Bill Downe is calling on corporate Canada to roll up its sleeves and begin to listen to peoples’ concerns, engage in debate and take action.Michelle Siu/The Canadian Press
The private sector should tackle the root causes fuelling the latest wave of populism that is threatening Canada's prosperity, says the head of one of the country's largest banks.
In his last planned public address before handing over the reins of Bank of Montreal in October, chief executive officer Bill Downe said on Thursday that the prevalence of anti-immigration policies and economic protectionism around the globe is a protest not just against "systems that have failed people" and leaders who don't protect their interests, but also signs of "a basic loss of confidence" that their prospects will improve in the future.
Mr. Downe is calling on corporate Canada to roll up its sleeves and begin to listen to peoples' concerns, engage in debate and take action by offering better-quality jobs in an effort to reduce income inequality. In doing so, he was echoing concerns expressed recently by other bank CEOs around the elusiveness of a steady paycheque for some segments of the population.
"If you've been hanging back, hoping government will take the lead – or simply focusing on day-to-day priorities – it's time to get off the sidelines," Mr. Downe said in a lengthy speech Thursday to the Canadian Club of Toronto. "Business leaders have an opportunity to bring clarity, reduce apprehension and help tackle the big, systemic issues."
But the C-suite doesn't always step up to the microphone. In the past, many executives have been reluctant to take a stand in fear of what their words would mean for their business interests.
The unhindered flow of both goods and people across borders is crucial for Canadian companies across industries, Mr. Downe stressed in his speech. Current trade agreements give Canada access to markets representing 55 per cent of global gross domestic product, while Japan has access to 17 per cent, and Germany, France, Italy and the United Kingdom together have 36 per cent access.
BMO, like other domestic banks, is relying on its operations outside the country to fuel growth. And, as the largest trade finance bank in Canada, BMO has a vested interest in keeping our borders open.
He also talked about the "undeniable economic benefits" of building more pipelines in Canada, at a time when political turmoil in British Columbia is threatening the future of Kinder Morgan Inc.'s $7.4-billion Trans Mountain pipeline expansion. Mr. Downe said these projects create construction jobs, and bolster demand for raw material and manufacturing.
"The real impact will come as Canada is able to diversify its export markets for energy and support a more robust east-west flow of commerce within the country," he added.
"This is how we should be evaluating all major infrastructure projects, whether it's airports providing Canadian companies with global connections, high-speed rail linking manufacturing and high-tech centres or public transit serving key employment clusters."