Business confidence grows as businesses back Carney agenda and West Coast pipeline

PM Mark Carney via PMO official Facebook Page

OTTAWA — Canadian business leaders are expressing growing confidence in the federal government’s economic agenda, with strong support for plans to fast track a proposed West Coast oil pipeline and accelerate other major projects.

The KPMG survey, conducted by Angus Reid, found construction of a new pipeline from Alberta to the British Columbia coast and regulatory reform tied as the top federal priorities, each selected by 50 per cent of respondents. The findings come as Ottawa moves to designate the proposed pipeline as a national interest project under the Building Canada Act, a step intended to streamline the approval process.

Overall, 51 per cent of business leaders said they expect the federal government’s economic measures will leave their companies better off over the next three years, while 55 per cent said Ottawa is making progress in strengthening support for Canadian businesses.

The survey polled 359 executives and decision-makers from companies with annual revenues exceeding $10 million. Nearly 60 per cent represented businesses generating more than $500 million in annual revenue.

Accelerating major infrastructure projects ranked just behind pipeline construction and regulatory reform at 47 per cent, followed by tax reform at 43 per cent.

Despite the optimism, respondents continued to identify regulation as a challenge. Sixty-seven per cent said regulatory requirements delay projects and discourage investment, while 65 per cent said taxes and regulation make it more difficult for businesses to grow in Canada.

The survey also found 47 per cent of respondents would be confident increasing investment in Canada if supported by measures such as Buy Canada procurement policies, financing programs and other incentives.

KPMG national law leader Lachlan Wolfers said businesses want governments to focus on measures within Canada’s control, including reducing red tape, improving tax competitiveness and diversifying trade.

The survey was conducted between June 25 and July 13.