BUSINESS INFRASTRUCTURE

Another major problem raised by foreign investors was the state of Canada's infrastructure. (See Chart 12.) More than 80 per cent of those surveyed indicated that the poor state of the overall business infrastructure adversely affected Canada as a destination for foreign direct investment. One of the key concerns is the state of the country's physical infrastructure. This finding is consistent with those of other studies that stress the urgent need to modernize the infrastructure of our cities, highways and border with the United States. Investments in infrastructure have not kept pace with normal wear and tear or with the growth of the population and economy. Infrastructure issues affect our capacity to attract FDI and will continue to discourage foreign business investment if not addressed properly.