Investment managers rank Alberta tops

(November 9, 2004) Alberta has the best investment climate in Canada, according to a survey released today by the Fraser Institute.

Investment managers were asked to indicate whether or not provinces maintained the necessary economic policies required to foster a positive investment climate. Provinces were ranked on a number of economic policies, including government finances, taxation, labour laws and regulation.

Alberta scored 8.8 out of 10 in the survey, receiving positive rankings in all policy areas. “In particular, government finances and tax policy were identified as positively contributing to the province’s investment climate,” the report states. “Flexible labour legislation was also ranked as an important positive contributor.”

British Columbia was second with a 6.7 rating, a dramatic turnaround from just three years ago when the province finished last. Ontario placed third at 6.2. It’s the first time Ontario hasn’t finished either first or second since the survey’s inception in 1997.

“The Ontario government’s decision to ramp up spending at a time of multi-billion dollar deficits, coupled with personal and business tax increases, has led to a serious deterioration in the province’s investment climate,” said the institute’s Mark Mullins.

The managers were also asked to rank the performance of federal Finance Minister Ralph Goodale. About 66% of respondents approved of the minister’s work, but only 11% said he was doing a very good job. “This is only slightly above the worst-ever performance rating for a minister of finance since 1997,” the institute says.

Conversely, the Bank of Canada received a strong rating from the managers, with 93% approval.

The Fraser Institute surveyed 45 pension, investment and venture capital managers, with more than $335 billion in assets under administration.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com