Business Finance News

Business Financial News - Nov. 25th, 2008

Pension Investment Association of Canada (PIAC) Calls on Finance Ministers to Ensure the Stability of Canada's Retirement System

TORONTO, Nov. 25 /CNW/ - The Pension Investment Association of Canada
(PIAC) has written to all of the Finance Ministers across the country asking
them to take action to ensure the stability of Canada's retirement system.
Over the past several years, PIAC has made numerous submissions to
various governments urging changes that will enhance the capacity of pension
plans across the country to respond to changing financial and demographic
trends. The recent market events and world-wide credit crunch have the
potential to put severe strain on Canada's pension system and urgent action is
required to ensure that pension plans, and in the case of private sector
plans, the employer sponsors behind them, are able to weather the current
financial crisis.

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B.C.'s budget takes a hit
$3-billion revenue drop won't affect key programs, Hansen says
Jonathan Fowlie, Vancouver Sun
Published: Tuesday, November 25, 2008

VICTORIA -- The rippling effects of the global financial crisis are expected to drain at least $3 billion from the provincial government's revenues over next three years, Finance Minister Colin Hansen said Monday.

The significant drop means Premier Gordon Campbell's Liberal government will have to cut spending, or live within a much narrower margin in the coming years, or break its promise to maintain a balanced budget.

Hansen acknowledged the dramatic changes in world economies in recent months, and the volatility that has been imposed on British Columbia as a result.

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Infrastructure building 'key' to Ottawa's recession fight
John Greenwood, Canwest News Service
Published: Monday, November 24, 2008

TORONTO - Ottawa wants to build billions of dollars of bridges, hospitals and other infrastructure as a way to lessen the blow from the financial crisis, Finance Minister Jim Flaherty said Monday.

Speaking at a conference in Toronto, Flaherty said investments in infrastructure will be "a key part" of the government's strategy to stimulate the economy.

But some observers say there's a problem with the plan. The government wants to deliver the projects through so-called public private partnerships (P3), where projects are built and financed by the private sector, but according the government's requirements. But while the P3 model has gained acceptance in much of the world, there is rising concern that the credit crunch has made it almost impossible to finance new P3s.