The Prime Minister of Canada Justin Trudeau and the Minister of Finance Bill Morno in Ottawa, Ontario, Canada, March 19, 2019. REUTERS / Chris WattieChris Wattie / Reuters
Former Treasury Secretary Bill Morno sharply criticized the federal Liberals’ economic policies, along with a series of recommendations for starting growth, in his first public speech since leaving politics two years ago.
Mr Morno, the Liberal government’s finance minister from 2015 to 2020, reiterated the fears of business leaders who called on Prime Minister Justin Trudeau to focus on expanding the Canadian economy instead of introducing tax and spending initiatives.
“When I look at politics in Canada today – from the perspective of a former insider – I have to admit that I am much more concerned about our economic prospects today, in 2022, than seven years ago,” he said.
“So much time and energy has been spent finding ways to redistribute Canada’s wealth that the importance of increasing our collective prosperity has not been addressed,” Mr Morno told the Howe Institute CD on Wednesday night.
Mr Morno highlighted research by the Organization for Economic Co-operation and Development, which predicts Canada’s gross domestic product growth over the next four decades will lag far behind expansion in the US, Australia and comparable European economies.
“There is no real sense of urgency in Ottawa about our lack of competitiveness,” Mr Morno said. “It’s not that this is one of the big problems facing the Canadian economy, it’s our main problem. Nothing else can be solved if we do not put this problem first. “
Ahead of the federal budget for April, senior business leaders, such as Royal Bank of Canada CEO Dave McKay, expressed disappointment with the government’s approach. They said they see trends in short-term decision-making, generous spending and sporadic engagement with corporate Canada.
Although Mr Morno never mentioned his successor, Christia Freeland or the Prime Minister, he devoted much of his 20-minute address to the problem of a partisan political process that prefers style to content. Mr Morno resigned amid the We Charity investigation.
“We need to stop thinking about politics in terms of short-term profits and refocus our efforts on long-term solutions. I know that all political incentives contradict this, “said Mr Morno, who ran the country’s largest welfare company, Lifeworks, formerly known as Morneau Shepell, before entering politics in 2015.
To ensure a long-term focus on business issues at the federal level, Mr Morno said Canada needs “a standing committee on growth, drawing on public and private sector expertise that reports to the federal / provincial authority, with input. from all the parties. ”
The concept is based on the recommendations of Bank of Nova Scotia CEO Brian Porter, who recently called for a new federal commission for Canada’s economic prosperity.
Mr Morno said federal and provincial governments needed to do more to coordinate policies and the provision of services such as health.
“Although many of the levers for our economic opportunities are shared, federal interactions with the provinces and territories are for the most part episodic, with no clearly identified and implemented strategy,” Mr Morno said. He said the recent resignation of Alberta’s Prime Minister Jason Kenny offered the prime minister a chance to restore relations with the resource-rich province.
Without specifically mentioning the Conservative leaders, Mr Morno also opposed populist campaigns, such as repeated attacks by Conservative leader Pierre Poalever on the Bank of Canada, which is within arm’s reach of the federal government.
“Canada is a country with political institutions that in many cases envy the world,” Mr Morno said. “Yet there are politicians – who really know better – who not only take these institutions for granted, but are willing to actively undermine them if it gives them the slightest political advantage.
“When you put the ‘exciting base’ in front of good policy-making… when you cynically succumb to conspiracy theorists… you do incalculable damage to the country you claim to love and to the people you want to lead,” Mr Morno said. .
Mr Morno was finance minister when Canada renegotiated trade agreements with Mexico and the US administration led by President Donald Trump. He said the federal government must recognize that the pandemic has made protectionism a factor in any industrialized economy and a threat to Canadian businesses that rely on exports.
“As much as Canada has benefited from trade liberalization in recent years, it will suffer as countries around the world turn inward and take more protectionist positions,” said Mr Morno, who recently taught at Yale University.
“Separation from China, combined with wider globalization, puts countries like Canada in a challenging position. Natural resources alone will not save us. Nor cryptocurrencies, just to have that in the record. “
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