Business
Federal government should stay in its lane
From the Fraser Institute
By Jason Clemens and Jake Fuss
There’s been more talk this year than normal about the need for governments, particularly Ottawa, to “stay in their own lane.” But what does this actually mean when it comes to the practical taxing, spending and regulating done by provincial and federal governments?
The rules of the road, so to speak, are laid out in sections 91 and 92 of the Canadian Constitution. As noted economist Jack Mintz recently explained, the federal government was allocated responsibility for areas of national priority such as defence and foreign relations, criminal law, and national industries such as transportation, communication and financial institutions. The provinces, on the other hand, were allotted responsibilities deemed to be closer to the people such as health care, education, social services and municipalities.
Simply put, the principle of staying in one’s lane means the federal and provincial governments respect one another’s areas of responsibility and work collaboratively when there are joint interests and/or overlapping responsibilities such as environmental issues.
The experience of the mid-1990s through to roughly 2015 shows the tangible benefits of having each level of government focus on their areas of responsibility. Recall that the Liberal Chrétien government fundamentally removed itself from several areas of provincial jurisdiction, particularly welfare and social services, in its historic 1995 budget.
But the election of the Trudeau government in 2015 represented a marked change in approach. The tax and spending policies of the Trudeau government, which broke a 20-year consensus, favoured ever-increasing spending, higher taxes and much higher levels of borrowing. Federal spending (excluding interest payments on debt) has increased from $273.6 billion in 2015-16 when Trudeau first took office to an expected $483.6 billion this year, an increase of 76.7 per cent.
Federal taxes on most Canadians, including the middle class, have also increased despite the Trudeau government promising lower taxes. And despite the tax increases, borrowing has also increased. Consequently, the national debt has ballooned from $1.1 trillion when Trudeau took office to an estimated $2.1 trillion this year.
Despite these massive spending increases, there are serious questions about core areas of federal responsibility. Consider, for example, the major problems with Canada’s defence spending.
Canada has been called out by both NATO officials and our counterparts within NATO for failing to meet our commitments. As a NATO country, Canada is committed to spend 2 per cent of the value of our economy (GDP) annually on defence. The latest estimate is that Canada will spend 1.4 per cent of GDP on defence and we’re the only country without a plan to reach the target by 2030. The Parliamentary Budget Officer recently estimated that to reach our NATO commitment, defence spending would have to increase by $21.3 billion in 2029-30, which given the state of federal finances would entail much higher borrowing and/or higher taxes.
So, while the Trudeau government has increased federal spending markedly, it has not spent those funds on core areas of federal responsibility. Instead, Trudeau’s Ottawa has increasingly involved itself in provincial areas of responsibility. Consider three new national initiatives that are all squarely provincial areas of responsibility: pharmacare, $10-a-day daycare and dental care.
And the amounts involved in these programs are not incidental. In Budget 2021, the Trudeau government announced $27.2 billion over five years for the new $10-a-day daycare initiative, Budget 2023 committed $13.0 billion for the dental benefit over five years, and Budget 2024 included a first step towards national pharmacare with spending of $1.5 billion over five years to cover most contraceptives and some diabetes medications.
So, while the Trudeau government has deprioritized core areas of federal responsibility such as defence, it has increasingly intruded on areas of provincial responsibility.
Canada works best when provincial and federal governments recognize and adhere to their roles within Confederation as was more the norm for more than two decades. The Trudeau government’s intrusion into provincial jurisdiction has increased tensions with the provinces, likely created unsustainable new programs that will ultimately put enormous financial pressure on the provinces, and led to a less well-functioning federal government. Staying in one’s lane makes sense for both driving and political governance.
Authors:
Bruce Dowbiggin
Integration Or Indignation: Whose Strategy Worked Best Against Trump?
““He knows nothing; and he thinks he knows everything. That points clearly to a political career.” George Bernard Shaw
In the days immediately following Donald Trump’s rude intervention into the 2025 Canadian federal election— suggesting Canada might best choose American statehood— two schools of thought emerged.
The first and most impactful school in the short term was the fainting-goat response of Canadian’s elites. Sensing an opening in which to erode Pierre Poilievre’s massive lead in the 2024 polls over Justin Trudeau, the Laurentian elite concocted Elbows Up, a self-pity response long on hurt feelings and short on addressing the issues Trump had cited in his trashing of the Canadian nation state.
In short order they fired Trudeau into oblivion, imported career banker Mark Carney as their new leader in a sham convention and convinced Canada’s Boomers that Trump had the tanks ready to go into Saskatchewan at a moment’s notice. The Elbows Up meme— citing Gordie Howe— clinched the group pout.

(In fact, Trump has said that America is the world’s greatest market, and if those who’ve used it for free in the past [Canada] want to keep special access they need to pay tariffs to the U.S. or drop protectionist charges on dairy and more against the U.S.)
The ruse worked out better than they could have ever imagined with Trump even saying he preferred to negotiate with Carney over Poilievre. In short order the Tories were shoved aside, the NDP kneecapped and the pet media anointed Carney the genius skewing Canada away from its largest trade partner to the Eurosphere. We remain in that bubble, although the fulsome promises of Carney’s first days are now coming due.
Which brings us to the second reaction. That was Alberta premier Danielle Smith bolting to Mar A Lago in the days following Trump’s comments. Her goal was to put pride aside and accept that a new world order was in play for Canada. She met with U.S. officials and, briefly, with Trump to remind them that Canada’s energy industry was integral to American prosperity and Canadian stability.
Needless to say, the fainting goats pitched a fit that not everyone was clutching pearls and rending garments in the wake of Trump’s dismissive assessment of his northern neighbours. Their solution to Trump was to join China in retaliatory tariffs— the only two nations to do so— and to boycott American products and travel. Like the ascetic monks they cut themselves off from real life. Trump has yet to get back to Carney the Magnificent

And Smith? She was a “traitor” or a “subversive” who should be keel hauled in the North Saskatchewan. For much of the intervening months she has been attacked at home in Alberta by the N-Deeps and in Ottawa by just about everyone on CBC, CTV, Global and the Globe & Mail. “How could she meet with the Cheeto?”
Nonetheless conservatives in the province moved toward a more independence within Canada. Smith articulated her demands for Alberta to prevent a referendum on whether to remain within Confederation. At the top of her list were pipelines and access to tidewater. Ergo, a no-go for BC’s squish premier David Eby who is the process of handing over his province to First Nations.
It became obvious that for all of Carney’s alleged diplomacy in Europe and Asia (is the man ever home?) he had a brewing disaster in the West with Alberta and Saskatchewan growing restless. In a striking move against the status quo, Nutrien announced it would ship its potash to tidewater via the U.S., thereby bypassing Vancouver’s strike-prone, outdated port and denying them billions.

Suddenly, Smith’s business approach began making eminent good sense if the goal is to keep Canada as one. So we saw last week’s “memorandum of understanding” between Alberta and Ottawa trading off carbon capture and carbon taxes for potential pipelines to tidewater on the B.C. coast. A little bit of something for everyone and a surrender on other things.
The most amazing feature of the Mark Carney/Danielle Smith MOU is that both politicians probably need the deal to fail. Carney can tell fossil-fuel enemy Quebec that he tried to reason with Smith, and Smith can say she tried to meet the federalists halfway. Failure suits their larger purposes. Which is for Carney to fold Canada into Euro climate insanity and Smith into a strong leverage against the pro-Canada petitioners in her province.
Soon enough, at the AFN Special Chiefs Assembly, FN Chief Cindy Woodhouse Nepinak told Carney that “Turtle Island” (the FN term for North America popularized by white hippy poet Gary Snyder) belongs to the FN people “from coast to coast to coast.” The pusillanimous Eby quickly piped up about tanker bans and the sanctity of B.C. waters etc.
Others pointed out the massive flaw in a plan to attract private interests to build a vital bitumen pipeline if the tankers it fills are not allowed to sail through the Dixon Entrance to get to Asia.
But then Eby got Nutrien’s message that his power-sharing with the indigenous might cause other provinces to bypass B.C. (imagine California telling Texas it can’t ship through its ports over moral objections to a product). He’s now saying he’s open to pipelines but not to lift the tanker ban along the coast. Whatever.
Meanwhile the kookaburras of isolation back east continue with virtue signalling on American booze— N.S. to sell off its remains stocks — while dreaming that Trump’s departure will lead to the good-old days of reliance on America’s generosity.
But Smith looks to be wining the race. B.C.’s population shrank 0.04 percent in the second quarter of 2025, the only jurisdiction in Canada to do so. Meanwhile, Alberta is heading toward five million people, with interprovincial migrants making up 21 percent of its growth.
But what did you expect from the Carney/ Eby Tantrum Tandem? They keep selling fear in place of GDP. As GBS observed, “You have learnt something. That always feels at first as if you have lost something.”
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, his new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.
Business
Carney’s Toronto cabinet meetings cost $530,000
By Jen Hodgson
Prime Minister Mark Carney’s two-day cabinet meeting in Toronto cost taxpayers more than $532,000, records reviewed by the Canadian Taxpayers Federation show. Carney’s cabinet meetings cost thousands of dollars more than recent cabinet retreats hosted by former prime minister Justin Trudeau.
“If you’re spending thousands of dollars more than Trudeau on meetings, you’re spending too much money,” said Franco Terrazzano, CTF Federal Director. “It’s going to be hard for politicians to explain to taxpayers why all of the meeting rooms in Ottawa weren’t good enough.”
Carney’s two-day cabinet meeting was held at the Pan Pacific Toronto in September, according to government records submitted in response to an Order Paper Question. Pan Pacific’s website describes itself as a “luxury hotel.”
The Privy Council Office spent $250,400 on the venue and “hospitality,” $78,700 for audiovisual services, $40,000 for security and $8,073 on shipping. The PCO spent another $38,300 on accommodation, meals and transportation.
The total bill to taxpayers may balloon higher. The PCO noted costs only include expenditures processed as of Sept. 23. “Certain associated travel claims and invoices may still be awaiting submission or receipt,” wrote the PCO.
The Royal Canadian Mounted Police spent $29,000 on the cabinet meeting. That only includes expenditures processed as of Sept. 17.
The Translation Bureau charged taxpayers $30,600 for travel expenses, travel time and interpretation services.
Other departments also spent $57,400 for the cabinet meeting. Most of that was for transportation, but some ministers charged taxpayers for meals and accommodation for themselves and their staff.
Carney’s Toronto cabinet meeting cost more than recent cabinet meetings hosted by Trudeau.
Trudeau’s cabinet retreat to Charlottetown, P.E.I., in August 2023, cost taxpayers $485,196. Even after adjusting for inflation, Trudeau’s cabinet retreat cost about $26,000 less than Carney’s.
The Trudeau government also held a cabinet meeting in Vancouver in 2022. It cost taxpayers $471,070. Even after adjusting for inflation, Trudeau’s cabinet retreat cost about $25,000 less than Carney’s.
“Carney told Canadians he was going to cut waste and he should start by not dropping half a million bucks on meetings,” Terrazzano said. “We need a culture change in Ottawa and that needs to start with the prime minister and ministers respecting taxpayers’ hard-earned money.”
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