By Gwyn Morgan

Mark Carney was supposed to be the adult in the room. After nearly a decade of runaway spending under Justin Trudeau, the former central banker was presented to Canadians as a steady hand – someone who could responsibly manage the economy and restore fiscal discipline.

Instead, Carney has taken Trudeau’s recklessness and dialled it up. His government’s recently released spending plan shows an increase of 8.5 percent this fiscal year to $437.8 billion. Add in “non-budgetary spending” such as EI payouts, plus at least $49 billion just to service the burgeoning national debt and total spending in Carney’s first year in office will hit $554.5 billion.

Even if tax revenues were to remain level with last year – and they almost certainly won’t given the tariff wars ravaging Canadian industry – we are hurtling toward a deficit that could easily exceed 3 percent of GDP, and thus dwarf our meagre annual economic growth. It will only get worse. The Parliamentary Budget Officer estimates debt interest alone will consume $70 billion annually by 2029. Fitch Ratings recently warned of Canada’s “rapid and steep fiscal deterioration”, noting that if the Liberal program is implemented total federal, provincial and local debt would rise to 90 percent of GDP.

This was already a fiscal powder keg. But then Carney casually tossed in a lit match. At June’s NATO summit, he pledged to raise defence spending to 2 percent of GDP this fiscal year – to roughly $62 billion. Days later, he stunned even his own caucus by promising to match NATO’s new 5 percent target. If he and his Liberal colleagues follow through, Canada’s defence spending will balloon to the current annual equivalent of $155 billion per year. There is no plan to pay for this. It will all go on the national credit card.

This is not “responsible government.” It is economic madness.

And it’s happening amid broader economic decline. Business investment per worker – a key driver of productivity and living standards – has been shrinking since 2015. The C.D. Howe Institute warns that Canadian workers are increasingly “underequipped compared to their peers abroad,” making us less competitive and less prosperous.

The problem isn’t a lack of money; it’s a lack of discipline and vision. We’ve created a business climate that punishes investment: high taxes, sluggish regulatory processes, and politically motivated uncertainty. Carney has done nothing to reverse this. If anything, he’s making the situation worse.

Recall the 2008 global financial meltdown. Carney loves to highlight his role as Bank of Canada Governor during that time but the true credit for steering the country through the crisis belongs to then-prime minister Stephen Harper and his finance minister, Jim Flaherty. Facing the pressures of a minority Parliament, they made the tough decisions that safeguarded Canada’s fiscal foundation. Their disciplined governance is something Carney would do well to emulate.

Instead, he’s tearing down that legacy. His recent $4.3 billion aid pledge to Ukraine, made without parliamentary approval, exemplifies his careless approach. And his self-proclaimed image as the experienced technocrat who could go eyeball-to-eyeball against Trump is starting to crack. Instead of respecting Carney, Trump is almost toying with him, announcing in June, for example that the U.S. would pull out of the much-ballyhooed bilateral trade talks launched at the G7 Summit less than two weeks earlier.

Ordinary Canadians will foot the bill for Carney’s fiscal mess. The dollar has weakened. Young Canadians – already priced out of the housing market – will inherit a mountain of debt. This is not stewardship. It’s generational theft.

Some still believe Carney will pivot – that he will eventually govern sensibly. But nothing in his actions supports that hope. A leader serious about economic renewal would cancel wasteful Trudeau-era programs, streamline approvals for energy and resource projects, and offer incentives for capital investment. Instead, we’re getting more borrowing and ideological showmanship.

It’s no longer credible to say Carney is better than Trudeau. He’s worse. Trudeau at least pretended deficits were temporary. Carney has made them permanent – and more dangerous.

This is a betrayal of the fiscal stability Canadians were promised. If we care about our credit rating, our standard of living, or the future we are leaving our children, we must change course.

That begins by removing a government unwilling – or unable – to do the job.

Canada once set an economic example for others. Those days are gone. The warning signs – soaring debt, declining productivity, and diminished global standing – are everywhere. Carney’s defenders may still hope he can grow into the job. Canada cannot afford to wait and find out.

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

Gwyn Morgan is a retired business leader who was a director of five global corporations.

In August 2024, a shipment of zinc concentrate departed from the Port of Churchill — marking the port’s first export of critical minerals in over two decades. Photo courtesy Arctic Gateway Group

From the Canadian Energy Centre

By Will Gibson

‘Churchill presents huge opportunities when it comes to mining, agriculture and energy’

When flooding in northern Manitoba washed out the rail line connecting the Town of Churchill to the rest of the country in May 2017, it cast serious questions about the future of the community of 900 people on the shores of Hudson Bay.

Eight years later, the provincial and federal governments have invested in Churchill as a crucial nation-building corridor opportunity to get resources from the Prairies to markets in Europe, Africa and South America.

Direct links to ocean and rail

Aerial view of the Hudson Bay Railway that connects to the Port of Churchill. Photo courtesy Arctic Gateway Group

The Port of Churchill is unique in North America.

Built in the 1920s for summer shipments of grain, it’s the continent’s only deepwater seaport with direct access to the Arctic Ocean and a direct link to the continental rail network, through the Hudson Bay Railway.

The port has four berths and is capable of handling large vessels. Having spent the past seven years upgrading both the rail line and the port, its owners are ready to expand shipping.

“After investing a lot to improve infrastructure that was neglected for decades, we see the possibilities and opportunities for commodities to come through Churchill whether that is critical minerals, grain, potash or energy,” said Chris Avery, CEO of the Arctic Gateway Group (AGG), a partnership of 29 First Nations and 12 remote northern Manitoba communities that owns the port and rail line.

“We are pleased to be in the conversation for these nation-building projects.”

In May, Canada’s Western premiers called for the Prime Minister’s full support for the development of an economic corridor connecting ports on the northwest coast and Hudson’s Bay, ultimately reaching Grays Bay, Nunavut.

Investments in Port of Churchill upgrades

Workers at the Port of Churchill. Photo courtesy Arctic Gateway Group

AGG, which purchased the rail line and port from an American company in 2017, is not alone in the bullish view of Churchill’s future.

In February, Manitoba Premier Wab Kinew announced an investment of $36.4 million over two years in infrastructure projects at the port aimed at growing international trade.

“Churchill presents huge opportunities when it comes to mining, agriculture and energy,” Kinew said in a release.

“These new investments will build up Manitoba’s economic strength and open our province to new trading opportunities.”

In March, the federal government committed $175 million over five years to the project including $125 million to support the rail line and $50 million to develop the port.

“It’s important to point out that investing in Churchill was something that both the Liberal and Conservative parties agreed on during the federal election campaign,” said Avery, a British Columbian who worked in the airline industry for more than two decades before joining AGG.

Reduced travel time

Freight safety check at the Port of Churchill. Photo courtesy Arctic Gateway Group

The federal financial support helped AGG upgrade the rail line, repairing the 20 different locations where it was washed out by flooding in 2017.

Improvements included laying more than 1,600 rail cars worth of ballast rock for stabilization and drainage, installing almost 120,000 new railway ties and undertaking major bridge crossing rehabilitations and switch upgrades.

The result has seen travel time by rail reduced by three hours — or about 10 per cent — between The Pas and Churchill.

AGG also built a dedicated storage facility for critical minerals and other commodities at the port, the first new building in several decades.

Those improvements led to a milestone in August 2024, when a shipment of zinc concentrate was shipped from the port to Belgium. It was the first critical minerals shipment from Churchill in more than two decades.

The zinc concentrate was mined at Snow Lake, Manitoba, loaded on rail cars at The Pas and moved to Churchill. It’s a scenario Avery hopes to see repeated with other commodities from the Prairies.

Addressing Arctic challenges

The Port of Churchill. Photo courtesy Arctic Gateway Group

The emergence of new technologies has helped AGG work around the challenges of melting permafrost under the rail line and ice in Hudson Bay, he said.

Real-time ground-penetrating radar and LiDAR data from sensors attached to locomotives can identify potential problems, while regular drone flights scan the track, artificial intelligence mines the data for issues, and GPS provides exact locations for maintenance.

The group has worked with permafrost researchers from the University of Calgary, Université Laval and Royal Military College to better manage the challenge. “Some of these technologies, such as artificial intelligence and LiDAR, weren’t readily available five years ago, let alone two decades,” Avery said.

On the open water, AGG is working with researchers from the University of Manitoba to study sea ice and the change in sea lanes.

“Icebreakers would be a game-changer for our shipping operations and would allow year-round shipping in the short-term,” he said.

“Without icebreakers, the shipping season is currently about four and a half months of the year, from April to early November, but that is going to continue to increase in the coming decades.”

Interest from potential shippers, including energy producers, has grown since last year’s election in the United States, Avery said.

“We’re going to continue to work closely with all levels of government to get Canada’s products to markets around the world. That’s building our nation. That’s why we are excited for the future.”