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Carney must kick-start private sector to strengthen sputtering economy

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From the Fraser Institute

By Jock Finlayson

Prime Minister Mark Carney talks frequently of making Canada “the strongest economy in the G7.” That promises to be a tall order, which will require—among other things—advancing many more large-scale energy, mining and infrastructure projects in the next one to five years; streamlining Ottawa’s sclerotic project assessment and environmental permitting rules; and responding to recent tax policy changes in the United States, which have left Canada at a significant competitive disadvantage in attracting new business investment.

The challenges confronting Canadian policymakers are daunting. Carney has inherited a sputtering economy crippled by years of weak business investment, zero productivity growth and an increasingly unattractive business climate—and now the new threat of sweeping tariffs, courtesy of our principal trading partner.

During Justin Trudeau’s nine-plus years in power, the two primary motors of economic growth in Canada were an expanding public sector and an immigration-fuelled surge in the population. The first trend saw the federal government and many of the provinces spend and borrow with abandon, producing a near-term economic jolt but also adding to Canada’s mountain of government debt.

The second trend saw Canada post the fastest population growth of any advanced economy from 2016 to 2024, owing to outsized immigration. This also boosted the economy, since every newcomer creates extra demand for goods, services and housing. And many immigrants gain employment, enlarging the country’s workforce. However, Canada’s population growth since 2016 did little to increase prosperity and living standards on a per-person basis.

Now, Canada’s previous engines of economic growth have run out of gas.

While Carney has hinted at even bigger budget deficits than his notably spendthrift predecessor, in reality Canada is about to enter a period of fiscal austerity as governments are compelled—including by bond markets and credit-rating agencies—to rein in spending and tame excessive deficits. It’s hard to imagine that continued increases in the size of government can or will propel a struggling Canadian economy forward in the next few years.

As for population growth, the federal government’s revised immigration plan unveiled last fall aims to sharply reduce inflows of both permanent immigrants and “non-permanent” foreign residents. After a decade of rising immigration, Canada will experience the opposite over the next three years. As a result, the country’s population is poised to stall—and perhaps even slightly decline—after an extended stretch of steady growth. This sudden demographic shift will dampen economic growth, even as the Carney government muses about supercharging Canada’s stagnant economy.

Recent data from Statistics Canada confirms that the effects of Ottawa’s new immigration policy are starting to materialize. The population didn’t grow at all between the fourth quarter of 2024 and the first quarter of this year, reflecting both smaller inflows of new permanent immigrants and a drop in the size of the “non-permanent” resident population, in line with immigration targets announced last year.

With the population no longer increasing and governments under mounting fiscal pressure, the only way to grow the Canadian economy is to kick-start the private sector. That will require a different playbook than the one favoured by the Trudeau government over the last several years. Ottawa should now focus on improving the business environment to encourage companies, entrepreneurs and investors to deploy their capital and talents to build and expand businesses in Canada. Absent that, there’s little chance the prime minister will meet his goal of making Canada the G7’s economic star.

 

Jock Finlayson

Senior Fellow, Fraser Institute

Business

The CBC is an unaccountable expensive BLOB

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By Franco Terrazzano and Kris Sims

Remember the classic sci-fi movie The Blob, and how the blob keeps getting bigger and bigger while oozing over everything, heedless of the screams around it?

That’s what’s happening at the Canadian Broadcasting Corporation.

In 2023, CBC said it was issuing lay-offs and cutting costs.

“CBC/Radio-Canada… will reduce its English and French programming budgets for the next fiscal year and cut about $40 million,” CBC wrote about itself in December 2023.

But its taxpayer costs went up anyway.

The CBC cost taxpayers $1.3 billion in 2022-23.

The CBC cost taxpayers $1.4 billion in 2023-24.

Despite claims it’s shrinking, CBC’s blob is getting bigger.

Documents obtained by the Canadian Taxpayers Federation show the CBC handed out huge pay raises while doing away with bonuses.

Its layers of management have also swollen to monstrous proportions.

The CBC caught heat for handing out bonuses last year. It paid $18.4 million in bonuses, including $3.3 million to 45 executives for 2023-24.

Former CBC CEO Catherine Tait was grilled about the bonuses at committee and on the CBC’s own news program.

The CBC fan group, Friends of Canadian Media, said the bonuses were “deeply out of touch and unbefitting of our national public broadcaster.”

The CBC caved, and did away with the bonuses, earning praising headlines.

Not so fast.

After cancelling bonuses, CBC handed-out record high pay raises of $38 million in 2024-25.

The raises went to 6,295 employees for an average raise of about $6,000 each. No employees received a pay cut, according to records.

These raises are much higher than raises in previous years, as the CBC spent $11.5 million on raises in 2023-24.

The CBC blob is also growing bigger in size.

Currently, 1,831 CBC employees take a six-figure salary, costing taxpayers about $240 million, for an average salary of $131,060 for those employees.

In 2015, 438 CBC employees took home six-figure salaries, costing taxpayers about $60 million.

That’s a 318 per cent increase since 2015.

CBC quadrupling the size of its top payroll blob is scary enough for taxpayers, but the roles these employees play will also raise eyebrows.

There’s a journalist anecdote that says for every reporter working in a regular newsroom, there are about a dozen CBC managers.

Documents obtained by the CTF show that narrative checks out.

The CTF asked the CBC for a list of employees paid more than $100,000 per year.

The list is 65 pages long, depicting offices full of managers and support staff.

CBC has more than 250 directors, 450 managers and 780 producers that are paid more than $100,000 per year.

The CBC also employed 130 advisors, 81 analysts, 120 hosts, 80 project leads, 30 lead architects, 25 supervisors, among other positions, that were paid more than $100,000 last year, according to the access-to-information records. The CBC redacted the roles for more than 200 employees.

Let’s tally the CBC blob’s body count so far.

The state broadcaster is costing taxpayers more than $1.4 billion this year. Its new CEO, Marie-Philippe Bouchard, is paid at the same level as Tait, at about $500,00 per year.

CBC said it would cancel its bonuses, then it jacked up salaries.

The CBC swelled its ranks of highly paid employees by 318 per cent since 2015.

The CBC is blacking out data on documents and refusing to tell Canadians how much it’s spending on advertising.

Plot twist finale: next to nobody is watching the CBC.

CBC News Network’s share of prime-time is 1.8%, meaning 98 per cent of TV-viewing Canadians choose to not watch it.

No CBC entertainment show cracked the top 10 in the latest Canadian ratings.

The Murdoch Mysteries, which isn’t produced by the CBC, has the CBC’s biggest audience with about 734,000 viewers, about 1.7 per cent of the population.

In the movie, The Blob was stopped by freezing it and dropping it in the arctic.

The CBC blob can be stopped from eating taxpayers’ wallets by defunding it.

Franco Terrazzano is the Federal Director and Kris Sims is the Alberta Director of the Canadian Taxpayers Federation
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Business

Carney’s Move to Strip Religious Charities Undermines Canada’s Foundations, Liberal Elder Warns

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By Elbert King Paul

Faith and Freedom Are Constitutional Pillars — Religious Charity Flows From and Sustains Canada’s Foundation

I am a former partner of a national accounting firm and a registered Liberal who has served seven leaders of the Liberal Party, including four prime ministers. I am also a Christian actively involved in not-for-profit entities that “advance religion.”

I strongly oppose the new direction of Prime Minister Mark Carney’s government, as outlined in the House of Commons Standing Committee on Finance report, Pre-Budget Consultations in Advance of the 2025 Budget, which recommends removing “advancement of religion” as a recognized charitable purpose.

Recommendation 430 advises the government “amend the Income Tax Act to provide a definition of a charity which would remove the privileged status of ‘advancement of religion’ as a charitable purpose.”

As the Gospel of Matthew reminds us: “For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink, I was a stranger and you invited me in.”

Regarding economic and social trends in Canada and across the world, it is clear that religious charities matter as much as ever. Feeding the hungry, sheltering the poor, visiting the sick, welcoming strangers — these are not merely spiritual ideals but measurable contributions to Canadian society.

There are four issues that are worthy of investigation related to this proposed recommendation from the Finance Committee.

First, as reported by the Fraser Institute on Dec. 10, 2024, Canadian generosity hit its lowest point in 20 years. Nationally, the percentage of Canadian tax filers donating to charity has fallen over the last decade from 22.4% in 2012 to 17.1% in 2022. The percentage of aggregate income donated to charity by Canadian tax filers has decreased from 0.55% in 2012 to 0.50% in 2022. This decline in generosity in Canada undoubtedly limits the ability of Canadian charities to improve the quality of life in their communities and beyond.

Second, the Evangelical Fellowship of Canada (EFC) is a national association comprised of over 7,000 churches, as well as 32 post-secondary institutions and 86 ministry organizations. On March 10, 2025, the EFC made a submission to the federal Department of Finance noting that religious charities play a significant role within the charitable sector and the life of our country.

The EFC stated that of the 73,000 charitable organizations registered with the Canada Revenue Agency, more than 30,000 fall under the advancement of religion — roughly 42% of the charitable sector. Many religious traditions teach their adherents to care for their neighbours — to reach out in compassionate ways and care for those who are vulnerable.

As an example, Christian, Jewish and Muslim faith leaders stated in a 2016 Interfaith Statement on Palliative Care: “Our traditions instruct that there is meaning and purpose in supporting people at the end of life. Visiting those who are sick and caring for those who are dying are core tenets of our respective faiths and reflect our shared values as Canadians.” Read the EFC’s submission here.

The following table of religious composition in Canada in 2020 (Pew Research Center, June 9, 2025) demonstrates the mosaic of faith communities in Canada:

Christian – 20,350,000
Muslim – 1,870,000
Unaffiliated – 13,220,000
Hindu – 580,000
Buddhist – 660,000
Other religions – 1,140,000
Jews – 350,000
Total – 38,170,000

All major faith communities have expressed their vigorous opposition to the removal of the privileged status of “advancement of religion” as a charitable purpose.

I, along with many Canadians, strongly assert that the proposed amendment to remove the privileged status of “advancement of religion” as a charitable purpose undermines interfaith ministries. We also believe that the proposed recommendation is a politicization of charitable status for those who hold opinions and views that are different from the government.

Third, the preamble to the Constitution Act, 1982, Part 1 states: “Whereas Canada is founded upon principles that recognize the supremacy of God and the rule of law.” It also states that everyone has the freedom of conscience and religion.

After consultation within my professional community, I assert that the proposed amendment to remove the privileged status of “advancement of religion” as a charitable purpose is discriminatory. It fails to recognize Charter rights and the principles underlying the supremacy of God and the rule of law.

Fourth, Prime Minister Mark Carney has described, with perspective and humility, value-based leadership in his book Value(s): Building a Better World for All. He states that value-based leadership includes “perspective” and must “take in the periphery.”

The prime minister references how Pope Francis emphasized that we perceive a situation more accurately when we look at it from the standpoint of those on the edge rather than those in the center: “The state of the economy looks different to the unemployed. The political structure looks different to someone who is powerless, the community to the excluded or the security forces to the persecuted.”

The statement by Prime Minister Carney on the passing of Pope Francis, on April 21, 2025, concluded with the following remark: “Pope Francis leaves a spiritual and ethical legacy that will shape our collective conscience for generations to come. May we honour his memory by continuing to work for a world that reflects the solidarity, justice, and sustainability that he so powerfully embodied.”

In conclusion, the proposed amendment to revoke charitable status based on religious beliefs contravenes the Charter guarantees of freedom of conscience, religion, thought, belief, opinion and expression.

We are reminded of the following biblical saying, as well as the prime minister’s recent call to honour the life and teaching of Pope Francis: “He has shown you, O mortal, what is good. And what does the Lord require of you? To act justly and to love mercy and to walk humbly with your God.”

I urgently request that the government not follow the recommendation of the Finance Committee to remove “advancing religion” as a charitable purpose, but instead to recognize the relevance and benefits of religion to the charitable sector and Canadian public life and values.

In the words of Prime Minister Mark Carney: We need to be “building a better world for all” now.

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