1. BG 12 471.23 Fall 2015

2. Taylor “The federal government of Canada has traditionally sought public input in the policy- making process after it has drafted its policy intentions.” recent improvements especially with business

3. Taylor “If business and government thinking converge rather than diverge, business could better meet society’s needs and less government would be necessary.” Should they converge? Should business meet society’s needs? Would less government be necessary?

4. 1997 Business Priorities 1. national unity 2. reduce business taxes 3. reduce individual taxes 4. get deficit to zero 5. reduce regulations 6. pay down federal debt 7. help business export 8. private sector healthcare 9. deregulate telecommunications 10. spend on transport infrastructure 11. spend on healthcare

5. What corporate welfare?  loans loan guarantees  bailouts debt equity  grants

6. What corporate welfare? 40 federal agencies give money  60% to housing  10% encourages exports  10% farming  15% primarily resource upgrading None of this counts tax breaks

7. What corporate welfare? Best example:  Peter Pocklington  …he was totally opposed to all government support for business. In a regular Alberta newspaper column on March 6, 1999, he censured “government funded movements of the liberal-left.” On March 10, however, he accepted a $12 million loan from Alberta’s Treasury Branches for his meat-packing company, Gainers Inc., and a $55 million loan guarantee.

8. Why corporate welfare? 1. jobs, jobs, jobs 2. market failure 3. instrument of public policy 4. favoured son 5. regional development 6. key sectors 7. promote/retain Canadian ownership 8. save source of future corporate tax revenues 9. promote/retain competition w/i an industry

9. A louder voice? government spending fiscal/taxation policy labour legislation tariffs and trade policy  monetary policy  competition policy  foreign investment policy  development/location incentives  bailouts of financially troubled companies  government investment in or ownership of business  environmental legislation

10. Traditional input Green paper  or red or blue  general discussion White paper  proposed policy

11. Tripartism “Tripartism is an admission that the process of decision making is more important in achieving desired economic or social outcomes today than is rigid adherence to outdated economic formulas or political ideologies.”

12. Tripartism 1.Tier I/Tier II 2.Auto Pact Renewal 3.Free Trade Agreement

13. Tripartism 1.Tier I/Tier II  1976…  generally a failure  some benefits increased contact increased trust  reasons for misunderstanding economic policy vs. listening

14. Tripartism 2.Auto Pact renewal  1980s  success clear ideas strong negotiating position for govt  reason had a clear goal failure had a clear cost

15. Tripartism 2.Auto Pact lessons  concentrate on longer-term issues sector-specific issues  right at the beginning set who should participate what the goals are what the process should be

16. Tripartism 2.Auto Pact lessons  keep expectations low  start with sectors predisposed to work together businesses w/i sector meet together first  have all parties share cost  do it behind closed doors

17. Tripartism 3.Free Trade Agreement  SAGIT Sectoral Advisory Groups on International Trade  ITAC International Trade Advisory Committee

18. Tripartism 3.FTA lessons  tight, external timeline  clear reason to be there for each participant  cost to walking away  process has backing of PM  do it without fanfare

19. Taylor’s general advice to government:  say what you’re after consultation advice deal window-dressing

20. Taylor’s general advice to government:  recruit senior bureaucrats from business  expose bureaucrats to business strategic planning

21. Taylor’s general advice to both:  recognize that some sectors will win & others lose have plan for “losers”  don’t pick recognize & support