. The Institute’s events program likewise features outstanding Canadians. A 2014 highlight was Ed Clark, Chair, Ontario Premier’s Advisory Council on Government Assets, presenting the Council’s initial recommendations on improving returns from the province’s alcoholic beverage and electricity assets. The Institute’s Annual Calgary Dinner featured a panel including the Right Honorable Paul Martin discussing the engagement of First Nations in Canada’s energy sector. Professor Kevin Milligan presented an ambitious blueprint for Institute reports undergo the a reformed tax system that would both support greater economic growth and enhance tax fairness at the Institute’s annual Benefactors Lecture. industry’s most rigorous
William B.P. Robson peer-review process. President and Chief Executive Officer
2 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 3 Message from the Senior Stimulating Debate in 2014 Vice President & COO 413,305 ver the course of 2014, the Institute’s research, events, and outreach enhanced its position as a trusted and independent source of smart ideas. Website Pageviews OHere is how the Institute performed in meeting its core operational goals in 2014:
Goal: Drive awareness of the Institute’s unique national voice 5,069 Result: Media Citations Across Canada 2014 saw C.D. Howe publish over 50 research studies, generating a total of 187 citations in the Globe and Mail and National Post, as well as over 5,000 citations across Canadian media.
187 We increased the Institute’s average monthly media mentions in both Quebec and the western provinces, helping to solidify C.D. Howe as a trusted pan-Canadian source of public policy intelligence. Citations in Globe and Mail
C.D. Howe policy work and events, such as the Ottawa Executive Briefing, and National Post the Health Sustainability E-Brief series, and our fiscal accountability work reached into every province.
The Institute expanded its presence on social media, growing its base of followers by over 70% percent from 2013. This has enhanced our ability Expert Testimony to engage with policy leaders and stakeholders from across Canada. On this note, 2014 saw the launch of our French Twitter account, @InstitutCDHowe, in order to effectively engage French Canadian Duncan Munn policy leaders. Senior VP and Chief Operating Officer 157 Interviews 72 Op-Eds 39 Policy outreach presentations including consultations with the Federal and Ontario Ministers of Finance, as well as testimonies before Parliament.
4 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 5 Message from the Senior Vice President & COO The Institute’s 2014 Research Mission
Goal: Build on the Institute’s position of C.D. Howe hosted events across Canada, increasing thought leadership the Institute’s ability to engage members and policy he Institute’s research program aims at enhancing Canadians’ stakeholder from various regions in our unique off- understanding of a range of issues that are of vital importance to our the-record dialogue. Result: existing and future prosperity. It does so by publishing nonpartisan, timelyT and accessible research and observations on those issues, and on the options that decision-makers have to address them. In 2014, the Institute launched its Energy and Through our video conference series, our events The Institute’s research publications always seek to provide the most authoritative Resources Policy Council, appointing Elyse Allan, were able to pull in audiences from across the country, assessments and practical recommendations on any topic they address. To President and CEO of GE Canada, as its chair. This helping to facilitate East-West dialogue on key policy that end, they undergo a rigorous review process. The Institute’s editing and council will support and advise the Institute’s research matters. communications team are second to none, ensuring that the ideas flowing from and events program pertaining to Canada’s energy and the research are accessible to as wide an interested audience as possible. resources sectors. The first edition of our Entrepreneurs Debate Series The relevance of the Institute’s research program to the issues faced by was a success, having engaged emerging policy leaders Canadians is anchored by a requirement that each publication must address at The Institute launched its National Council, chaired on the challenges facing innovation in Canada. least one of the following overarching policy challenges: generating stronger by former Governor of the Bank of Canada, David economic growth and prosperity; ensuring fiscal and financial stability; maximizing Dodge. The Council’s guidance will provide insights opportunities for individual Canadians; and enhancing the effectiveness of our on emerging national, sectorial and regional policy The Institute could not have achieved these goals without institutions, insofar as they must address the first three challenges. challenges to support the quality and relevance of the our strong and loyal member support, the involvement of The Institute’s core research areas are Monetary Policy, Fiscal Policy, Pensions, policy leaders and scholars from across the country, and the Health Policy, Financial Services, Energy, Trade Policy, and Competition Policy. Daniel Schwanen Institute’s research and related activities. Vice President, Research hard work and expertise of my colleagues. Thank you for In addition, the Institute regularly publishes on education, immigration and other helping us make a positive contribution to Canada’s future human capital and labour market issues, on infrastructure and public governance, through the development of essential public policies that are and on the process of business investment and growth. Goal: Continue to increase and diversify raising living standards for all Canadians. I am often asked about the choice of specific research topics covered in our publications. They stem primarily from the constant monitoring of economic and the Institute’s event attendance, profile, policy developments conducted by the Institute’s staff and fellows in their areas and revenue of expertise. Additional support and guidance in our core areas are provided by advisory Policy Councils, comprised of practitioners, decision-makers and experts Result: in these areas. A National Council was instituted in 2014 to provide overall strategic advice on emerging issues. We continued to build on our events program, Many ideas, as well, emerge from discussions with Institute members and hosting a record 70 policy events that covered guests at Institute’s top-notch conferences, roundtables, workshops and other numerous sectors, including banking, finance, energy, events. These feature key decision-makers and influential experts addressing telecommunications, health, labour, education, and current Canadian challenges, and often entail vigorous and illuminating transportation, among others. exchanges that help test the relevance of our research program. Regardless of its source, each publication idea undergoes a thorough, Institute- wide examination for its compatibility with the Institute’s objectives, in light of available resources. An ongoing but energizing challenge for the research team is to position the portfolio of forthcoming research publications such that they provide a better grasp of the issues that are top-of-mind for decision-makers and Canadians in general, without shortchanging the need to develop our understanding of many
6 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 7 The Institute’s 2014 Research Mission The Institute’s important underlying trends that are not necessarily making the headlines at any given time. Indeed, the Institute prides itself in having, in its work, foreshadowed, sometimes by many years, important policy needs, and assisted in providing Commitment to Quality options to address them. The Institute’s research program relies on the support of its members, on the ideas and contributions of the Institute’s fellows, authors and discussants, and on the hundreds of members and guests that each year lend their considered thoughts and experience at Institute events. This is an apt place for the Institute’s research team to express our continued gratitude t the C.D. Howe Institute we are extremely proud of our organization’s towards them. commitment to quality assurance in our research and publication processes. AInstitute publications undergo rigorous external review by academics and independent experts drawn from the public and private sectors. And we are very grateful to those reviewers, some of whom are listed in the following pages. Our reviews are conducted on a double-blind or anonymous basis, to ensure objectivity. We work continually to improve the review process so that it is the best in class, and test it against mechanisms used in the academic community. Our peer review process, for which I am responsible, ensures the quality and integrity of the policy research, and we will not publish any study that, in our view, fails to meet the standards of that review process. We require that authors publicly disclose any actual or potential conflicts of interest of which they are aware. As a registered Canadian charity, the C.D. Howe Institute as a matter of course accepts donations from individuals, private and public organizations, charitable foundations and others, by way of general and program or project support. The Institute will not accept any donation that stipulates a predetermined result Finn Poschmann Vice President, Policy Analysis or policy stance, or otherwise inhibits its independence, or that of its staff and authors, in pursuing scholarly activities or disseminating research results. In its mission to educate and foster debate on essential public policy issues, the C.D. Howe Institute provides nonpartisan policy advice to interested parties on a non-exclusive basis. The Institute will not endorse any political party, elected official, candidate for elected office, or interest group. We believe this effort is fundamental to our reputation for rigor, for research quality, and is the essence of true independence and nonpartisanship. Most important, however, is the quality of our reviewers and referees. Their effort, their intelligence, and their commitment to sound public policy lie at the heart of our review process, and I am profoundly grateful to every one of them listed here, as well as to our anonymous referees.
The Research Team: Researcher, Vice President, Policy Analysis, from left, Aaron Jacobs; Finn Poschmann; . HOW Associate Director of Research, Vice President, Research Senior Policy Analyst, .D E I C N Alexandre Laurin; Daniel Schwanen; Colin Busby. T S U T I T T I
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E s e Absent s s u e q n i t t i i l a o l p P s ol le i r cy u Senior Policy Analyst, Benjamin Dachis; I s nt les ell ab ige ns nce ispe Senior Coordinator, Research and Executive Assistant to the Vice President, Research, Kristine Gray. | Conseils ind
8 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 9 The Institute’s 2014 Reviewers The Institute’s 2014
Malcolm P. Hamilton Callum James Jean-François LaRue George McAllister Reviewers CE Network Inc. Forest Products Association Department of Finance Luke Harford of Canada Province of New Brunswick Brewers Association David R. Johnson of Canada Wilfrid Laurier University Leslie Levin Brent McCurdy Health Quality Ontario Alcohol and Gaming Michael Hart Sean Keenan Commission of Ontario Norman Paterson School Department of Finance Steven Lewis C.D. Howe Institute publications undergo rigorous external review by academics and independent experts drawn from the of International Affairs Canada Access Consulting Ltd. Angelo Melino public and private sectors. We thank the following reviewers for their support in 2014: University of Toronto Lawrence L. Herman Bruce Kennedy Les Linklater Herman & Associates Teachers’ Pension Board Department of Citizenship Rod Monette of Trustees and Immigration Canada CPA Canada Ted Hewitt Craig R. Alexander Nigel Burns Janet Davidson Azim Essaji Social Sciences and J. Rhys Kesselman Steve Long Richard Mueller TD Bank Group Province of Prince Alberta Health Wilfrid Laurier University Humanities Research Simon Fraser University Shoppers Drug Mart Inc. University of Lethbridge Edward Island Keith P. Ambachtsheer Leo de Bever Brian Facey Council (SSHRC) Chris Kinkaid André Loranger Blair Nixon Blake Cassels & Graydon LLP University of Toronto Pat Campbell Armand de Mestral Chantal Hicks BC Hospital Employees Union Statistics Canada Wally Norman Barry Anderson Jan Carr McGill University Adam F. Fanaki Statistics Canada Harry M. Kitchen James MacGee Government of Alberta Electric Davies Ward Phillips Albert Baker Fiona Deller Seamus Hogan Trent University The University of Western Newfoundland and Labrador System Operator & Vineberg LLP Deloitte Higher Education Quality Ontario University of Canterbury Thorsten Koeppl John O’Grady Harry Chandler Council of Ontario Bruce Fisher Noel Baldwin Keith Horner Queen’s University Norman Magnin John O’Grady Consulting Ltd. Market Surveillance Nova Scotia Treasury Council of Ministers of Patrick Deutscher Keith Horner Consulting Government of Administrator & Policy Board Tina Kremmidas Hugh O’Reilly Education, Canada Queen’s University Saskatchewan Peter Howitt Canadian Chamber OPTrust Sylvie Charest Sean Flanigan John Baldwin Donald Dewees Brown University of Commerce Susan Margles Association of University Ratna Omidvar Statistics Canada Georges Chartier University of Toronto Canada Post Corporation Technology Managers Roy Hrab Matthew Kronby The Maytree Foundation City of Winnipeg Bob Baldwin Livio Di Matteo Ontario Energy Board Bennett Jones LLP Denis Martel Stephen Frank Camille Orridge Duanjie Chen Lakehead University Industry Canada Randy Bauslaugh Canadian Life and Health Jeremiah E. Hurley David Laidler Toronto Central Local Health University of Calgary McCarthy Tétrault LLP W. E. Diewert Insurance Association Inc. McMaster University C.D. Howe Institute Gordon Martell Integration Network Dan Ciuriak University of British Columbia Greater Saskatoon Jeff Bear Jane Gaskell Edward Iacobucci Claude Lamoureux Stephen Orsini Registered Insurance R. J. Clapp Brian Dijkema Catholic Schools Ontario Cabinet Office Ontario Institute for Studies University of Toronto Jason Langrish Brokers of Ontario Regional Municipality Cardus Chris Martin in Education Patrice Impey Canada Europe Roundtable Paul Owens of Durham Ontario Undergraduate Tim Beauchamp Brent Diverty Giles Gherson City of Vancouver for Business Alberta Treasury Board CPA Canada Scott Clark Canadian Institute for Student Alliance and Finance Ministry of Economic Scott Inwood Clarke Laprairie Health Information Paul Beaudry Tom Closson Development Employment University of Waterloo Government of Yukon University of British Columbia Tom Closson Consulting David Dodge & Infrastructure Bennett Jones LLP Marlys Bilanski Denise Cloutier Blake C. Goldring City of Saskatoon Pfizer Canada Inc. Christopher Donnelly AGF Management Limited Manulife Richard M. Bird Patrick J. Coe AJ Goulding University of Toronto Carleton University Torben Drewes London Economics Trent University International LLC Michael Bliss Andre Corbould University of Toronto Alberta Municipal Affairs Don Drummond Rob Graham Queen’s University Derwyn Investments Bruce Boland Daniel Cowin Stephen Duckett Gilles Grenier Ontario Power John F. Crean University of Alberta University of Ottawa Generation Inc. University of Toronto Jean-Yves Duclos Michel Grignon Janet Bolton John Crow Osler, Hoskin & Harcourt LLP Laval University McMaster University Tony Culyer Pierre Duguay Barry Gros Stephen Bonnar University of Toronto Serge Dupéré Morley Gunderson Gerard W. Boychuk Bev Dahlby Ministère de l’Éducation, du University of Toronto University of Waterloo The University of Calgary Loisir et du Sport Elliot Halparin Timothy Brennan Malkin Dare Herbert Emery Halton Hills Family University of Maryland Dare Foods Ltd. Baltimore County The University of Calgary Health Team Guests at the Directors’ Dinner
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2014 Publications Fiscal and Tax Policy Nick Pantaleo Jason Sutherland Rogers Communications Inc. University of British Columbia Tax Policy for a New Era: Promoting Ensuring Fiscal and Economic Growth and Fairness Les Payne Arthur Sweetman November 26, 2014 – Kevin Milligan Canadian Tooling & McMaster University Financial Stability Machining Association Benjamin Tal Who Loses Most? The Impact of Taxes and James Pierlot CIBC World Markets Transfers on Retirement Incomes Pierlot Pension Law November 13, 2014 – Finn Poschmann and Almos Tassonyi Alexandre Laurin Brian Postl University of Toronto ver the years, the Institute’s work has highlighted the advantages of University of Manitoba Michael J. Trebilcock sound and stable macro-economic policies and financial regulation as The 2014 C.D. Howe Institute Business Tax John Richards University of Toronto essential foundations for the Canadian economy to generate prosperity. Burden Ranking Toronto, October 29, 2014 – Adam Found, Simon Fraser University J. A. VanDuzer The Institute’s flagship publication on federal fiscal policy is the annual O Benjamin Dachis and Peter Tomlinson Brian Rivard University of Ottawa “Shadow Budget”, which distills and augments the many ideas generated at the Independent Electricity Institute that have a bearing on the conduct of federal fiscal policy. The theme of Michael Veall What Now? Addressing the Burden of System Operator (IESO) McMaster University the Institute’s 2014 shadow budget, “Equipping Canadians for Success,” reflected Canada’s Slow-Growth Recovery Lawrence Schembri Fred Vettese the Institute’s preoccupation with pro-growth investments and reforms, while July 30, 2014 – Christopher Ragan Bank of Canada Morneau Shepell continuing, as in previous years, to warn of the negative impact of rising existing User Discretion Advised: Fiscal Tammy Schirle Konrad von Finckenstein and future costs, in particular personnel and pensions costs, on the ability of the Wilfrid Laurier University federal government to maintain a prudent fiscal stance. Consolidation and the Recovery Edward J. Waitzer July 23, 2014 – William Scarth Jon J. Scott Stikeman Elliott LLP At the same time, other Institute reports made clear that the main threats to the fiscal sustainability of Canadian governments lie in cost and spending Outliving Our Savings: Registered Jack Selody David M.C. Walker challenges at the provincial level. To better understand the challenges at that Retirement Income Funds Rules Need a Promontory Financial Queen’s University Group Canada level, and provide options for dealing with them, Institute’s publications studied Big Update Daniel Watson June 4, 2014 – Alexandre Laurin and William Andrew Sharpe the emergence of target-benefit pension plans in the public sector, as well as the Treasury Board of B.P. Robson Centre for the Study of Canada Secretariat powerful impact of demographic change on healthcare costs and tax bases on the Living Standards finances of individual Canadian provinces, and ways to mitigate it. Sarah Watts-Rynard Ottawa’s Hidden Deficit: The Widening Avery Shenfeld Canadian Apprenticeship In that vein, the Institute has paid particular attention to the looming rise in Gap between Federal Government Pension Canadian Imperial Bank Forum costs of long-term care for the baby-boomer generation, and how to cover those Liabilities and Assets of Commerce April 9, 2014 – William B.P. Robson and David Welsh costs, without burdening future generations of taxpayers. Similarly, examining Enid Slack public drug plans across Canadian jurisdictions, the Institute’s research has looked Alexandre Laurin Thomas A. Wilson The Munk School of Global at the trade-off between plans based on age and those based on income, from the Affairs, University of Toronto University of Toronto Evaluating Public-Sector Pensions: Are point of view of the sustainability of these programs and their ability to address Federal Public Servants Overpaid? Durhane Wong-Rieger Constance Smith the needs of the most vulnerable. April 2, 2014 – Malcolm Hamilton University of Alberta Institute for Optimizing Health Outcomes In these challenging times for macro-economic policy globally, the Institute Gail Smyth has continued to keep a close watch on monetary policy through the eight yearly Credibility on the (Bottom) Line: The Christopher Worswick Fiscal Accountability of Canada’s Senior Skills Canada Ontario meetings and statements of its Monetary Policy Shadow Council, and published Carleton University Governments, 2013 Arun Srinivas forward-looking studies on the conduct of Canadian monetary policy in the March 24, 2014 – William B.P. Robson and Ministry of Finance Tom Wright Real Estate Council of Ontario event of turmoil in the Eurozone, and how a potentially alternative monetary Colin Busby James Stanford policy regime targeting the price level – instead of the inflation rate – might work Michael Wyman Canadian Auto Workers to maintain economic stability in the event of shocks. On the prudential front, Evaluating Public-Sector Pensions: How Union Barbara Zvan the Institute also published a think-piece, based on original historical research, Much Do They Really Cost? Ontario Teachers’ Pension March 19, 2014 – Malcolm Hamilton Larry Steeves illustrating the impact that different concepts of shareholder liabilities have on University of Regina Plan the effectiveness of the prudential framework for banking. Equipping Canadians for Success: A David Stewart-Patterson Shadow Budget for 2014 The Conference Board January 29, 2014 – Alexandre Laurin and of Canada William B.P. Robson
Baffling Budgets: The Need for Clearer and More Comprehensive Financial The Annual Calgary Dinner Reporting by Canada’s Municipalities January 15, 2014 – Benjamin Dachis and William B.P. Robson
12 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 13 Canada’s former Deputy Minister of Finance Michael Horgan engages Institute members at the annual Benefactors Lecture on reforming the Canadian tax system.
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Fiscal and Tax Competitiveness Council in 2014
CHAIR Michael Horgan Former Deputy Minister of Finance, Canada
MEMBERS
Albert Baker, FCPA, FCA Ross Hagemeister Luc Monty Noeline Simon The Institute’s 2014 Research Deloitte LLP Cargill Limited Québec Ministère des Canadian Life and Health Finances Insurance Association Inc. Guests at the Directors’ Dinner Richard M. Bird Gabriel J. Hayos, FCPA, FCA University of Toronto Chartered Professional Angelo Nikolakakis Michael Smart Accountants Canada Couzin Taylor LLP / Ernst & University of Toronto Ben Brunnen Young L.P. Canadian Association of Brenda Kenny Barbara Sulzenko-Laurie Petroleum Producers Canadian Energy Pipeline Michael J. O’Connor Insurance Bureau of Canada 2014 Publications 2014 Publications Association Sun Life Financial Inc. Marlene Cepparo Ted Tomkowiak Monetary Policy and Trade and International National Tax, KPMG LLP Jonathan Rhys Kesselman Nick Pantaleo, FCPA, FCA Taxation, RBC Financial Services Policy Simon Fraser University Rogers Communications Inc. Fiona Cook Thomas A. Wilson Chemistry Industry George McAllister Jocelin Paradis University of Toronto Good Governance of Monetary Policy The Canada-Korea Free Trade Association of Canada Province of New Brunswick Rio Tinto Alcan Department of Finance Canada in Canada: Lessons from the C.D. Howe Agreement: What it Means for Canada Nancy Cuelenaere William Molson TBA (Observer Status) Institute’s Shadow Council January 15, 2015 – Dan Ciuriak, Building Owners and October 30, 2014 – Pierre Siklos and Jingliang Xiao and Ali Dadkhah Alberta Finance Al Monaco Managers Association of Matthias Neuenkirch and Enterprise Enbridge Inc. Canada The Impact of Diplomatic Bev Dahlby Lynn Moen Money Still Matters: How the Bank of Representation Abroad on Canada’s University of Alberta Walton Global Investments Ltd. Canada Might Better Monitor Inflation Exports August 13, 2014 – Mati Dubrovinsky April 16, 2014 – Dan Ciuriak
What Now? Addressing the Burden of Registering in Harmony: The Case for Canada’s Slow-Growth Recovery Pan-Canadian Corporate Registration July 30, 2014 – Christopher Ragan February 25, 2014 – Daniel Schwanen and Omar Chatur The Ill Wind that Blows from Europe: Implications for Canada’s Economy Tradable Services: Canada’s March 5, 2014 – Pierre Siklos Overlooked Success Story January 9, 2014 – Daniel Schwanen NDP Leader Andrea Horwath Price-Level Targeting: A Post-Mortem? February 5, 2014 – Steve Ambler
Pierre-Pascal Gendron and Kevin Milligan
Calgary Roundtable
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Monetary Policy Council in 2014 International Economic Policy Council in 2014
CHAIR CHAIR William B.P. Robson The Hon. Michael Wilson, President & CEO, C.D. Howe Institute Chair, Barclays Capital Canada; former Minister of Finance, Canada
Members Members Craig Alexander Edward A. Carmichael Angelo Melino Avery Shenfeld Catherine Cobden Janice Fukakusa Caroline Hughes Victor Severino TD Bank Group Ted Carmichael Global University of Toronto CIBC Forest Products Association Royal Bank of Canada Ford Motor Company of Ontario Ministry of Economic Macro Steve Ambler Doug Porter Pierre Siklos of Canada Canada Development and Innovation Université du Québec Thorsten Koeppl BMO Capital Markets Wilfrid Laurier University Allan Gotlieb John Curtis Aurea Foundation Warren Jestin TBD Paul Beaudry Queen’s University Nicholas Rowe Craig Wright Queen’s University Scotiabank Certified General Accountants University of British Columbia Stéfane Marion Carleton University RBC Peter Hall of Ontario National Bank Financial Laura Dawson Export Development Canada Jim Keon Canadian Generic TBD Dawson Strategic Michael Hart Pharmaceutical Association Manulife Financial Gitane De Silva Norman Paterson School of Alberta International and International Affairs Hugh L. MacKinnon Daniel Trefler Bennett Jones LLP University of Toronto Intergovernmental Relations Lawrence Herman Financial Services Research Initiative in 2014 Wendy Dobson Cassels Brock LLP Claude Mongeau Ted Wigdor CN Certified General Accountants Rotman School of Ross Hornby of Ontario Management GE Canada Pierre Pyun Co-Chairs Rick Ekstein Bombardier Nicholas Le Pan Edward Neufeld Weston Forest Products Inc. Former Superintendent of Financial Institutions Former Assistant Deputy Minister of Finance, Canada
MEMBERS Frank Allen Chris Donnelly Sheryl Kennedy Mark Smith Ontario Ministry of Finance Manulife Promontory Financial Group KPMG Canada James C. Baillie Peter Drake Paul G. Smith Torys LLP Fidelity Investments Brenda Leong NATO Council of Canada British Columbia Securities Peter Bethlenfalvy Janet Ecker Frank Swedlove Commission CST Consultants Inc. Toronto Financial Services Canadian Life and Health Alliance David Longworth Insurance Association Inc. Gérald Cossette Carleton University Financial Transactions and Walter Engert Murray J. Taylor Reports Analysis Centre of Office of the Superintendent Winsor MacDonell IGM Financial Inc. Canada of Financial Institutions Genworth Financial Canada Eric Tuer Canada Andrew D. Brands David McGown Bank of Canada The Great-West Life Charles Freedman Canadian Imperial Bank of Craig Wright Assurance Company Carleton University Commerce RBC Financial Group Glenn Campbell Blake C. Goldring Howie Millard Kevin Wright Department of Finance AGF Management Limited TD Bank Financial Group Canada Mortgage and Canada Peter Hall Suzanne Morel Housing Corporation Terry Campbell Export Development Canada MasterCard TBD Canadian Bankers Association Gail Harding Marc-André Pigeon Zurich Canadian Holdings Ltd. Bryan Davies Canadian Western Bank Credit Union Central of TBD Canada Canada Deposit Insurance David Whyte Equity Financial Holdings Corporation Sun Life Financial Inc. Greg Pollock TBD Advocis James C. Davis Warren J. Jestin Investment Industry David Marshall, Elizabeth Witmer and William B.P. Robson Ontario Teachers’ Pension Scotiabank Pierre Siklos Regulatory Organization of Plan Wilfrid Laurier University Canada
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Competition Policy Council in 2014 Business Cycle Council in 2014 Generating Stronger Economic 2014 Publications Economic Growth and Prosperity Growth & Innovation CHAIR interim CHAIR Finn Poschmann Finn Poschmann Vice President, Policy Analysis, C.D. Howe Institute Vice President, Policy Analysis, C.D. Howe Institute
uch of the Institute’s research focuses on fostering a dynamic A Speedier and More Efficient Payments System for Canada MEMBERS Members economy that will raise Canadians’ living standards over time. This November 20, 2014 – Mati Dubrovinsky research addresses such topics as the impact of our macroeconomic, George N. Addy Calvin S. Goldman Craig Alexander Eric Lascelles fiscal policies and financial systems on economic growth, explores ways to Who Watches the Watchmen? The Role of Davies Ward Phillips & Goodmans LLP TD Bank Group RBC Global Asset M the Self-Regulator Vineberg LLP Management Inc. encourage beneficial investments in education and skills, business capital and Jay Holsten Steve Ambler October 8, 2014 – Robert Mysicka infrastructure, assesses obstacles to trade and competition and options for their Marcel Boyer Torys LLP Université du Québec à Stéfane Marion Montréal National Bank Financial removal, and seeks to understand the processes of innovation and productivity It’s Alive! Corporate Cash and Business CIRANO, Université de Lawson A. Hunter growth in Canada. Investment Montréal Stikeman Elliott LLP Paul Beaudry Angelo Melino August 27, 2014 – Finn Poschmann University of British University of Toronto In this vein, the Institute updated in 2014 its pioneering work on provincial Timothy Brennan Edward Iacobucci Columbia and local business tax burdens, improving understanding of taxes on business University of Maryland University of Toronto Douglas Porter What Now? Addressing the Burden of investment across a number of Canadian jurisdictions. Also on the tax policy Baltimore County Philip Cross BMO Capital Markets Canada’s Slow-Growth Recovery Margaret F. Sanderson Neil Campbell C.D. Howe Institute front, the Institute’s 2014 Benefactors Lecture, entitled “Tax Policy for a New July 30, 2014 – Christopher Ragan Charles River Associates Angela Redish Era,” provided a bold yet practical view of how Canada’s tax system could better McMillan Binch LLP Stephen Gordon University of British Konrad von Finckenstein Laval University Columbia promote investment and entrepreneurship, by taxing income generated from Capital Needed: Canada Needs More Jeffrey R. Church JAMS savings less, while addressing income inequality concerns by making taxes on Robust Business Investment The University of Calgary Roger Ware work income somewhat more progressive. July 17, 2014 – Benjamin Dachis, William B.P. Brian Facey Robson, Nicholas Chesterley Queen’s University The Institute’s work also elucidated how more sensible regulation and rules Blake Cassels & Graydon LLP Lawrence J. White of competition could improve performance in many industries, and relieve The Public Purse versus Private Wallets: Adam F. Fanaki New York University consumers and other users of the burden of higher than necessary prices and Comparing Provincial Approaches to Davies Ward Phillips & costs. Whether examining competition in telecommunications or the pricing of Investing in Economic Growth Vineberg LLP cable services, the gap between Canadian and US prices for every day consumer June 25, 2014 – Philip Cross Peter Glossop Osler, Hoskin & Harcourt LLP goods, ways to alleviate the high cost of electricity or unlock the economic Sticker Shock: The Causes of the Canada- value in air travel, and last but not least uncorking the strange brew of wine and US Price Differential beer policies in Ontario, the Institute’s research enriched our understanding of May 6, 2014 – Nicholas Li potential improvements in important sector-specific practices and regulations. The Institute’s annual “Tools for Workers” report and related reports on public Registering in Harmony: The Case for Pan- Canadian Corporate Registration and private capital investments in Canadian provinces pointed to the need for February 25, 2014 – Daniel Schwanen and Energy and Resources Policy Council in 2014 more private capital investments to sustain Canada’s economic growth and Omar Chatur international competitiveness. Another Institute report showed that cash holdings CHAIR by Canadian businesses, while historically high, were not a problem, but simply Shareholder Liability: A New (Old) Way of Elyse Allan the result of normal and prudent behaviour by firms. Thinking about Financial Regulation President and CEO, GE Canada February 19, 2014 – Finn Poschmann On innovation, the Institute continued to examine ways in which a speedier and more efficient payments system might better serve Canadians. Institute Equipping Canadians for Success: A MEMBERS research also highlighted important but little-discussed facts of Canada’s Shadow Budget for 2014 Rick Anderson Patrick Cronin Daniel Gagnier Jeff Lehrmann structural economic shifts over the past decade, namely the rising importance and January 29, 2014 – Alexandre Laurin and William B.P. Robson i2 Ideas & Issues Advertising BMO Capital Markets International Institute for Chevron Canada strong employment performance of internationally-tradable service sectors, and Sustainable Development Inc. Joseph Doucet Hugh MacKinnon the strength of innovation occurring in resource-based industries. These studies Full Throttle: Reforming Canada’s Aviation Cindy Blancher-Smith Alberta School of Business Goldy Hyder Bennett Jones LLP provided a fresh understanding of our economic structure and potential sources of Policy Hill and Knowlton Ontario Ministry of Northern Jim Ellis Tim McMillan January 22, 2014 – Benjamin Dachis future economic growth. Development and Mines Alberta Energy Regulator Rich Kruger Canadian Association of Imperial Oil Petroleum Producers Neil Bouwer Alexander Fritsche Natural Resources Canada Bank of Canada Richard Légault Thierry Vandal (Observer Status) Brookfield Renewable Hydro-Québec TBA Power Inc. Bruce Campbell Husky Energy IESO
20 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 21 The Institute’s 2014 Research Ron Sanderson, Noeline Simon and Nicole Gileadi
Maximizing Opportunities for Canadians
he Institute’s work reflects the idea that better economic opportunities for The Institute’s 2014 Research the country should also translate into better opportunities for individual Surgit Rajpal Canadians to pursue their ambitions, achieve economic security, and contributeT to overall prosperity. Identifying impediments to those goals and asking how Canadians might remove or work around them is central to the 2014 Publications research program. Institute publications that covered these issues in 2014 provided insights on Social Policy subjects as diverse – yet as important to the lives of Canadians – as the reasons for Managing the Cost of Healthcare for What Policies Work? Addressing the Temporary Foreign Workers in Canada: the shortage of family doctors in Québec, the factors behind the performance of an Aging Population: 2014 Provincial Concerns Raised by Canada’s PISA Results Are They Really Filling Labour Shortages? Canadian students in international tests, the educational outcomes of Aboriginal Perspectives June 18, 2014 – John Richards April 24, 2014 – Dominique M. Gross students, and the labour market implications of the current slower-than-normal December 2014 – William Robson, Colin economic recovery. Busby, & Aaron Jacobs Warning Signs for Canadian Educators: Helping Ontarians Save for Retirement: The Institute also examined Canada’s temporary foreign workers program, The Bad News in Canada’s PISA Results How the Province Could Adapt the Canada June 11, 2014 – John Richards Supplementary Pension Plan providing an authoritative assessment of the impact of this program aimed at Target Benefit Plans: Improving Access for Federally Regulated Employees March 11, 2014 – Keith Ambachtsheer filling temporary labour shortages, in the midst of heated controversy over its October 15, 2014 – Randy Bauslaugh The Case of the Vanishing Quebec effect, and suggesting how to mitigate any negative effect on labour market Physicians: How to Improve Access to prospects for Canadians. The Institute also continued its long-standing work on Paying for the Boomers: Long-Term Care Care immigration policy, highlighting the relative success of immigrants coming to and Intergenerational Equity May 27, 2014 – Claude E. Forget Canada at a young age. September 17, 2014 – Åke Blomqvist and Colin Busby Don’t Forget the Kids: How Immigrant The Institute’s work has also highlighted the need to better understand the Policy Can Help Immigrants’ Children impact of the tax system, as well as the interaction between public plans and The Overlooked Option for Boosting May 14, 2014 – Colin Busby and Miles Corak private retirement savings, in designing retirement income policy. Notably, the Retirement Savings: Higher Limits for Institute reported very high marginal tax rates faced by lower-income seniors RRSPs Are We Making Progress? New Evidence wishing to improve their retirement by supplementing public plans with private September 11, 2014 – Alexandre Laurin on Aboriginal Education Outcomes in Provincial and Reserve Schools savings. Institute research also explained how current tax rules applying to Target-Benefit Plans in Canada – An April 30, 2014 – John Richards retirement savings risk forcing Canadians into the undesirable situation where Innovation Worth Exploring they might be outliving their retirement savings. While pointing out that higher July 9, 2014 – Angela Mazerolle, Jana Steele, limits for Registered Retirement Savings Plans were an often overlooked option Miles Corak Mel Bartlett to address concerns over the inadequacy of retirement savings by Canadians, the Institute’s work also delved into ways that supplementary public pensions could fill any gaps in retirement savings left by current public and private plans. Wendy Dobson
22 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 23 The Institute’s 2014 Research
Pension Policy Council in 2014
chair Claude Lamoureux, Former President & CEO, Ontario Teachers’ Pension Plan
Members
The Institute’s 2014 Research Keith Ambachtsheer Malcolm Hamilton James Pierlot Matt Smith Pierlot Pension Law BMO Financial Group Rotman School of Bryan Hocking The Institute’s 2013 Research Sandra Cardinal, Dayle Hyde and Rose Mueller Management Association of Canadian Graham Pugh Jana Steele Bob Baldwin Pension Management Ontario Municipal Osler, Hoskin & Harcourt LLP Employees’ Retirement Randy Bauslaugh Bruce Kennedy Rob Stewart 2014 Publications System Enhancing the Effectiveness of our McCarthy Tetrault B.C. Pension Corporation Department of Finance Governance & Public Tom Reid René Beaudry Kashif Malik Leo de Bever Institutions Sun Life Financial Inc. Institutions Normandin Beaudry JPMorgan Alberta Investment Rob Ritchie Management Corporation Steve Bonnar Eric Mansour Great-West Life Assurance (AIMCo) Rethinking Ontario’s Electricity System Scotiabank fourth major theme of the Institute’s research concerns the effectiveness Peter Drake with Consumers in Mind Company Randy VanDerStarren of institutions that Canadians rely upon for making important economic Fidelity Investments Bernard Morency September 4, 2014 – Michael Wyman Tammy Schirle Open Access decisions or advance economic policy objectives. The Institute has been Caisse de dépôt et placement Brian FitzGerald Wilfrid Laurier University du Québec Fred Vettese particularly focused, in this respect, on budgetary transparency and accountability. Evaluating Public-Sector Pensions: Are Capital G Consulting Inc. A Allan Shapira Morneau Shepell The research highlighted the hidden risk taxpayers have taken on in Federal Public Servants Overpaid? Leah Myers Paul Forestell Aon Hewitt Ontario Ministry of Finance Barbara Zvan backstopping federal public pensions whose true economic value exceeds what April 2, 2014 – Malcolm Hamilton Mercer Faisal Siddiqi Ontario Teachers’ Pension is currently on the books, and pointed to the high returns implicit in these Jim Pesando Barry Gros Buck Consultants Plan guaranteed pensions, compared to the opportunities available to other Canadians. Evaluating Public-Sector Pensions: How University of Toronto Much Do They Really Cost? One paper extended this analysis to the overall Canadian public sector, noting March 19, 2014 – Malcolm Hamilton that employees in this sector are able to shelter more of their savings from taxes Health Policy Council in 2014 than other Canadians can, and that the way their pensions are accounted for Registering in Harmony: The Case for Pan- suggests they are being compensated more than is currently acknowledged. Canadian Corporate Registration CO-CHAIRS This research naturally raised questions about the standards of accounting and February 25, 2014 – Daniel Schwanen and reporting for public sector employee compensation. Omar Chatur Tom Closson Dr. Brian Postl This strand of research also unveiled some discrepancy between the progress President & CEO, Tom Closson Consulting; Dean of the Faculty of Medicine, University of Manitoba; governments plan on achieving towards bringing health care cost increases Shareholder Liability: A New (Old) Way of former President & CEO, Ontario Hospital Association Chair of the Canadian Institute for Health Information Thinking about Financial Regulation towards a sustainable level, and actual progress on that front. The question of February 19, 2014 – Finn Poschmann accountability and transparency here reside in the fact that ongoing attempts at MEMBERS containing costs are then based on the new, higher-than-planned level which the Full Throttle: Reforming Canada’s Aviation Owen Adams Denise Cloutier Michael Green Marcel Saulnier public is often dimly aware of, rather than assessed against past announcements. Policy Canadian Medical Association Pfizer Canada Canada Health Infoway Health Canada January 22, 2014 – Benjamin Dachis The Institute also built on earlier years’ unique research into municipal finances, Justin Bates Anthony Dale Dr. Elliot Halparin Shirlee Sharkey showing that major Canadian municipalities make it difficult to compare Neighbourhood Pharmacy Ontario Hospital Association Saint Elizabeth Health Care Baffling Budgets: The Need for Clearer and Gerald Hartman financial reports of actual spending and revenues with amounts that have been Association of Canada More Comprehensive Financial Reporting Janet Davidson Independent Diagnostic Dr. Graham Sher budgeted, creating serious transparency and accountability issues. The work once by Canada’s Municipalities Ken Chan Alberta Health Clinics Association Canadian Blood Services again identified the lack of accrual accounting for capital projects as a serious January 15, 2014 – Benjamin Dachis and Cystic Fibrosis Canada shortcoming, with negative consequences for the quality of decisions made David Dodge Sen. Michael Kirby Joël Simard William B.P. Robson Andrea Cohen Barrack Bennett Jones LLP Partners for Mental Health GE Canada around public investments at the municipal level, and for the achievement of Ontario Trillium Foundation cities’ budget targets. Will Falk Steve Long Dr. Bob Bell In addition, the Institute trained its research lens on institutions that underpin Dr. Bob Bell PriceWaterhouseCoopers Shoppers Drug Mart. Ontario Ministry of Health and Long-Term Care Ontario Ministry of Health Daniel Fontaine TBD trade and commerce, by examining how the public interest in a transparent and Long-Term Care and dynamic marketplace can best be protected in the case of self-regulated B.C. Care Providers Manulife Dr. David Walker FRCPC, Queen’s University professions and occupations, shedding an empirical light on the importance of Åke Blomqvist Association Camille Orridge Carleton University diplomacy for fostering Canada’s international trade, and providing a detailed David Fortier Toronto Central Local Health Kevin Wark examination of the issues around the balkanisation of corporate registration Candace Chartier Pfizer Canada Inc. Integration Network The Conference for Advanced Life Underwriting systems across Canada, as well as a fresh set of practical options for addressing it. Ontario Long Term Care Neil Fraser John Rafferty Association Medtronic of Canada Ltd. Canadian National Institute for the Blind
24 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 25 2014 Policy Events
The Institute’s off-the-record, invitation-only policy roundtables, conferences and special events bring together corporate executives, policy leaders, senior civil servants, and acclaimed scholars for substantive discussions on policy issues. The Institute held the following events in 2014 (in chronological order):
Gaétan Caron, Chair and CEO, National The Hon. Rona Ambrose, Minister, Andrew Parkin, Director General, Council Energy Board Health Canada of Ministers of Education; and David Policy and Regulation at the National The Economics of Healthcare and the Need for Johnson, Professor of Economics, Wilfrid Energy Board Innovation Laurier University Roundtable Luncheon, Calgary Healthcare Policy Roundtable Series, Toronto OECD Test Results: Should We Be Worried The Institute’s 2014 Research Sponsored by Manulife About Canadian Student Performance on Alf Wirth, Steve Rhone and Stephen Smith The Hon. Kerry-Lynne Findlay, Minister International Tests? of National Revenue, Canada Revenue The Hon. Tony Clement, President, Treasury Roundtable Luncheon, Toronto Agency Board of Canada Secretariat My Priorities for the CRA in the Year Ahead Fairness for All Canadians Dwight Duncan, Senior Strategic Advisor, Roundtable Luncheon, Toronto Roundtable Luncheon, Toronto McMillan LLP; Janet Ecker, President and National Council in 2014 CEO, Toronto Financial Services Alliance; Ray Gilmour, Deputy Minister, Alberta Paul Moist, National President, Canadian William Robson, President and CEO, C.D. Treasury Board and Finance Union of Public Employees Howe Institute; and Colin Busby, Senior chair Alberta’s 2013 Budget and the Effects of Retirement Security in Canada Policy Analyst, C.D. Howe Institute David Dodge Flooding on Alberta’s Economy Roundtable Luncheon, Toronto Two former Finance Ministers on the Release of Senior Advisor, Bennett Jones LLP, former Governor of the Bank of Canada Roundtable Luncheon, Calgary the Latest CDHI “Pinocchio Index” of Federal & General T.J. Lawson, Chief of the Defence Provincial Government Financial Accountability Anthony Lacavera, Chairman and CEO, Staff, Canadian Forces Roundtable Luncheon, Toronto Members Wind Mobile and Globalive Group The State of the Canadian Armed Forces and Regulations of Canadian Telecommunications: Its Priorities Michael Horgan, Deputy Minister, Steven Ambler Rupert Duchesne Susan Wolburgh Jenah Joe Rotman Past, Present and Future Roy-L Capital Coporation Roundtable Luncheon, Toronto Finance Canada Université du Québec à Aimia Corporation David R. Johnson Montréal Roundtable Luncheon, Toronto Sponsored by AGF Management The 2014 Federal Budget: ‘A National Janet Ecker Wilfrid Laurier University ndira Samarasekera Conversation’ University of Alberta Anita Anand Toronto Financial Services Thorsten Koeppl Eileen Mercier, Chair of the Board, Ontario Andy Byford, Chief Executive Officer, Roundtable Luncheon, Toronto and live University of Toronto Alliance Queen’s University Guy Savard Teachers’ Pension Plan Toronto Transit Commission videoconference with Calgary Osler, Hoskin & Harcourt LLP Corporate Governance: Where the Buck Stops, Åke Blomqvist Jock A. Finlayson Nicholas Le Pan TTC: Our Big Year Ahead Sponsored by RBC Capital Markets Carleton University Business Council of British Gino Scapillati Change Must Start Roundtable Luncheon, Toronto Columbia John D. McNeil Tom Closson PwC Roundtable Luncheon, Toronto Andrea Horwath, Leader, Ontario NDP Gary P. Mooney Sponsored by J.P. Morgan Simon Kennedy, Deputy Minister of Building a Sustainable Future for Ontario Adam Found Kim Shannon Marshall Cohen Canadian Lender Solutions International Trade, Department of Foreign Roundtable Luncheon, Toronto City of Kawartha Lakes Sionna Investment Managers Cassels Brock & Blackwell Hal Kvisle, President and CEO, Talisman Affairs, Trade and Development LLP Timothy J. Hearn Edward P. Neufeld Ray Sharma Energy Inc. Canada’s Trade Agenda I. David Marshall, President and CEO, Hearn & Associates University of Toronto Sherry Cooper Extreme Venture Partners Unconventional Energy Opportunities in Western Roundtable Luncheon, Toronto Workplace Safety and Insurance Board Jeffrey Orr DeGroote School of Business Lawrence Herman Kathleen Taylor Canada Sponsored by Barrick Gold The WSIB: An Historic Transformation Herman & Associates Power Financial Corporation Leo de Bever RBC Board of Directors Roundtable Luncheon, Calgary Corporation Roundtable Luncheon, Toronto Peter Howitt Hari K. Panday David F. Denison Gordon G. Thiessen Brown University PanVest Capital Corporation Wendy Dobson Craig C. Thorburn Henry N.R. Jackman John Richards Rotman Institute for Blake, Cassels & Graydon E-L Financial Corporation Simon Fraser University International Business LLP Limited
26 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 27 2014 Policy Events
Keynote speaker: Lawrence Schembri, Dennis DesRosiers, President, DesRosiers Henri-Paul Rousseau, Vice-Chairman, Deputy Governor, Bank of Canada Automotive Consultants Inc. Power Corporation of Canada Conference on Financial Regulation: Impact on Looking Forward: Challenges Ahead for the High Income Traps: The Challenge of Delivering Competitiveness, Competition, and Consumers Canadian Automotive Manufacturing Sector Ongoing Prosperity Special Policy Conference, Toronto Roundtable Luncheon, Toronto Roundtable Luncheon, Montreal Sponsored by Ford Motor Company Gérald Cossette, Director, Financial Canada Ed Devlin, Managing Director, Head of Transactions and Reports Analysis Centre Canadian Portfolio Management, PIMCO of Canada (FINTRAC) Kelly Peters, CEO and Managing Partner, PIMCO’s Secular ‘New Neutral’ and the Money Laundering and Terrorist Financing: BEworks; Benoît Robidoux, Assistant Implications for Canada What’s at Stake and How Are We Responding? Deputy Minister, Economic and Fiscal Roundtable Luncheon, Toronto Roundtable Luncheon, Toronto Policy Branch, Finance Canada; and Dilip Soman, Professor, Rotman School of Michèle Bourque, President and CEO, Linda Hasenfratz, CEO, Linamar Corporation Management, University of Toronto Canada Deposit Insurance Corporation Canadian Manufacturing Competitiveness and Behavioural Economics: Nudging Towards a CDIC’s New Role as Canada’s Resolution the Role of Government New Way to Think about Policy Authority Executive Briefing, Ottawa Scholars’ Dinner, Toronto Roundtable Luncheon, Toronto Made possible by a generous grant Wayne Wouters, Clerk of the Privy Council from Dr. Wendy Dobson Naheed Nenshi, Mayor of Calgary and Secretary to the Cabinet Building a Prosperous City for Every Calgarian Canada’s Economic Competitiveness: The David Jacobson, Vice Chairman, BMO Roundtable Luncheon, Calgary Challenges Ahead Financial Group; and John Weekes, Senior Roundtable Luncheon, Toronto Business Advisor, Bennett Jones LLP Keynote speaker: Mark Zelmer, Renewing the Vision of NAFTA Deputy Superintendent, Office of the Claude Mongeau, President and CEO, Roundtable Luncheon, Toronto Superintendent of Financial Institutions Canadian National Railway Sponsored by BMO Harris Private Housing Markets and Policy: Steady as She An Inside View of Railway Economic Regulation Banking Goes, or Headed for a Fall? in Canada Special Policy Conference, Toronto Roundtable Luncheon, Toronto Leo de Bever, CEO, Alberta Investment Sponsored by Canada Guaranty, Sponsored by Valero Energy Management Corporation (AIMCo); and Genworth Financial, Toronto Real Corporation Ron Mock, President and CEO, Ontario Estate Board, Home Trust, Mattamy Teachers’ Pension Plan (OTPP) Homes, and Brookfield RPS Andrew Kriegler, Deputy Superintendent, Value-Creation in 21st Century Businesses: The 70 of Canada’s Supervision Sector, OSFI Long-Term Investor’s Perspective Moya Greene, CEO, Royal Mail Group Supervisory Proportionality Annual Directors’ Dinner, Toronto A Right Royal Flotation – the Privatisation of Roundtable Luncheon, Toronto Sponsored by Bennett Jones LLP Royal Mail Sponsored by the Canadian Bankers Roundtable Luncheon, Toronto Association Kathleen Taylor, Chair of the Board, Royal Sponsored by CIBC most exclusive, Bank of Canada Richard Alvarez, President and CEO, Exporting Canadian Goods, Services and Culture Yves Desjardins-Siciliano, President and Canada Health Infoway; Edward Brown, Roundtable Luncheon, Toronto CEO, Via Rail Canada CEO, Ontario Telemedicine Network; Straight Ahead: The Future of VIA Rail Canada Robert Bell, CEO, UHN Mark Chauvin, Group Head, Risk Roundtable Luncheon, Toronto off-the-record, Navigating the Healthcare System: The Patient’s Management, and CRO, TD; Stephen Hart, Perspective CRO, Scotiabank; Rahim Hirji, EVP and The Hon. Doug Horner, President of Healthcare Policy Roundtable Series, CRO, Manulife Treasury Board & Minister of Finance, Toronto Calm After the Storm? 2014’s Risk Assessment Government of Alberta Sponsored by Manulife Patrons’ Circle Dinner, Toronto Strong and Steady: An Alberta Story of Growth Sponsored by Grant Thornton LLP and Potential policy discussions The Hon. Kevin Sorenson, Minister of State Roundtable Luncheon, Calgary (Finance), Government of Canada Al Monaco, President and CEO, Enbridge Targeted Action to Keep Your Pension and Meeting the Challenges of Developing Energy The Hon. Chris Alexander, Minister, Economy Strong Infrastructure Citizenship and Immigration Canada Roundtable Luncheon, Toronto Roundtable Luncheon, Calgary Policy Changes to Canada’s Immigration System Ron Mock, President and CEO, Ontario Teacher’s Pension Plan, addressing Institute members. Sponsored by CIBC Sponsored by RBC Capital Markets Roundtable Luncheon, Toronto
28 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 29 The C.D. Howe Institute ensures you receive the intelligence necessary to make informed, smart decisions.
Andrew Kriegler, Deputy Superintendent, Supervision Sector, Office of the Superintendent of Financial Institutions, discusses regulatory proportionality with Institute members.
30 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 31 2014 Policy Events 2014 Policy Events David Dodge and Kevin Dancey Leo de Bever, Ron Mock and William B.P. Robson
A.J. Goulding, President, London Meric Gertler, President, University of Toronto Adam Found, Manager of Corporate Assets, Shari Austin, Vice President, Corporate Robert Couzin, Counsel, Couzin Taylor The Hon. Michael Wilson, Chairman, Economics International LLC; Terry Boston, Universities, Cities, and Prosperity City of Kawartha Lakes; Ben Dachis, Senior Citizenship and Executive Director, RBC LLP; Brian Ernewein, General Director, Barclays Capital Canada President and CEO, PJM Interconnection; Roundtable Luncheon, Toronto Policy Analyst, C.D. Howe Institute; and Foundation; Ian Bird, President, Community Tax Policy Branch, Finance Canada; and Taking the Shadow Banks out of the Shadows Bryne Purchase, Adjunct Professor, School Sponsored by Boyden Global Michael Brooks, CEO, REALPac Foundations of Canada; Andrea Cohen Finn Poschmann, Vice President, Policy Annual Sylvia Ostry Lecture and Luncheon, of Policy Studies, Queen’s University Executive Search What Gets Measured Gets Managed: The Barrack, CEO, Ontario Trillium Foundation Analysis Toronto What’s Next for Ontario’s Electricity Market? 2014 C.D. Howe Institute Business Tax Burden Philanthropy’s Evolution: New Roles and A Discussion on the Base Erosion and Profit Roundtable Luncheon, Toronto Doug Suttles, President and CEO, Encana Estimate Expectations Shifting Tax Initiative Moshe Milevsky, Professor, Schulich Corporation Roundtable Luncheon, Toronto Roundtable Luncheon, Toronto Annual Jack Mintz Seminar, Toronto School of Business, York University; Candace Chartier, CEO, Ontario Long Term Canadian Energy, Opportunities and Challenges Sponsored by The Greater Thomas Reid, Senior Vice-President, Group Care Association; André Picard, Health Roundtable Luncheon, Toronto Saskatoon Chamber of Commerce The Rt. Hon. Paul Martin, Founder, Martin Kevin Milligan, Associate Professor Retirement Services, Sun Life Financial Columnist, The Globe and Mail; Åke Sponsored by CIBC and other Chambers of Commerce Aboriginal Education Initiative; Stan of Economics, Vancouver School of Canada; William Robson, President and Blomqvist, Adjunct Research Professor, across Canada Rutwind, Assistant Deputy Minister of Economics, University of British Columbia; CEO, C.D. Howe Institute Carleton University; and Colin Busby, David Fortier, Director of Patient Access, Consultation and Land Claims, Alberta Michael Horgan, Financial Sector and Lower Returns and Longer Lives: Meeting Senior Policy Analyst, C.D. Howe Institute Health Policy and Government Relations, Jerry Dias, National President, Unifor Aboriginal Relations; J.P. Gladu, President Economic Advisor, Bennett Jones; and Canada’s Retirement Income Challenge Funding Long-Term Care: Can We Handle It? Ontario, Pfizer; Paul Grootendorst, Director, The Labour Movement and Good Jobs and CEO, Canadian Council for Aboriginal Jack Mintz, Director, School of Public Roundtable Luncheon, Toronto Roundtable Luncheon, Toronto Division of Social and Administrative Roundtable Luncheon, Toronto Business; and Dave Tuccaro, President and Policy, University of Calgary Sponsored by the Conference for Sponsored by the Conference for Pharmacy, Leslie Dan Faculty of Pharmacy, CEO, Tuccaro Inc Tax Policy for a New Era Advanced Life Underwriting Advanced Life Underwriting University of Toronto; Jim Keon, President, Ed Clark, Chair, Ontario Premier’s Advisory First Nations Engagement in Canadian Energy Annual Benefactors’ Lecture and Dinner, Canadian Generic Pharmaceutical Council on Government Assets Annual Calgary Dinner Toronto Peter Tertzakian, Chief Energy Economist Association; and Suzanne McGurn, Interim Update from the Premier’s Advisory Council on Sponsored by GE In collaboration with CPA & Managing Director, ARC Financial Assistant Deputy Minister and Executive Government Assets Corporation Officer, Ontario Public Drug Programs Special Roundtable Luncheon, Toronto Steve Laut, President, Canadian Natural Ronald Dekker, Executive Sales and Trendlines versus Headlines: The Real Story Division, Ontario Ministry of Health and Resources Business Development Leader, Cisco Behind Canada’s Oil & Gas Industry Long-Term Care Policy Conference: Transforming the Canada’s Oil & Gas Industry, Opportunities and Systems Canada; Michael Hyatt, Executive Roundtable Luncheon, Toronto How We Pay for Drugs: Is the Pan-Canadian Canadian Payments System Challenges, Myths and Realities Chairman and Co-Founder, Bluecat Pricing Alliance on Track? Special Policy Conference, Toronto Roundtable, Calgary and live Networks; Jeff Musson, Founder, North of Olivia Chow, and John Tory Healthcare Policy Roundtable Series, Toronto Lead Sponsors: VISA and CIBC, videoconference with Toronto 41; Ray Sharma, Founder and Executive Luncheon Event with the 2014 Toronto Mayoral Sponsored by Manulife Supporting Sponsor: Berkeley Sponsored by CIBC Managing Partner, Extreme Venture Candidates Payment Solutions Partners; Moderated by John Stackhouse, Roundtable Luncheon, Toronto Paul Rochon, Deputy Minister, Finance Michael Latimer, President and CEO, Senior Fellow, C.D. Howe Institute Canada William B.P. Robson, President and CEO, Ontario Municipal Employees’ Retirement Building vs. Selling: What’s Best for Canada? Duncan Munn and Kathleen Taylor The Hon. Carlos Leitão, Minister of Finance The Economic Situation, Outlook, and Medium- C.D. Howe Institute System (OMERS) What’s Best for Canadian Technology for Quebec Term Challenges Canada Confronts the ‘New Normal’: Economic OMERS Investment Strategy – Investing in Businesses? Quebec’s Economic and Financial Outlook Annual David Laidler Luncheon, Toronto and Policy in an Era of Slower Growth Canada and around the World Entrepreneurs Debate Series, Toronto Roundtable Luncheon, Montreal live videoconference with Montreal Executive Briefing, Ottawa Roundtable Luncheon, Toronto Sponsored by BDC Sponsored by BMO Financial Group Sponsored by JP Morgan Steve Williams, President and CEO, Suncor Louis Morisset, President and CEO, Autorité Energy des marchés financiers The Next Conversation: How Innovation and The AMF: A key contributor to the strength of Collaboration Can Lead to a Better Energy Future Quebec’s financial and economic ecosystem Executive Briefing, Ottawa Roundtable Luncheon, Montreal
32 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 33 Thank You for Your Charitable Giving
Richard Alvarez, Colin Busby, Duncan Munn and Michael Decter
“Our support for the C.D. Howe is simple: as a provider of sound public policy options, the Institute is critical 2014 Major Gifts and Grants to fostering high living standards for future generations.” s a charity, private support makes the C.D. Howe Institute’s work possible. People are often surprised by our modest resources. We have only one office, and about 30 staff. We have no eight-figure endowments or major, multi-year – Rebecca and John Horwood government grants. All donations are purely philanthropic – the Institute does not accept any donations that stipulate a predeterminedA result or otherwise inhibit the independence of its staff and authors. Targeted major gifts and event sponsorships enable supporters to bolster the Institute’s research and dissemination capacities in specific areas of interest. They complement the annual membership campaign, strengthening the Institute $15,000 Gift in 2014 and enabling it to recruit scholars and support programs that enhance its ability to develop innovative solutions to policy challenges. The Institute’s policy impact would not have been possible in the absence of support from the following donors and sponsors:
Major Gifts from Individuals Major Grants from Organizations
James C. Baillie Aurea Foundation Malkin Dare Canadian Tax Foundation “Currently in Canada we are at a stage where, in many Wendy Dobson Donner Canadian Foundation aspects of public policy, difficult decisions will have to Briar Foster Lotte & John Hecht Memorial Foundation be made. The work done by the C.D. Howe Institute John and Rebecca Horwood Max Bell Foundation provides both policymakers and the public with Richard Howson Pfizer Canada Inc. valuable information to make the correct choices. This is Hal Jackman The Harold Crabtree Foundation why I support the Institute.” Donald K. Johnson The John Dobson Foundation Michael Koerner The Rotman Family Foundation – Richard Howson The W. Garfield Weston Foundation The Wilson Foundation
$25,000 Gift in 2014
34 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 35 Sponsorships
Sponsorships
Major Event Sponsors Roundtable Event Sponsors
Your lawyer. Your law rm. Your business advisor.
and supporting chamber of commerce across Canada.
Wendy Dobson
36 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 37 The Institute’s Members
Post Edmund Clark The Petman H. Sanford Riley Aimia Business Council of Jack Cockwell Foundation Philip Robson Algoma Central British Columbia Secondary Marshall A. Cohen Peter Hunt William B.P. Robson Corporation Business Subscribers Will Cornelissen H. Douglas Hunter Del Rollo Alterna Savings Development Bank Marcel Côté Julien Hutchinson W.P. Rosenfeld, Q.C. Altus Group of Canada Carleton University Bryan and Malkin Richard W. Ivey Guylaine Saucier AMJ Campbell C.S.T. Consultants Centennial College Dare Jennifer Jeffs Gerald Schwartz Appraisal Institute Inc. DeGroote School of Catherine Delaney Jon R. Johnson Ziv Shnitzer of Canada Cadillac Fairview Business Ian Delaney Robert Johnstone Mary-Anne ARC Financial Corp. Corp. Ltd. The C.D. Howe HEC Montréal David F. Denison Marcel Kasumovich Sillamaa Association of Caisse de dépôt McMaster Laurent Desbois John A. Kazanjian Helen K. Sinclair Canadian Pension et placement du University Hélène Desmarais Claire M.C. Kennedy Sam Sivarajan Management Québec Institute helps foster Queen’s University James Doak Thomas E. Kierans Andrew Spence Association of Canada Deposit Ryerson University Rod Dobson Paul Kirkconnell Paul R. Stanley Canadian Search, Insurance The University of Wendy Dobson Anthony Lacavera Wayne Steadman Employment, and Corporation Calgary David Dodge Robert Lamoureux Daniel Sullivan Staffing Services Canada Overseas policies critical to the The University of Steve Dorey Michael Landry Christopher (ACSESS) Investments Western Ontario Robert Dunlop Sébastien Leblond Sweeney Assuris Limited University of Janet Ecker David A. Leslie Catherine Swift ATB Financial Canada’s Venture success of Canada’s Alberta Kevin Ellison Henry Lotin Thomas H.B. ATCO Ltd. & Capital & Private University of British William F. Empey Jeffrey Lozon Symons Canadian Utilities Equity Association Columbia Don Ezra J.W. (Wes) Frederick H. Telmer Limited Canadian private sector. University of Will Falk MacAleer John D. Tennant Barrick Gold Association Manitoba James D. Fleck David A. Marshall John M. Thompson Corporation of Petroleum University of Briar Foster Stephen Marshall Craig C. Thorburn Benecaid Producers Toronto Christine Girvan Sabi Marwah Tom Trimble Bennett Jones LLP Canadian Bankers Wilfrid Laurier Fred Gorbet R.B. (Biff) Matthews Annette Verschuren Berkeley Payment Association University Peter Goring Rory McAlpine Warren Viegas Solutions Canadian Blood Rob Graham BA, David McCarthy Richard Waugh Blake Cassels & Services Individuals MBA, ICD.D Gerald McCaughey John Wilkinson Graydon LLP Canadian Babak Abbaszadeh John A.G. Grant James P. McIlroy Scott Wilkinson BMO Financial Energy Pipeline Andrew Abouchar Barry Gros Steven McNair Ken Wilson, Coril Group Association Lalit Aggarwal Douglas Grundy John D. McNeil Holdings Bombardier Inc. Canadian ETF Francis R. Allen Geoffrey Hale Mark McQueen Alfred G. Wirth Borden Ladner Association KPA Advisory Mary and Graham Jack Mintz David Wishart Gervais LLP Canadian Services Ltd. Hallward Bruce H. Mitchell Tom Woods Boyden Federation of E. James Arnett, Q. Elliot Halparin MD, William Molson, CA Brookfield Asset Independent C., of Counsel CCFP, FCFP Gary P. Mooney Corporate, Management Inc. Business James C. Baillie C.M. Harding Russell J. Morrison Association Brookfield BRP Canadian Finance Bruce Barker Foundation John P. Mulvihill Canada Corp & Leasing Donald Bennett Marianne Harris Edward P. Neufeld and Bruce Power Association Jalynn Bennett Gerald Hatch Angelo Nikolakakis Foundation Buck Consultants, A Canadian Gas George Bezaire Mark Hawman David P. O’Brien Xerox Company Association William Black Timothy J. Hearn Albert Pace Members Building Owners Canadian Generic G.R. Heffernan Nick Pantaleo, FCA and Managers Pharmaceutical David E. Bond Advocis Lawrence Herman Bill Papoutsis Association of Association R.A.N. Bonnycastle Aequitas Jim Hinds Dani Peters Canada Canadian Imperial Steven Bright Innovations Inc. Tim Hodgson Paul Pryce Burgundy Asset Bank of Commerce Peter Buzzi AGF Management Igal Holtzer Bruce A. Ramsay Management Canadian Life and Robert C. Caldwell Limited Mark Zelmer, Deputy Superintendent, Office of the Superintendent of Financial Institutions, discusses financial regulatory reform with Rebecca Horwood Donald S. Reimer BURNCO Group of Health Insurance Edward A. Agnico-Eagle Mines Dallas Howe G.L. Reuber Companies Association Inc. Institute members. Carmichael Ltd. Robert F. Richards
38 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 39 The Institute’s Members
Canadian National Ensign Energy Intuit Care Association Institute for the Services Inc. Investment Industry Ontario Municipal Blind (CNIB) Environics Institute Association of Employees Canadian Pacific for Survey Canada Retirement System Canadian Pension & Research Investment Industry (OMERS) Benefits Institute Equity Financial Regulatory Ontario Power Canadian Tax Holdings Inc. Organization of Generation Inc. Foundation Export Development Canada Ontario Real Estate Canadian Western Canada Investors Group Association Bank Extuple Inc. J.P. Morgan Ontario Teachers’ Canam Group Inc. Fednav Limited Securities Canada Pension Plan Candor Investments Fidelity Investments Inc. Ontario Trillium Ltd. First National Jackman Foundation Cargill Limited Financial LP Foundation OpenText CCL Group Inc. Ford Motor Kinross Gold Corporation Cenovus Energy Company of Corporation OPTrust Inc. Canada, Limited KPMG LLP Osler, Hoskin & The Right Honourable Paul Martin Certified General Forest Products Lehigh Hanson Harcourt LLP and Nicole Robertson Accountants Association of Materials Limited Parsons Association of Canada Lifelabs Brinckerhoff Alberta Four Halls Inc. Maclab Enterprises Pathways to Certified General Front Street Capital Magris Resources Education Canada Accountants of GE Canada Inc. Pfizer Canada Inc. Ontario Genworth Financial Manulife Financial Pirie Foundation Chevron Canada Canada Mastercard Canada Potash Corporation Limited Gluskin Sheff + Mattamy Homes of Saskatchewan Clairvest Group Inc. Associates Inc. Max Bell Inc. CN Gordon J. Homer Foundation Power Corporation Coast Capital Advisory Services McCain Foods of Canada Savings Credit Google Canada Inc. Limited Procom Consultants Union Grant Thornton LLP McCarthy Tétrault Group Ltd. Cogeco Cable Inc. Greater Saskatoon LLP Progress Energy Concentra Financial Chamber of MD Physican Canada Ltd. CPA Canada Commerce Services Promontory Credit Union Central Harvard Medcan Health Financial Group of Canada Developments Management Inc. Canada Dell Canada Inc., A Hill Medisys Health Property and Deloitte Company Group Casualty Desjardins Group Hill & Knowlton Mercer Insurance Deutsche Bank AG, Home Trust Metro Inc. Compensation Canada Branch Company Metrolinx Public Sector Devon Canada Human Resources Monarch Pension Corporation Professionals Corporation Investment Board Donner Canadian Association Monitor Deloitte PwC Foundation (HRPA) Morgan Meighen & Qtrade Financial The C.D. Howe is the E.I. du Pont Canada Husky Energy Associates Group Richard Venn and Moya Greene Company Hydro-Québec Morneau Shepell RBC Economap Inc. IC Funding Financial Mullen Group Ltd. Residential and Edco Financial Corp National Bank of Civil Construction podium of choice for Holdings Ltd. Imperial Oil Limited Canada Alliance of Ontario Edmonton Independent NAV CANADA Rogers Economic Diagnostic Clinics Neighbourhood Communications Canada’s policy makers. Development Association Pharmacy Inc. Corporation Independent Association of Saint Elizabeth E-L Financial Electricity System Canada Health Care Corporation Operator Nexen Inc. Sandoz Canada Inc. Ed Clark, Chair of the Ontario Premier’s Advisory Council on Government Assets, presents initial recommendations at a C.D. Howe Institute Limited Insurance Bureau Normandin Beaudry Scotiabank event on ways to maximize the value of the LCBO, Hydro One and OPG. Enbridge of Canada Ontario Long Term
40 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 41 The Institute’s Members Sander Grieve and Gary Mooney
Shell Canada Limited The Guarantee Sionna Investment Company of North Managers America SNC Lavalin Group The Institute for Inc. Competitiveness and Softchoice Prosperity Corporation The Investment Funds SpencerStuart Institute of Canada Standard Life Toronto Region Board Stewart McKelvey of Trade Summerhill Capital Torys LLP The C.D Howe Management Towers Watson Sun Life Financial Inc. Transat A.T. Inc. Suncor Energy Inc. TransCanada Talisman Energy Inc. Corporation Institute leads TD Bank Group Veresen Inc. Teck Resources Via Rail Canada Inc. Limited Visa Canada the human Telpay Walton Group of The Canadian Council Companies for Public-Private Wawanesa Insurance Partnerships Weston Forest capital and The Conference Products Inc. for Advanced Life Underwriting The Great-West Life competitiveness Assurance Company, London Life Insurance Company discussion. and Canada Life
Chris Alexander, Minister of Citizenship and Immigration, answers questions regarding policy changes to Canada’s immigration system. Briar Foster
42 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 43 2014 Scholars
FELLOWS-IN- W. Erwin Diewert The Institute’s People RESIDENCE Wendy Dobson Mati Dubrovinsky Steve Ambler Pierre Duguay Anita Anand Ross Finnie Åke Blomqvist Pierre Fortin Dan Ciuriak Charles Freedman Jean-Yves Duclos Michael Hart Adam Found John Helliwell Peter Howitt Ian Irvine Edward Iacobucci Mark Jaccard David R. Johnson Jon Kesselman Thorsten Koeppl David Laidler Kevin Milligan David Longworth John Richards James MacGee Paul R. Masson SENIOR FELLOWS Angelo Melino Richard Alvarez Frank Milne John W. Crow Patrick J. Monahan John M. Curtis Alice Nakamura Leo de Bever Nancy Olewiler Don Drummond Michael Parkin Adrianna Alterman Amanda Klowak Ivan P. Fellegi Christopher Ragan Manager, Special Projects Event Planner Claude Forget Angela Redish and Events Hal Koblin Frederick W. Gorbet William Scarth Colin Busby Director of Research Advancement Malcolm Hamilton Pierre Siklos Senior Policy Analyst Alexandre Laurin Lawrence Herman Arthur Sweetman Justin Caldwell Director of Research Ron Hicks Michael Trebilcock Development Officer Warren Mahomed Lawson A.W. Hunter Daniel Trefler Christina Chew System and Database Administrator Paul Jenkins William Watson Senior Event Planner Alex McBrien Thomas E. Kierans Thomas A. Wilson Benjamin Dachis Communications Coordinator Nicholas Le Pan Christopher Senior Policy Analyst Heather McConnell John Murray Worswick Aline Emirzian Development Officer, Events Edward P. Neufeld Robert Young Event Financial & Duncan Munn Al O’Brien Administration Coordinator Senior Vice President and Sylvia Ostry INTERNATIONAL Nairy Cappiello Chief Operating Officer Grant L. Reuber FELLOWS Andrew Spence Executive Assistant to the SVP & COO Kyle Murphy Rosanne Altshuler John Stackhouse and Development Coordinator Communications Coordinator Alan J. Auerbach Gordon G. Thiessen James Fleming Finn Poschmann Richard Blundell The Hon. Konrad W. Editor and Vice President, Media Vice President, Policy Analysis Timothy Brennan von Finckenstein Devan Gander Joan Price Thiess Buettner The C.D Howe Institute Development and Events Coordinator Corporate Secretary and Executive Willem H. Buiter RESEARCH FELLOWS Nicole Gileadi Assistant to the President and Janet Currie Manager, Development and Member Chief Executive Officer Charles Beach Arnold C. Harberger Relations William B.P. Robson Richard Bird Edward D. Kleinbard leads the fiscal and tax Kristine Gray President and Chief Marcel Boyer Neil Quigley Senior Coordinator, Research and Executive Officer John Chant Joel Slemrod Executive Assistant to the Vice Daniel Safayeni Miles Corak Lawrence J. White President, Research Development Officer Philip Cross policy discussion. Daniela Iniguez Daniel Schwanen Bev Dahlby Office Coordinator Vice President, Reaserch James Davies Aaron Jacobs Yang Zhao Donald Dewees Researcher Graphic Designer Rowena Jeffers Paul Rochon, Canada’s Deputy Minister of Finance, delivers the department’s bi-annual presentation to C.D. Howe Institute members during Director of Accounting and a bilingual roundtable that brought Toronto and Montréal together through videoconference. Administration
44 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 45 Report of the Independent Auditor on the Summary Financial Statements Report of the Independent Auditor on the C.D. Howe Institute Summary Financial Statements Summary balance sheet as at December 31, 2014 2014 2013 $ $ Assets To the Members of Current assets Cash and cash equivalents 3,307,651 2,677,220 C.D. Howe Institute Short-term investments - 555,109 Accounts receivable 107,364 242,903 Prepaid expenses 78,387 52,113 3,493,402 3,527,345 he accompanying summary financial statements, which comprise the summary balance sheet as at December 31, 2014, the summary statements of revenue and expenses and changes in fund balances for the year then ended, and Long-term investments 5,239,390 4,822,952 the related note, are derived from the audited financial statements of the C.D. Howe Institute (the “Institute”) for Capital assets 599,866 660,713 theT year ended December 31, 2014. We expressed an unmodified audit opinion on those financial statements in our report 9,332,658 9,011,010 dated May 6, 2015. Liabilities The summary financial statements do not contain all the disclosures required by Canadian accounting standards for not- Current liabilities for-profit organizations. Reading the summary financial statements, therefore, is not a substitute for reading the audited Accounts payable and accrued liabilities 133,450 157,105 financial statements of the Institute. Deferred revenue 1,675,694 1,841,362 1,809,144 1,998,467 Management’s Responsibility for the Summary Financial Statements Long-term Deferred capital contributions 237,801 261,765 Management is responsible for the preparation of a summary of the audited financial statements on the basis described in Deferred rent 207,039 217,167 the Note. 444,840 478,932 2,253,984 2,477,399
Auditor’s Responsibility Fund balances Invested in Capital Assets 362,065 398,948 Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in Operating 1,491,118 1,313,147 accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements.” Endowment Funds 5,225,491 4,821,516 7,078,674 6,533,611 Opinion 9,332,658 9,011,010 In our opinion, the summary financial statements derived from the audited financial statements of the Institute for the year ended December 31, 2014 are a fair summary of those financial statements, in accordance with the basis described in the Note. C.D. Howe Institute Note to the summary financial statements December 31, 2014
Chartered Professional Accountants, Chartered Accountants Toronto, Ontario, Canada Basis of the summary financial statements Licensed Public Accountants The C.D. Howe Institute (the “Institute”) has prepared these summary financial statements to be included as part of its annual May 6, 2015 report. The Institute has determined that the level of aggregation presented is adequate for the readers of the annual report.
The audited financial statements can be obtained from the Institute.
46 2014 Annual Report / C.D. Howe Institute 2014 Annual Report / C.D. Howe Institute 47 Report of the Independent Auditor on the Summary Financial Statements
C.D. Howe Institute Summary statement of revenue and expenses year ended December 31, 2014 2014 2013 $ $ Revenues Contributions and subscriptions 3,632,413 3,397,582 Meetings revenue 742,813 581,282 Investment income – realized gains 6,842 8,641 Investment income – unrealized gains (losses) 5,011 (12,090) Publication sales 10,538 14,205 Contract revenue 7,201 36,344 4,404,818 4,025,964
Expenses Research, administrative and project expenses 4,141,564 3,733,362 Loss on disposal of capital assets - 9,029 Amortization 122,166 137,166 4,263,730 3,879,557 Excess of revenue over expenses for the year 141,088 146,407
C.D. Howe Institute Summary statement of changes in fund balances year ended December 31, 2014
2014 2013 Invested in Capital Operating Endowment Assets Fund Fund Funds Total Total $ $ $ $ $
Balances, beginning of year 398,948 1,313,147 4,821,516 6,533,611 5,494,753 Excess of revenue over expenses for the year (98,202) 239,290 - 141,088 146,407 Unrealized gains on investments - - 147,208 147,208 368,565 Contributions received during the year - - 191,401 191,401 320,000 Investment income - - 322,240 322,240 431,421 Transfer to deferred revenue during the year - - (256,874) (256,874) (227,535) Purchases of capital assets 61,319 (61,319) - - - Balances, end of year 362,065 1,491,118 5,225,491 7,078,674 6,533,611
Approved by the Board
______Chair of the Board Chair, Audit, Finance and Risk Committee
48 2014 Annual Report / C.D. Howe Institute Become a Member
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