RECOMMENDATION 1
The federal government — in conjunction with provincial/territorial governments, the Canadian Institutes of Health Research, health agencies, not-for-profit health charities and other stakeholders — help to ensure the existence of adequate financing for all elements of preventive programs focused on measures that will improve the health outcomes of Canadians. Such measures should provide Canadians of all ages residing in all regions with an incentive to improve their choices with respect to nutrition, physical activity, immunization and smoking cessation.
Moreover, the government should continue to allocate funds for the National Immunization Strategy and should establish a dedicated fund, in the amount of $300 million over three years, for future immunization programs and new vaccines.
RECOMMENDATION 2
The federal government, in conjunction with the provincial/territorial governments, help to develop a national mental health strategy. This strategy — which should include the creation of a Canadian mental health commission — should address the mental health needs of all Canadians, but particularly those who are determined to be at higher risk. The strategy should be completed no later than 31 October 2007.
RECOMMENDATION 3
The federal government, in conjunction with the provincial/territorial governments, help to develop a plan for research and funding related to rare diseases and such diseases as hepatitis C, HIV/AIDS, Parkinson’s disease, dystonia and type 1 diabetes. The plan should be developed no later than 30 June 2007.
RECOMMENDATION 4
The federal government, in conjunction with the provincial/territorial governments, help to develop a more comprehensive pan-Canadian chronic disease surveillance system. This enhanced system should be developed no later than 1 September 2007.
RECOMMENDATION 5
The federal government develop and implement a family caregivers support strategy. This strategy should ensure the existence of tax measures that support caregivers.
RECOMMENDATION 6
The federal government amend the Income Tax Act to increase the value of the Canada Child Tax Benefit. Following this increase, the value of the tax benefit should be increased annually to reflect changes in the cost of living as measured by the Consumer Price Index.
Moreover, the government — in conjunction with the provincial/territorial governments — should fund a national, accessible, affordable, high-quality, publicly regulated child care system. This system should respect any provincial/territorial child care programs already in effect, recognizing the leadership of the province of Quebec.
RECOMMENDATION 7
The federal government — in conjunction with the provincial/territorial governments and such stakeholders as educational institutions, student associations, employers and groups representing employees — review the full range of federal measures that support students, educational institutions and their physical infrastructure, employees and employers engaged in post-secondary education and training in Canada. This review should be undertaken with a view to ensuring that the measures are coordinated in a manner that maximizes outcomes for Canadians.
Moreover, on a priority basis and bearing in mind the review of federal measures that support post-secondary education and training, the government should — with the aim of eliminating economic barriers to post-secondary education — provide direct funding assistance to post-secondary students through a comprehensive system of needs-based grants and loans. These grants and loans should be available to students enrolled in university, college and qualified training programs. As well, the province of Quebec should be permitted to opt out of participation in this system of needs-based grants and loans, with full compensation. This system should be developed and funded no later than 31 August 2007.
Finally, the government should extend the mandate of the Canada Millennium Scholarship Foundation and expand the Canada Access Grants program to finance the cost of tuition for all years of undergraduate education. The province of Quebec should be permitted to opt out of participation, with full compensation.
RECOMMENDATION 8
The federal government, once a long-term strategy for federal support of post-secondary education and training has been concluded among the federal and provincial/territorial governments, divide the Canada Social Transfer into a post-secondary education transfer and a social assistance and services transfer.
Once the Canada Post-Secondary Education Transfer has been created, the government should introduce guidelines, principles, responsibilities and accountabilities with respect to post-secondary education.
RECOMMENDATION 9
The federal government amend the Income Tax Act to reduce personal income taxes. Consideration should also be given to additional tax relief for low-income Canadians as well as to a working income supplement and other personal income tax changes that would provide incentives to work and to remain employed within Canada.
RECOMMENDATION 10
The federal government — in conjunction with the provincial/territorial governments and relevant stakeholders — develop a plan to ensure that appropriate, properly funded and equitable immigration settlement and integration services are available throughout Canada. As well, a plan should be developed to recognize and reconcile the educational and professional qualifications of immigrants obtained in countries other than Canada.
RECOMMENDATION 11
The federal government adopt the target of reducing child poverty in Canada to 9.9% by 2010. The government should meet with the provincial/territorial governments and groups assisting and/or representing disadvantaged Canadians, among other stakeholders, to develop a strategy for achieving that target. The strategy should be developed no later than 30 June 2007.
RECOMMENDATION 12
The federal government reinstate the programs and funds that were eliminated by it on 25 September 2006 in the areas of literacy, the social economy, youth, assistance to museums, Status of Women Canada, the Law Commission of Canada, volunteerism and the Court Challenges Program.
RECOMMENDATION 13
The federal government, on a priority basis, extend the Supporting Communities Partnership Initiative and the Residential Rehabilitation Assistance Program.
Moreover, the government should — in conjunction with the provincial/territorial governments — develop a national housing strategy and, on a priority basis, take action in order to ensure that the housing needs of Aboriginal Canadians and low-income families are met.
RECOMMENDATION 14
The federal government, in consultation with the provincial/territorial governments and relevant stakeholders, undertake a comprehensive review of the Canadian retirement income system with a view to determining the adequacy of the system in meeting the retirement income needs of seniors.
The focus of the review should also include the incentives for saving and the extent to which these incentives ensure that the financial and other needs — of both current and future pensioners as well as of labour force participants and those who engage in unpaid work — are being, and will continue to be, met.
The review should also focus on any incentives and disincentives in the retirement income system to continued labour force participation by older workers, on the manner in which caregivers might receive retirement income and the feasibility of a caregiver drop-out provision within the Canada Pension Plan, and on the means by which parents — particularly older parents — can provide financial support for the care of their disabled children, such as through a registered disability savings plan.
Moreover, during the review, consideration should be given to returning, to 71 years, the age at which Registered Retirement Savings Plans must be converted into Registered Retirement Income Funds and the extent to which greater flexibility should be given with respect to Locked-in Retirement Accounts and federally regulated pensions.
The review should be completed no later than 31 August 2007 and any legislative/regulatory amendments needed as a consequence of the review should be enacted no later than 31 December 2007.
RECOMMENDATION 15
The federal government, in conjunction with the provincial/territorial governments, help to fund existing infrastructure initiatives at a level designed to reduce the public infrastructure deficit.
As well, the government should make permanent a program for the sharing of gas tax revenues with municipalities.
Finally, the government should develop an allocation mechanism for federal infrastructure support that considers not only population, but also the unique strategic and economic development needs of communities.
RECOMMENDATION 16
The federal government, in conjunction with the provincial/territorial governments, allocate funds sufficient for chemical, biological, radiological and nuclear equipment and training.
The government should also work with relevant stakeholders in order to ensure the development and adequate funding of a national emergency preparedness plan.
RECOMMENDATION 17
The federal government, in conjunction with the provincial/territorial governments, conclude a Canadian energy strategy and an associated plan for implementation no later than 1 January 2008.
This strategy should be developed in the context of Canada’s Kyoto objectives and the need to reduce greenhouse gas emissions. It should also recognize the importance of a diverse energy supply and the need for enhanced incentives regarding renewable energy sources, including biomass, biofuels and wind. These incentives should include the Renewable Power Production Incentive and the Wind Power Production Incentive or equivalent tax-based measures.
The government should also explore incentives for enhanced energy efficiency and conservation by consumers and businesses, including measures to promote home and building energy efficiency and the purchase of fuel-efficient vehicles. The incentives should include renewal of energy efficiency assistance programs for Canadians.
RECOMMENDATION 18
The federal government, in conjunction with the provincial/territorial governments and stakeholders in the agriculture and agri-food industry, ensure that the program developed as the successor to the Canadian Agricultural Income Stabilization program contains business risk management measures that are separate from disaster assistance measures.
RECOMMENDATION 19
The federal government establish financial disincentives in order to discourage continued destruction or degradation of the nation’s natural capital. Moreover, federal spending programs related to infrastructure and agriculture should require mitigation for the loss of natural capital on all projects that receive federal funding or that are conducted on Crown lands.
RECOMMENDATION 20
The federal government amend the Income Tax Act to eliminate, on a five-year trial basis, the capital gains tax on donations of publicly listed securities and ecologically sensitive lands to private foundations. The extent to which charitable giving to these foundations has increased should be assessed after five years, and the measure should be made permanent if suitable.
The government should also amend the Income Tax Act to eliminate the capital gains tax on donations of real estate and land to public charities as well as to private foundations during the five-year trial period and beyond if deemed to be appropriate.
Finally, the government should allow donors to make charitable contributions for 60 days beyond the end of the calendar year for inclusion in the previous year’s income tax return.
RECOMMENDATION 21
The federal government study the feasibility of a tax measure that would recognize and reward the hours of volunteer activity. This study should be completed no later than 30 September 2007.
RECOMMENDATION 22
The federal government increase funds allocated to the arts and cultural sector. In particular, funding increases should be considered for the Canada Council for the Arts, the Canadian Broadcasting Corporation, the Canadian Television Fund and Telefilm Canada. Funding for the Canada Council for the Arts should reach $300 million over two years.
The government should also increase the funds allocated to the federal regional development agencies and to projects for Canada’s northern territories in order that they have the resources to finance, to a greater degree, the infrastructure and growth needs of such entities as zoos, aquariums, fairs, exhibitions and festivals. The amount of the increased funding and the manner in which it will be allocated should be announced no later than 30 April 2007.
Finally, the government should identify ways in which the current federal tax and spending initiatives supporting the arts and cultural sector could be simplified and better coordinated, as well as develop a plan for the long-term financial sustainability of the sector.
RECOMMENDATION 23
The federal government review the range of federal measures and programs that support and encourage the preservation and restoration of heritage buildings.
The review, which should be completed no later than 30 April 2007, should focus on the eligibility of not-for-profit organizations, public agencies and private individuals for the measures and programs.
RECOMMENDATION 24
The federal government, by 30 June 2007, complete a comprehensive review of capital cost allowance rates in Canada with a view to determining the extent to which similar asset classes are treated equitably, Canadian rates are comparable with those in other countries, and rates reflect the useful life of assets. The government should also review the feasibility of eliminating the available-for-use and half-year rules, and should study the feasibility of reducing the capital cost allowance rate for oil sands projects to 25%.
Following this review, the government should, no later than 31 October 2007, indicate whether accelerated capital cost allowance rates would, in general, enhance productivity. If the review concludes that accelerated rates would enhance productivity, changes to capital cost allowance rates should be made.
As well, the government should, no later than 31 October 2007, permit environmentally friendly assets, and rail equipment that reduces noise pollution and vibration as well as related nuisances, to be reduced at a rate faster than their useful life. The accelerated rate should be available on a time-limited basis in order to encourage early adoption.
Thereafter, capital cost allowance rates should be reviewed at least once every two years.
RECOMMENDATION 25
The federal government amend the Excise Tax Act in order to ensure a full rebate on the Goods and Services Tax paid by universities, colleges, school boards and hospitals and on behalf of scholarly research materials.
RECOMMENDATION 26
The federal government not amend the Excise Tax Act in order to reduce the Goods and Services Tax rate to 5%.
RECOMMENDATION 27
The federal government amend relevant legislation/regulations in order to ensure that the interest rate applied is the same in situations where taxes are owed by taxfilers and rebates are owed by the Canada Revenue Agency.
RECOMMENDATION 28
The federal government increase its support to research through all federal granting councils and research agencies and ensure that the indirect costs of research are funded at a minimum rate of 40% for every dollar of federally sponsored research. As well, the government should increase the base budget of the Canadian Institutes of Health Research by $350 million over three years.
The government should ensure that the federal granting councils and research agencies consider the concerns of smaller universities and colleges when disbursing funds, with a view to ensuring that they do not face discrimination.
Moreover, institutions in all regions of Canada should have meaningful access to funds, and the role that could be played by colleges — particularly with respect to applied research — should be recognized through the allocation of an appropriate share of research funds to them. The feasibility of Canada Research Chairs for colleges in Canada’s northern territories should also be considered.
RECOMMENDATION 29
The federal government allocate $235 million over seven years to fund the Long Range Plan for Canadian Astronomy and Astrophysics.
RECOMMENDATION 30
The federal government, following consultations with relevant stakeholders, make changes to the Scientific Research and Experimental Development investment tax credit with a view to ensuring high levels of private sector research and development. Changes should be implemented no later than 30 June 2007.
RECOMMENDATION 31
The federal government amend the Income Tax Act to increase to $1,500 the labour-sponsored funds tax credit limit.
RECOMMENDATION 32
The federal government, in consultation with the co-operative sector, create a co-operative investment plan and develop a modified version of the Co-operative Development Initiative that extends beyond 2008. In the interim, the Initiative’s advisory services component should receive increased funding.
RECOMMENDATION 33
The federal government create a tax incentive to encourage investment in microcredit initiatives.
RECOMMENDATION 34
The federal government expedite the review of the tax treaty between Canada and the United States. This review should specifically address Canadian recognition of United States limited liability corporations.
RECOMMENDATION 35
The federal government eliminate the use of tax havens in an effort to ensure that all corporations, businesses and individuals pay their fair share of taxes.
RECOMMENDATION 36
The federal government undertake a comprehensive cost-benefit analysis of existing and new federal regulations, as well as their cumulative effect, to ensure that their benefits clearly outweigh their compliance costs for business. This review should be completed no later than 31 December 2007.
The government should also take a leadership role and meet with the provincial/territorial governments, on a priority basis, with a view to eliminating unnecessary barriers to inter-provincial/territorial trade.
RECOMMENDATION 37
The federal government conclude an agreement with the provincial/territorial governments on a single securities regulator no later than 31 March 2007. The regulator should begin operations no later than 30 June 2007.
RECOMMENDATION 38
The federal government vigorously defend Canadian interests in the negotiation and administration of international trade agreements, including through support for the Canadian International Trade Tribunal.
Moreover, the government should ensure that industries that suffer as a result of unfair trade actions by other countries receive the assistance needed in order to combat the negative effects of those actions.
RECOMMENDATION 39
The federal government adopt a foreign aid target of 0.7% of Canada’s Gross Domestic Product by 2015. A plan for reaching this target should be developed no later than 31 December 2007.
The government should also consider the range of means by which the Canadian private sector could play an expanded role in helping to meet Canada’s goal of assisting less developed nations.
RECOMMENDATION 40
The federal government ensure that annual rates of increase in federal program spending not exceed the rate of growth in the nominal Gross Domestic Product, except in extraordinary circumstances.
The government should also institute a permanent mechanism by which federal taxation and program expenditures are reviewed annually. This mechanism should require consultations with Canadians about their priorities in the context of such considerations as public interest, the appropriate role of the federal government, federalism, fiscal balance, partnerships, value for money, efficiency and affordability.
Finally, the government should develop a mechanism by which Canadians are consulted prior to implementing decisions resulting from the review of federal taxation and program expenditures.
RECOMMENDATION 41
The federal government continue to pursue a balanced budget in order to avoid federal budgetary deficits.
As well, the government should continue to include, in its budget planning, an annual allocation of $3 billion for repayment of the accumulated federal deficit.
RECOMMENDATION 42
The federal government continue to allocate a portion of any federal budgetary surplus to a reduction in the accumulated federal deficit.
Moreover, the government should continue to take action to ensure progress with respect to reduction in the federal debt-to-Gross Domestic Product ratio.
RECOMMENDATION 43
The federal government meet with the provincial/territorial governments with a view to assessing their relative fiscal capacity and the extent to which they are able to fulfill their constitutional responsibilities.