CALGARY– The Canada West Foundation welcomes the focus of the federal budget on skills training, infrastructure investment and incentives to purchase new machinery and equipment – three important contributors to Canada’s productivity.

“People think productivity is about working harder,” argues Dylan Jones, President & CEO. “Actually, it’s about securing the country’s prosperity going forward. Canadians currently produce $14 less per hour than their American counterparts. Unless addressed, that gap, along with the impact of baby boomers poised to leave the workforce, will deeply harm our quality of life.”

The emphasis on skills training in the budget is a step towards better matching Canadians with available jobs, improving worker mobility and creating a more responsive and inclusive labour market. “It is an effort to put employers and people who are looking for work in the driver’s seat. While we support this approach, it is going to be very challenging to implement,” notes Jones.

The budget also recognized the importance of long-term commitment to public infrastructure, a step which recent research by the Foundation determined to be a key driver of economic productivity. “Efforts to address Canada’s crumbling infrastructure are very positive,” notes Michael Holden, Senior Economist. “However, money itself is not enough. Canada needs to ensure infrastructure investments are strategic – not just reactive.”

Other initiatives to boost productivity included tax incentives to encourage manufacturing businesses to invest in machinery and equipment – giving companies the tools they need to produce more with less effort and remain internationally competitive. “A prosperous Canada is a three-legged stool,” says Jones. “We need to ensure that our resources, manufacturing and services sectors are all thriving.”

The Canada West Foundation will be releasing a post-budget analysis on March 22, 2013.

Canada West Foundation is the only think tank dedicated to being the objective, non-partisan voice for issues of vital concern to western Canadians. For over 40 years, through its research and commentary, the Foundation has contributed to better government decisions and a stronger Canadian economy. Visit us at www.cwf.ca.