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Federal government could save $10.7 billion by eliminating eight spending initiatives

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From the Fraser Institute

By Jake Fuss and Grady Munro

During its tenure, the Trudeau government rejected any semblance of spending restraint and increased spending (and borrowing) at every turn. However, due to the rising cost of deficits and debt, coupled with pressures to increase spending in neglected areas such as defence, the next federal government—whoever that may be—may finally be forced to find savings and reduce spending.

But where to look?

The government should immediately review all spending on the basis of efficiency, value for money, and the appropriate role of government—similar to the spending review initiated by the federal Chrétien government during the 1990s. Here are some line items ripe for the cutting board.

Spending Area Projected Spending in 2024/25
Regional Development Agencies $1.5 billion
Government Supports for Journalism $1.7 billion
Incentives for Zero-Emission Vehicles $0.6 billion
2 Billion Trees $0.3 billion
Canada Infrastructure Bank $3.5 billion
Strategic Innovation Fund $2.4 billion
Global Innovation Clusters $0.2 billion
Green Municipal Fund $0.5 billion
Total Potential Savings $10.7 billion

Regional Development Agencies: The federal government operates seven Regional Development Agencies (RDAs), which deliver financial assistance (a.k.a. corporate welfare) to businesses. Despite spending an estimated $1.5 billion in federal taxpayer money in 2024/25, the RDAs do not provide any widespread economic benefits to Canadians. Instead, they simply redistribute those dollars to private firms and pick winners and losers in the free market. When reporting on the results, the government offers vague platitudes such as “businesses are growing” and “communities are developing economically.”

Government Money for Journalism: In 2024/25 the federal government spent an estimated $1.7 billion to support Canadian journalism including the operating costs (e.g. wages) of newspapers and broadcast outlets such as the CBC. Despite these efforts, and the considerable price tag, hundreds of news organizations have closed since 2020 and layoffs have persisted—largely due to the disruptive effects of the Internet. Simply put, the traditional media sector is in decline, and the government’s costly attempts to reverse this trend have been ineffective.

Federal Support for Electric Vehicle Purchases: As part of its push to reduce emissions, the federal government will spend an estimated $587.6 million to subsidize electric vehicle (EV) purchases in 2024/25. This spending is inefficient and wasteful. EV incentives are expensive—costing a minimum of $177 per tonne of greenhouse gas (GHG) emissions, whereas the federal carbon tax in 2024 was much cheaper at $80 per tonne of GHG emissions.

The 2 Billion Trees (2BT) Program: Ottawa has earmarked $3.2 billion for the program from 2021 to 2031, with expenses in 2024-25 alone estimated at $340 million. While laudable in theory, the program has been poorly executed. In its first two years, the federal government spent roughly 15.0 per cent of the total budget to plant merely 2.3 per cent of the two billion trees. In fact, the 2BT program has used trees planted under a different program to artificially boost its numbers.

Canada Infrastructure Bank (CIB): Established in 2017, the CIB is a federal Crown corporation tasked with investing and attracting investment in Canadian infrastructure projects. Over its more than seven-year lifespan, the CIB has approved approximately $13.2 billion in investments across 76 projects (as of July 2024). In 2024/25, federal CIB funding will equal $3.5 billion. Though multiple problems plague the CIB, chief among them is its inefficiency in advancing projects. As of July 2024, only two CIB-funded projects had been completed. This lack of progress was a chief concern in a previous House of Commons committee report that made the sole recommendation to abolish the CIB.

Strategic Innovation Fund (SIF): With federal grants and contributions, the SIF funds projects based on their purported potential to deliver innovation and economic benefits for Canadians. While Canada certainly suffers from a lack of innovation, this spending (to the tune of $2.4 billion in 2024/25) simply shifts jobs and investment dollars away from other firms and industries—with no net benefit for the overall economy. Similarly, increased government spending on innovation may simply crowd out private-sector investment, leading to no net increase in innovation investment.

Global Innovation Clusters (GIC): The federal government launched the GIC program, like the SIF, to address the lack of innovation in Canada. The government expects to disperse $202.3 million through the GIC in 2024/25 alone, targeting the five “clusters” of business activity the government chose in 2018. But again, because the clusters represent specific industries and technologies (e.g. artificial intelligence, marine technologies, manufacturing), the federal government is incentivizing firms to spend time and resources modifying their businesses to secure grant rather than focusing on the development of new/improved goods and services.

Green Municipal Fund (GMF): The GMF spends federal tax dollars on municipal projects that purportedly accelerate the transition to net-zero greenhouse gas (GHG) emissions. In 2024/25, the federal government will contribute $530 million to the fund. While the fund maintains emissions-reduction targets for projects, several projects approved for funding will not reduce GHG emissions in any measurable way—for example, “climate-friendly” home tours and funding for climate advocacy groups in Ottawa. In other words, the GMF is spending taxpayer dollars on projects that make no apparent progress towards the GMF’s stated goal.

In total, these eight spending initiatives add up to approximately $10.7 billion in potential savings for the 2024-25 fiscal year alone. And remember, these are just the low-hanging fruit. The next federal government can find further savings through a more comprehensive review of all spending.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute

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Artificial Intelligence

Google denies scanning users’ email and attachments with its AI software

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From LifeSiteNews

By Charles Richards

Google claims that multiple media reports are misleading and that nothing has changed with its service.

Tech giant Google is claiming that reports earlier this week released by multiple major media outlets are false and that it is not using emails and attachments to emails for its new Gemini AI software.

Fox News, Breitbart, and other outlets published stories this week instructing readers on how to “stop Google AI from scanning your Gmail.”

“Google shared a new update on Nov. 5, confirming that Gemini Deep Research can now use context from your Gmail, Drive and Chat,” Fox reported. “This allows the AI to pull information from your messages, attachments and stored files to support your research.”

Breitbart likewise said that “Google has quietly started accessing Gmail users’ private emails and attachments to train its AI models, requiring manual opt-out to avoid participation.”

Breitbart pointed to a press release issued by Malwarebytes that said the company made the changed without users knowing.

After the backlash, Google issued a response.

“These reports are misleading – we have not changed anyone’s settings. Gmail Smart Features have existed for many years, and we do not use your Gmail content for training our Gemini AI model. Lastly, we are always transparent and clear if we make changes to our terms of service and policies,” a company spokesman told ZDNET reporter Lance Whitney.

Malwarebytes has since updated its blog post to now say they “contributed to a perfect storm of misunderstanding” in their initial reporting, adding that their claim “doesn’t appear to be” true.

But the blog has also admitted that Google “does scan email content to power its own ‘smart features,’ such as spam filtering, categorization, and writing suggestions. But this is part of how Gmail normally works and isn’t the same as training Google’s generative AI models.”

“I think the most alarming thing that we saw was the regular organized stream of communication between the FBI, the Department of Homeland Security, and the largest tech companies in the country,” journalist Matt Taibbi told the U.S. Congress in December 2023 during a hearing focused on how Twitter was working hand in glove with the agency to censor users and feed the government information.

If you use Google and would like to turn off your “smart features,” click here to visit the Malwarebytes blog to be guided through the process with images. Otherwise, you can follow these five steps courtesy of Unilad Tech.

  • Open Gmail on Desktop and press the cog icon in the top right to open the settings
  • Select the ‘Smart Features’ setting in the ‘General’ section
  • Turn off the ‘Turn on smart features in Gmail, Chat, and Meet’
  • Find the Google Workplace smart features section and opt to manage the smart feature settings
  • Switch off ‘Smart features in Google Workspace’ and ‘Smart features in other Google products’

On November 11, a class action lawsuit was filed against Google in the U.S. District Court for the Northern District of California. The case alleges that Google violated the state’s Invasion of Privacy Act by discreetly activating Gemini AI to scan Gmail, Google Chat, and Google Meet messages in October 2025 without notifying users or seeking their consent.

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Business

Is affirming existing, approved projects truly the best we can do in Canada?

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From Resource Works

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For major projects, what is old is new again

Prime Minister Mark Carney’s second wave of “nation-building projects” sounds transformative: six new energy and mining proposals, plus a northern corridor, added to the first tranche unveiled in September, and included in the freshly passed federal budget for the fiscal year.

Together, Ottawa says, they amount to more than $116 billion in investment and are central to “realizing Canada’s full potential as an energy superpower.” That is the pitch in the federal news release.

Look closely, though, and a different picture emerges. For major projects, what is old is new again. Almost every file now being “fast-tracked” was already on the books, sometimes for a decade or more.

The new referrals to the Major Projects Office (MPO) are all familiar: the Nisga’a-led Ksi Lisims LNG terminal on B.C.’s north coast; BC Hydro’s North Coast Transmission Line; Canada Nickel’s Crawford project near Timmins; Nouveau Monde Graphite’s Matawinie mine north of Montréal; Northcliff’s Sisson tungsten project in New Brunswick; and the Inuit-owned Iqaluit Nukkiksautiit hydro project in Nunavut. The “Northwest Critical Conservation Corridor” in B.C. and the Yukon is added as a long-range concept.

Long timelines and longstanding obstacles

None of these is a fresh idea. As the Globe and Mail notes in a project-by-project rundown, Ksi Lisims has been in development for years and already faces two Federal Court challenges from nearby First Nations and opposition from Wet’suwet’en hereditary leaders who fought Coastal GasLink. The North Coast Transmission Line was identified in 2023, with B.C. legislation to fast-track it and term-sheet co-ownership deals with First Nations already in place. The Sisson mine has been stalled at the pre-construction stage for more than a decade, despite earlier approvals and new public money to update its feasibility study.

Iqaluit hydro is hardly a novelty either. As Globe reporting shows, dam concepts near the city have been studied since the mid-2000s, with the current Inuit-owned proposal building on that earlier work and backed by federal engineering funds. The Crawford nickel project was acquired in 2019 and has spent years lining up investors and a complex financing stack, documented in both CBC and Financial Post coverage. Matawinie received its Quebec authorization in 2021, has an impact-benefit agreement with the local Atikamekw Nation and now enjoys federal price-floor guarantees on graphite.

The first tranche, announced in September, follows the same pattern. LNG Canada Phase 2 in Kitimat, new nuclear at Darlington, Contrecoeur container capacity at the Port of Montréal, McIlvenna Bay in Saskatchewan and the Red Chris expansion in B.C. were all in various stages of planning long before Carney entered office. The MPO is not inventing a new project pipeline; it is trying to accelerate the one Ottawa already had.

Acceleration is the point — and industry welcomes it

Acceleration is, to be fair, the point. The Calgary-based MPO, led by former Trans Mountain head Dawn Farrell, is designed to run permits in parallel, not one after another, and to coordinate financing through bodies like the Canada Infrastructure Bank and Canada Growth Fund. Farrell told CBC that work which might have taken “five or six more years” could be cut to roughly two. In a country where large projects regularly die of regulatory exhaustion, that is significant.

Industry likes the signal. Canada Nickel CEO Mark Selby says MPO referral “puts us in the fast lane,” even without the more controversial “national interest” label in Bill C-5 that would allow cabinet to set aside parts of the Fisheries Act, Species at Risk Act or Impact Assessment Act. Inuit proponents of the Iqaluit project welcome Carney’s description of their hydro plan as a breakthrough for Arctic sovereignty, replacing millions of litres of diesel.

But a superpower strategy this is not

Still, if this is what becoming an “energy superpower” looks like, it is a modest start.

Notably absent from Carney’s list is any new oil pipeline. Alberta Premier Danielle Smith has spent months pushing a concept for a bitumen pipeline from the oil sands to the northern B.C. coast, doing provincial groundwork in the hope a private proponent will one day take it over. A BBC report sets out the feud with B.C. Premier David Eby, who dismisses the idea as “fictional” and “political” and insists no company wants it, accusing Smith of jeopardizing B.C.’s LNG ambitions. Smith has called that stance “un-Canadian.”

Western frustration is growing. In the National Post, Whitecap Resources chief executive Grant Fagerheim warns of “fury from Alberta and Saskatchewan” if a pipeline to tidewater is never prioritized and argues producers are tired of a U.S.-dominated system where Canadian barrels sell at a discount while others capture the margins. He favours an energy corridor carrying oil, gas, power and rail, not just more rhetoric about nation-building.

Northern ambitions lag behind rhetoric

Another gap is the North. The Indigenous-led Arctic Gateway partnership, Manitoba and Ottawa are already spending heavily on the Hudson Bay Railway and planning new storage and loading systems to expand the Port of Churchill for grain, potash, critical minerals and Arctic resupply. Carney talks up a “huge host of opportunities” in northern Manitoba, but Churchill sits only on the MPO’s lower-profile “transformative strategies” list, with a full plan now pushed out to 2026.

Meanwhile, the one project that has fundamentally shifted Canada’s oil export position is the long-delayed Trans Mountain expansion. As Resource Works points out, TMX now sends diluted bitumen from Burnaby to Asia, shrinking the old “captive discount” and giving Canada genuine leverage in global markets. But TMX predates Carney’s government by more than a decade and only exists because Ottawa nationalized a struggling private pipeline to get it built.

Evolution, not revolution

Carney’s major-projects push is real, and for the companies involved, the prospect of faster permits and clearer federal backing is very good news. Yet for a government that talks about mobilizing a trillion dollars and remaking Canada as an energy superpower, the current list is evolutionary rather than revolutionary. For now, Ottawa is mostly trying to build what was already on the drawing board. The tougher choices on pipelines, ports and interprovincial trade still lie in front of it.

Headline photo credit to THE CANADIAN PRESS/Adrian Wyld

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