bg 12 471.23 fall 2015. taylor “the federal government of canada has traditionally sought public...
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BG
12
471.23
Fall 2015
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Taylor
“The federal government of Canada has traditionally sought public input in the policy-making process after it has drafted its policy intentions.”
recent improvementsespecially with
business
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Taylor
“If business and government thinking converge rather than diverge, business could better meet society’s needs and less government would be necessary.”
Should they converge?Should business meet society’s needs?Would less government be necessary?
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1997 Business Priorities
1. national unity
2. reduce business taxes
3. reduce individual taxes
4. get deficit to zero
5. reduce regulations
6. pay down federal debt
7. help business export
8. private sector healthcare
9. deregulate telecommunications
10. spend on transport infrastructure
11. spend on healthcare
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What corporate welfare?
loans• loan guarantees
bailouts• debt
• equity
grants
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What corporate welfare?
40 federal agencies give money 60% to housing 10% encourages exports 10% farming 15% primarily resource upgrading
None of this counts tax breaks
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What corporate welfare?
Best example: Peter Pocklington
…he was totally opposed to all government support for business. In a regular Alberta newspaper column on March 6, 1999, he censured “government funded movements of the liberal-left.” On March 10, however, he accepted a $12 million loan from Alberta’s Treasury Branches for his meat-packing company, Gainers Inc., and a $55 million loan guarantee.
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Why corporate welfare?
1. jobs, jobs, jobs
2. market failure
3. instrument of public policy
4. favoured son
5. regional development
6. key sectors
7. promote/retain Canadian ownership
8. save source of future corporate tax revenues
9. promote/retain competition w/i an industry
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A louder voice?
• government spending• fiscal/taxation policy• labour legislation• tariffs and trade policy monetary policy competition policy foreign investment policy development/location incentives bailouts of financially troubled companies government investment in or ownership of business environmental legislation
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Traditional input
Green paper or red or blue general discussion
White paper proposed policy
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Tripartism
“Tripartism is an admission that the process of decision making is more important in achieving desired economic or social outcomes today than is rigid adherence to outdated economic formulas or political ideologies.”
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Tripartism
1. Tier I/Tier II
2. Auto Pact Renewal
3. Free Trade Agreement
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Tripartism
1. Tier I/Tier II 1976… generally a failure some benefits
• increased contact
• increased trust
reasons for misunderstanding• economic policy vs. listening
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Tripartism
2. Auto Pact renewal 1980s success
• clear ideas
• strong negotiating position for govt
reason• had a clear goal
• failure had a clear cost
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Tripartism
2. Auto Pact lessons concentrate on
• longer-term issues
• sector-specific issues
right at the beginning set• who should participate
• what the goals are
• what the process should be
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Tripartism
2. Auto Pact lessons keep expectations low start with sectors predisposed to work
together• businesses w/i sector meet together first
have all parties share cost do it behind closed doors
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Tripartism
3. Free Trade Agreement SAGIT
• Sectoral Advisory Groups on International Trade
ITAC• International Trade Advisory Committee
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Tripartism
3. FTA lessons tight, external timeline clear reason to be there
• for each participant cost to walking away
process has backing of PM do it without fanfare
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Taylor’s general advice
to government: say what you’re after
• consultation
• advice
• deal
• window-dressing
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Taylor’s general advice
to government: recruit senior bureaucrats
from business expose bureaucrats to
business strategic planning
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Taylor’s general advice
to both: recognize that some sectors
will win & others lose• have plan for “losers”
don’t pick• recognize & support