CPA Canada issues statements on aspects of the Throne Speech in Parliament
TORONTO, November 23, 2021 – In response to today’s Speech from the Throne to open Parliament, Chartered Professional Accountants of Canada (CPA Canada) has issued the following two statements addressing the issues of a sustainable future and strong fiscal discipline.
Sustainable Future
We are encouraged by the government reiterating its commitment to address climate change while growing the economy across Canada. The transition to a net-zero emission economy by 2050 is a massive undertaking that will affect us all.
CPA Canada conducted a series of roundtables over the past year with different industry sectors and stakeholders to gain input on the transition to net zero and one of the common messages from all participants was the need for government and the private sector to act in a coordinated way. This requires a plan that ensures a common understanding of what “net zero” means in the Canadian context and also maps the transition on a sector-by-sector basis, as recommended by the Expert Panel on Sustainable Finance.
Many of the recommendations of the Expert Panel on Sustainable Finance are yet to be implemented. With the government recently launching the Sustainable Finance Action Council, we look forward to speedy progress on these important recommendations to build a low-carbon economy.
Strong Fiscal Discipline
The pandemic-induced shutdown of the economy necessitated unprecedented levels of government spending and charting the course of the recovery may require further public investments. However, this has dramatically altered Canada’s fiscal position and left the country vulnerable to future economic shocks. Greater prioritization and fiscal discipline will be required going forward. CPA Canada recommends that the government replace a debt-to-GDP target with a “fiscal anchor framework” – a series of metrics to ensure the sustainability of the government finances and to provide confidence to the public, businesses and investors that both the deficit and debt will be addressed.
Additional Item – Letter to the Prime Minister
In advance of the Throne Speech, CPA Canada wrote to Prime Minister Justin Trudeau to share its recommendations in public policy areas that are critical to Canadians and for rebuilding Canada’s economy.