Flaherty Encouraging Businesses to Spend
It was just last week when Bank of Canada Governor Mark Carney essentially told Corporate Canada to get off its wallet and start reinvesting billions of dollars in cash that's piling up.
Now Finance Minister Jim Flaherty is echoing the call while speaking in Toronto. Flaherty said yesterday that "at a certain point, it's not up to the government to stimulate the economy, it's up to the private sector, and they have lots of capital."
Flaherty points out the government has "done a lot through the tax system to encourage Canadian executives, business people, to start utilizing some of the capital." There have also been budgetary measures such as accelerating capital cost allowance and a credit for mining exploration.
He basically dismissed fears of an unstable global economy as a reason to hold on to the money. His comments come after a Canadian Labour Congress study that suggests Canadian businesses are sitting on some 525 billion dollars in dead cash.
(some files by D. Agar)