Flaherty says time for business to do their part, adapt to new economy

OTTAWA – Finance Minister Jim Flaherty says the government has done its part, now it’s time for businesses to meet the challenges of the new global economy.

In a speech released in advance to the media, Flaherty says the country’s prosperity is linked to how well Canadian businesses adjust to an fundamental shift of the economy towards Asia.

That is essentially the same message delivered by Bank of Canada governor Mark Carney on Monday to the same group — a convention organized by the Canadian Council of Chief Executives in Ottawa.

Flaherty says Ottawa has done plenty to ensure the right conditions for businesses to compete, including lowering taxes, encouraging the purchase of new technologies and reducing red tape.

But ultimately, he says, it’s up to the private sector to step up to the plate.

Carney recently drew some criticism from business leaders after he chided them for sitting on large cash reserves — estimated at over $500 billion — that he called dead money.

In an unrelated release on Tuesday, a KPMG study saidCanada now has the second lowest corporate taxes among 14 major countries measured, and the lowest among major developed countries.