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Canadian Finance Minister Jim Flaherty on how the country reduced the government’s deficit and turned its economy around.
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Our -- our neighbors to the north have made some very big changes when it comes to cutting tax rates.
And cutting spending the two together imagine that over the past couple of years in Canada is still working to grow it's -- com.
Had David -- talk to the Canadian finance minister of the George W.
Bush tax conference right here in new York and David want to -- telling up.
Well for the laws have Liz knows this very well because a lot of her roots are in candidate for the longest time we look epic candidates that's -- socialists are they're never gonna be business friendly environment.
We'll always be number one when it comes -- business world seems that.
In the past couple years the rules have been reverse that now they are more business friendly than we are they have a high corporate tax rate of 15%.
That's their crisis.
Ours is more than twice at a whole slew of things.
So I asked the finance minister James clarity what changed here's what he said.
We turned that corner in the seventies and eighties it was big spending big deficits accumulated public debts in Canada and the mid ninety's.
The IMF was -- in Canada people made jokes about the Canadian dollar of the Canadian peso song.
So we certain -- -- -- on -- stop you right here find me how did that affect people's lives his.
We hear a lot about the debt -- in this country and folks don't.
Necessarily get that it affects their lives affects their businesses directly how did -- affect yours high interest rates.
How high interest rates on people's mortgages.
Unemployment.
Just a lot of that affects in the Canadian economy we were not competitive.
And that was the turnaround started back and we've continued it especially in the last five years.
As of now we have you know our deficit under control of balance the budget within the next 23 years.
In Canada -- debt to GDP ratio is.
The best in the G-7 and is going down which is what we want.
And unemployment is not that.
And you have for example -- corporate tax rate that is half about half of what we have less than half wits about 15% right -- there was some controversy that we when we were elected in 2006 we said.
We're gonna reduce the corporate tax year after year after year which we did -- up to this year.
January 1 2000.
Twelve and we're down 15% down 10% most of its combined 25%.
How has that affected businesses has that brought more business to Canada lots of business and expect corporate revenues tax revenues keep going up it's not us if we includes tax revenues so there's a supply side effect -- you know where the tax rate to actually increase the revenue -- encourage people to work you know -- that our current administration -- doesn't believe that works.
I understand that I I don't think I'm gonna get a job.
Now you guys have a nationalized health system that goes beyond obamacare.
Are there any cracks in that system right now that need to be tended to share -- needs more innovation.
We're where we're not delivering health care is as he efficiently.
As as we could and that's the big thing with what told the provinces we transfer money for health care of the -- have told them.
That we'll continue increasing spending at at a significant rate.
To 2024.
But that's the -- to become more efficient more innovative how do you think we're gonna do in terms of our work.
System -- to a more public public oriented health system I think it's absolutely imperative to keep the private sector involved -- -- on -- experience is if you lose that.
Then -- quite frankly the public sector unions take over the system.
There and -- costs compared there's no cost stresses in the system.
To balance things out so it's important to keep the private sector engaged and finally talk about stresses we go -- -- Keystone Pipeline of course it's.
Great stress between our two countries what's the very latest on that.
-- nothing has changed and I guess we'll have to wait till after the election.
Nothing has changed because we keep hearing from your bottom illustration that they are progressing in fact -- building part of the lower.
Pipeline which wouldn't affect -- now.
But you haven't heard anything from our EPA you're of the administration about this now we we -- and and it's it's them is -- that's encouraging in the sense that.
We have to build other pipelines were building -- -- the West Coast of Canada.
So that will be able to -- -- oil if we have to to -- to the emerging economies in Asia but let me just put a -- point in the sense.
This whole curve -- began you have heard nothing from the Obama administration who have heard comments and so -- from time to time about it being.
A significant political issue.
And in and the United States we view it as a as a jobs and economy should we a lot of us do to by the way but but what what how long can you wait.
Your patience is not and what's -- we're going ahead and we guy just announced and our budget that we're.
We're going to shorten our environmental assessment times one review for one project with time limits so that we get more of these pipelines built.
Will -- be built the Keystone Pipeline.
If I had a crystal policy someday yes there will be felt in the meantime we have to have customers who have to build other -- in other words going to China.
Yeah and other Asian economies yes but essentially going west young man instead of -- south to the united -- -- absolutely and and you know Canada.
In British pound is actually closer to Asia because of the curvature of the earth so assailant times -- yeah does that but that that would that be are critical.
Failure for the United States would -- mean we would get less oil.
-- -- -- -- Looks like they're pushing hard lines and they want the pipeline to be done we don't want to buy it's interesting to note that the Obama illustration continues to say they're cooperating with the Canadians.
On the keystone issues.
But according to finance minister he's not hearing anything from.
David it's great to see you cannot avert a couple of thank you thank you thank by the way Ashok.
Actually did pretty good at that speed read our normal -- -- you know.
David I was little I -- strong with initially thought about that and a OK David thank you so very much.
