C.D. Howe Institute

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.

Canada’s Vulnerability to Potential Eurozone Turmoil

Toronto – The continuing possibility that things could take a turn for the worse in the eurozone ought to be a concern for Canadian policymakers, according to a report released today by the C.D. Howe Institute. In “The Ill Wind that Blows from Europe: Implications for Canada’s Economy,” author Pierre Siklos explores the linkages between the Canadian and eurozone economies and the extent to which contagion from European financial shocks would negatively affect Canada’s economy.

Needless Duplication of Registration Requirements Hinders Business Expansion across Canada

TORONTO, - Canadian businesses face costly red tape when they want to do business across provincial borders; a problem that is hindering business expansion and economic growth, according to a report released today by the C.D. Howe Institute. In "Registering in Harmony: The Case for Pan-Canadian Corporate Registration," authors Daniel Schwanen and Omar Chatur note that while harmonization of corporate registries is proceeding apace around the world, in Canada, incorporated companies are required in most cases to register separately in every province where they want to conduct business.

The False Security of Complex Financial Regulation - and What to Do About It

In the wake of a series of crises, international and domestic financial regulation has become highly complex and prescriptive, but doesn't address the fundamental issues behind the crises, according to a report released today by the C.D. Howe Institute. In "Shareholder Liability: A New (Old) Way of Thinking about Financial Regulation," author Finn Poschmann finds the regulations ignore history and human behavior. He recommends greater reliance on an incentives-based approach for financial institutions, which shares the risks among bond buyers, shareholders and depositors, as a better backstop to financial stability.

Missed Inflation Targets and the Case for Price-Level Targeting

While the Bank of Canada has quietly shelved consideration of moving to price-level targeting as a basis for monetary policy, the merits of this approach remain strong, according to a report released today by the C.D. Howe Institute. In "Price-Level Targeting: A Post-Mortem?" author Steve Ambler finds price-level targeting has convincing advantages over inflation-targeting, especially as a tool for avoiding the worst consequences of economic downturns.

Controlling Ottawa's Employment Costs Key to Achieving Durable Surplus: Shadow Budget 2014

In "Equipping Canadians for Success: A Shadow Budget for 2014," authors William B.P. Robson and Alexandre Laurin urge a near-term focus on the average compensation cost of federal employees as part of spending control measures to achieve a durable surplus.