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Federal government should stay in its lane

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1 year ago

5 minute read

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:

Jason Clemens
Executive Vice President, Fraser Institute
Jake Fuss
Director, Fiscal Studies, Fraser Institute
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UN, Gates Foundation push for digital ID across 50 nations by 2028

Published on October 13, 2025

By

From LifeSiteNews

By Tim Hinchliffe

With 30 nations enrolled, the UN and Gates Foundation’s digital ID campaign signals accelerating efforts to create a global digital infrastructure that centralizes identity and data.

The 50-in-5 campaign to accelerate digital ID, fast payment systems, and data exchanges in 50 countries by 2028 reaches a 30 country milestone.

Launched in November 2023, the 50-in-5 campaign is a joint effort of the United Nations, the Bill and Melinda Gates Foundation, and their partners to rollout out at least one component of Digital Public Infrastructure (DPI) in 50 nations within five years.

DPI is a civic technology stack consisting of three major components: digital ID, fast payment systems, and massive data sharing between public and private entities.

50-in-5 started with 11 first-mover countries, and with the count now at 30 the participating countries include:

Bangladesh, Brazil, Cambodia, Dominican Republic, Estonia, Ethiopia, France, Guatemala, Jamaica, Kazakhstan, Lesotho, Malawi, Mexico, Moldova, Nigeria, Norway, Senegal, Sierra Leone, Singapore, Sri Lanka, South Africa, South Sudan, Somalia, Togo, Trinidad and Tobago, Uganda, Ukraine, Uruguay, Uzbekistan, and Zambia.

The 50-in-5 campaign celebrated its 30-country milestone during a sideline event at the U.N. General Assembly in New York on September 22.

There, government officials, like Ukraine’s deputy prime minister, praised the work of 50-in-5 while the ministers of digital economy from Nigeria and Togo called for an interoperable digital identity system for the entire African continent.

“Nations want to maintain their own ID databases, but I think we have a unique opportunity to apply strong data exchange system interoperability,” said Tijani.

“I think a digital identity system that can go with you wherever you are going on the African continent would be a fantastic example,” he added.

In March 2025, the Nigerian government published a framework to develop national Digital Public Infrastructure that would leverage digital ID to track and trace “key life events” of every citizen from the cradle to the grave.

“Throughout a citizen’s life, from birth to old age, there are marked moments of significant life events requiring support or service from the government,” the paper begins.

“Some of these services include registration of births, antenatal healthcare, vaccines, school enrollment, scholarships, health insurance for business registrations, filing of taxes, etc.”

These “life events” require every citizen to have a digital ID:

The Federal Government of Nigeria is on a mission to appropriately deploy digital technology to support Nigerians through these significant and profound moments so they can integrate into the state and enjoy the benefits of citizenhood from cradle to old age.

Back at the 50-in-5 milestone event, Togo’s Minister of Digital Economy and Transformation Cina Lawson called for a free, cross-border, interoperable digital ID powered by the Modular Open Source Identity Platform (MOSIP).

MOSIP is a Gates-funded platform that “helps govts & other user organizations implement a digital, foundational identity system.”

Said Lawson, “We’ve initiated conversations with our neighbors, namely Benin, to have interoperability of our ID systems, but also Burkina Faso and other countries such as Senegal, because we’re using MOSIP platform, so what we do is that we host meetings of countries that are interested the platform, so that we could see how we [are] operating it and so on.”

“Our ID system, using the MOSIP platform, is really the ID that the majority of the Togolese will have because first of all it’s free, it doesn’t require to show proof of citizenship, and so on, so that is the ID card of the poorest of the Togolese,” she added.

Lawson also spoke at the 50-in-5 launch event in November 2023, where she explained that Togo’s DPI journey began with the arrival of COVID-19.

First, the government set up a digital payments system within 10 days.

“We deployed it, and we were able to pay out 25 percent of all Togolese adults, and we distributed $34 million that the most vulnerable Togolese received directly through their mobile phones,” said Lawson.

Then, came vaccine passports.

“We created a digital COVID certificate. All of a sudden, the fight against the pandemic became really about using digital tools to be more effective,” she added at the time.

To get an idea where DPI is heading, Ukraine’s Deputy Prime Minister Myhailo Fedorov gave a pre-recorded speech for the 50-in-5 milestone event, saying that his country was successful in building “the state in a smartphone” via the DIIA app, which had reached 23 million users.

“For every citizen, government should be simple, convenient, nearly invisible, and accessible in just a few clicks,” said Fedorov.

“Today, 23 million people use the DIIA app […] Since the launch of DIIA in 2020, Ukrainians and the state have saved about $4.5 billion to date.”

“This is the combined anti-corruption and economic effect of digitalizing services.”

“For us, it’s powerful proof of DIIA’s efficiency and the real impact of building a digital state,” he added.

Speaking at the World Economic Forum (WEF) Global Technology Governance Summit on April 7, 2021, Fedorov told the panelists of the “Scaling Up Digital Identity Systems” session, that it was Ukraine’s goal to “enable all life situations with this digital ID.”

“The pandemic has accelerated our progress […] People have no choice but to trust technology,” Fedorov said at the time.

“We have to make a product that is so convenient that a person will be able to disrupt their stereotypes, to break through from their fears, and start using a government-made application,” he added.

The 50-in-5 campaign is a collaboration between the Bill and Melinda Gates Foundation, the United Nations Development Program, the Digital Public Goods Alliance, the Center for Digital Public Infrastructure, and Co-Develop; with support from GovStack, the Inter-American Development Bank, and UNICEF.

The Center for Digital Public Infrastructure is backed by Co-Develop and Nilekani Philanthropies.

Nandan Nilekani is one of the architects of India’s digital identity system, Aadhaar.

Co-Develop was founded by The Rockefeller Foundation, the Bill & Melinda Gates Foundation, Nilekani Philanthropies, and the Omidyar Network.

The Omidyar Network is a funder of MOSIP.

The Digital Public Goods Alliance lists both the Gates and Rockefeller foundations in its roadmap showcasing “activities that advance digital public goods,” along with other organizations and several governments.

At last year’s Summit of the Future, 193 nations agreed to the non-binding “Pact for the Future,” which dedicates a section in its annex, the “Global Digital Compact,” to implement DPI in member states.

One year later, the U.K. announced it was going to force Britons into mandatory digital ID schemes under the guise of combatting illegal immigration.

Reprinted with permission from The Sociable.

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Business

Netherlands Seizes Chinese-Owned Chipmaker in Unprecedented Security Move

Published on October 13, 2025

By

Sam Cooper's avatar Sam Cooper

Court-approved removal of executive Zhang Xuezheng bears hallmarks of counter-intelligence concern

The Dutch government has taken control of Chinese-owned semiconductor manufacturer Nexperia, invoking an urgent national-security law directed at Beijing to safeguard Europe’s access to critical technology used across the automotive and electronics industries.

In a statement issued late Sunday, the Ministry of Economic Affairs said it had taken the “highly exceptional” decision to invoke the Goods Availability Act on September 30. The move followed “recent and acute signals” of such “significant scale and urgency” involving “serious governance shortcomings and actions within Nexperia” that Minister Vincent Karremans was compelled to intervene.

“The decision aims to prevent a situation in which the goods produced by Nexperia would become unavailable in an emergency,” the ministry said.

“These signals posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities. Losing these capabilities could pose a risk to Dutch and European economic security.”

It is not known what specific information Dutch authorities gathered on Nexperia executive Zhang Xuezheng, who has been suspended from all management and board positions, but the move, approved by the Amsterdam Court of Appeal, has the hallmarks of a national security alert deemed severe by Dutch lawmakers.

Nexperia, headquartered in Nijmegen, produces semiconductors used widely in the European automotive industry and consumer electronics and is a key link in the continent’s industrial supply chain. The government said normal production will continue, but Karremans now has powers to block or reverse company decisions that could harm national or European interests.

The ministry’s order bars Nexperia and all its global subsidiaries, branches, and offices from making any adjustments to their assets, intellectual property, business operations, or personnel for one year.

Nexperia’s Chinese parent company, Wingtech Technology Co., a Shanghai-listed conglomerate placed on the U.S. Commerce Department’s Entity List in 2023, denounced the Dutch move, saying it “constitutes an act of excessive interference driven by geopolitical bias, not by fact-based risk assessment.” Wingtech said the measure “gravely contravenes the European Union’s long-standing advocacy for market-economy principles, fair competition, and international trade norms,” and “strongly” protested “discriminatory treatment toward a Chinese-owned enterprise.”

Wingtech disclosed to the Shanghai Stock Exchange that it had been notified of the Dutch order on September 30, but the government did not make the intervention public until October 12.

The Dutch government’s action marks the first time the Netherlands has used its emergency powers to seize control of Chinese-state linked company — an escalation that mirrors Washington’s strategic-industrial posture and signals Europe’s entry into a new era of techno-sovereignty.

In Britain, Nexperia’s ownership structure had already triggered alarm. In 2021, the company’s acquisition of Newport Wafer Fab, the UK’s largest semiconductor plant, was blocked by the Conservative government over national-security fears. The UK later ordered Nexperia to divest most of its stake under the National Security and Investment Act in 2022.

The controversy resurfaced this year amid the collapse of a high-profile espionage prosecution under Prime Minister Keir Starmer’s government. The Mail on Sunday reported, citing an unidentified source, that Christopher Berry—one of two men previously charged with spying for China—“sent details of the row within government on the Newport Wafer Fab semiconductor factory, which was initially sold to Nexperia but later blocked by the Conservative government over national-security fears.”

The Netherlands’ intervention follows escalating moves by allied governments to tighten control over critical-tech supply chains. Just days earlier, Beijing imposed sweeping export restrictions on rare-earth minerals, essential for cars, wind turbines, and electronics, citing “national security” grounds — mirroring Western justifications for semiconductor controls. The action drew a strong counter-threat from U.S. President Donald Trump, who warned that Washington could impose 100 percent additional tariffs on all Chinese goods if Beijing “weaponizes its mineral dominance.”

A semi-detente appeared to emerge after Trump’s weekend remarks suggesting a pause in escalation. But the Dutch government’s unilateral action underscores a global race to secure access to critical industrial components amid fears of spreading conflict in Europe and rising tensions in Asia.

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