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Publications

Tolls as a solution for financing the road network

People often forget the fact that Quebec was once the province which made the greatest use of tolls. Toll booths, which were abandoned in the 1980s, were installed on portions of highways 10, 13, 15 and 40, as well as on the Jacques-Cartier and Champlain bridges. As the road network faces deterioration and insufficient funding, the return of tolls is an interesting solution for several reasons.

Comparison and competition to improve municipal services

Last June, the Quebec Minister of Municipal Affairs submitted Bill 22 giving the City of Montreal greater taxation powers. If the bill is adopted, Quebec’s biggest city will be able, for instance, to impose a tax on show tickets and restaurant meals. The minister says these new income sources were given to Montreal because “our metropolis must have the means to deal with the challenges it faces.” Several municipalities, including Montreal, have been demanding broader sources of income to avoid tight budgets or red ink. But other solutions to the problem may be found in better control over spending.

Supply management of farm products: A costly system for consumers

Despite a worldwide trend toward market liberalization and competition, most politicians and people involved in Quebec agriculture maintain a vigorous defence of supply management of certain farm products. Supply management is the mechanism by which milk, poultry and egg producers in Canada (most of them located in Quebec and Ontario) adjust production to protect their incomes. To this end, domestic demand is evaluated arbitrarily, and efforts are made to match this with production of the goods covered by the scheme.

The role of the private sector in the Quebec health care system: a glimpse at existing fees

Potential roles for private financing in the health care sector are a recurring topic of debate – and often of controversy – in Quebec and elsewhere in Canada. A committee headed by Claude Castonguay, established in the latest budget, is also examining this issue and is to deliver its report in the fall. In the wake of these discussions, this Note aims to look into private payments that already exist in Quebec and put them into categories for a better understanding of their nature.

How to explain the success of the Swedish model?

In public discussions on the role and size of government in the economy, certain intellectuals and politicians can often be heard praising the Swedish model of economic and social organization. Sweden is a country that has managed to maintain strong economic growth despite high levels of taxation and public spending that ranks among the world’s highest. Since the mid-1990s, Sweden’s economic growth has exceeded that of most other OECD countries, including Canada. According to official statistics, the employment rate is higher and inflation remains low. Public finances are in good shape, with net public debt among the world’s lowest.

The retirement age in Quebec: A worrying situation

The aging of the population and the impending mass retirement of the baby boom generation (those born between 1947 and 1966) have been generating plenty of ink lately. These are disturbing phenomena because of the economic and financial problems they risk creating, notably labour shortages and lower economic growth. Another result would be lower growth in government revenues just as requirements and spending levels are pushed higher, especially in the health care sector. The situation is particularly worrying in Quebec, for at least two reasons.

Quebec’s disappointing economic performance in the last 25 years

Quebec’s socio-economic problems, in areas such as health care, education, infrastructure, support for cultural industries and sustainable development, are interrelated phenomena that stem largely from Quebec’s relative underperformance in demographic growth, economic development and job creation. This situation goes back 25 years. It is time to put an end to it. A number of voices have already sounded the alarm. This Economic Note, which takes account of the latest available data and presents the main indicators of a society’s economic health, shows that Quebec’s economic situation is not improving and that, despite these appeals, it is actually continuing to deteriorate in relation to its competitors.

The perverse effects of tax measures

With Quebec’s new provincial budget coming soon, it is worth questioning the nature and effectiveness of tax measures applied by the government. As usual, the budget is sure to contain a series of new tax measures aimed at meeting various political goals. Our elected representatives may need reminding that intentions and results do not always coincide: caution is called for when government actions rely on tinkering with taxation.

International Leadership by a Canada Strong and Free

In this fifth volume of the Canada Strong and Free series, the authors are calling for Canada to reclaim its role in the international arena – for Canada to lead and inspire the world. The world is wide of course, and Canada’s role in it is multi-faceted. Nevertheless they believe that by concentrating on three priorities in foreign policy Canada can significantly advance its national interests and international influence. These key tasks must be: to champion and practise freer trade; to advance our relationship and deepen our influence with the United States; and to give effective help to people living in nations less fortunate than our own.

Higher electricity prices can unleash the value of Quebec’s energy potential

The Quebec Energy Board recently authorized an average increase of 1.92% in electricity rates, effective April 1, 2007. Hydro-Québec had sought a 2.8% rise. Various consumer groups, business people and politicians said they were reasonably satisfied with the board’s ruling. But the fact remains that this measure contributes to Quebec’s relative impoverishment. The so-called “social pact” under which Quebec’s electricity demand must be met at the lowest possible price needs to be called into question. For the well-being of all citizens, rates have to be raised to match the true value of electricity.

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