2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Emerging Technology
• SME – Business Process Change
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com
3. AGENDA
• Government F/S – Federal Government of Canada and Government Transfers
• Equalisation payments to Provinces
• Canada and wealth distribution
• Middle Class / Canada
• Income inequality
• Loss Opportunities / LNG
• East-West Pipeline
• Exports / Value
4. GOVERNMENT OF CANADA F/S
Source – Government of Canada - https://www.fin.gc.ca/afr-rfa/2017/afr-rfa-2016-2017-eng.pdf
5. EQUALIZATION / PAYMENTS
Source - https://www.fin.gc.ca/fedprov/mtp-eng.asp or http://www.rbc.com/economics/economic-reports/pdf/provincial-forecasts/provtbl.pdf
6. CANADA MIDDLE CLASS In 2014 is when Canada had the best middle class in the world -
https://beta.theglobeandmail.com/report-on-business/top-business-
stories/canadas-middle-class-now-worlds-richest-study-
suggests/article18090490/?ref=http://www.theglobeandmail.com&
People complain about corporations and yet they contribute to wealth
distribution –
Harper did not just focus on tax cuts including corporate tax, but also
set up innovation funds and sign trade deals to expand exports.
https://www.slideshare.net/paulyoungcga/wealth-distribution-canada-
corporate-tax-july-2017. Trudeau was elected and said he will focus on
clean technology, right? https://www.liberal.ca/wp-
content/uploads/2015/08/A-new-plan-for-Canadas-environment-and-
economy.pdf The problem is clean technology companies are not
making money, right? http://www.bnn.ca/awash-in-red-ink-canadian-
clean-tech-struggling-despite-ottawa-s-green-goals-1.729679
Harper created many innovation funds, sign trade agreements,
expanded ports like Montreal, Prince Rupert, etc. Harper was all about
getting goods to market. More could have been done, but pipelines as
well as lack of priorities by governments including Ontario on natural
resource development set Harper back -
https://www.slideshare.net/paulyoungcga/merchandise-trade-canada-
july-2017
7. INCOME INEQUALITY
• Allot has been said about wealth creation, especially as all level governments, especially federal seem to want
to go after the top 1%. The top 1% pay their fair share of taxes. The problem is more about tax avoidance
schemes set up using tax havens which allow more wealth to grow as the income from the wealth is either
not tax at all or is subjected to low tax rates.
• Secondly, Hollywood goes on a tangent about environment, income inequality and poverty, but very few
actors, actresses, producers and directors give some of their wealth to charities that would support anti-
poverty programs.
•
• I am all about solutions, but imposing regressive taxes like carbon tax will do nothing but make low and
middle-class people poorer. The rich feel little pain when it comes to regressive taxes!
• Source - https://www.slideshare.net/paulyoungcga/2017-global-wealth
8. POVERTY AND LOW INCOME
• Justin Trudeau keeps speaking in the house that his government has reduced poverty rates in Canada. The
reality there is no data that supports Trudeau claim in terms poverty reduction. The whole statement comes
from the Liberal 2015 election campaign - https://www.liberal.ca/realchange/fighting-poverty/.
• The reality is that since 2015 the low income has seen tax credits removed as part of the government
eliminating tax credits. Fraser Institute has said 61% of the bottom 20% are paying more taxes since Trudeau
took office - https://www.fraserinstitute.org/sites/default/files/effect-of-federal-income-tax-changes-on-
families-in-the-bottom-20-percent-of-earners.pdf
Source - https://www.slideshare.net/paulyoungcga/low-income-and-poverty-canada-november-2017
9. BC / JOHN HORGAN - DAYCARE
Source - https://www.theglobeandmail.com/news/british-columbia/bc-ndp-looks-to-federal-government-to-
help-fund-childcare-plan/article37012357/
Loss Opportunities
• LNG - $36B -
http://business.financialpost.com/commodities/energ
y/a-tragedy-for-canada-petronas-cancels-36b-lng-
project-as-b-c-jacks-up-demands
• Kinder Morgan delayed - $73B -
https://thetyee.ca/News/2017/05/31/Kinder-
Morgan-Forget-Economic-Windfall/
B.C. Premier John Horgan says the NDP
government's $10-a-day childcare plan, a
central plank from the party's spring
election campaign that could eventually
cost as much as $1.5-billion a year,
hinges on funding from the federal
government.
"If we're going to deliver on our
commitments to childcare – affordable,
accessible childcare – we're going to need
a willing partner at the federal level, and
we spent a good deal of our time talking
about that," Mr. Horgan told reporters
Thursday after a 30-minute meeting with
Prime Minster Justin Trudeau.
10. EAST-WEST PIPE-LINE
• http://www.cbc.ca/news/politics/energy-east-politics-wrap-1.4338582
• “Saskatchewan Premier Brad Wall blamed the project's failure on the National Energy Board's August decision to ask for
the impact of upstream and downstream emissions from potential increased consumption of oil.
• "Today is not a good day for Canada. It is not a good day for the federation. It is a very bad day for the West," he wrote on
Facebook.
• "Something needs to change. For the West to continue on like this in our federal system is the equivalent of having
Stockholm syndrome."
• Oil Pipeline companies review the transmission systems on annual basis as part of looking at how they get oil and natural
gas to market. Trans Canada seen to much risk with East-West Pipeline due to tougher NEB process including assessment
of GHG as part of the complete flow between the oil sands to the refineries and/or oil terminals. Yes, oil is low is part of
the reason. Decisions on pipelines are not made on one year basis, but longer term.
•
• Source - https://www.slideshare.net/paulyoungcga/why-is-it-difficult-to-approve-oil-and-gas-pipelines-in-canada-october-
2017
11. TRADE / EXPORTS
• Linda Hasenfratz, chief executive officer of auto parts maker Linamar Corp., said in an earnings call last week she sees four key
areas of dispute -- auto rules, the sunset clause, the dispute panels and government procurement. “There’s an opportunity to
come to resolution on each of these issues if all parties want that to happen,” Hasenfratz, who sits on Canada’s NAFTA advisory
council, said on a Nov. 7 earnings call
• Automotive supply chain is very integrated as such making changes to content rules related origin would be very difficult.
Mexico has large automotive deficit with the USA.
• USA wants the dispute panel removed while Canada wants to keep it. The ironic thing is that Canada is most sued country in
NAFTA - http://www.huffingtonpost.ca/2015/01/14/canada-sued-investor-state-dispute-ccpa_n_6471460.html/ USA has never
lost a trade case with Canada under NAFTA
• Government procurement has always been a big issue as various governments want to support their local businesses.
• Income inequality has worsened in Mexico. NAFTA was supposed to lift people out of poverty in Mexico and has not achieved
that goal
• Canada has large trade deficit with Mexico. Canada needs to push Mexico for more access to the Mexican market
• Each $1B of exports creates 5,500 jobs. It is estimated exports are 25% below were should be in terms of value. If Canada is
losing out to $125B in new export opportunities.
Bottom line
• I think it is likely time to rip up NAFTA and go with unilateral deals between each of the countries.
• Source - https://www.slideshare.net/paulyoungcga/trade-agreements-all-you-need-to-know-november-2017
13. SUMMARY
• All provinces are struggling to deliver programs
• The new CST and HST agreements is tied to GDP growth. Too many provinces are either killing projects
or delaying projects.
• Federal government is forcing carbon pricing which was a disaster for Australia -
http://www.cbc.ca/news/world/australia-s-carbon-tax-repealed-after-2-years-1.2709642
• You cannot tax people to prosperity
• Canada suffers like other countries with tax shelters including offshoring of moneys.