Ontario & Alberta Rate as Top Investment Climates
British Columbia Drops to Dead Last
Contact:
Jason Clemens, Policy Analyst
The Fraser Institute, (604) 714-4544 Email: jasonc@fraserinstitute.ca
Release Date: 16 August 1999
Vancouver, BC >>>Canadian investment managers, responsible for over $130 billion in assets under administration, have once again ranked Ontario and Alberta as the top two provinces in terms of investment climates, according to the results of the 1999 Summer Survey of Senior Investment Managers, released today by the Fraser Institute.
Ontario & Alberta: On Top Again
Ninety-one percent of respondents stated that Ontario possessed the necessary economic policies to promote the development of world-class companies. Alberta garnered a score of 87 percent, just 4 percent behind Ontario. Other than Ontario and Alberta, only Quebec and New Brunswick received positive scores in excess of 50 percent, with scores of 52 percent and 57 percent respectively.
Ontario topped the provincial rankings with a score of 7.9 followed closely by Alberta with a score of 7.8. The top rankings are a reversal from the previous 1998 survey, when Alberta received the highest score followed closely by Ontario.
Government finances and taxation were both singled out by survey respondents as areas of government policy that positively contributed to the investment performance of Alberta and Ontario.
The scores represent independent assessments of the investment climates in each of the provinces. A score of 1 is poor and 10 is excellent.
British Columbia Inches Down to Dead Last
British Columbia is the clear under-performer of the ten provinces, dropping from 9th to 10th spot. BC received a score of 3.1, on a scale of 1 to 10 rating the investment climate of the provinces. Newfoundland, which was ranked 10th last year, has now moved ahead of British Columbia.
British Columbia received the largest negative response of any province, with 70 percent of respondents stating that the province lacked the necessary economic policies required to develop world class companies over the next decade.
In terms of specific policy areas, British Columbia received the worst ratings for government finances and taxes. Both policy areas received a score of 1.8, indicating a highly negative effect on the province's investment climate. Labour laws, environmental regulation, and social and economic regulations, although outscoring government finances and taxation, received negative scores of 2.0, 2.3, and 2.3, respectively, also indicating their negative impact.
The next 'worst' province in terms of lacking the necessary economic policies to promote globally competitive companies was Newfoundland which garnered a negative score of 39 percent, almost half the negative score of British Columbia.
Most Important Issue: For Seventh Straight Survey, It's Taxes
Ninety-two percent of respondents indicated taxation, specifically the high level of taxes in Canada, is the most important issue facing the federal government. The percentage of responses indicating taxation as the most important issue represents the largest majority of responses received.
Minister of Finance Rebounds
The approval ratings for the Minister of Finance, Paul Martin rebounded significantly from their previous level. Seventy-seven percent of survey respondents indicated that the Minister of Finance was doing an excellent, very good, or good job. This is a significant improvement from the previous survey in which Martin's ratings plummeted to their all-time low at 57 percent.
It is interesting to note that the Minister's rebound coincides with dramatic statements made by the Minister of Finance regarding the need for tax reduction. The current approval rating of 77 percent is still, however, well below the 100 percent approval ratings received by the Minister of Finance between the Summer and Winter Surveys of 1997.
Continued Improvement for the Bank of Canada
The approval ratings for the Bank of Canada continued their upward trajectory. The Bank of Canada's approval rating increased to 92 percent, a significant increase from the 76 percent garnered in the 1999 Spring Survey.
Quebec Sovereignty: Almost a Dead Issue
For the third straight survey the percentage of respondents indicating the likelihood of Quebec sovereignty in the next five years dropped. The percent of respondents indicating Quebec separation was likely declined to 24 percent from its previous level of 35 percent in the 1999 Spring Survey. Since peaking in the 1997 Summer and 1998 Spring Surveys, the likelihood of Quebec separation has consistently received low scores.
About the Survey
Surveys were mailed to senior investment officers at 131 investment management firms across Canada. Twenty-six responses were received between May 24, 1999 and June 25, 1999.
The respondents manage in excess of $130 billion worth of pension assets. Numbers may not add up to 100 percent due to rounding. Statistical confidence levels were not assigned to the results.
Established in 1974, The Fraser Institute is an independent public policy organization based in Vancouver.
For further information, or for a copy of "Summer 1999 Survey of Senior Investment Managers," contact:
Suzanne Walters, Director of Communications,
The Fraser Institute, (604) 714-4582,
Email suzannew@fraserinstitute.ca
info@fraserinstitute.ca
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