Thanks for having me, Mr. Chair.

Committee members, thanks for the invitation to take part in your consultations on Bill C-97.

As you know, the Business Council of Canada represents the chief executives and entrepreneurs of 150 leading Canadian companies in all sectors and regions of the country. Our member companies employ 1.7 million Canadians and are responsible for most of Canada's exports, corporate philanthropy and private sector investment in R and D.

In the council's pre-budget submission, we asked the government to introduce a comprehensive strategy to improve competitiveness, diversify trade and attract private sector investment. Among other recommendations, we called on the government to undertake a comprehensive review of the tax system with the goal of strengthening the incentives for both investment and growth.

We therefore welcome the decision by the Government of Canada to allow temporary full expensing for investments in machinery and equipment as well as accelerated expensing for all other types of capital investment. We believe that this new measure will partially offset the negative impact on Canada's economy of recent U.S. tax changes while creating incentives for Canadian companies to make new job-creating investments. According to a recent survey of our members, 25% of respondents believe that the accelerated investment incentive will lead to an increase in capital spending at their companies.

We also welcome the introduction of the Canada training credit in budget 2019. It's no secret that competitive international pressures in new technologies are requiring workers to become more skilled more quickly. Recognizing these challenges, the Business Council of Canada has launched the business higher education round table, also known as BHER. We launched this in 2015 to connect businesses and post-secondary leaders and to help Canadians make the transition between school and work.

One key initiative under BHER is to help 100% of Canadian post-secondary education students get a work-integrated learning experience, and that's a co-op internship or applied research project. We believe the commitments that are made in budget 2019, including support for work-integrated learning and BHER specifically, are big steps in making Canada one of the most skilled countries in the world.

We also look forward to working with the government and consulting with our members regarding the design of the newly introduced Canada training benefit so it can achieve its goal of helping Canadians upgrade skills and remain active parts of the growing and changing economy.

Despite these positive announcements, we do believe that Canada still has competitiveness challenges that go much deeper than any single measure. We'll continue to urge the government to adopt a comprehensive strategy to foster business confidence, attract investment and enable the creation of new high-value jobs. This includes undertaking a comprehensive review of the tax system to both reform and simplify it and to restore our long-held tax advantage over the U.S.

In a recent survey of our CEOs, less than 10% of them expressed confidence in Canada's competitiveness. According to the survey, the tax and regulatory burdens, combined with concerns about talent, are the most important factors affecting company investment decisions and plans in Canada.

The federal budget confirmed that Canada's economy has slipped into low gear, underscoring the need for action to boost private sector confidence and ensure a future of good jobs and a high quality of life. With growth of only 1.2% forecast this year, we believe it's more important than ever for government to adopt a laser-like focus on economic growth and competitiveness.

Thank you very much for the opportunity to be here. I look forward to your questions.

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