As questions abound regarding management and resource use in the public health care system, it is important to evaluate the place the private sector could occupy. With this first Economic Note on the use of health care resources, the Montreal Economic Institute (MEI) wishes to add some thoughts on the optimization of operating blocks in Quebec. A later Economic Note will look into the supply of human resources in the health care system.

Canadian consumers believe that they are not getting the full value at the check-out counter of the substantial appreciation in the Canadian dollar during the last five years. An exchange rate appreciation makes exports more expensive and imports less expensive. While this creates a more competitive selling environment for the producers of exportables, at the same time it provides a more favorable environment for consumers and importers.

Throughout the Canada Strong and Free series, we have promoted a vision of Canada that brings the best quality of life, the highest levels of prosperity, and the fullest experiences of democracy to the citizens of this great nation, and a presence on the world stage befitting our potential. We have argued that policies based on freedom and responsibility are not only intrinsically valuable in their own right but have the greatest potential to achieve these goals for Canadians. Here we outline the recommendations that arise from this vision.

The crisis in Quebec’s forestry sector is attracting plenty of attention because of the many plant closings and resulting job losses. But this is hardly the first time the industry has faced a crisis. In the late 1970s, to make up for its declining competitiveness, the Quebec paper industry invested $1.25 billion of its own funds and $250 million from the federal and provincial governments to modernize its installations. Strong market growth meant that the higher productivity from these investments could be achieved without job losses.

The underground economy (or illegal economy) covers market production of goods and services, legal and illegal, which are sold or purchased illegally. It is composed of both the irregular economy, where legal goods and services are produced and exchanged under illegal conditions, and (productive) black markets, the preserve of goods and services that are illegal but satisfy all the parties involved. History presents us with a large number of prohibition and taxation events that gave rise to contraband. However, smuggling and other forms of underground markets are not only a historical phenomenon, but an everyday fixture of contemporary economies: drugs, alcohol, fuel, tobacco, etc. One should not think of the underground economy as only black markets or smuggling on irregular markets. The irregular economy mainly includes otherwise legal services sold “under the table” like labour services sold to businesses or individuals (in residential construction and renovation, for example). […] To deal with the underground economy, four public policy approaches are possible.

The Report Card on Quebec’s Secondary Schools provides an annual, independent measurement of the extent to which each school meets basic needs. The Report Card thus serves several purposes. For one thing, it facilitates school improvement, and for parents who have a choice between several educational institutions, it can help them make an enlightened decision.

Quebec’s road network, much of it built in the 1960s and 1970s, is aging quickly. Highways in Quebec have reached a critical point and will need to be rejuvenated in the coming years. Other countries have found ways of ensuring adequate, stable financing to maintain their roads. The Quebec government could look into new means of conducting road rehabilitation projects. International experience in public-private partnerships (PPP) can offer worthwhile solutions as the government struggles to maintain the road network adequately.

Quebec’s road network is in dismal condition. During a visit to Montreal in 2006, Simon Anholt, a specialist in the marketing of political entities, said jokingly that he thought he was in the wrong country and had landed in Kazakhstan, since the road from the airport to downtown Montreal was so bad. The collapse of the de la Concorde overpass and information uncovered by the Johnson Commission have shown, concretely and sadly, that this was more than just an impression.

People often forget the fact that Quebec was once the province which made the greatest use of tolls. Toll booths, which were abandoned in the 1980s, were installed on portions of highways 10, 13, 15 and 40, as well as on the Jacques-Cartier and Champlain bridges. As the road network faces deterioration and insufficient funding, the return of tolls is an interesting solution for several reasons.

Last June, the Quebec Minister of Municipal Affairs submitted Bill 22 giving the City of Montreal greater taxation powers. If the bill is adopted, Quebec’s biggest city will be able, for instance, to impose a tax on show tickets and restaurant meals. The minister says these new income sources were given to Montreal because “our metropolis must have the means to deal with the challenges it faces.” Several municipalities, including Montreal, have been demanding broader sources of income to avoid tight budgets or red ink. But other solutions to the problem may be found in better control over spending.