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As Ottawa meddles with pension funds, Albertans should consider

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8 minute read

From the Frontier Centre for Public Policy

By Marco Navarro-Genie 

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).

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Trump: Americans to receive $2,000 each from tariff revenue

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From The Center Square

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President Donald Trump on Sunday said every American with the exception of the wealthy will receive $2,000 from the revenue the U.S. has collected from tariffs.

“A dividend of at least $2000 a person (not including high-income people!) will be paid to revenue,” Trump posted on Truth Social. He did not say when or how the tariff revenue would be distributed.

“We are now the richest, most respected country in the world with almost no inflation and a record stock market price. 401Ks are highest ever,” Trump wrote. “We are taking in trillions of dollars and will soon begin paying down our enormous debt, $37 trillion. Record investment in the USA, plants and factories going up all over the place.”

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families and pay down the national debt. Economists, businesses and some public companies have warned that tariffs will raise prices on a wide range of consumer products.

Trump’s Liberation Day tariffs have been challenged in federal courts as unconstitutional by some business groups and Blue states, who argue that only Congress has the authority to enact tariffs. The U.S. Supreme Court last week heard oral arguments in a consolidated case challenging the tariffs.

Even some of the court’s conservative justices seemed skeptical of Trump’s authority to issue sweeping tariffs. Trump addressed that skepticism in his social media post.

“So let’s get this straight? The president of the United States is allowed (and fully approved by Congress) to stop ALL TRADE  with a foreign country (which is far more onerous than a tariff) and LICENSE a foreign country, but it is not allowed to put a simple tariff on a foreign country, even for the purposes of NATIONAL SECURITY,” he wrote. “That is not what our great founders had in mind. The whole thing is ridiculous! Other countries can tariff us, but we can’t tariff them?  It is their DREAM!!! Businesses are pouring into the USA ONLY BECAUSE OF TARIFFS. HAS THE UNITED STATES SUPREME COURT NOT BEEN TOLD THIS??? WHAT THE HELL IS GOING ON???”

The Center Square’s Brett Rowland contributed to this report. 

Dan McCaleb is the executive editor of The Center Square.

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CBC cashes in on Carney as the news industry playing field tilts further in its favour, crippling the competition

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“Private” sector will find it more difficult to compete. Plus! Outrage over manipulation of Trump speech and the common error of burying balance

These are happy days at the Canadian Broadcasting Corporation.

With the threat of a “defund the CBC” Conservative government fading ever faster in its rearview mirror, the nation’s publicly-funded commercial news and entertainment corporation (aka public broadcaster) is poised to take an even larger share of the market thanks to Prime Minister Mark Carney’s first budget.

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Sure, tens of thousands of public sector employees may be about to lose their jobs, services face cutbacks and the feds might be rewriting collective bargaining rules in their favour. But as we learned Nov. 4, the CBC will – as promised in last spring’s election – get a $150 million top up to the $1.4 billion Parliament already allocates to it. There’s every chance that means it will be an even more aggressive competitor in the news market for viewers, listeners, readers and advertisers. One in three working journalists in the country already work for CBC/Radio Canada. If an 11 percent hike in funding is reflected in newsroom job growth, that number could move closer to 37 per cent.

Federal funding for “private sector” news organizations has remained flat (with the exception of a $12 million boost to a fund introduced as Covid relief). That means the news industry playing field has been tilted even more in the CBC’s favour, making it harder for outlets that are not the CBC to compete or even survive. There will be less opportunity for news innovators and increased private sector job losses will lead to demands for larger subsidies from industry lobby groups such as News Media Canada and the Canadian Association of Broadcasters. Good news for the CBC means bad news for others. This is either a really bad mistake by Carney or, making the CBC even more dominant as a news source (it has the most popular domestic website) is part of his plan.

Further brightening the outlook for journos at the Mother Corp was the news from CBC President Marie-Philippe Bouchard that there’s no need to investigate antisemitism within its ranks and, while its relationship with rural and western Canadians could be better, it’s unlikely the status quo will be disrupted. Editor in Chief Brodie Fenlon confirmed that conclusion by testifying before a Senate committee that the CBC’s newsrooms are the least biased he’s ever worked in.

Yup, life at the Mother Corp’s looking rosier than ever.

Perhaps as an unintended metaphor for CBC’s growth at private media’s expense, Postmedia’s Brian Passifiume illustrated his relative poverty by jocularly complaining about the lack of a free lunch for those within the budget lockup.

Time was when journos would refuse a free lunch from a subject of their coverage. Now they complain publicly about not getting one.


Speaking of the budget, a couple of items caught the eye.

One was the jaw-dropping Tweet by the Hill Times’ Stu Benson noting how journalists were partying post-budget at Ottawa’s trendy Metro Brasserie with government MPs and bigwigs. It, accompanied by photos, stated:

“Hundreds of politicos, journalists, and libatious Liberals joined Finance Minister François-Philippe Champagne for a post-budget victory lap at the @MetroBrasserie_ on Nov. 4 at @EarnscliffeCda X @politicoottawa’s”

In response, Twitter sage Norman Spector shared Benson’s post and wrote:

“How it works in Ottawa: Politicos, journalists and Liberals at a post-budget victory lap – a shindig co-sponsored by a lobbying firm.”

And media wonder why so many no longer have faith in them?

The other item involved what is termed an “advance” story posted by the CBC. The problem wasn’t that the story failed to contain all the key elements and expected perspectives. It did. The problem was that none of those were introduced at all until the 10th paragraph and you have to go another 28 paragraphs or so before the Conservatives, Bloc and NDP are even mentioned, making the piece read like a government news release. This is a common error in newsrooms where staff should know by now that most people consume news by reading a headline and – give or take – the top six paragraphs before moving on.

So, unless reporters introduce balance within the first three paragraphs, most people will be unaware that alternative views exist.

CBC is hardly alone in making this error, although its dominance in the market enhances its impact.


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During my spells in Ottawa – briefly within the Parliamentary Press Gallery and longer at the CRTC – I was struck by how little so many reporters working there know about how government and its institutions actually work.

Most, in my recollection, cover only the drama, intrigue and theatre of politics. For too many, the daily routine consists of scanning news releases, phoning their contacts and watching Question Period on CPAC before venturing (maybe) across Wellington Street (is it still called that?) for a scrum or two.

What most don’t bother with at all are some of the most important aspects of the machinery of government such as the work of committees, the regulations that follow passage of legislation or, as Blacklock’s Reporter Publisher Holly Doan pointed out last week, the estimates that follow a budget.

These are important matters and the lack of coverage by subsidized media leaves the public ill-informed. For instance, as the Liberals move to buy off opposition MPs to form a majority government people did not vote for, they will also be able to claim control over committees.

So, as the nation morphs inexorably into a permanent one-party state, the absence of coverage in these areas will be increasingly evident. If you want to be a fully informed citizen, find a news outlet that covers these important matters and subscribe.

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A little more than a year ago, people were being fired at CTV for manipulating quotes from Conservative leader Pierre Poilievre.

That practice delivered an even more devastating impact on public trust in journalism when it was revealed that the BBC program Panorama had blended two phrases from US President Donald Trump. As The Standard reported:

In a clip from a Panorama programme, broadcast before the election, Trump appears to tell supporters: “We’re going to walk down to the Capitol…and I’ll be there with you. And we fight, we fight like hell.

“But the words were taken from different sections of his speech, nearly an hour apart. In the original footage, his language is more restrained: “We’re going to cheer on our brave senators and congressmen and women,” adding his supporters will march “peacefully and patriotically” to make their voices heard.”

Opposition MPs are demanding an inquiry. In this clip, GB News takes no prisoners. Reports Saturday indicate the chair of the BBC would be officially apologizing.


Michael Geist is not a journalist. He’s a law professor and internet expert. And his coverage of the budget – in a Substack note – was a fabulous example of the importance of a free and open internet as a source of valuable information about important matters overlooked by mainstream media. He said:

“Canadian government departments are big believers that AI will be the source of reducing expenses. Finance, Justice, CRTC, Fisheries, CRA, ESDC all cite new efficiencies from AI to explain how they will meet the 15% spending reduction target in the budget.”

And, as I wrote in The Line a couple of months back:

“Two years ago, the Liberals were hoping to claim they’d saved legacy media from Big Tech. All they really did was stake it for AI to devour.”

But you won’t read that in legacy media. Just here. Tell your friends.

Oh and one last treat for those of you who enjoy a snappy front page:


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(Peter Menzies is a commentator and consultant on media, Macdonald-Laurier Institute Senior Fellow, a past publisher of the Calgary Herald, a former vice chair of the CRTC and a National Newspaper Award winner.)

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