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Canada losing its competitive edge

VIRGINIA GALT

Globe and Mail Update

Latest comment posted at 11:22 AM EDT 27/03/08

And it all comes down to the soaring loonie, according to a new KPMG study. Sherbrooke, Que., leads the list of the most cost-competitive cities in the country ...Read the full article

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  1. Dr Demento from Canada writes:

    So even with the Loonie on par with the Greenback, of the 10 countries studied, the only country more cost competitive than Canada is Mexico.

    Just as I thought - nothing to worry about . . .
  2. Globe Insider subscriber content
    bill williams from Canada writes: -

    Time to move on a targetted flexible federal export tariff on oil and gas. This lever can be used to respond to all the problems that bedevil us in this area: global warming, overheated AB economy, soft C$, failing manufacturing sector.

    I'm sure that Harper will rush to embrace this approach.

    -
  3. Randal Oulton from Canada writes: Second place is pretty darn good. I'm not sure why the headline writer decided to portray it in such a histrionic, negative fashion.
  4. Liberals Steal from Canada writes: I don't know about the Sherbrooke conclusion but it's probable cheap to live there and people will work for peanuts.

    Labour markets where citizens actually have decent choices about what work to do at what price is the main source of 'competitiveness' challenges. That challenge will be with us for many years. The old devalue the dollar and cut everyone's pay by half trick that the libz were good at just made us all poorer, unless of course you pay taxes in Barbados like Mr. Martin does, then it doesn't affect you.
  5. Globe Insider subscriber content
    bill williams from Canada writes: -

    If you're a developped country, and resource extraction still dominates your economy, you need to be number ONE ... by a large margin. Otherwise your economy will eventually be worth nothing ... just about where Harper and Stelmach seem to want it.

    -
  6. Globe Insider subscriber content
    bill williams from Canada writes: -

    Tax the oil. Tax the oil. Tax the oil. Tax the oil. Tax the oil. Tax the oil. Tax the oil.

    Gotta go

    Have fun with this one
  7. Gavin Neil from Canada writes: HA! Shows what THIS reporter knows! Anyone who has been awake and watching TV or reading the paper for the last two weeks knows that Canada doesn't have a problem, Ontario does, and the sole cause of that problem is the McGuinty government's refusal to reduce corporate taxes.

    Please, as if things like international competitiveness and wild currency fluctuations effect us. Cut corporate taxes, and everyone will be rich. Don't, and everyone will starve. It's that simple. We don't need all of the bargle bargle about 'economics' to get in the way of what is obviously the only - and 100% factual - assessment of the situation.
  8. Globe Insider subscriber content
    bill williams from Canada writes: -

    Just before I leave -- and on a completely different note (HA!)-- Stelmach ignored the findings of the commission on royalties and let the industry off with a very modest increase. This leaves LOTS of room for the Feds to move in and put an adjustable export tax on petroleum.

    TAX THE F@
  9. Lowen Wrainger from Canada writes: Who would have ever thought that a high-valued loonie is valueless? On the other hand, it's time for Canadians who have managed to save some money(Ha,ha!) to scoop some real good American real estate foreclosures seeing that it is almost impossible to buy real estate here at decent prices!
  10. C. O. from Canada writes: The title of this article is misleading. It sounds like we're doing just fine.

    I think there should be more taxes on the old industry. Imagine what the state could do with that money-new infrastructure, investment in training, the list goes on.
    Someday the oil will be gone so let's take advantage while prices are high and we have lots to sell
  11. Joe Canada from Kingston, Canada writes: This be Harpers fault.

    Damn you Harrrrrrrperrrrrrr!!
  12. Shawn Bull from Canada writes: After reading the article I took the position that Canada is doing very well thank you.
  13. D P from Calgary, Canada writes: Bill williams thats a brilliant idea. Lets tax the industries that are doing well so that we can continue to pump billions into the ones that are inefficient thus negating the need for them to improve their performances... rediculous.
    using a duty to ensure equal grounds for an industry with foreign ones is fine in my opinion but taxing oil to support the auto industries i completely disagree with.
  14. Globe Insider subscriber content
    kevin o'connor from toronto, Canada writes: What a Headline!
    Near the top in almost every category and we get a negative headline form the G M. And the main negative is one that has a lot of positives in other areas, our rising dollar. Come on G M show some love! (Or failing that at leas reflect the articles content in the headline)
  15. J Ecoff from Canada writes: Lower the oil export to US from oilsands. It will elevate the environmental consequences and lower the Canadian dollar somewhat. Oil will still there as it has been past few million years. It will be worth more and it will be cheaper to extract in the future with new technology. Why do we have to supply the gas guzzling US economy at our environmental and economic cost? Think about the long term.
  16. Will M. from Montreal, Canada writes: This is a totally misleading headline and proves once again that Canadians are a glass half empty lot. Many nations have experienced cost deterioration in the past few years due to their appreciating currencies versus the dollar but smart firms mitigate this. As the story eventually points out there are many non cost factors that play just as great a role in determining where business will invest and relocate. It's pretty sad that the G&M decided to play up the one negative feature of the report.

    Business as usual in Canada
  17. Jeff S from Canada writes: Another totally misleading headline.

    Seems like we're doing pretty darn good.
  18. Winston Smith from Canada writes: Soaring Loonie or collapsing US dollar?

    The devaluation of the US dollar is being used as a trade weapon to repatriate jobs back to the U.S.
  19. Dr Demento from Canada writes:
    The headline on this same story in the Financial Post is:

    'Canada takes G7 lead as place to do business'

    http://www.financialpost.com/story.html?id=404049
  20. S M from Canada writes: The loonie's appreciation versus the USD or the USD's decline however you want to play it is having a devasting effect on Ontario's economy, but what the real story should be is WHAT are Businesses, and Governments doing about it?

    Relying totally on a 'cheap' dollar as the singular or most important reason for Canadian business success is like winning every Hockey game only because the opposition is always a man short.

    Do we need the game rigged inorder to compete?

    Canadian businesses need to be agile enough to operate in a variety of economic conditions including currency fluctuation.

    You can't control that..what you can control is business taxes.

    The Federal Government has reduced taxes, Most of the other provinces have reduced business taxes..

    Ummmm .....what's Ontario done to respond to this economic challenge..Nothing!

    McGuinty is paralyzed, falling back on his only economic management skill...blame the Feds and ask for more handouts...!

    McGuinty didnt create the problem but he's a ZERO when it comes to assisting in the solution
  21. Lance M from Canada writes: The premise of the article is that TINA (There is no other alternative as coined by Marggie Thatcher with regards to trade and business) will continue to prevail. That system is contigent upon cheap available supplies of fossil fuels. The world will grow in size dramatically with long supply lines and just in time delivery fading into history with the going of cheap fossil fuels. We are at the beginning of a severe economic contraction as the capacity to undertake work is diminished (less fossil fuels in a system, less work gets done.) World trade will not hold the same concerns as local and regional trade. Canadian workers will not be competing with workers thousands of kilometres away but instead with workers dozens or a few hundred kilometres away. The warehouse on wheels of components for factories, food stuffs, and cheaply made foreign goods, relies on cheap fuel, that is becoming less and less the case. The closer something is made to the end consumer, whether it is food, medication, durable goods, the cheaper it will be. What has been for the last 60 years is passing away, what will be in the future will be more and more a world resembling the years prior to the 1930s in the long run, and in the short run, the 1930s themselves. Not a cheery thought, but clinging to the old way of thinking will land you under the bus.
  22. Canada Blows from United States writes: 'Anyone who has been awake and watching TV or reading the paper for the last two weeks knows that Canada doesn't have a problem, Ontario does'

    Sorry to burst your bubble with a shot of good old fashioned reality but Ontario and Quebec ARE Canada. The rest of you are merely guests.

    Having a natural resource like oil doesn't make a country competitive - it makes it exploitable.

    Who the hell do you think pays for your little country? The health care, the unemployment, the entire social safety net, the arts, the transportation, the subsidies to Alberta oil, the Hibernia project etc.? It's not Alberta and it's certainly not PEI. It's Ontario and Quebec. So go those 2 provinces, so goes the country.
  23. Ramesh Fernando from Canada writes: What should be noted is that the cost of business is going to come way down as our federal corporate tax rate is reduced to a very low level. Whatever one likes or dislikes of Mr. Falherty his policy is right. This will bring more incentive combined with the even lower small business tax for firms to invest in workers, new technology, capital and equipment, training etc. Of course some provinces are reducing tax rates will be better off, but with Ontario's high tax rates, investment will be slowed down in Ontario.
  24. Stude Ham from Canada writes: oh... if only ontario had listened to what's-his-name in never-never-land and cut its corporate taxes by zillions and zillions of points... oh if only... then we wouldn't all have been in such deep economic doodoo...

    the study clearly indicates that we must not cut back on the immigration of the unskilled because these people can be exploited as a very cheap labour source. this cheap exploited non-unionized labour force is about all that exists in mexico... and look at mexico's standing in the report.

    since a high valued C$ is optically best for the CLOWNservatives Ontario has no choice but to cut its corporate taxes... and biff the millions of its cloutless peons for the huge sums lost. The mike harris tories did that under jim flaherty...

    better still... just

    DUMP HARPER!!
  25. Rain Couver from Canada writes: What other bad news are the doomsayers going to blame on the Loonie?
  26. Will M. from Montreal, Canada writes: Dr Demento from Canada writes:
    The headline on this same story in the Financial Post is:

    'Canada takes G7 lead as place to do business'

    http://www.financialpost.com/story.html?id=404049
    -----------------------------------------------------------------------------

    Finally some perspective. Thanks for that.
  27. Brian Lilly from Moncton, Canada writes: Here we go again with Counterspinner and the ugly remarks about Quebec and bilingualism! As an ex resident of Quebec, I know Sherbrooke very well, and yes, even today with a predominately French speaking population, most people there are bilingual. I suppose that because Moncton being in second place is also bilingual (the only officially BILINGUAL metropolis in North America), it would qualify some bad criticism also. 'A Sherbrooke et Moncton, on travail tres fort avec beaucoup d'efficacite dans les deux langues officiel au CANADA!!' Fierement Canadien et bilingue, I will now sign off.
  28. Craig Scott from Republic of Newfoundland, Canada writes: You know, I don't see the point of this story.....The headline says we are losing our competitive edge but when you read the story is seems like we are doing fine and because of our favourable taxes, energy supply and environmental regulations that we stand to do even better.

    I don't know who wrote this story but they should consider changing the headline for sure.
  29. North of the Border from Canada writes: 'Lower the oil export to US from oilsands. It will elevate the environmental consequences and lower the Canadian dollar somewhat.'
    As I said before, wantring to screw someone else over for the good of what? Manufacturing? It's this mindset that got us in hot water. Suppress everything else and everywhere else in Canada to keep the manufacturing going. Lowering oil export? Wouildn't that hurt AB? Lowering the Canadian dollar's value? Who does that help again? All I hear is propaganda being thrown around because certain areas of the country are hurting. Weren't the number of jobs so far this year more than predicted by a fair bit? Isn't the dollar strong for some reason? McGuinty wants unskilled labour to come here? I wonder why. Is Canada trying to become the next Mexico? I know that the globe had their jollies from calling Danny Williams 'Chavez' but why not call McGuinty that? Afterall he's the one in full support of a weak currency and a province/country (used very loosely) filled with unskilled labour. Sounds to me like he's not only for the idea but encouraging it as well.
  30. Jeremy F from Alberta, Canada writes: 'Who the hell do you think pays for your little country? The health care, the unemployment, the entire social safety net, the arts, the transportation, the subsidies to Alberta oil, the Hibernia project etc.? It's not Alberta'

    Umm, hate to burst your bubble, but Alberta is a HAVE province and along with Ontario, we send billions to all other provinces to help fund their social programs.
  31. Vincent Clement from Windsor, Ontario, Canada writes: Wow, it didn't take too long for yet another conversation to descend into a Ontario versus Alberta fight. Can't we just get along. I live in Ontario and I am more than pleased that Alberta (and other provinces and territories) are doing well. When did this have to become an us versus them thing?
  32. Winston Smith from Canada writes: SM, I agree. Canadian business should be using the stronger CAD to buyout their US competitors and expand. For example, the softwood lumber companies in Canada should be buying up private timber lots in the U.S. now instead of complaining about how unfair the America trade panel is.
  33. Freddie B from Woodbridge from Canada writes: The high dollar means that we pay less for commodities that priced in $US (NO Matter where they come from).

    In the end, shouldn't make a big deal. G&M, do your homework.
  34. Peter Francis from Mississauga, Canada writes: The title is awfully misleading; from the content of the article, it looks like we are doing quite well!
  35. Dave M from Canada writes: I couldn't agree more with the logic that Daulton McGuinty is entirely to blame for our dollar being at par and for the country losing its competitive edge.

    I'm also pretty sure he's to blame for all the jobs that have ever been lost in the whole of our country's history, the ebola virus and that all the Unicorns are extinct.

    (Seriourly, do people here read what they write before they click 'submit'???)
  36. Wes Deptuch from Saskatoon, Canada writes: The comment pages on many websites allow readers to 'recommend' the comments of others. I certainly would have voted for all the comments that point out the glaring inaccuracy of this article's headline!

    Perhaps the writers submit their articles and some overbearing editor chooses the headline? That might explain why this seems to happen so often in the R.O.B.
  37. J Kay from Canada writes: For those decrying the headline perhaps a little bit of perscpetive is in order, or maybe you should even read the report (god forbid). This is the latest report in a series that KPMG has done. In the 2004 version of the series Canada had a significant cost advantage over the US of around 9.4%. In the 2006 version, due to a rising loonie that cost advantage shrank to 5.6% over the US (behind Singapore with a 23% cost advantage). In this latest report our cost advantage has dwindled to 0.6% as the loonie reached parity, though anyone who had read the 2006 version of the report would have been able to have surmised this from the sensitivity portion of the study.

    Is this bad new overall? No. Canada is still cost competitive with the US and has been for a while. We have many good things going for us but the margin of the cost competitiveness has dwindled as the loonie reached par.
  38. Maximilian Widmaier from Canada writes: Jeremy F from Alberta, Canada writes: 'Umm, hate to burst your bubble, but Alberta is a HAVE province and along with Ontario, we send billions to all other provinces to help fund their social programs.'

    Hate to burst your bubble bursting, but equalization payments don't work like that. Equalization payments do not involve wealthy provinces making payments to poorer provinces; rather, the funds for equalization payments come from the federal treasury. Since these are Federal funds collected by tax, it is actually the most populous areas of the country which fund equalization - Ontario and Quebec (difference obviously being that Quebec receives equalization while Ontario does not). Contrary to the grassroots propaganda in Alberta, nobody is taking money out of Alberta's wallet to pay for equalization, aside from the Federal taxes Albertans pay, which every Canadian pays.
  39. The Oracle from Caiman Islands, Canada writes: Oh, but Super Harper is set on the 'Amero'. See: http://www.gregfelton.com/canpol/20070823.htm
    Note: put underscore btween 7 and 8, underscore between 8 and 2. This site deletes it for some reason. Read and learn.
  40. Shawn Bull from Canada writes: MCGuinty caused the unicorn extinction? ...that bas$#%@!!
  41. brokeback mountain from Canada writes: lol, the person who did the analysis obviously have not gone out and run a business on his/her own before.. yawn
  42. Dave S from Canada writes: I'm always amazed at that weird bit of Canadian-ness that makes people want to take profits from corporations and give them to the government (bigger corporation, that make their own rules) to spend. Somehow making money, even while playing by the rules and paying taxes just isn't right in this country. If you make too much money, somehow it's not rightfully yours, so the government should take it and throw it like confetti to the masses.

    Robin Hood is a great story, if you can rationalize that stealing from the rich for a good cause isn't really stealing. Practicing it as tax policy is pretty stupid if you want to attract investment and jobs.
  43. No No No Yes No from Canada writes: Randal Oulton from Canada writes: Second place is pretty darn good. I'm not sure why the headline writer decided to portray it in such a histrionic, negative fashion.

    HOW CANADIAN IS THAT?!?!? We're second best! Let's cheer!
  44. Mr. Smith from Canada writes: Look up 'the curse of natural resources' Canada is following the lead of 3rd world countries rather then norway, Ontarios fall just marks the beginning of the end for Canadas economy, rising oil prices can only fake growth for so long.
  45. Vern McPherson from writes: Ramesh Fernando from Canada writes: What should be noted is that the cost of business is going to come way down as our federal corporate tax rate is reduced to a very low level. Whatever one likes or dislikes of Mr. Falherty his policy is right. This will bring more incentive combined with the even lower small business tax for firms to invest in workers, new technology, capital and equipment, training etc. Of course some provinces are reducing tax rates will be better off, but with Ontario's high tax rates, investment will be slowed down in Ontario.

    --------------------------------------------------------------

    Don't be so narrow minded. Or can I use the words 'tunnel vision', 'brainashed' ?

    If tax is the key why aren't Ontario businesses flocking to BC or Alberta ? Or Ireland OR Zimbabwe ? More people ride the TTC in 2 and half days than live in Alberta. Why is that ? Try and get a wider focus here instead of the low tax mantra bull$Shi! as the only factor.

  46. Vern McPherson from writes:
    brokeback mountain from Canada writes: lol, the person who did the analysis obviously have not gone out and run a business on his/her own before.. yawn

    ----------------------------------------------------------------------

    KPMG isn't a business ?
  47. A Canuck from Ottawa, Canada writes: People, before insulting Sherbrooke, step back and think...Quebec has a HIGH personal income tax burden but has a lower corporate income tax than its immediate neighbours due to 1) political uncertainty, high level of red tape( including 2 income tax watchdogs, federal and provincial) and to a certain extend, bilingualism (this is mitigate when compared to moving your business to say Mexico, at least, one can still fonction very well in English in Quebec) ...furthermore, Quebec is lowering its corporate and personal income tax rates in tandem with the federal decrease hence increasing the benefits over socialist Ontario.
    I strongly dispute the finding that Mexico has no ethical problems, come on!!!
  48. Dick Dupa from Toronto, Canada writes: Idiotic article, boring, stupid. Let's accept China's yuan as our national currency !! problem solved.
  49. James McDonald from Canada writes: First I would like to agree with Randal's comments, the article's title needs to be changed. My cup is always half full! Secondly, stop blaming the strong loonie for our manufacturing problems in Canada. Our standard of living has been dropping for many years and much of it is to do with a weak currency. If we had spent more effort on improving efficiencies rather than relying on a weak dollar for our competitive advantage we would still have more plants working in Canada. Lastly, it is time some of these so-called economists return to school for a refresher course, if you keep telling the public things are bad - they start to believe it.
  50. Repeatedly Censored from Bushland, Canada writes: KPMG so what? How inane! A Canadian $ worth half an American cent, that would not be Canadian competitiveness, that would be national bankruptcy! Canadian lack of competitiveness is having to be subsidized through a devalued Canadian dollar (monetary welfare for non-competitive business...) in order to be only in a position to sell one's overvalued stuff. Canada needs a strong currency, as in all well-to-do, rich, well managed countries.
  51. The Oracle from Caiman Islands, Canada writes: Well.... that is obvious.
  52. S M from Canada writes: Vern McPherson from writes:If tax is the key why aren't Ontario businesses flocking to BC or Alberta ? Or Ireland OR Zimbabwe ? More people ride the TTC in 2 and half days than live in Alberta. Why is that ? Try and get a wider focus here instead of the low tax mantra bull$Shi! as the only factor.

    Vernie would all the IT and telecom support jobs that used to be in Ontario and that now continue to flock to Asia and India count?

    Thanks for the new scientific tool and economic indicator Vernie!

    Lets wait until TTC ridership goes down or everyone moves out of the province before we address why Ontario shouldnt have the most disadvantageous business tax rate in the country.

    Good plan Vernie!

    It's no wonder no one wants the Loonie left running the economy.....you think it's based on bus passes and moving vans!

    The business tax issue is about attracting NEW businesses to Ontario.
    Ontario needs to attract new types of business to balance and eventually transform away from the old manufacturing base and into emerging industries.

    But Hey I guess we're OK for now cause Vernies done a TTC ridership survey!
  53. David B from Canada writes: Well DUH! of course it will cost more to business in Canada with the increase in the value of the Loonie. Don't these guys have anything better to analyse.

    And by-the-by, it's interesting that Ottawa and Toronto are seen as being in the top 10 cities for doing business. What with the talk of high Ontario business taxes and all. Now will that gasbag Flaherty Shut Up!!!
  54. Ricky for a Centrist Canada from Canada writes:
    If you read the FP's article - it's clear BOTH the FP and GM interpret the article in less than a neutral fashion - especially given the specifics of the report, which CLEARLY show a downward trend that ostensibly is only being held at bay by high resource prices.

    Bottom line - BOTH the NP and GM choose to interpret the story differently. Only one of them, however, allows you the privilege of coming on here to b!tch about it.

    So the usual crop of GM headline-whiners can shut their collective pieholes, thanks.
  55. The choices we make decide our place in life from Canada writes: Randal Oulton from Canada writes: 'Second place is pretty darn good.'

    Now that is a Canadian sentiment if I have ever heard one. That sentiment is why we are only number two. Way to go advocates of mediocrity. Silver meddle all the way.
  56. Gerry Pankhurst from Westport Ontario, Canada writes: For the many who have suggested the headline seems to put a negative spin on the story, allow me to suggest you must be new to the G&M. It's whay I call a 'grabber' and its aimed at the readers who don't show interest in good news and therefore would not bother to read the details. It is not unique to the G&M but they have it down to virtual science. CTV practices the same strategy, verbally, when they headline what is coming, particularly on their version of question period and often on Mike Duffy Live.
  57. alex just a canadian from Canada writes: It all depends on what your view of competive is. Sherbrooke is not a big town and thus has less companies, ie like many other small cities in the country. Language has no barrier here. They want to keep what investments are there and thus will work harder, invest in the right equipment. They have a very simple agenda keeping the citizens employed, and don't have time for politics. There is no auto plant, bbd or big name company. They do have is the out sourcing of work to them and smaller plants.

    I'm willing to bet most small cities are more competive than our larger ones. They have a very simple business plan focuss on what they are good at and not try to pander to all industries. It is more of a feeling of community between worker and employer that you will not find in big cities.
  58. rm r from Canada, United States writes: My impression from this article is that overall Canada actually seems to look pretty good. But all of the plusses can't hide the fact that Canada is becoming uncompetitive due to the rising loonie. So let's devalue our dollar to nothing and give all our stuff away for free! In the past they used to call this slavery, but today we call it sound economic policy.
  59. T G from Canada writes: What the report actually notes is that, with C$ at par with US$, Canada and the US are basically competitive equals which makes sense to me considering the interconnectedness of the two economies. So then, if you are looking to locate your business, and there is no competitive advantage from one jurisdiction to the next, then you locate closest to your market (especially considering rapidly rising cost to get your product to market). Bad news for some industries and good news for others.

    However, looking forward a few years, one can expect only rising taxes in the US (somebody's gotta pay for GWB's 8-year splurge) and falling taxes in Canada (government continues, sensibly, to pay down debt then a smaller portion of revenues will be applied to interest payments which can then lead to tax cuts).

    Not an easy decision. I suppose that's why the authors included Mexico this time....
  60. Arnold Free from Montreal, Canada writes: Clearly this article should be titled 'Canada continues to lead developed countries in economic competitive advantage despite the rise in the loonie'. The title is just journalistic sensationalism.
  61. Hugh Draper from Canada writes: Is this why parents are enrolling their kids in ultimate fighting?
  62. Leon Russell from Gatineau, qc, Canada writes: Counterspinner tells the truth from Canada writes: 'How can Sherbrooke be the most competitive? Obviously, this study doesn't consider the cost to be bilingual french first. And what about quebec's high taxes? ' Yeah, right, and what about the high cost in Mexico of speaking Spanish??and those other countries that don't speak English - how can they be on the list?? You're a real 100-watt bulb you are.
  63. scott thomas from Canada writes: Or headline could be: Collapse of US dollar makes their country cheaper than most of the rest of the first world.
  64. Bill Tweezer from Canada writes: Dr Demento from Canada writes:

    So even with the Loonie on par with the Greenback, of the 10 countries studied, the only country more cost competitive than Canada is Mexico.

    Just as I thought - nothing to worry about . . .

    In 10 years Mexico will overtake Canada's economy.
  65. immolson Canadian from Scarboroughanistan, Canada writes: Yesterday, Dalton McGuinty wanted more unskilled labor to be admitted to Canada. This would not help Canada a lot in term of competitiveness. We have enough cab drivers, securities guards and welfare recipients in Ontario. It 's time to let the skilled workers to help us.
  66. Chris Hay from Regina, Canada writes: Somehow this is not surprising - though one has to wonder why the blame is being attached to the dollar. For how long have Canadian businesses relied on a low dollar to be competitive, rather than make necessary cuts and business efficiencies as to remain competitive over and above a weak currency. The duplication of services, waste etc that can be found in most businesses is astounding. And not all of it can be attributed to higher wages or taxes.
  67. Globe Insider subscriber content
    In a Fog from Toronto, Canada writes: If we are the second most competitive country (a good news story) why aren't our businesses doing better? Clearly the government is doing the right things to give businesses the opportunity to succeed here.
    It probably has to do with the mediocre quality of Canadian CEOs who spend more time whinging for tax breaks & subsidies than taking the risks to grow their businesses.
  68. T O from Canada writes: Manufacturing complain about the high Canadian dollar but there are DEFINITE plus sides to the high dollar. Companies should leverage the Cdn dollar to INVEST in new technologies, equipment/capital to improve productivity and efficiency. If Ontario would lower corp income tax, adjust CCA and combined with companies performing strategic investment they would improve their situation GREATLY.

    This seems to be missed entirely by the govt and large chunks of the sector (though they did adjust CCA)
  69. Rick Sieb from Edmonton, Canada writes: A good part of it is due to Flaherty's malicious and ignorant tax on income trusts. He has cut the heart out of the income trust industry forcing many companies to disappear or sell out, in many cases, to foreign interests. He has destroyed the ability of many of the companies to compete. Wanton destruction-Flaherty's legacy.
  70. Bill Tweezer from Canada writes: Selling off our assets like MDS also really helps dont it. Being a nation of sellouts doesnt help the cause.
  71. I am a Con from Canada writes: Canada can solve all its problems if Ontario lowered its corporate tax rate by a point.
  72. Still Learning at 77 from Canada writes: The first place to be competitive is in the CEO's outlandish take home pay. Some are payed beyond belief. But no they want lower taxes and wages so that the fellow (Labour) producing the wealth can take home less pay and pay more taxes to make society livable. Competitiveness does not translate into happiness for the majority of Canada's citizens.
  73. Gerry Moraitis from Canada writes: Coming in second doesn't mean much when Mexico is out in front, and you're only a fraction of a percentage point ahead of the third-place U.S. Political considerations will overwhelm a small cost advantage. Limited investment will be reserved for the domestic market, while companies will cut Canadian jobs before laying off workers in the the U.S.

    Regarding Canadian companies taking advantage of the high Canadian dollar to make labour-saving capital investments, Flaherty argued for that last year. Not a bad thought, except for one thing: As a Globe story at the time revealed, CEO's basically said that if they were going to buy all this sophisticated equipment, why would they have it shipped to high-cost Canada, instead of low-cost China, India, or Mexico, thus saving even more money?
  74. Czar Nicholas from Ottawa, Canada writes: Why don't the Feds stop giving the oil sand companies tax brakes and use those billions in Ontario?

    Ohh ya, we are the nation's piggy bank, how could I forget. Ontario paying corporate welfare to the most profitable part of North America... is the saying 'The West is in' or 'The West will win'? The Conservatives have started a regional war and a vast majority of the population is losing.

    Divide and conquer won't win! Eventually rural Ontario will see this government as the Charlatans their Grandpappy warned them about. How scornful would the likes of Diefenbaker be to these clowns... probably enough to vote ABC...

    I wonder if Dalton will now sue the Conservatives who are accusing his government of using slush funds... ohh ya, not everyone is that petty of an egomaniac...

    For the love of Canada, vote ABC!!!
  75. mark bowden from Canada writes: canada would be the most 'productive' country in the world if we did away with all business taxes, if the top 2% of the nation's wealthy were prohibited from paying taxes and everyone would work for minimum wage.
    well, we'd still be behind haiti but no. 2 is still good.

    right?
  76. Globe Insider subscriber content
    Not the Alliance from In my opinion, The Harper Gov't is Incompetent, but it's always somebody else's fault., Canada writes: Obviously the authors of this report did not follow the Harper 'conservative' script. Had they listened, and paid attention like all the good, obedient, mindless little moonies on these forums, the report would be much simpler. In fact, according to the simplistic Harper moonie script it could be summarized as follows: 'D@mn you McGuinty..... D@mn you... all... to... h3ll!!!.....'
  77. Vern McPherson from writes:

    I am a Con from Canada writes: Canada can solve all its problems if Ontario lowered its corporate tax rate by a point.

    ---------------------------------------------------------

    Not this year........
  78. Leon Russell from Gatineau, Qc, Canada writes: From the article:

    “Canada ranks second in terms of environmental performance after France; it is perceived as a country with environmental laws that are most compatible with business competitiveness,&8221; KPMG reported.

    ...meaning we let companies pollute like hell, second only to France.
  79. Globe Insider subscriber content
    Jimmy K from Toronto, Canada writes: Good news, right? Nope.

    We are 0.4% better than the US, but they get paid about 35% more. Thus, this means employers in Canada will not be able to remain competitive while closing the wage gap. Expect wages of the middle class to go down, unless of course somehow we make these businesses more profitable, perhaps through CORPORATE TAX CUTS. Yes, amazing how that works, isn't it?
  80. JP M from Canada writes: Ramesh Fernando from Canada writes: 'Whatever one likes or dislikes of Mr. Falherty his policy is right. This will bring more incentive combined with the even lower small business tax for firms to invest in workers, new technology, capital and equipment, training etc. Of course some provinces are reducing tax rates will be better off, but with Ontario's high tax rates, investment will be slowed down in Ontario.'

    Problem is Ramesh, the facts don't support your argument. Taxation is one of a number of competitiveness issues. That 3 cities in Ontario outrank Calgary from a competitiveness perspective amply demonstrates this, and that Flaherty's pontificating is a political plot and nothing else. Flahery's MO on fiscal issues is to follow lock step with the Republican's the right so adores, and I don't know about you, but I don't think that I would want to be living with America's current economic situation.

    The reality is that reasonable tax rates, used to invest in infrastructure, education, training, health care, etc... are exactly why Canadians lead America on competitiveness even with our currency at par.
  81. hossein hajiagha from Victoria, Canada writes: After all this fancy report,
    where I can read more report about how many single man or women we have in Canada ?
    why we have so many divorced,
    How many are canadian are having problems with smoking or drugs, or drinking, or gambling/
    how many canadian are on welfare?
    why cost of the living and housing get so expensive?
    why is so hard to start family, buy home ... here in Canada If immigrant landing here and have hard time they ( we) better move some where which have better ...better offer by USA.
    why so many land in Canada are empty?
    where is my dream land?
  82. Go Oilers Go! from Canada writes: Maximilian Widmaier from Canada: Hate to break it to you but you are wrong regarding equalization payments. It's true they are funded by Federal personal and corporate income tax. The tax is collected by the Feds and then re-distributed as equalization. Last year over $13 billion more in tax was collected from Albertans than returned. The average Albertan contributes double the amoun to equalization than the average person in Ontario. Due to population size though Ontario still contributes the most overall ~ $20 billion. Quebec may have a high population; however they receive more in equalization transfers than they contribute through taxes. They are a recipient of equalization not a contributor.
  83. Dennis sinneD. from Calgary, Canada writes:

    This is really good news. I hope McGuinty reads this gem.

    And, the next time someone tells Alberta to cool it with the oil sands...? Being self-sufficient in energy is a GOOD thing. Stop bitching at us already.
  84. Vern McPherson from writes: Jimmy K from Toronto, Canada writes: Good news, right? Nope.

    We are 0.4% better than the US, but they get paid about 35% more.

    ----------------------------------------------------------------

    jimmie why do you lie like that ? Is it something in your dna ?
  85. Globe Insider subscriber content
    Not the Alliance from In my opinion, The Harper Gov't is Incompetent, but it's always somebody else's fault., Canada writes: Corporate taxes? Income Taxes? Surely the magical answer must be to cut the GST by ANOTHER point. What better way to spend $6 bln - right Jimbo? Sorry, forgot.........Damn you McGuinty!!.....
  86. Go Oilers Go! from Canada writes: Czar Nicholas from Ottawa, Canada writes: 'Why don't the Feds stop giving the oil sand companies tax brakes and use those billions in Ontario?' You don't know what you are talking about. The Liberals instituted accelerated CCA deductions for oilsands operations; no tax breaks are given. The CCA deductions are also provided to Ontario businesses so there is no discrepancy. The current Conservative gov't removed the accelerated CCA deductions; no addtional tax breaks were provided. You've really only shown yourself to be stupid.
  87. P cheng from ottawa, Canada writes: hossein hajiagha from Victoria, Canada writes: After all this fancy report,
    where I can read more report about how many single man or women we have in Canada ?
    why we have so many divorced,
    How many are canadian are having problems with smoking or drugs, or drinking, or gambling/
    how many canadian are on welfare?
    why cost of the living and housing get so expensive?
    why is so hard to start family, buy home ... here in Canada If immigrant landing here and have hard time they ( we) better move some where which have better ...better offer by USA.
    why so many land in Canada are empty?
    where is my dream land?
    ========================>
    I don't know why you are so negative about Canada. I am umemployeed because I just want to change my career. It is personally choice. If you want a job or a partner, change your personility first. There is a lot of opportunity out there and depens on your personal preference. But, Victoria is not a good place to work. It is a semi-retired island. May be, you can move to some other part of Canada.
  88. Vern McPherson from writes: hossein hajiagha from Victoria, Canada writes: After all this fancy report,
    where I can read more report about how many single man or women we have in Canada ?
    why we have so many divorced,
    How many are canadian are having problems with smoking or drugs, or drinking, or gambling/
    how many canadian are on welfare?
    why cost of the living and housing get so expensive?
    why is so hard to start family, buy home ... here in Canada If immigrant landing here and have hard time they ( we) better move some where which have better ...better offer by USA.
    why so many land in Canada are empty?
    where is my dream land?

    -------------------------------------------------------------

    It's all here friend. You just have to look for it in the right places and work like hell at it. The only dreams that are consistantly real and turn out everytime in Canada are the dreams of summer - during winter.

    Now get at it.......... and quit bellyaching ..........
  89. Globe Insider subscriber content
    Jimmy K from Toronto, Canada writes: Vern McPherson, why do I lie like that?

    I'm not lieing. I'll say it again, the average American gets paid ~35% more than the average Canadian. It's due to productivity levels. There is a big wage and prosperity gap between our two countries that we should be working to close.
  90. Vern McPherson from writes:
    Go Oilers Go! from Canada writes: Maximilian Widmaier from Canada: Hate to break it to you but you are wrong regarding equalization payments. It's true they are funded by Federal personal and corporate income tax. The tax is collected by the Feds and then re-distributed as equalization. Last year over $13 billion more in tax was collected from Albertans than returned. The average Albertan contributes double the amoun to equalization than the average person in Ontario. Due to population size though Ontario still contributes the most overall ~ $20 billion. Quebec may have a high population; however they receive more in equalization transfers than they contribute through taxes. They are a recipient of equalization not a contributor.

    --------------------------------------------------------------------

    LOL !!! You contradict your definition so eleoquently. ................

    Albertans, Ontarians and every other Canadian do nott pay one dime more in federal tazes than any other.