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Fraser Institute

Ottawa touts wait lists for dysfunctional child-care program

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From the Fraser Institute

By Matthew Lau

Ahead of its April 16 budget release, the Trudeau government effectively admitted its national child-care program, which it began implementing in 2021, has created widespread shortages. “We’re seeing wait lists increase across the country,” said Jenna Sudds, federal minister in charge of child care.

The government has tried to cast the shortages as the result of skyrocketing demand for a popular federal program. But when government makes billions of dollars in subsidies available, of course there will be massive demand among people wanting to get their hands on the cash. That doesn’t mean the program is a success; it means the government is wrecking a market by throwing supply and demand out of whack.

Vancouver has a shortfall of about 15,000 child-care spaces for children up to age 12. In Niagara Region, the wait list for toddlers and preschoolers has expanded by 227 per cent in just the past two years. Clearly, the child-care sector has been thrown into disorder.

But if shortages illustrate a government program’s benefits, then the average 44-week wait time to get orthopedic surgery in Canada is evidence of the success of government health care. Our health-care system must be great—look how many people are lining up for it!

To try to mitigate the shortages, the Trudeau government announced $1 billion in low-interest loans and $60 million in non-repayable grants to expand and renovate child-care spaces. Additional money will be spent in the form of student loan forgiveness and training for workers in the sector. Both the shortages and new spending confirm what skeptics of national government daycare predicted from the outset—the original budget of $30 billion over five years, then $9.2 billion annually after that, underestimated what taxpayers would eventually shell out.

The new spending also exacerbates two government-created problems in child care. The first is that the $1 billion in loans and $60 million in grants are available only to public and non-profit providers. So excluded from the program are parents who want to take care of children at home, children who are cared for by grandparents or other relatives, and private for-profit providers. Instead of getting child-care help, they’ll foot the tax bill to pay for the government-preferred forms of child care.

The discrimination against private for-profit providers is a clear problem with the existing federal child-care strategy. “Frankly, Canada’s national daycare system excludes many more Canadians than it includes,” Cardus researcher Andrea Mrozek wrote last year. In Nova Scotia, where the federal government wants to move “to a fully not-for-profit and publicly managed system,” even provincial Liberal Leader Zach Churchill has lamented the exclusion of the private sector.

The second problem made worse is the spending is done increasingly through different streams and programs, diverting money towards administrative and bureaucratic bloat instead of actual child care. Based on a municipal memo back in 2022, it’s already estimated Peel Region in Ontario needs 40 additional bureaucrats to deal with child care. In British Columbia, the City of Cranbrook recently issued a 26-page request for proposals for consultants to prepare grant applications to the provincial government for child-care funds.

The ever-increasing government budget for child care, apparently, is great for the government sector and consultants hired to help move government money around. It’s a disaster, however, for parents who cannot find child care and taxpayers who pay billions for shortages—a reality unchanged by the Trudeau government’s latest announcement.

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Alberta

Albertans need clarity on prime minister’s incoherent energy policy

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From the Fraser Institute

By Tegan Hill

The new government under Prime Minister Mark Carney recently delivered its throne speech, which set out the government’s priorities for the coming term. Unfortunately, on energy policy, Albertans are still waiting for clarity.

Prime Minister Carney’s position on energy policy has been confusing, to say the least. On the campaign trail, he promised to keep Trudeau’s arbitrary emissions cap for the oil and gas sector, and Bill C-69 (which opponents call the “no more pipelines act”). Then, two weeks ago, he said his government will “change things at the federal level that need to be changed in order for projects to move forward,” adding he may eventually scrap both the emissions cap and Bill C-69.

His recent cabinet appointments further muddied his government’s position. On one hand, he appointed Tim Hodgson as the new minister of Energy and Natural Resources. Hodgson has called energy “Canada’s superpower” and promised to support oil and pipelines, and fix the mistrust that’s been built up over the past decade between Alberta and Ottawa. His appointment gave hope to some that Carney may have a new approach to revitalize Canada’s oil and gas sector.

On the other hand, he appointed Julie Dabrusin as the new minister of Environment and Climate Change. Dabrusin was the parliamentary secretary to the two previous environment ministers (Jonathan Wilkinson and Steven Guilbeault) who opposed several pipeline developments and were instrumental in introducing the oil and gas emissions cap, among other measures designed to restrict traditional energy development.

To confuse matters further, Guilbeault, who remains in Carney’s cabinet albeit in a diminished role, dismissed the need for additional pipeline infrastructure less than 48 hours after Carney expressed conditional support for new pipelines.

The throne speech was an opportunity to finally provide clarity to Canadians—and specifically Albertans—about the future of Canada’s energy industry. During her first meeting with Prime Minister Carney, Premier Danielle Smith outlined Alberta’s demands, which include scrapping the emissions cap, Bill C-69 and Bill C-48, which bans most oil tankers loading or unloading anywhere on British Columbia’s north coast (Smith also wants Ottawa to support an oil pipeline to B.C.’s coast). But again, the throne speech provided no clarity on any of these items. Instead, it contained vague platitudes including promises to “identify and catalyse projects of national significance” and “enable Canada to become the world’s leading energy superpower in both clean and conventional energy.”

Until the Carney government provides a clear plan to address the roadblocks facing Canada’s energy industry, private investment will remain on the sidelines, or worse, flow to other countries. Put simply, time is up. Albertans—and Canadians—need clarity. No more flip flopping and no more platitudes.

Tegan Hill

Tegan Hill

Director, Alberta Policy, Fraser Institute
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Fraser Institute

Long waits for health care hit Canadians in their pocketbooks

Published on

From the Fraser Institute

By Mackenzie Moir

Canadians continue to endure long wait times for health care. And while waiting for care can obviously be detrimental to your health and wellbeing, it can also hurt your pocketbook.

In 2024, the latest year of available data, the median wait—from referral by a family doctor to treatment by a specialist—was 30 weeks (including 15 weeks waiting for treatment after seeing a specialist). And last year, an estimated 1.5 million Canadians were waiting for care.

It’s no wonder Canadians are frustrated with the current state of health care.

Again, long waits for care adversely impact patients in many different ways including physical pain, psychological distress and worsened treatment outcomes as lengthy waits can make the treatment of some problems more difficult. There’s also a less-talked about consequence—the impact of health-care waits on the ability of patients to participate in day-to-day life, work and earn a living.

According to a recent study published by the Fraser Institute, wait times for non-emergency surgery cost Canadian patients $5.2 billion in lost wages in 2024. That’s about $3,300 for each of the 1.5 million patients waiting for care. Crucially, this estimate only considers time at work. After also accounting for free time outside of work, the cost increases to $15.9 billion or more than $10,200 per person.

Of course, some advocates of the health-care status quo argue that long waits for care remain a necessary trade-off to ensure all Canadians receive universal health-care coverage. But the experience of many high-income countries with universal health care shows the opposite.

Despite Canada ranking among the highest spenders (4th of 31 countries) on health care (as a percentage of its economy) among other developed countries with universal health care, we consistently rank among the bottom for the number of doctors, hospital beds, MRIs and CT scanners. Canada also has one of the worst records on access to timely health care.

So what do these other countries do differently than Canada? In short, they embrace the private sector as a partner in providing universal care.

Australia, for instance, spends less on health care (again, as a percentage of its economy) than Canada, yet the percentage of patients in Australia (33.1 per cent) who report waiting more than two months for non-emergency surgery was much higher in Canada (58.3 per cent). Unlike in Canada, Australian patients can choose to receive non-emergency surgery in either a private or public hospital. In 2021/22, 58.6 per cent of non-emergency surgeries in Australia were performed in private hospitals.

But we don’t need to look abroad for evidence that the private sector can help reduce wait times by delivering publicly-funded care. From 2010 to 2014, the Saskatchewan government, among other policies, contracted out publicly-funded surgeries to private clinics and lowered the province’s median wait time from one of the longest in the country (26.5 weeks in 2010) to one of the shortest (14.2 weeks in 2014). The initiative also reduced the average cost of procedures by 26 per cent.

Canadians are waiting longer than ever for health care, and the economic costs of these waits have never been higher. Until policymakers have the courage to enact genuine reform, based in part on more successful universal health-care systems, this status quo will continue to cost Canadian patients.

Mackenzie Moir

Senior Policy Analyst, Fraser Institute
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