Notes for Address to a Team Canada Atlantic Business Luncheon
May 8, 2000
Boston
Good afternoon ladies and gentlemen. And thank you Governor Cellucci for that very warm introduction.
I am delighted to be with all of you today in this glorious city. Though I haven't been here for some time, I am no stranger to New England. I have family who came to New Hampshire. My own personal roots here are but a tiny snap shot of the deep ties of family, history and values that have made Canada and the United States so very close.
Ours is a friendship that is as old as our nations. One that has become a partnership for freedom, for peace and for prosperity. One that finds expression in a million different ways. And in the more than one billion dollars in business that we do together, every single day.
I have joined Premier Pat Binns of Prince Edward Island, Brian Tobin of Newfoundland, Bernard Lord from New Brunswick, and John Hamm from Nova Scotia to highlight a key aspect of our comprehensive relationship. One that is older than our nations. And one that we share a common resolve to revitalize in the light of a new century and a new economy.
I speak, of course, of New England and Atlantic Canada.
From the time of the first Yankee traders, New England and Atlantic Canada have nurtured a special relationship. You have common roots and geography. A common attachment to the sea as a source of identity, as well as economic opportunity and strength. New England has served as an American gateway for our Atlantic provinces. While Atlantic Canada has been an open door for New England to Europe and beyond. You know one another. You understand one another. And, no surprise, you are strong partners in business. In 1999, Atlantic Canada and New England traded $3.3 billion (U.S.) in goods - $4.9 billion (Cdn.).
Team Canada Atlantic is about looking at old friends in new ways. The more than 50 Atlantic companies that have joined us are a showcase for the new and exciting ways that Atlantic Canada is catching the wave of the new knowledge-based economy.
And they want to give New England a chance to catch the rising Atlantic wave. To think of Atlantic Canada as a gateway for New England to new prosperity in the global knowledge-based economy. To think of Atlantic Canada when you are looking for cutting-edge ideas and infrastructure. To think of Atlantic Canada as a source of alliances in emerging technologies. To think of Atlantic Canada as a place to invest and do business.
The reason we can boast, today, of a rising Atlantic wave is because of the hard work that we have done -- the Government of Canada, the provinces and all Canadians -- to restore the economic vitality of our nation.
In just 7 years, Canada has gone from the worst recession since the 1930s. To the longest economic expansion since the 1960s. From being called a candidate for the Third World by the Wall Street Journal. To being what the London Financial Times now calls the second miracle economy in North America.
Our books are balanced. We are paying down our public debt. The provinces have done the same.
We are among the G-7 leaders in economic growth and job creation. Our productivity tripled last year. Indeed, we are on a run of economic growth that has never before been recorded in Canada.
At the federal level, the new era of surpluses has given us the freedom to take the steps and make the investments needed to re-energize the business climate in Canada. And to get Canadians ready to prosper in the knowledge-based economy.
We are cutting taxes and changing our corporate tax system. Beginning this year, small businesses in Canada will enjoy lower taxes. Over the next five years, we will alleviate the corporate tax burden to the point where the rate assessed to manufacturing industries will actually be lower than it is in the United States today. And in the service sector equal to the US rate.
Our payroll taxes are significantly lower than in the United States. And we offer the most attractive tax regime in the world for research and development -- the lifeblood of prosperity in the new economy. In Atlantic Canada., for example, one dollar spent on R&D really only costs you between forty-five and sixty cents once you factor in tax incentives.
We have also made bold investments to promote innovation. With a special focus on our colleges and universities as testing and proving grounds for the best new ideas and methods. Something that will have special resonance here in Boston, home to some of the finest universities in the world. Just the latest example is our decision to set up two thousand new research chairs in universities across our country over the next five years. To comprehend the potential impact of this initiative in Canada, consider what the impact would be if the American government created 20,000 new research chairs.
Through our world-leading Connecting Canadians strategy, we have become number two in the world for our use of the Internet. We are the first major country in the world to have connected all our schools and libraries to the Internet. We have the most advanced coast-to-coast fibre optic network in the world. And we have set bold and ambitious targets that will make Canada a trademark for excellence in E-commerce.
These emerging Canadian advantages build on our traditional strengths. We have a highly skilled and productive work force. Our rich energy reserves allow us to offer electricity at significantly lower rates than in the US. In the Canadian legal system, a company spends, on average, two-thirds less money on tort costs than in the United States. Meaning less time in court and more time in the marketplace. And our health care system gives Canadian businesses greater flexibility. Health care expenses as a share of corporate payroll are less than half what they are in the US.
And Canada continues to set the international standard for quality of life. For the last six years in a row, the United Nations has rated Canada as the best place in the world in which to live.
Ladies and gentlemen, Canada is one of the great economic success stories of the last decade. And Atlantic Canada has been leading the way. Building on traditional strengths in agriculture and the fishery. And developing its own new and diverse niches and strengths.
Tourism is booming. Offshore oil and gas is becoming a pillar of the regional economy. Newfoundland and Labrador is home to a host of advanced technology firms that export specialized products and services to over 40 countries. Nova Scotia is becoming a centre for multimedia, tele-medicine and Internet services. The aerospace industry in Prince Edward Island is looking at doubling in size within the next few years. New Brunswick has one of the highest concentrations of information technology firms in Canada. And is developing expertise in plastics that is attracting notice in the United States.
Just look around you. Our business delegation offers a pleasing taste of the creative energy that is flowing from St. John’s to Moncton. Energy that is ready to be harnessed to the advantage of New England.
Call centres are one example.
Aggressive marketing and attractive infrastructure have transformed Atlantic Canada into a prime call-centre destination. Many American firms, including from New England, have already set up call centres in Atlantic Canada. I was delighted to join Premier Hamm at the launching of a new call centre in Sydney, Nova Scotia in March.
The same is true in a range of high-tech sectors. Where companies from Atlantic Canada are creating new partnerships with New England businesses. Such companies are providing educational software, securing programming and training contracts and signing content partners in New England.
A key underpinning in all of these positive Atlantic trends is the extraordinary work that the region has done to make itself a great place to invest. Indeed, a recent study done by KPMG rated St. Johns, Halifax, Charlottetown, and Moncton as having the lowest costs of manufacturing in North America. This applies to such leading-edge new economy sectors as: electronics, medical devices, pharmaceuticals, plastics and software and telecommunications equipment. Making Atlantic Canada a prime choice as a place to locate a new business, relocate an existing one or expand a growing one.
Looking at old friends in a new way. That is what Team Canada Atlantic is all about, ladies and gentlemen. Business Week recently predicted that the 21st century would be the Atlantic Century.
We are here to show you that Atlantic Canada is ready to do its part to make that prediction a reality. To show you that your old friends to the north are catching the wave of the future in a big way.
And to invite you to catch the wave with us!
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