Federal pre-budget consultations: the Quebec Employers Council urges the
federal government to continue its efforts to rebalance the budget

MONTREAL, Oct. 25 /CNW Telbec/ - To maintain healthy public finances and to avoid falling back into a debt spiral, the federal government must vigorously continue its efforts to rebalance the budget by 2014-2015 to avoid harming the competitiveness of Canadian business. This is the key message delivered today by the Quebec Employers Council to the House of Commons Standing Committee on Finance as part of the consultations leading up to the 2011 federal budget.

"Wealth creation and prosperity require a healthy financial environment that favours private investment in the country, enabling employers to benefit from competitive taxation," said Thomas-Yves Dorval, the president of the Quebec Employers Council. "The federal government must show rigour and commit itself to sticking to the plan set out in its latest budget for returning to a balanced budget, enabling all Canadians to benefit from economic growth."

In addition to sound management of public finances, the Employers Council would like to see the government follow through on its plan to reduce corporate income tax to 15% for 2012 as well as to seek more efficient use of the funds allocated to assisting business and innovation, explore new ways of enhancing the effectiveness of job training funds, and taking an in-depth look at the Canada Health Act to take account of factors such as the emergence of new therapies and the aging of the population.

For a closer look at the financing of employment insurance

The Quebec Employers Council also used the pre-budget consultations to urge the federal government to look more closely into the financing of the employment insurance plan. On September 30, Canada's Minister of Finance, the Honourable Jim Flaherty, announced new employment insurance contribution rates for the next three years. For employers, they represent increases of $0.07 for each $100 in insurable earnings for 2011 ($0.05 for workers) and $0.14 for the following years ($0.10 for workers).

"Quebec's employers pay more than $15 billion a year in payroll taxes to the two levels of government, Mr. Dorval added. "The combined increases in these taxes end up hurting Canada's ability to attract and retain job-creating private investment. This is good reason to explore the various routes open to the government in employment insurance financing and contributions to ensure that the plan remains competitive."

The Quebec Employers Council will be playing an active role in the federal government's consultations on the employment insurance plan set for the coming months.

The Quebec Employers Council's comments are available in French on the organization's website (www.cpq.qc.ca).

The Quebec Employers Council brings together many of Quebec's largest companies and the vast majority of sector-based employers' groups, making it Quebec's sole employers' confederation.

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Patrick Lemieux
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