Business
As Ottawa meddles with pension funds, Albertans should consider provincial pension plan
From the Frontier Centre for Public Policy
Who Should Control Canada’s Pension Wealth?
Ottawa wants to compel large pools of Canadian money to be invested in Canada, instead of allowing investment funds to find the best return for Canadian investors.
Last week, another scandalous and potentially corrupt string of federal activities popped up.
This one has deep implications for pension plans in Canada, including the debate about an Alberta Pension Plan. Mark Carney’s double game of politics and profit enhances the drive to patriate Alberta’s pension wealth.
At issue is a report in the media saying that Brookfield may be looking to raise a $50 billion fund with contributions from Canada’s pension funds and an additional $10 billion from the federal government.
This report has drawn significant attention for several reasons. Toronto-based Brookfield is one of the world’s largest alternative investment management companies, claiming about one trillion in assets under management. Their portfolio spans real estate, renewable energy, infrastructure, and private equity, making them a significant player in domestic and international markets. The magnitude of Brookfield’s investments places them at the forefront of global financial movements, giving considerable weight to any fund they propose to establish.
The second reason is that Finance Minister Chrystia Freeland and Prime Minister Justin Trudeau have voiced their ambitions to boost home-grown investments. One of the government’s strategies includes tapping into Stephen Poloz, the former Governor of the Bank of Canada. Poloz succeeded Mark Carney as the head of the bank. The Liberal government has tasked Poloz with leading a working group to identify “incentives” that would “encourage” institutional investors to keep their capital in Canada.
Moreover, Finance Minister Freeland has suggested implementing new regulations to ensure that more of Canada’s substantial pension fund reserves, which amount to an impressive $1.8 trillion, are allocated toward Canadian ventures. This comes when a staggering 73% of Canadian pension funds are invested abroad.
On its face, a plan to invest more Canadian wealth in Canada might sound reasonable. However, the plan avoids the crucial question of why money experts prefer investing outside Canada. Considering that question, one must consider the Trudeau government’s economic record.
Put differently, Ottawa is looking for ways to compel large pools of Canadian money to be invested in Canada instead of allowing investment funds to find the best return for Canadian investors. Those large cash pools typically belong to hard-working Canadians, such as teachers’ pensions. They would be forced to earn less for their pension money.
Forcing such large sums to remain in Canada would mask the continuous slump in productivity in the Canadian economy.
Given current economic policies and layers of taxation that do not exist elsewhere (such as the unpopular carbon taxes), Canadian companies are less competitive. Forcing pools of money to stay in Canada rather than seeking the best return for their clients offers an artificial boost that makes Ottawa policies seem less harmful.
It is, therefore, a politically motivated move. That level of government intervention historically always results in disastrous consequences. Politics directing traffic for the movement of capital rarely achieves good outcomes. The real issue is sagging productivity.
But that is only half the problem. The other significant issue is ethics.
Prime Minister Trudeau has recently named Mark Carney as his special economic advisor. Carney is the Chair of Asset Management and Head of Transition Investing at Brookfield. The Brookfield website shows Carney is responsible for “developing products for investors.” Carney is also the most mentioned name among people likely to succeed Justin Trudeau as leader of the Liberal Party of Canada.
In short, the man who closely advises the government of Canada on how to compel gargantuan pools of money to be invested in Canada conveniently oversees the development of the “product” for the private Toronto firm, through which that money would be forced to be invested in Canada. Furthermore, the same firm reportedly seeks (read lobbying) from the federal government an infusion of $10 billion for the new fund.
As a Liberal and a potential party leader, given Justin Trudeau’s fortunes, Mark Carney could become prime minister in the immediate future. This means that Carney would benefit from creating new rules forcing investment money to stay in the country in two ways: As a leading man at Brookfield, Carney and the firm stand to make tens of millions from the policy. Second, as a carbon tax enthusiast, once squarely in political office, Carney would benefit from masking the ill, underproductive effects of the radical green agenda and carbon taxes he supports.
When Alberta progressives oppose the desire of many Albertans to patriate Alberta pension funds to the province, they cite concerns that the province might use the funds for political purposes, undermining the maximum return. This is not an outlandish concern, in some respects, given the history of the Alberta Heritage Fund.
However, it is not an exclusive danger inherent to the Alberta government. It does not warrant the presupposition that the federal government is a better steward of Alberta’s pension wealth, as demonstrated by the developments above. All things being equal, and unless human nature is outlawed by federal statute, the risks are the same.
But if something goes wrong with Albertans’ pension wealth, would they rather deal with people in Alberta than people in Ottawa, half a continent away Raising Alberta voices in Ottawa when Ottawa has been bent on doing the opposite of what is good for Albertans has never produced good results or reversed the nefarious effects on Albertans.
Ottawa politicians will do what is best for Laurentians every single time. The history of the Dominion, from the national policy to Crow rates and the National Energy Policy to Carbon Taxes, shows Ottawa policies always favour vote-rich Laurentia first and foremost.
Mark Carney’s product development for Brookfield shows, at worst, that Alberta’s pension wealth is just as much as risk with federal policies driven by political motivations. This one would be doubly bad because it is meant to serve and benefit Carney and his Bay Street friends as much as it is designed to help his future colleagues in Ottawa. And on both counts, Carney would benefit as a financier and politician.
Albertans should take their money and run.
Marco Navarro-Genie is Vice President Research with the Frontier Centre for Public Policy. He is co-author, with Barry Cooper, of COVID-19: The Politics of a Pandemic Moral Panic (2020).
The Canadian Taxpayers Federation is calling on the federal, Ontario and municipal governments to publicly reject subsidizing a new arena for the Ottawa Senators.
“Politicians need to stand up for taxpayers and tell the Ottawa Senators’ lobbyists NO,” said Noah Jarvis, CTF Ontario Director. “Prime Minister Mark Carney, Ontario Premier Doug Ford and Ottawa Mayor Mark Sutcliffe all need to publicly reject giving taxpayers’ money to the owners of the Ottawa Senators.”
The Ottawa Citizen recently reported that “the Ottawa Senators have a team off the ice lobbying federal and provincial governments for funds to help pay the hefty price tag for a new arena.”
The Ottawa Senators said they don’t intend on asking the city of Ottawa for taxpayer dollars. However, the Ottawa Citizen reported that “it’s believed Senators’ owner Michael Andlauer would like a similar structure to the [Calgary] arena deal.” The Calgary arena deal included municipal subsidies.
As of December 2024, the Ottawa Senators were worth just under $1.2 billion, according to Forbes.
Meanwhile, both the federal and Ontario governments are deep in debt. The federal debt will reach $1.35 trillion by the end of the year. The Ontario government is $459 billion in debt. The city of Ottawa is proposing a 3.75 per cent property tax increase in 2026.
“Governments are up to their eyeballs in debt and taxpayers shouldn’t be forced to fund a brand-new fancy arena for a professional sports team,” said Franco Terrazzano, CTF Federal Director. “If the owners of the Ottawa Senators want to build a fancy new arena, then they should be forced to fund it with ticket sales not tax hikes.”
From the Fraser Institute
By Jake Fuss and Grady Munro
The number of Canadians donating to charity—as a percentage of all tax filers—is at the lowest point in 20 years, finds a new study published by the
Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“The holiday season is a time to reflect on charitable giving, and the data shows Canadians are consistently less charitable every year, which means charities face greater challenges to secure resources to help those in need,” said Jake Fuss, director of Fiscal Studies at the Fraser Institute and co-author of Generosity in Canada: The 2025 Generosity Index.
The study finds that the percentage of Canadian tax filers donating to charity during the 2023 tax year—just 16.8 per cent—is the lowest proportion of Canadians donating since at least 2003. Canadians’ generosity peaked at 25.4 per cent of tax-filers donating in 2004, before declining in subsequent years.
Nationally, the total amount donated to charity by Canadian tax filers has also fallen from 0.55 per cent of income in 2013 to 0.52 per cent of income in 2023.
The study finds that Manitoba had the highest percentage of tax filers that donated to charity among the provinces (18.7 per cent) during the 2023 tax year while New Brunswick had the lowest (14.4 per cent).
Likewise, Manitoba also donated the highest percentage of its aggregate income to charity among the provinces (0.71 per cent) while Quebec and Newfoundland and Labrador donated the lowest (both 0.27 per cent).
“A smaller proportion of Canadians are donating to registered charities than what we saw in previous decades, and those who are donating are donating less,” said Fuss.
“This decline in generosity in Canada undoubtedly limits the ability of Canadian charities to improve the quality of life in their communities and beyond,” said Grady Munro, policy analyst and co-author.
Generosity of Canadian provinces and territories
Ranking (2025) % of tax filers who claiming donations Average of all charitable donations % of aggregate income donated
Manitoba 18.7 $2,855 0.71
Ontario 17.2 $2,816 0.58
Quebec 17.1 $1,194 0.27
Alberta 17.0 $3,622 0.68
Prince Edward Island 16.6 $1,936 0.45
Saskatchewan 16.4 $2,597 0.52
British Columbia 15.9 $3,299 0.61
Nova Scotia 15.3 $1,893 0.40
Newfoundland and Labrador 15.0 $1,333 0.27
New Brunswick 14.4 $2,076 0.44
Yukon 14.1 $2,180 0.27
Northwest Territories 10.2 $2,540 0.20
Nunavut 5.1 $2,884 0.15
NOTE: Table based on 2023 tax year, the most recent year of comparable data in Canada
Generosity in Canada: The 2025 Generosity Index
- Manitoba had the highest percentage of tax filers that donated to charity among the provinces (18.7%) during the 2023 tax year while New Brunswick had the lowest (14.4%).
- Manitoba also donated the highest percentage of its aggregate income to charity among the provinces (0.71%) while Quebec and Newfoundland and Labrador donated the lowest (both 0.27%).
- Nationally, the percentage of Canadian tax filers donating to charity has fallen over the last decade from 21.9% in 2013 to 16.8% in 2023.
- The percentage of aggregate income donated to charity by Canadian tax filers has also decreased from 0.55% in 2013 to 0.52% in 2023.
- This decline in generosity in Canada undoubtedly limits the ability of Canadian charities to improve the quality of life in their communities and beyond.
Jake Fuss
Director, Fiscal Studies, Fraser Institute
Grady Munro
Policy Analyst, Fraser Institute
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