Pre-budget consultations, 2010-2011 - The advisory committee on the economy
and public finances unveils concrete solutions to spend more effectively and
better fund our public services
Ten concrete initiatives
The members of the committee believe that a great deal can be done to meet the challenges facing us without calling into question the basket of public services Québec offers. The committee has identified initiatives such as:
- a clear choice between the centralized approach and regionalization in
the management of our health and education systems;
- generalization of activity-based funding in the health sector;
- development of the opportunities offered by competition in the health
sector, mirroring what is already done in the education sector;
- application to commercial government corporations - beginning with
Hydro-Québec - of quantified performance requirements, defined on the
basis of a comparison with results from other jurisdictions;
- adoption of comprehensive budget rules defining multi-year and sector-
based targets;
- implementation of systematic program performance assessment process;
- establishment of an assessment process for the basket of public
services in the health sector, making full use of the future Institut
national d'excellence en santé et services sociaux;
- effective application of the Act to provide for balanced budgets in the
public health and social services network to hospitals and CSSS;
- raising fiscal levies if needed through consumption taxes rather than
income tax;
- greater application of user fees, applying the principles and the
process defined in the Policy for the Funding of Public Services.
Four simple principles
The committee bases its proposals on four simple principles:
- Program performance assessment must be generalized and depoliticized.
- Good management must be encouraged, poor management sanctioned and
competition must be allowed.
- We must define an efficient tax system and thus reduce the negative
impacts of all taxes on economic development
- We must rely more extensively on user fees.
Lessons we must learn from
By learning from what has been done elsewhere, in some cases for a long time, it is possible to reduce the cost of services or provide more for the same cost. In the health sector, there are very specific examples of ways of doing things that aren't cost-efficient i.e. not giving us our money's worth. That is also true in the education sector, as well as in large commercial corporations like Hydro-Québec.
At the same time, we can improve the funding of our public services by defining an efficient tax system that does not compromise our economic development, and by making greater use of user fees to fund public services, as is done in countries offering significant services that are collectively funded.
For the committee, we can spend more effectively and better fund our public services provided we make the right choices and take action.
The advisory committee
The Minister of Finance set up the advisory committee on the economy and public finances last
MEMBERS OF THE ADVISORY COMMITTEE ON THE ECONOMY
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AND PUBLIC FINANCES
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Robert Gagné (co-chairman)
With a doctorate in economics from the Université de Montréal, Robert Gagné is a professor emeritus at HEC Montréal and the director of the Centre sur la productivité et la prospérité. He specializes in applied econometrics, industrial organization and public policy. In recent years, Mr. Gagné chaired the Task Force on Tax Assistance for the Resource Regions and the New Economy and co-chaired the Advisory Committee on the Fiscal Imbalance of the Council of the Federation. In 2002, he was appointed a regular member of the Centre interuniversitaire sur le risque, les politiques économiques et l'emploi (CIRPÉE) and, since 1999, has been a fellow of the Centre interuniversitaire de recherche en analyse des organisations (CIRANO). He has focused on researching issues relating to business productivity, resource optimization and issues relating to the transportation sector.
Luc Godbout (member)
Luc Godbout holds a doctorate from the Université Paul-Cézanne-Aix-Marseille III. He is an associate professor at the Université de Sherbrooke. He specializes in taxation and public finance. In recent years, he has, in particular, been a member of the Task Force on Tax Assistance for the Resource Regions and the New Economy, in addition to contributing to the Commission on the Fiscal Imbalance. He is also a researcher with the Research Chair in Taxation and Public Finance of the Université de Sherbrooke. His research has focused in particular on the consequences of the aging of Québec's population on public finances. Since 2006, he has co-directed four books published by the Presses de l'Université Laval. Lastly, M. Godbout is the author of a monthly column entitled "Les public finances sous la loupe" in La Tribune newspaper.
Claude Montmarquette (member)
Claude Montmarquette holds a doctorate in economics from the University of
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For further information: Jacques Delorme, Technical Support Advisory committee on the economy and public finances, (418) 528-7382
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