C.D. Howe Institute

Time to Reform Telecommunication and Broadcast Policy for the Digital Age

The legislative, regulatory and institutional framework governing the Canadian telecommunications and broadcast sectors is outdated to the point of dysfunction, and requires a fundamental overhaul. This is the consensus view of the C.D. Howe Institute’s Competition Policy Council, which held its eighth meeting on October 23, 2014.

How to Kick-Start Target Benefit Pension Plans for Federally Regulated Employees

Despite having been available for decades, target benefit pension plans (TBPs) will continue to be resisted by federally regulated employers unless a legal flaw is fixed, according to a report from the C.D. Howe Institute. In “Target Benefit Plans: Improving Access for Federally Regulated Employees,” author Randy Bauslaugh finds that TBPs are rarely adopted by federally regulated private-sector employers because federal pension law casts doubt over the ability of employers to limit their financial exposure, a key attribute of TBPs for employers.

Government Budget Overruns Cast Doubt on Reports of Sustainable Healthcare Spending

Canadians should hold off on declaring a slowdown in government healthcare spending to sustainable growth rates, says a C.D. Howe Institute report released today. In “Bending Canada’s Healthcare Cost Curve: Watch Not What Governments Say, But What They Do,” author William B.P. Robson finds that reports of slower growth in healthcare spending have been repeatedly wrong-footed by chronic budget overshoots. So recent estimates that healthcare spending is no longer growing faster than the economy may also prove optimistic.

Why the CRTC Should Pass on Pick & Pay TV

A proposal by the Canadian Radio-Television and Telecommunications Commission (CRTC) to mandate “pick-and-pay” television offerings for Canadians is deeply misguided, according to a report from the C.D. Howe Institute. In “Let the Market Decide: The Case Against Mandatory Pick-and-Pay,” authors Lawson Hunter, Edward Iacobucci and Michael Trebilcock find that mandating consumers to be able to subscribe to pay and specialty services on a service-by-service basis would be a slippery slope to still more regulation, and would become irrelevant at best in the ongoing telecom revolution.

Why Governments Are Wrong to Overlook Enhancing RRSPs

Government policymakers should not overlook enhancing RRSPs as a way to boost retirement savings by Canadians, according to a report from the C.D. Howe Institute. In “The Overlooked Option for Boosting Retirement Savings: Higher Limits for RRSPs,” author Alexandre Laurin finds that those who most need private saving to meet their retirement income goals use RRSPs more extensively than widely believed.

Uncorking Competition for Beer and Wine in Ontario

The lack of competition in Ontario’s system for alcoholic beverage retailing causes higher prices for consumers and foregone government revenue, according to a report from the C.D. Howe Institute. In “Uncorking a Strange Brew: The Need for More Competition in Ontario’s Alcoholic Beverage Retailing System,” authors Paul R. Masson and Anindya Sen call for a more competitive system in alcoholic beverage retailing in Ontario, which would result in increased government revenue, lower prices, and more convenience for consumers.

Slaying Deficits: Timing is Key for Ontario and Ottawa

Ontario should not delay fiscal consolidation, while Ottawa should take a more gradual approach than planned, according to a report from the C.D. Howe Institute. In “User Discretion Advised: Fiscal Consolidation and the Recovery,” author William Scarth calls on the Ontario provincial government to address its long-term sustainability challenges before it embarks on any major new expenditures, while stating that the federal government should delay its final stage of deficit reduction.

Quantity versus Quality: Solutions to Canada’s Falling PISA Scores

Canadian educators can draw key lessons on how to improve student performance from the most recent Program for International Student Assessment (PISA) report, according to a new C.D. Howe Institute publication. In “What Policies Work? Addressing the Concerns Raised by Canada’s PISA Results,” author John Richards addresses six widely discussed education policies that may reverse Canada’s falling PISA scores. Relying on the exhaustive background research undertaken by PISA, he concludes that four of the policies may work; two probably won’t.

Falling PISA Grades Should Worry Provincial Educators: C.D. Howe Institute

Toronto, - Canadian provinces should be concerned about slipping high-school students' scores - in reading, science and mathematics - as assessed by the Program for International Student Assessment (PISA), according a new report from the C.D. Howe Institute.

Doing Less with More: Why Quebec Lags in Access to Doctors

Toronto, - Despite having more family physicians per capita than many other jurisdictions, Quebec lags Ontario and Western Europe when it comes to access to primary care, according to a report from the C.D. Howe Institute. In "The Case of the Vanishing Quebec Physicians: How to Improve Access to Care," author Claude E. Forget, former Quebec Minister of Health and Social Services, calls for primary care reforms that focus on providing more care in communities and clinics, rather than in hospitals.

Cross Border Price Regulation: Anti-Competition Policy?

A recent proposal in the 2014 federal budget to legislate against cross-border price discrimination is profoundly wrong-headed in approach and should not proceed. This is the consensus view of the C.D. Howe Institute’s Competition Policy Council, which held its seventh meeting on April 25th, 2014.

Why Canadians Pay More than Americans for the Same Goods

TORONTO - Consumers should blame government policy, not retail price gouging for large Canada-US price gaps, according to a new C.D. Howe Institute report. In "Sticker Shock: The Causes of the Canada-US Price Differential," author Nicholas Li finds that rising wholesale price gaps over the 2004-2007 period reflect ill-advised Canadian government regulations, such as high tariffs as well as supply management.

Time to Rethink Canada's Foreign Worker Program: C.D. Howe Institute

Toronto, Ont - Changes to the Temporary Foreign Workers (TFW) program between 2002 and 2012, which made it easier to hire foreign workers, accelerated the rise in unemployment in Alberta and British Columbia, according to a new C.D. Howe Institute report. In "Temporary Foreign Workers in Canada: Are They Really Filling Labour Shortages?", author Dominique M. Gross finds that easier access to foreign labour can generate undesirable incentives on the part of employers and prospective workers. She recommends changes to the TFW program.

Optimizing Economic Diplomacy on a Tight Budget

TORONTO, - "Government-to-government" relations, underpinned by high-level Canadian representation in foreign nations, such as an embassy, significantly boost the level of Canadian exports to those countries, according to a new C. D. Howe Institute report. In the study, entitled "The Impact of Diplomatic Representation Abroad on Canada's Exports," author Dan Ciuriak provides new insights into where, why and how economic diplomacy works best, and shows that an embassy or equivalent has in the past added more to trade than have additional consulates or trade offices in the same destination.

C.D. Howe Institute’s Bill Robson Issues Statement on the Death of Jim Flaherty

Toronto, – We are shocked and saddened today to learn of Jim Flaherty’s death. His steadfast commitment to public service and improving the lives of Canadians had earned him respect across Canada and around the world.

Ottawa's Swelling Hidden Pension Deficit Adds $120 Billion to Federal Debt

TORONTO, - Ottawa's unfunded liabilities for employee pension plans rose to $272 billion in 2013, far larger than reported, according to a new C.D. Howe Institute study. In "Ottawa's Hidden Deficit: The Widening Gap between Federal Government Pension Liabilities and Assets," authors William B.P. Robson and Alex Laurin find the value of federal employee pension promises is much larger than shown on the books, and still growing.

Unequal Pay for Equal Work: Fixing Ottawa's Pay Problem: C.D. Howe Institute

TORONTO, - Federal public servants have pension guarantees in their defined-benefit pension plans that are mispriced, causing Ottawa to seriously underestimate the cost of the pension plans and the total compensation of its employees, according to a report released today by the C.D. Howe Institute. In "Evaluating Public-Sector Pensions: Are Federal Public Servants Overpaid?" respected pension expert Malcolm Hamilton says this advantageous situation for members of the main Public Service Pension Plan exacerbates the growing compensation gap between federal public-sector employees and their private-sector counterparts.

Blown Budgets: Canada's 2013 Fiscal Accountability Rankings

TORONTO, - Canada's senior governments have regularly missed budget spending and revenue targets during the last decade, with spending overruns of $47 billion combined, according to a report released today by the C.D. Howe Institute. In "Credibility on the (Bottom) Line: The Fiscal Accountability of Canada's Senior Governments, 2013," authors Colin Busby and William B.P. Robson rank the performance of Canada's federal, provincial and territorial governments for hitting budget targets and providing transparent financial reports. Each spring, legislatures vote budgets that set out their spending and revenue goals for the fiscal year, note the authors. Budget votes are critical for holding governments accountable to legislators, and in turn to voters and taxpayers. Over the last decade, however, Canada's senior governments have significantly overshot their spending targets. "More accuracy in hitting budgeted amounts would have made today's taxes and public debt lower," Robson points out.

The Real Problem with Public-Sector Pension Plans

TORONTO, - While public debate has mainly focused on the "gold-plated" defined benefits of many public-service pension plans, the real problem lies in a flawed approach to managing compensation costs, according to respected pension expert Malcolm Hamilton. In, "Evaluating Public-Sector Pensions: How Much Do They Really Cost?" Hamilton says the problem is government sponsors who typically underestimate the cost of guaranteeing pay-outs in the future, leading to the undervaluation of employee pension costs and the mismanagement of employee compensation.

Ontario Should Consider the Merits of the "Middle-Way" to Pension Reform

TORONTO, - As Ontario pushes ahead with pension reform to improve retirement security for its citizens, it should consider a "middle-way" solution between current competing visions for reform, according to a report released today by the C.D. Howe institute. In "Helping Ontarians Save for Retirement: How the Province Could Adapt the Canada Supplementary Pension Plan," author Keith Ambachtsheer recommends an approach that avoids the potential pitfalls of two existing options: an expanded Canada Pension Plan (CPP) on one hand, or reliance on Pooled Registered Pensions Plans (PRPPs), on the other.