OTTAWA (NEWS1130) – The Harper government has firmly rejected a McGill University economist’s prescription for surviving the next financial meltdown.

A newly released briefing note shows Christopher Ragan‘s proposal to strengthen oversight of the Canadian economy went all the way to Stephen Harper, himself a former economist.

Ragan’s warning was published by the C.D. Howe Institute in late January. It said Canada may be ill-prepared for the next global financial crisis because a key oversight body has blind spots.

The distinguished economist said a high-level Finance Department group, known as the senior advisory committee, needs to be restructured to give the governor of the Bank of Canada more input and to ensure the Canada Mortgage and Housing Corp. is a permanent member.

Ragan says the non-legislated body served Canada well during the 2008-2009 global meltdown, but may be blind to the next financial disaster.

A Feb. 22nd memo to Harper shows the suggestion was given serious consideration, but ultimately rejected in favour of the status quo.

The group “already fulfils the functions Professor Ragan is looking to address, and has a strong track record in both facilitating co-ordination between the relevant parties in Canada’s financial regulatory system, as well as serving as an important vehicle for advice to government on policy decisions,” says the memo.

The heavily censored four-page document was released to The Canadian Press under the Access to Information Act.

Ragan’s paper for the C.D. Howe think-tank garnered media attention in January, but the Harper administration — which prides itself on astute management of the economy — remained publicly silent about the proposals.

The McGill professor says he’s not surprised about the government’s inaction, given that Canada survived the 2008-2009 crisis in relatively good shape.