Wednesday, February 9, 2011

CEO of TSX says Flaherty's trust decision knee capped the industry, hurt our reputation abroad

Rik Parkhill, Co-CEO, TSX Group Inc.
Keynote Speaker
Prospectors & Developers Association of Canada
March 3, 2008

TSX Knee capped by Flaherty:

Reprinted from Tuesday, March 4, 2008

"Last year, we were seventh in the world in raising public equity
capital – nearly $56 billion. Some $19 billion of that was for mining
projects -- $11.8 billion raised on Toronto Stock Exchange, $7.2
billion on Venture.

I might note that seventh was a bit down from previous years. We
have, in the past, been fifth or better. But we took a hit a couple of Hallowe’ens ago when the federal government knee-capped the income trust industry."

The importance of Integrity in Capital Markets

"What brings investors to these products and our markets is a global reputation for integrity as well as liquidity. That is a credit to your industry, to regulators and to our own role as an exchange operator.

But global reputations are not won by a global presence. Reputations are won by integrity and world-class performance. They are hard earned and easily lost. We all have an interest in ensuring that this essential basis for our future global performance is protected and

Arbitrary and unproven policies of the Harper Government

"But the broader policy environment needs work, too. As a destination for foreign capital, we are not as attractive as we could be and should be to global markets. Some of this involves shooting ourselves in the foot.

Whatever the pluses and minuses of the income trust decision, for example, it hurt our reputation abroad.

It is not clear that the decision served the government’s revenue objectives either, because it made income trusts very attractive takeover targets for foreign funds who could load them with tax- deductible debt.

Equally, the fuzziness that surrounded the question of interest- deduction taxation as it related to takeovers by Canadian companies of foreign firms certainly spooked some key players in our market at a critical time.

The bigger problem, however, is a policy approach that views the Canadian market and especially Canadian capital markets as an island unto itself. "


Anonymous said...

You mean Canada and the TMX cannot manage or lead the world as a resource exchange with a few financial services companies.

How about a TMX Master Limited Partnership with a 6 to 8% yield with a 55% Canadian ownership.

This way they can increase their shareholder base and access new capital from income seeking investors.

I would open my wallet to that idea and keep my pride intact.

Shame on them !!!


Anonymous said...

Interesting data ... fascinating how mainstream media seem to be forgetting these stats when reporting on the TMX takeover ...

Dr Mike said...

The damage to our reputation abroad is one thing & I can live with that , but the damage done to income levels & the savings of the small investor was truly something else.

Harper & Flaherty discounted the importance & the worth of the investor by manipulating the media & then left us twisting in the wind with no help or recourse whatsoever.

Neither of these two can ever be forgiven as they acted with callous disregard.

Canada will be a much richer place when both have been voted from office---let`s just hope it is sooner than later.

Dr Mike Popovich

Anonymous said...

The writing will go on the wall when the shit of the non-existent corporate income tax revenues hit the fan starting 201l.

Flaherty used the lie "If income trusts do not pay corporate income tax, hard-working Canadian families will have to pay more." That's almost an exact quote. Go see his Halloween 2006 press release.

What's happening is that the tax revenue base in the resource sector is shrinking because
Flaherty has exempted foreign companies from Canadian income tax.

But don't believe me -- you effing nitwit Canadian job ho financial reporters -- start reading the Auditor General's annual report.