Bill Morneau’s experts focus on trade, innovation and getting more Canadians working

Finance Minister Bill Morneau’s council of economic advisers is calling on the federal government to pursue trade with Asia, make it easier for new Canadian companies to expand and aim to increase employment rates among several underrepresented groups, including Indigenous Canadians and women with children.

The council also suggests the Liberal government reconsider its move to keep the age of eligibility for Old Age Security at 65 years old.

The council said the ages of eligibility for OAS and CPP be “should be recalibrated and increased to meet the Canadian reality of an aging society and a considerably longer life expectancy.”

The previous Conservative government announced an intention to move the age of eligibility for OAS to 67 years old, but the Liberal government cancelled those plans after taking office.

The expert panel, chaired by Dominic Barton of the global consulting firm McKinsey, was established to advise the Liberal government on economic policy. Its first set of reports, issued last fall, included a goal of raising median household incomes by $15,000 above current projections by 2030.

This second round of proposals focuses on innovation, trade, skills, workforce participation and developing specific sectors of the economy and covers a wide array of potential policies.

During a Monday teleconference to discuss his council’s recommendations, Barton was asked what the report is telling the federal government as it adjusts to a new administration south of the border.

“To me, it says we’ve got to double down on all of these (areas) because we can’t just rely on a global system that’s going to naturally grow. We’ve got to do things,” said Barton.

He said that includes deepening the relationship with the United States, but also broadening trade with other markets such as China and India, countries in which Barton says Canada has lost market share.

The council’s report encourages the Liberals to pursue trade deals with China, Japan and India in the wake of the Trans-Pacific Partnership’s demise.

In response to a “rapidly changing economy,” Barton’s panel proposes the establishment of a new, arm’s-length organization — dubbed the FutureSkills Lab — that “would solicit, select, and co-finance innovative training pilots that address key skills gaps.”

To boost the workforce participation of Indigenous Canadians, the council stresses access to quality education, financing for Indigenous businesses and digital access for rural communities.

The panel also raises the issue of flexible work schedules to accommodate those whose “life priorities that may conflict with the traditional nine-to-five work commitment.” In New Zealand, it notes, legislation has been introduced to set out a procedure through which employees can request different schedules.

In addition to reconsidering the age of eligibility, the report on workforce issues also suggests allowing for voluntary deferrals of payments from Old Age Security and the Canada Pension Plan.

The Liberals are also advised to streamline immigration processes to allow companies to bring in “top talent” from abroad.

And the federal government, the panel suggests, should use its own procurement of goods and services to boost emerging Canadian companies and pursue wider goals of economic growth and workforce participation.

Article source: http://www.cbc.ca/news/politics/morneau-economic-council-dominic-barton-1.3968599?cmp=rss