Canadian investment managers overwhelmingly rank Alberta as the province with the best investment climate, according to the results of the 2004 Survey of Senior Investment Managers, released today by The Fraser Institute. The managers surveyed represent over $335 billion in assets under administration.

In a release, Jason Clemens, director of Fiscal Studies at The Fraser Institute, said business investment “is one of the primary ingredients necessary for a prosperous society. Provinces must maintain a positive investment climate to be successful.”

Alberta tops the ratings for the best investment climate, according to the survey. British Columbia moves up to second position but scored well below Alberta. Ontario has fallen to third position: a significant decline in the province’s performance as it narrowly out edged Alberta for top spot in the rankings in 2002, the last time the survey was undertaken.

“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,” commented Mark Mullins, director of Ontario policy studies for the Fraser Institute.

The Atlantic Provinces continue to dominate the bottom spots of the survey ranking.

Survey participants were asked to rank specific economic policies in terms of their importance in fostering and maintaining a positive investment climate. Respondents overwhelmingly focused on tax policy, infrastructure, and fiscal prudence (long-term balanced budgets). Regulatory issues were also seen as important but ranked lower.

The survey also asked participants to indicate whether provinces maintained the necessary economic policies to foster a positive investment climate and promote globally competitive companies. Alberta again came out on top with fully 100% of respondents indicating that the province had the necessary policies.

The next best province was B.C. with 67% of respondents indicating that the province had the right mix of policies. Ontario trailed in third position with 58% of respondents stating the province had the necessary policies.

Respondents were also asked to rate the performance of the Minister of Finance, Ralph Goodale, and of the Bank of Canada. Pnly 56% of respondents approved of Goodale’s job performance.

The Bank of Canada, on the other hand, continued its strong job performance, garnering 93% approval from respondents.

The 2004 Survey of Senior Investment Managers is published in the November issue of Fraser Forum.

http://www.newswire.ca/en/releases/archive/November2004/09/c0153.html