The Chretien government pledged Monday to boost investor confidence, which has been battered recently by a series of accounting scandals that have helped to drive stock markets to multi-year lows.

In the Throne Speech – which was read in the Senate by Governor-General Adrienne Clarkson – the government said laws governing corporate crime will be toughened. "It (the government) will review and, where necessary, change its laws and strengthen enforcement to ensure that governance standards for federally incorporated companies and financial institutions remain of the highest order."

The government also said it will work with other parties to improve the efficiency of capital markets.

Governor-General Adrienne Clarkson

"Many investors and businesses have expressed concern that Canada's fragmented securities regulatory structure is inadequate and an obstacle to growth. They have urged reform to ensure that businesses can efficiently access the financing they need to grow, and to assure Canadians that they will be treated fairly when they invest," the government said.

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"Co-operation among governments will be necessary. The government will work with all participants to ensure that Canada has the modern and efficient securities regulatory system it needs."

With this Throne Speech most likely the last of Jean Chretien's political career, observers were wondering how much the government would commit to spending to fulfill its agenda. In the Throne Speech, however, the government committed to staying out of debt.

"The government will maintain its unwavering commitment to balanced budgets, disciplined spending, a declining ratio of debt-to-GDP, and fair and competitive taxes," the government said.

The Liberal government also promised to make Canada more attractive to capital and to skilled workers.

"The government will work with its partners to break down the barriers to the recognition of foreign credentials and will fast-track skilled workers entering Canada with jobs already waiting for them," the government said. It said Canada would aggressively target foreign students and skilled workers through universities and in key embassies abroad.

The speech, which broadly lays out the government's agenda for the next session of Parliament, also promised to streamline environmental regulations for the approval of mega-projects, such as the proposed natural gas pipeline through northern Canada.