using skills that's important. provinces must ensure that they don't set up road blocks that impede the mobility of workers. in this respect, i really do commend the provinces of alberta and british columbia for their recent pact allowing a free flow of labour and investment across the rockies. labour markets are not the only things that must be able to adjust – flexibility is important in all of our policies. we need legal and regulatory frameworks in place that encourage competition and allow market incentives to flow through. we really must eliminate barriers to interprovincial trade. as you know, these can take the form of a wide range of regulatory obstacles in areas as diverse as transportation, packaging, or financial services. capitalizing on alberta ’ s strengths policies that encourage flexibility are crucial for alberta if the economy here is to capitalize on its current strengths and build a solid base for the future. the important and growing knowledge base in alberta is creating opportunities to develop industries that complement the oil and gas sector. it also provides a platform, built on skilled professionals and financial resources, for expanding the vital education and health sectors. a challenge, as well as an opportunity, for alberta relates to the production and use of hydrocarbons in a time of increasing global concern about climate change. around the world, there is a growing demand for products and technologies that limit or reduce the emission of greenhouse gases. and what better place than alberta for the development of these types of technologies? as i've mentioned, the dramatic growth in the province's oil and gas sector has made alberta a magnet for workers, many of whom have the specialized knowledge and spirit of innovation needed to develop such new products. the province's knowledge base and rising prosperity also give calgary a great opportunity to build a solid financial services sector. this industry could be very important for calgary's future. financial services is a sector that attracts highly skilled workers who add a great deal of value. and calgary has some natural advantages. it is situated in the heart of the oil patch and is already home to the venture exchange and to a fledging commodity exchange. but calgary is unlikely to be able to fully exploit these advantages until canada, as a whole, develops a more efficient framework for its securities market. from the analysis that we have done at the bank of canada, it's clearly in the interests of all canadians, but particularly in the interests of calgarians, to establish a uniform canadian regulatory framework. this must be based

not appear to have spread more broadly. there is evidence that a significant portion of the adjustment in the automotive sector has already taken place, while the adjustment in the housing sector continues. overall, we judge that the risks to our inflation outlook in canada are roughly balanced. however, there remains a possibility of a disorderly resolution of global imbalances. on 6 march, we left our key policy interest rate unchanged at 4 1 / 4 per cent. in line with our outlook, the current level of the target for the overnight rate is judged, at this time, to be consistent with achieving the inflation target over the medium term. conclusion i've discussed some of what i see as the major challenges that we all face. i've also emphasized the crucial need for flexibility on all of our parts : government, labour, and business. this flexibility is vitally important. it will enable all of us to successfully capitalize on the opportunities presented by an expanding global economy. i'd now be happy to answer your questions.