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Submitted by
Ken Delaney
Canadian National Office
United Steelworkers
October 16, 2006

 view full version pdf format 2006-07 BUDGET.pdf

Executive Summary:

• In our view, the key goal of national economic policy should be to create an economic environment in which there is an abundance of sustainable, well paid and rewarding jobs in safe workplaces.  We acknowledge that in the current economic environment, enhanced productivity and international competitiveness is one of the keys to achieving that goal.  We also believe the basis for sustainable productivity and competitiveness is investment in education and training, maintaining a strong physical and social infrastructure, investment in R&D, product and process innovation, and investment in new plant and equipment.

• Recent research by KPMG concluded that Canada had the lowest business cost environment among G7 nations.  We also observe that productivity has been increasing and wages have not been keeping pace with those increases.   So we do not accept arguments that labour costs are too high, or that overall corporate tax rates are too high.

• However, we are prepared to support tax preferences that reduce the overall corporate tax burden, if such tax preferences are tied to investment in R&D, product and process innovation, skills development, and new plant and equipment.  Similarly, we will support direct spending programs that accomplish similar goals, and specifically recommend certain changes to EI that will both improve labour adjustment and facilitate on the job training.

• Considering the complexity of the global forces at play, and the unique structures of various industrial sectors, we believe that a sectoral approach to developing strategy and public policy initiatives is most effective.  We point to the Canadian Automotive Partnership Council and fledgling Canadian Steel Partnership Council as examples of how industry, labour, academia and government can work together to identify ways to enhance the ability of individual industrial sectors to function effectively in an increasingly global economy.