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Summer School for Federal Cabinet

Author: Walter Robinson 2000/06/22
Even though the House of Commons is in summer recess, government does not stand still, and neither does the CTF. A scan of some recent headlines yields useful instructions for various members of the federal Cabinet - summer school if you will.

New Book Questions Decades-Old Approach to Subsidies reads one of several favourable headlines for Retreat From Growth: Atlantic Canada and the Negative Sum Economy, a new book by Fred McMahon, a former Senior Policy Analyst for the Atlantic Institute of Market Studies (AIMS).

This book is required and immediate summer reading for George Baker, the Minister Responsible for the Atlantic Canada Opportunities Agency. McMahon points out that the existence of EI top ups and regional subsidies has not promoted economic growth, but actually inhibited it. And he's not alone. The foreword to this book is by none other than Canadian Nobel Laureate Robert Mundell.

After Baker is finished with it, he may wish to send the book to, or better still, buy copies for all of his Cabinet colleagues. Maybe then some of them might think twice about trying to buy votes and perpetuating political patronage through these offensive, and as we now learn, destructive, regional subsidy programs.

Canada No. 30 in health care is a headline that is sure to have caught Health Minister Alan Rock's attention. While Health Canada officials were quick to dismiss the study, the World Health Organization (WHO) study of 191 countries is solid and was overseen by internationally respected evidence based health researcher, Dr. Christopher Murray.

France, which employs a blend of public and private medicine, is ranked first. Canada, based on a variety of measures, ranks 30th. Worse still, according to the WHO, Canada lags behind countries such as Oman, Colombia, Cypress and Morocco in meeting the expectations of its citizens given our immense wealth and technology available to build a world-class health system.

Minister Rock should read this study, then pass it on to all of this country's health care luddites who believe that we should continue with our antiquated system which is emulated in only three other countries: Cuba, North Korea and Albania.

Finally, another recent headline stated Surplus expected to top $8 billion in current year. This should be a no-brainer for Finance Minister Paul Martin. His summer homework is straightforward: it's time to rejig and accelerate his personal and corporate tax cuts schedule and pay down more debt. A status report on this assignment is expected by this fall's Economic and Fiscal Update.

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Franco Terrazzano
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