Briefs from yesterday’s federal budget

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Anti-corruption

Less than a year after unveiling a tough new anti-corruption regime for suppliers, the government is rewriting its rules again.

Tuesday's budget said the government plans to introduce a government-wide integrity regime for all purchases and real estate transactions. The proposed changes come as several leading government suppliers – companies doing billions of dollars worth of federal work – find themselves in various stages of legal trouble in Canada and abroad. Businesses have complained that the current 10-year ban is too strict and doesn't allow Ottawa to reinstate companies who've taken remedial action.

The budget said the new rules would be transparent and ensure companies are "given due process." – Barrie McKenna

Education

The Conservative government is spending $65-million on a program that aims to match the curriculums of postsecondary institutions with the needs of the workplace.

The money will go to business and industry associations to work with companies and the educational institutions to develop industry-specific courses.

In one pilot program, the Canadian Manufacturers & Exporters is working with Siemens Canada and several schools to develop a new curriculum for an advanced manufacturing skills certification. – Shawn McCarthy

Corporate boards

Ottawa plans to amend federal laws to require publicly listed companies to disclose their approach to gender diversity on their boards of directors.

The federal budget says the Canada Business Corporations Act will be amended to adopt a "comply or explain" regime similar to rules already in place in seven provinces, including Ontario. The provincial standards already cover all companies traded on the Toronto Stock Exchange and the new federal standards will only apply to companies that are federally regulated, so Ottawa's standards will not change reporting requirements for many companies. But Stephen Erlichman, executive director of the Canadian Coalition for Good Governance, said by amending federal law, the government is sending a strong signal of support for greater board diversity. "It's good to see it there," he said Tuesday.

– Janet McFarland

Tax avoidance

Over the next five years, the budget would give the Canada Revenue Agency an extra $118.2-

million for auditing teams to target the underground economy and $25.3-million to expand the CRA's efforts to crack down on offshore tax evasion. The government also wants the CRA to spend an additional $58.2-million to target "aggressive tax avoidance" by large businesses, a move it expects to more than pay for itself and bring in an additional $831-million in taxes over the next five years. Citing Canada's participation in a global reform effort to combat international corporate tax avoidance, the budget also proposes closing a number of complex corporate tax loopholes, moves Ottawa says will bring in $1.2-billion in additional tax revenue over the next four years. – Jeff Gray

Pension investment

The government says it will review a rule that prohibits federal pension funds from holding more than 30 per cent of the voting shares of a company.

The budget said Canadian pension funds are among the most experienced private sector infrastructure investors in the world, but currently face limits on their investment activities.

The government plans to launch a public consultation "on the usefulness" of the current prohibition. The rule covers large federal government pension plans, so amendments would not affect Canada's major provincial pension plans such as the Caisse de dépôt et placement du Québec or the Ontario Teachers' Pension Plan. "Lifting the 30-per-cent rule is certainly something we would welcome and we will be participating in the public consultations," said Mark Boutet, vice-president of communications and government relations for the Public Sector Pension Investment Board, which invests on behalf of federal government employees. – Janet McFarland and Jacqueline Nelson