Speaking Notes for the Premier
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1 1 Speaking Notes for the Premier Foreign Policy Association New York December 13, 2012 Introduction: New York and Québec A close partnership Merci Monsieur Sabia pour ces mots d introduction, Mr. Lateef and Mr. Miller, Monsieur Jean-François Lisée, our Minister of International relations and International trade Monsieur André Boisclair, our delegate general to New York Ladies and Gentlemen, Dear friends, Québec and the Foreign Policy Association share a longstanding partnership that dates back more than a decade. I am delighted to be here today representing our new government. Today s intervention is in line with those of all former Quebec sovereignist Premiers. As you know, I hope that the people of Quebec will one day be a part of the concert of nations. This is an internal debate. This will happen when Quebecers are ready. This aspiration won t change our geography and the strength of our relationship with our American friends and partners.
2 2 So, I would like to begin by saying that we highly value our relationship with the United States. I therefore thank you for your invitation. That Québec and New York have forged strong ties is natural. Not only are we bound by geographic proximity, but we share a history of exchange based on commerce, culture and tourism. Every year, New York welcomes nearly three quarters of a million visitors from Québec. Numerous Quebecers have made their home here and they are active in every sector of New York s economy. Our financial ties also go back a long way. In 1879, Québec became the first foreign issuer of bonds on Wall Street. With this significant first, which was celebrated in the Evening Post, Wall Street effectively trumped London. And so began a friendship between Québec and Wall Street which they still share after 133 years. This friendship extends well beyond finance. When disaster struck here recently with hurricane Sandy, the impact resounded all around Québec.
3 3 Today, on behalf of all Quebecers, I offer New Yorkers our deepest sympathies. As in the past, our Hydro-Québec teams worked with your local teams to restore electricity in the wake of hurricane Sandy. I can assure you that we are, and always will be, at your side at times like these. New York and Québec also share a rich tradition of cultural exchange. We were pleased to learn that the Joyce Theater has rescheduled the performances to mark the 40 th anniversary of the Ballets Jazz de Montréal that were cancelled as a result of Hurricane Sandy. Last October, The Tempest, directed by Robert Lepage, was presented at the Met. Les Violons du Roy, led by Bernard Labadie, and the Philadelphia Orchestra, under Yannick Nézet-Séguin, also played at Carnegie Hall. That week, New York saw the best of Quebec!
4 4 Balancing Public Finances Since coming into office, our government has instituted measures to foster economic growth and keep ensuring integrity and transparency. Maintaining close, productive relations with our Canadian and U.S. neighbours is also vital to our economic health. Three weeks ago, Québec s Minister of Finance tabled a 72-billion-dollar budget founded on fiscal responsibility. What that means in real terms is that we will meet the deficit target for of 1.5 billion dollars, or 0.4% of GDP. Québec will then be able to move into and beyond with a balanced budget and the means to invest in its future. My experience as Minister of Finance in the early 2000 taught me the importance of a balanced budget. We have framed a multi-faceted approach to achieving this. First and foremost, we imposed strict control over departmental spending. Expenditure increases will be limited to a modest 1.8 per cent in and 2.4 per cent in Improving our finances also means reducing our debt load. We plan to keep to the debt reduction objectives written into the 2010 legislation, which means reducing the gross debt to 45 per cent of GDP by 2026.
5 5 The most obvious solution is simply to borrow less by better targeting our expenditures in infrastructure investments and tightening up on their management. However, there will still be substantial annual investments averaging 9.5 billion dollars, or 2.7 per cent of GDP. The second step is to put money aside in the Generations Fund. This Fund was created in 2006 and consists of financial assets exclusively dedicated to debt repayment. We have dedicated new revenue to the Generations Fund which goes directly to repaying the debt. All royalties from mining, oil and gas will be paid to the Generations Fund, along with designated amounts from the sale of electricity. We have also raised the tax on alcohol and tobacco. As of 2015, the revenues from this increase will be applied to paying down the debt. This sound fiscal policy founded on responsibility can be counted on to produce a stable, sustainable business environment that is attractive to investors.
6 6 2. Open to Investment Through diligent management of its public finances, the Québec government is creating the conditions for new economic growth. Such growth relies on private investment. Québec is open to investment, open to trade and open to all comers. Because we have made our tax system even more competitive, Québec is now, more than ever, very attractive to investors. As an example, we are sending what we think is a very strong signal with a new powerful tax holiday on investments. This new fiscal initiative will grant a ten-year tax holiday for investments of over 300 million dollars in eligible projects. I repeat This new fiscal initiative will grant a ten-year tax holiday for investments of over 300 million dollars in eligible projects. We are also creating the Economic Development Bank of Québec, which will be able to support all investors, including those from the United States. Large U.S. companies are already doing very well in Québec and they contribute to prosperity on both sides of the border. Pratt & Whitney, Alcoa, Bell Helicopter and Electronic Arts are good examples of this.
7 7 The new budget includes many sector-based and structural initiatives, such as incentives for investments in the biopharmaceutical sector. Québec is setting up a fund of 200 million dollars for investments in the development of green technologies and the electrification of transportation. This is a field in which New York and Québec share interest in building partnerships. As you probably know, Québec has an ambitious policy for fighting climate change. We possess vast hydroelectric resources, allowing us to supply clean energy at low cost. This asset could also work to New York s advantage, particularly with regards to the Champlain-Hudson Power Express. This project involves a one thousand Megawatt transmission line linking Québec to Astoria New York City. Importing clean, renewable power could boost New York State s environmental record, especially with respect to its GHG emissions reduction targets. The Québec government supports this investment project, which promises to generate jobs, wealth here as well as in Québec. We offer investors not only a vast wealth in natural resources but other benefits as well, such as low tax rates for businesses. Our government is moving forward with developing the North, where there are many opportunities for investment.
8 8 Rest assured that we do so with the highest regard for our first nations and the environment. Thus preserving our majestic northern landscapes. I see exciting opportunities for U.S. companies to do business in Québec and invest in our North. We have the potential to grow the industries of the future in Québec. An example is the discovery of rare earths in the North. We are also Canada s venture capital leaders and I call upon New York s investors to seize the multiple opportunities for partnership in Québec. We rank first in Canada with respect to spending on R&D as a percentage of GDP. Montréal and Québec City are models for innovation and creativity, attracting companies from around the world looking for talent. Montréal, for example, has become one of the major world centres for developing video games with companies like Ubisoft, Electronic Arts, Eidos, Activision and THQ. Montréal is also one of the few places on the globe where an aircraft can be manufactured from the drawing board to the flight line. Or a life sciences company can carry out the full range of its product development. And who hasn t heard of the famous Cirque du Soleil that came into being near Québec City, which is also one of the main global centers for development in optics/photonics.
9 9 Québec and New York State have formed an economic relationship in the field of transportation equipment manufacturing. Two Québec companies, Bombardier and Novabus, are firmly established in the Plattsburgh area. On the other side of the border, U.S. companies are in the top ranks of Québec s foreign businesses. These companies form an integral part of Québec s industrial fabric. I would also point out that two hundred Québec companies employ more 6000 people in New York State, with the promise of more to come. Just two hours ago I opened the world s first Expansion Québec office here in New York City. This organization supports Québec companies seeking to expand abroad. It s what I call a win-win formula! By opening a facility in New York, Québec companies create employment here, and more back in Québec as their sales increase. I invite you to spread the word: Quebec is open for investment, Quebec is open for business!
10 10 3. Open to Trade To spear economic growth we must swing the door wide open to trade. Our government is currently drafting an external trade development plan that builds on Québec s traditional willingness to do business across borders. Québec has a long history of supporting free trade. We supported free trade with the United States and, subsequently, NAFTA. Québec s support was instrumental in bringing Canada into the free trade agreement with the United States. After North America, Europe is Québec s main international partner. Québec initiated and remains a major player in negotiations for the proposed Canada- European Union Economic Partnership. Through this agreement, we will gain better access to a market that represents 500 million people. This will also apply to American companies with operations in Québec. We are also looking towards Asia, and support Canada s participation in the Trans- Pacific Partnership. If all these agreements come into play, Québec will be a partner to free-trade agreements with the United States, the European Union and Japan.
11 11 While we may not be a very populous nation, we certainly don t lack ambition! In our trade relationships, the United States is by far our most important partner. In 2011, 68 per cent of Québec's exports were shipped to the U.S. New York State alone accounts for 9 per cent of our exports. Québec is also an excellent cross-border shopper! We buy American products valued at almost 25 billion dollars, of which the northeastern states account for one quarter. The global economic context has changed significantly in the past few years, but some realities endure: we share the same geographic space and our economies are highly integrated. U.S. and Québec companies are partnering to make products for sale elsewhere in North America and on global markets. In fact, the North American market is the richest on Earth, ahead of the European Union. This gives us advantages on which we should capitalize. In a recent meeting with the U.S. Ambassador to Canada, he told me about the U.S. government s plans to double exports within five years. We agreed on the importance of further developing our own trade.
12 12 The Québec government is well aware that without appropriate security, there can be no trade. This is why we have always worked closely with Canadian and U.S. officials to ensure that the correct security measures are in place. We are also actively collaborating on the "beyond the border initiative" to facilitate trade and the flow of people between both countries. Keeping markets open and avoiding protectionist measures are still the best ways to stimulate economic growth and job creation. We are committed to avoiding needless barriers that could impede trade. I ask you to be equally committed and to foster the creation of wealth on both sides of the border.
13 13 Conclusion Dear friends, we are an ambitious nation, and I know you are as well. The New York Québec axis has everything required to continue being one of the most prosperous areas in the Americas and in the world. Québec has vast mineral resources, clean energy and a diversified economy increasingly centered on high-tech. The university network in the Montréal New York corridor is by far the largest in the world, providing the intellectual resources we need to fuel our vision. We are moving towards a green transportation industry featuring electricity-based transportation. We share a determination to reduce GHG emissions and reconcile environmental concerns with economic growth to build sustainable prosperity. We have the culture, the science, the population and the commercial drive that have pushed so many of our companies to conquer the markets around the world. I am here to tell you that Québec is determined to roll up its sleeves and build a strong, open and diversified economy into the twenty-first century. We want to build it with you. Je vous remercie encore une fois pour cette gentille invitation. THANK YOU
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