Nouvelles du 30/06/2013

Terence Corcoran: Time for a tax revolt in Ontario, Quebec

Financial Post, 2013 years ago by Terence Corcoran

The two provinces may be loaded with record debt, but hey, it’s no problem

We haven’t seen such enthusiasm for tax collecting since Roman Emperors sent out Publicans to plunder the provinces. In a report Monday, Moody’s Investors Service announced it would maintain its “high credit ratings” for Ontario and Quebec, high being Aa2, two notches below the highest rate possible. The two provinces may be loaded with record debt, but hey, it’s no problem. After all, the Liberal and Parti Quebecois governments can tax the living daylights out of their citizens. (Suite)

Canadian homes among most overvalued in OECD ranking

Michael Babad ,The Globe and Mail, Published Wednesday, Jun. 05 2013

The OECD uses a combination of two measures to calculate how residential real estate prices are overvalued or undervalued.

By this reading, Canada ranks third, behind Belgium and Norway, and is followed by New Zealand and France. (Suite)

Report urges halt to future Chinese takeovers of Canadian firms 

Canada should reject most if not all future corporate takeovers from Chinese state-owned enterprises, contends a new report from the University of Calgary’s School of Public Policy, arguing they are little more than agents of the Beijing government.

“Canada’s business sector should contribute to market-driven economic growth,” the paper states. “It should not be allowed to become an instrument in China’s distorted and often disreputable drive toward global hegemony.”

Chinese government use of state-owned enterprises, which have taken advantage of special treatment at home to become global powerhouses, has contributed to lower priority on human rights, the environment, social justice and corporate “rectitude,” she further maintains. (Suite)

Taxes, wages, trade policies hurting Canada's auto industry

By Grace MacAluso, The Windsor Star June 6, 2013 

Canada's auto industry will continue to shrink unless it can overcome "competitive deficiencies," Reid Bigland, CEO of Chrysler Canada, said Thursday.

"We're not experiencing the kind of manufacturing renaissance taking place in the U.S. and Mexico."

"Not only are we losing some of our manufacturing base, we're gaining very little both at the Tier One automotive level as well as the major component suppliers of engines and transmission plants,"

Canada's competitive problems cannot be solved by a lower loonie, he added.

"There's no question a lower currency gave us a boost," he said. "But that simply masked a lot of issues," such as labour costs, taxes and trade policies.

"Free trade isn't necessarily fair trade," he said. Canada may play by the rules, but too many countries will try to undermine free trade agreements by restricting access to Canadian goods, he said.

"We live in a world of tariff and non-tariff barriers, government incentives and currency and regulatory manipulations." (Suite)