Former prime minister Brian Mulroney returned to his people today in a speech that brought him before both his philosophical and geographical allies at the Investment Dealers Association’s annual conference in La Malbaie, Quebec.

Mulroney was warmly received by the crowd of investment industry executives meeting in the Charlevoix region of Quebec, which Mulroney used to represent in Parliament. Now a partner with Montreal law firm Oglivy Renault and a member of numerous corporate boards, Mulroney delivered a rousing speech in which he defended his political record, took shots at opponents, talked up the legacy of free trade, and proposed his prescription for healing the Canadian economy.

Mulroney called for a commitment to leadership from business, government and non-profit sector chiefs. He recommends the expansion of the free trade agreement to ensure the unrestricted movement of capital, people and money throughout North America. He proposed the creation of a Canadian common market, eliminating inter-provincial trade barriers. He also hinted at the dismantling of the border itself. “If the 15 nations of the European Union can operate a seamless customs union, and they do, why shouldn’t Canada and the United States, the two largest trading partners in the world.”

Although, in response to a question from Vic Rogers of Calgary’s Rogers & Partners Securities, Mulroney dismissed the idea of a common currency for Canada and the U.S., suggesting that a free-floating loonie is a better bet. That doesn’t mean that Mulroney supports the loonie’s current value against the U.S. dollar. He noted that the current low value of the dollar is masking the deterioration of the Canadian standard of living, and he suggested that there would be a day of reckoning for the current administration on that issue.

Mulroney also called for an “end to corporate welfare”, forcing companies to sink or swim on their own merits. He recommended shifting the tax burden even more aggressively from production to consumption, perhaps eliminating personal income tax, while raising the GST. He suggested making improved education a national crusade, enhancing the quality, efficiency and innovation in health care, and improving national productivity.

While he grudgingly praised the latest round of tax cuts from the Liberal government, Mulroney suggested that meeting the U.S. tax rates is not enough, we must go even lower to stay in step. He criticized the current debt levels saying 53% of GDP is too high. “The principal priority should be tax cuts and debt reduction, not indiscriminate new spending programs.” He also made a point of mentioning current Tory leader Joe Clark a couple of times in his speech, indicating some support for Clark as the political right wing tries to sort out its vision.

Closing with a call for strong leadership, Mulroney tied together his prescription for Canada with that needed by the IDA. “Our economic well-being depends on forceful world leadership that enhances peace and our open trading system. Therein lies the role for enlightened Canadian political leadership and growing Canadian prosperity. And in meeting that challenge, business associations such as the IDA have a major and persuasive role to play and I am convinced you will assume this responsibility with courage, confidence and success.”