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Federal government should cut red tape to spur economic growth

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From the Fraser Institute

By Julio Mejía and Elmira Aliakbari

As Parliament resumes, Prime Minister Mark Carney should recognize a simple fact—Canada has a regulation problem, which discourages business investment and stifles economic growth. And if we don’t solve the problem, we risk falling further behind the United States.

Since his re-election in November, President Donald Trump has vowed to cut “job-killing” red tape, promised to eliminate 10 regulations for each new regulation, and directed federal agencies to halt the enforcement of burdensome and potentially unlawful regulations. To amplify these efforts, the Department of Government Efficiency (DOGE) launched a website tracking the regulatory complexity across government agencies in Washington.

Meanwhile in Canada, Canada’s regulatory burden is growing. CFIB estimates that in 2024 businesses spent 735 hours on regulatory compliance—58 hours more than in 2020. Meanwhile, the annual cost of dealing with regulations jumped from $45.4 billion in 2020 to $51.5 billion in 2024 (inflation-adjusted).

This growing regulatory burden isn’t just costly—it also creates uncertainty, erodes productivity by forcing business to spend time and resources navigating the bureaucracy, and ultimately deters investment.

Not surprisingly, business investment in Canada—measured on a per-worker basis—has plummeted by 33 per cent, from $18,600 in 2014 to about 14,000 in 2024 (inflation-adjusted). Moreover, according to renowned economist Jack Mintz, from “2016 through 2022 close to $225 billion in capital was lost as more direct investment left the country than came here.”

Even before Trump’s deregulatory campaign, the 2024 OECD Regulatory Restrictiveness Index ranked Canada as the most restrictive country for foreign investment in both the G7 and North America—behind the United States and Mexico—due to regulatory barriers in sectors such as telecommunications, agriculture, mining and finance.

Red tape is also hurting investment in Canada’s energy sector, our main source of exports. According to the latest survey of oil and gas investors, 68 per cent of respondents said uncertainty about environmental regulations deters investment in Canada’s oil and gas sector compared to 41 per cent in the U.S. And 54 per cent said Canada’s regulatory duplication and inconsistencies deter investment compared to only 34 per cent for the U.S. (This survey was also conducted before Trump’s regulatory rollbacks.) Investment is key to increasing incomes and improving living standards; it provides workers with the tools and technology to produce more and better goods and services. Less investment also means less money to develop new projects, infrastructure and technologies, and consequently fewer jobs and less economic opportunity for Canadians across the country.

While Parliament was off for months, the Trump administration was busy cutting red tape to create a more welcoming investment climate. Now, the new Carney government should adopt its own reform agenda to reduce regulations and spur economic growth, for the benefit of Canadian workers and their families.

Julio Mejia

Julio Mejía

Policy Analyst
Elmira Aliakbari

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute

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Conservative MPs denounce Liberal plan to strip charitable status of pro-life, Christian groups

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From LifeSiteNews

By Clare Marie Merkowsky

Conservative MPs presented a petition in Parliament defending pro-life charities and religious organizations against a Liberal proposal to strip their charitable tax status.

Conservative MPs presented a petition calling for the rejection of the Liberals’ plan to strip pro-life charities and places of worship of their charitable status.

During the September 16 session, Conservative Members of Parliament (MPs) Andrew Lawton, Jacob Mantle, and Garnett Genuis defended pro-life charities and places of worship against Liberal recommendations to remove the institutions’ charitable status for tax purposes.

“I have received from houses of worship across this country so much concern, reflected in this petition, that these recommendations are fundamentally anti-free speech and anti-religious freedom,” Lawton told Parliament. “The petitioners, and I on their behalf, advocate for the complete protection of charitable status regardless of these ideological litmus tests.”

Similarly, Mantle, a newly elected MP, added that Canadians “lament that some members opposite are so blinded by their animus towards charitable organizations that they would seek to undermine the good works that these groups do for the most vulnerable Canadians.”

Finally, Genuis, who officially presented the petition signed by hundreds of Canadians, stressed the importance work accomplished by religious and pro-life organizations.

“(R)eligious charities in Canada provide vital services for society, including food banks, care for seniors, newcomer support, youth programs and mental health outreach, all of which is rooted in their faith tradition, and that singling out or excluding faith charities from the charitable sector based on religious belief undermines the diversity and pluralism foundational to Canadian society,” he explained.

As LifeSiteNews previously reported, before last Christmas, a proposal by the all-party Finance Committee suggested legislation that could strip pro-life pregnancy centers and religious groups of their charitable status.

The legislation would amend the Income Tax Act and Income Tax. Section 429 of the proposed legislation recommends the government “no longer provide charitable status to anti-abortion organizations.”

Similarly, Recommendation 430 aims to “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.”

Many Canadians have warned that the proposed legislation would wipe out thousands of Christian churches and charities across Canada.

As LifeSiteNews reported in March, the Canadian Conference of Catholic Bishops (CCCB) appealed to the Liberal government to rethink the plan to strip pro-life and religious groups of their tax charity status, stressing the vital work done by those organizations.

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The Real Reason Tuition Keeps Going Up at Canada’s Universities

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By Jonathan Barazzutti

Since 2020, steep increases to tuition fees have triggered large-scale protests by the students who pay those fees at the University of Alberta, University of Calgary, University of British Columbia and at McGill University and Concordia University in Quebec, among many other schools. (A freeze on tuition fees in Ontario since 2019 explains that province’s absence from the list.)

It’s true that tuition has been on the rise. According to Statistics Canada , between 2006-2007 and 2024-2025, the average undergraduate full-year tuition fee at a Canadian university grew from approximately $4,900 to $7,360.

But do the students really know what’s behind the increases?

University administrators looking to deflect responsibility like to blame provincial government cutbacks to post-secondary funding. Here, the evidence is unconvincing. Going back two decades, nationwide full-time equivalent (FTE) student transfer payments from provincial governments have remained essentially constant, after accounting for inflation. While government grants have remained flat, tuition fees are up.

The issue, then, is where all this extra money is going – and whether it benefits students. Last year researcher and consultant Alex Usher took a close look at the budgeting preferences of universities on a nationwide basis. He found that between 2016-2017 and 2021-2022 the spending category of “Administration” – which comprises the non-teaching, bureaucratic operations of a university – grew by 15 percent. Curiously enough “Instruction,” the component of a university that most people would consider to be its core function, was among the slowest growing categories, at a mere 3 percent. This top-heavy tendency for universities is widely known as “administrative bloat”.

Administrative bloat has been a problem at Canadian universities for decades and the topic of much debate on campus. In 2001, for example, the average top-tier university in Canada spent $44 million (in 2019 dollars) on central administration. By 2019 this had more than doubled to $93 million, supporting Usher’s shorter-term observations. Usher calculated that the size of the non-academic cohort at universities has increased by between 85 percent and 170 percent over the past 20 years.

While some level of administration is obviously necessary to operate any post-secondary institution, the current scale and role of campus bureaucracies is fundamentally different from the experience of past decades. The ranks of university administration used to be filled largely with tenured professors who would return to teaching after a few terms of service. Today, the administrative ranks are largely comprised of a professional cadre of bureaucrats. (They are higher paid too; teaching faculty are currently paid about 10 percent less than non-academic personnel.)

This ever-larger administrative state is increasingly displacing the university’s core academic function. As law professor Todd Zywicki notes, “Even as the army of bureaucrats has grown like kudzu over traditional ivy walls, full-time faculty are increasingly being displaced by adjunct professors and other part-time professors who are taking on a greater share of teaching responsibilities than in the past.” While Zywicki is writing about the American experience, his observations hold equally well for Canada.

So while tuition fees keep going up, this doesn’t necessarily benefit the students paying those higher fees. American research shows spending on administration and student fees are not correlated with higher graduation rates. Canada’s huge multi-decade run-up in administrative expenditures is at best doing nothing and at worst harming our universities’ performance and reputations. Of Canada’s 15 leading research universities, 13 have fallen in the global Quality School rankings since 2010. It seems a troubling trend.

And no discussion of administrative bloat today can ignore the elephant in the corner: diversity, equity and inclusion (DEI). Writing in the National Post, Peter MacKinnon, past president of the University of Saskatchewan, draws a straight line from administrative bloat to the current infestation of DEI policies on Canadian campuses.

The same thing is going on at universities across Canada that have permanent DEI offices and bureaucracies, including at UBC, the University of Calgary, University of Waterloo, Western University, Dalhousie University and Thompson Rivers University. As a C2C Journal article explains, DEI offices and programs offer no meaningful benefit to student success or the broader university community. Rather, they damage a school’s reputation by shifting focus away from credible scientific pursuits to identity politics and victimology.

With universities apparently unable to restrain the growth of their administrative Leviathan, there may be little alternative but to impose discipline from the outside. This should begin with greater transparency.

Former university administrator William Doswell Smith highlights a “Golden Rule” for universities and other non-profit institutions: that fixed costs (such as central administration) must never be allowed to rise faster than variable costs (those related to the student population). As an example of what can happen when Smith’s Golden Rule is ignored, consider the fate of Laurentian University in Sudbury, Ontario.

In early 2021 Laurentian announced it was seeking bankruptcy protection under the Companies’ Creditors Arrangement Act, under which a court-appointed manager directs the operations of the delinquent organization. Laurentian then eliminated 76 academic programs, terminated 195 staff and faculty, and ended its relationships with three nearby schools.

Ontario’s Auditor-General Bonnie Lysak found that the primary cause of the school’s financial crisis were ill-considered capital investments. The administrators’ big dreams essentially bankrupted the university.

The lesson is clear: if universities refuse to correct the out-of-control growth of their administrations, then fiscal discipline will eventually be forced upon them. A reckoning is coming for these bloated, profligate schools. The solution to higher tuition is not increasing funding. It’s fewer administrators.

The original, full-length version of this article was recently published in C2C Journal.

Jonathan Barazzutti is an economics student at the University of Calgary. He was the winner of the 2nd Annual Patricia Trottier and Gwyn Morgan Student Essay Contest co-sponsored by C2C Journal.

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