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Public Sector Reform

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.

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.

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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