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S

safeguard (sauvegarde).

The term refers to action in the form of additional duties or import quotas on fairly traded imports that cause or threaten to cause serious injury to domestic producers. Article XIX of the General Agreement on Tariffs and Trade – Emergency Action on Imports of Particular Products – permits World Trade Organization (WTO) members to take such action.

savings rate (taux d'épargne).

Personal savings expressed as a percentage of disposable income - the income remaining after income taxes and payroll taxes are accounted for.

Schedule I bank (banque de l'annexe I).

A federally regulated Canadian bank.

Note -- Under Bill C-8, which was implemented on October 24, 2001, Schedule I and II bank structures are replaced with a new size-based ownership regime. Under this regime, banks with equity greater than $5 billion are required to be widely held, with no person owing more than 20 per cent of voting shares or 30 per cent of non-voting shares. Banks with $1 billion to $5 billion in equity are allowed to be closely held, subject to a public float of 35 per cent of voting shares, while banks with less than $1 billion in equity have no ownership restriction other than a fit and proper test.

For further information, consult the February 7, 2001 press release 2001-14 and related documents.

Schedule II bank (banque de l'annexe II).

A federally regulated foreign bank.

Note -- Under Bill C-8, which was implemented on October 24, 2001, Schedule I and II bank structures are replaced with a new size-based ownership regime. Under this regime, banks with equity greater than $5 billion are required to be widely held, with no person owing more than 20 per cent of voting shares or 30 per cent of non-voting shares. Banks with $1 billion to $5 billion in equity are allowed to be closely held, subject to a public float of 35 per cent of voting shares, while banks with less than $1 billion in equity have no ownership restriction other than a fit and proper test.

For further information, consult the February 7, 2001 press release 2001-14 and related documents.

Schedule III bank (banque de l'annexe III).

A federally regulated foreign bank branch (lending and full service).

scientific research and experimental development investment (SR&ED) tax credit (crédit d'impôt pour la recherche scientifique et le développement expérimental (RS&DE)).

SR&ED tax credits may be used to reduce federal income taxes otherwise payable or to obtain cash refunds. There are currently two rates of tax credit for SR&ED: a general rate of 20 per cent, and an enhanced rate of 35 per cent for certain small businesses. For more information, visit the Canada Revenue Agency Scientific Research and Experimental Development (SR&ED) Program Web page.

seasonal adjustment (désaisonnalisation ou correction des variations saisonnières).

A statistical technique used to remove the effect of normal seasonal fluctuations in data so underlying trends become more evident. The seasonally adjusted unemployment rate smoothes out the changes in unemployment due to the typical seasonal hiring in the summer and layoffs in the winter for workers in industries such as agriculture and construction.

secondary market (marché secondaire).

Market where securities are bought and sold subsequently to original issuance, which took place in the primary market. For more information, visit the Department of Finance Government of Canada Securities Web page.

secured loan (emprunt garanti).

A loan that is backed by collateral.

securitization (titrisation).

Most commonly refers to the conversion of various sorts of loans into marketable securities, for subsequent sale to investors, by packaging the loans into pools.

segregated fund (caisse séparée).

A pooled investment fund, much like a mutual fund, that is established by an insurance company and segregated from the general capital of the company. Its chief distinction from a mutual fund is its guarantee that, regardless of fund performance, at least a minimum percentage of the investor's payments into the fund will be returned when the fund matures. The Insurance Companies Act governs segregated funds.

self-dealing (régime des opérations avec apparentés).

Refers to transactions between a financial institution and persons who are in positions of influence over, or in control of, the institution. A key part of the 1992 financial sector reform was the implementation of comprehensive controls on such transactions.

short-term interest rate (taux d'intérêt à court terme).

Interest rate applying on money lent for a period of less than three years.
See also long-term interest rate.

small business deduction (SBD) (déduction accordée aux petites entreprises).

Canadian-controlled private corporations (CCPCs) are eligible for a tax-rate reduction known as the SBD. This deduction lowers the basic federal tax rate on the first $200,000 of active business income of CCPCs from 28 per cent to 12 per cent. CCPCs with more than $15 million of taxable capital employed in Canada are not eligible for the SBD while CCPCs with between $10 million and $15 million of taxable capital employed in Canada have reduced access to it. For more information on small business taxation, visit the Canada Revenue Agency Small Business page.

social assistance (assistance ou aide sociale).

Payments made to Canadians on the basis of need by provinces and municipalities, supported by federal contributions provided under the Canada Social Transfer. 

social security (sécurité sociale).

Society's commitment to take care of its most vulnerable citizens – e.g., people without work, lone parents with limited means struggling to raise a family, children in poverty, and people who face barriers to employment due to disability or chronic illness. The "social safety net" comprises a wide range of federal, provincial and joint federal-provincial programs. Click on the following programs to learn more about Old Age Security, the Guaranteed Income Supplement, the Canada Pension Plan, employment insurance, the Canada Child Tax Benefit and the National Child Benefit.

sovereign market (marché garanti par l'État).

Market for the debt issued by a government.

spare capacity or excess capacity (capacité excédentaire ou excédent de capacité ou surcapacité).

The amount of available plant and equipment not in use. When producers have spare capacity, they tend to reduce prices or minimize price increases in order to increase sales. Thus, the greater the spare capacity, the greater the downward pressure on the inflation rate.

Special Import Measures Act (SIMA) (Loi sur les mesures spéciales d'importation).

The Canadian legislation that provides for the imposition of anti-dumping and countervailing duties when dumped or subsidized goods injure Canadian producers. Revenue Canada investigates whether there has been dumping or subsidization of goods resulting in a reasonable indication of injury, retardation or a threat of injury. The Canadian International Trade Tribunal conducts the definitive inquiry into the question of injury.

special operating agency (SOA) (organisme de service spécial (OSS)).

A federal government organization that has increased management flexibility in order to improve performance. Objectives include better overall management, improved operational results and greater focus on demand.

spouse's allowance (allocation au conjoint).

A non-taxable monthly benefit paid to low-income individuals aged 60 to 64 who are spouses of Old Age Security pensioners or are widow(er)s. Benefits are fully phased out by about $16,000 of net income for widowed recipients and about $26,800 of net family income for spouses of seniors. For more information, visit Human Resources Social Development Canada's Spouse's Allowance Web page.

strategic alliance (alliance stratégique).

Alliance between companies, primarily for the purpose of achieving cost efficiencies, and to allow them to become more competitive in the face of rapid changes and pressures in the market.

structural change (changement structurel).

A basic and permanent change in the way the economy generates employment and wealth. Within a country, this may include changes in the relative importance of industries, in the economic strength of regions, or in the mix of skills and occupations in the labour force. The government may assist the economy in adapting to structural changes by altering its policies. Technological advancement, changes in consumer behaviour, the emergence of new competitors and trade liberalization cause structural changes in the economy.

structural policy (politique structurelle).

A policy that addresses permanent market conditions. While fiscal and monetary policies smooth out cyclical swings in economic activity, structural policies change the conditions under which the economy operates. Examples include tax incentives, labour market policies and social programs. Structural policies include those relating to inter-provincial and international trade, training, regulations (such as the rules governing the financial sector), tax policies, and support for technical research and development.
See also fiscal policy; monetary policy.

structural unemployment (chômage structurel).

Where workers are unable to fill available jobs because they lack the necessary skills, do not live where jobs are available or are unwilling to work at the wage rate offered in the market.

subsidiary (filiale).

A company that is legally controlled by another company.

subsidy (subvention).

An economic benefit granted by a government to producers of goods, often to strengthen their competitive position. The subsidy may be direct (i.e. a cash grant) or indirect (e.g. low-interest export credits guaranteed by a government agency).

surplus (excédent).

The amount by which government revenue exceeds budgetary spending in any given year.

surtax (surtaxe).

1. Surtax on imports is a tariff in addition to an existing tariff, often used as an emergency safeguard measure.
2. Surtax on income is an additional tax levied as a percentage of income tax. Corporations may pay surtaxes in addition to their base amount of federal tax. The surtax on individuals was eliminated on January 1, 2001 as part of the government's five-year tax reduction plan.

sustainable development (développement durable).

Long-term sustainable economic growth based on environmentally sound policies and practices. Environmental degradation at the local, national and international level undermines prospects for continued economic development. Ultimately, sustainable development means meeting the needs of the present without compromising our ability to meet the needs of future generations. Sustainable development requires that public policy account for economic, environmental and social objectives at the earliest possible stages of policy development.

swap (swap ou échange financier).

An agreement that exchanges one type of return for another (e.g. a fixed for a floating rate of interest).