Business
Ontario government will spend more—for less housing

From the Fraser Institute
By Jake Fuss and Austin Thompson
To state the obvious, in Ontario homebuilding is not keeping pace with population growth. This imbalance is driving sky-high home prices and rents, not only in the GTA but many other Ontario cities.
What’s to be done?
In the Ford government’s recent budget, “housing” appears not as a central theme but as one of several areas to receive “support” (read: increased spending) in light of Trump’s tariffs, mainly in the form of more money for local infrastructure.
Specifically, the government will spend an additional $400 million on the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure program (on top of the $2 billion already committed to these two programs until 2027). The government will also spend $325 million (over seven years) on a joint project with the federal government and City of Toronto for the waterfront revitalization plan, which includes new housing development.
And as part of this “housing” spending spree, the Ford government will continue to spend millions on the Community Infrastructure Fund—which targets smaller communities—and programs to encourage skilled trades, which could support housing development.
So, will Ontarians, including those who can’t afford to buy a home or struggle to pay their rent, get good value for their taxpayer dollars?
For the answer to that question, consider this. The Ontario government has already spent billions on its housing strategy, yet has not moved the needle on housing supply. Even Ford’s new budget with its massive housing “support” includes an abysmal forecast for new home construction. According to the budget, housing starts will actually fall from 74,573 in 2024 to 71,800 in 2025, continuing the decline from the 89,297 new homes started in 2023. And the budget now forecasts that only 303,700 new homes will be built between 2024 and 2027—an 18 per cent decrease from the 370,400 projected in last year’s budget.
This low level of homebuilding puts the Ford government’s target for 1.5 million housing starts between 2022 and 2031 further out of reach. In fact, if the projected average of housing starts from 2022 to 2027 is maintained until 2031, Ontario would fall short of its target by more than 680,000 homes—severely reducing the likelihood of any meaningful improvement in housing affordability.
The Ford government blames the slowdown in housing starts on economic uncertainty and U.S. trade policy. These factors matter, but there’s plenty of blame to go around. Major Ontario municipalities (including Toronto, Hamilton and Markham) are among Canada’s worst performing cities for how long they make homebuilders wait to receive municipal approval to start construction. Ontario municipalities also impose some of the highest upfront charges on new housing development—for example, a high-rise development in Toronto faces municipal charges nearly 20 times higher than in Edmonton on a per square foot basis. More fundamentally, the federal and provincial governments have failed to create the business and investment environment needed to finance housing development. And Ottawa’s supercharged immigration targets have created many more potential homebuyers and renters, driving up costs.
So again, what should the Ford government do?
Ontario’s housing crisis is a big problem with many contributing factors. For its part, the Ford government should focus on low-cost ways to spur housing growth. To the government’s credit, the recently proposed Protect Ontario by Building Faster and Smarter Act, 2025 is one such effort. The bill would require reluctant municipalities to allow more and denser housing development, streamline regulatory hurdles, and help reduce the upfront charges tied to new construction. It holds some promise for accelerating homebuilding.
If the Ford government wants to hit its housing target and offer hope to Ontarians struggling to buy or rent, it must shift its focus from spending to structural reforms. Real progress in the housing front requires cutting red tape and lowering homebuilding costs.
Business
Most Canadians say retaliatory tariffs on American goods contribute to raising the price of essential goods at home

- 77 per cent say Canada’s tariffs on U.S. products increase the price of consumer goods
- 72 per cent say that their current tax bill hurts their standard of living
A new MEI-Ipsos poll published this morning reveals a clear disconnect between Ottawa’s high-tax, high-spending approach and Canadians’ level of satisfaction.
“Canadians are not on board with Ottawa’s fiscal path,” says Samantha Dagres, communications manager at the MEI. “From housing to trade policy, Canadians feel they’re being squeezed by a government that is increasingly an impediment to their standard of living.”
More than half of Canadians (54 per cent) say Ottawa is spending too much, while only six per cent think it is spending too little.
A majority (54 per cent) also do not believe federal dollars are being effectively allocated to address Canada’s most important issues, and a similar proportion (55 per cent) are dissatisfied with the transparency and accountability in the government’s spending practices.
As for their own tax bills, Canadians are equally skeptical. Two-thirds (67 per cent) say they pay too much income tax, and about half say they do not receive good value in return.
Provincial governments fared even worse. A majority of Canadians say they receive poor value for the taxes they pay provincially. In Quebec, nearly two-thirds (64 per cent) of respondents say they are not getting their money’s worth from the provincial government.
Not coincidentally, Quebecers face the highest marginal tax rates in North America.
On the question of Canada’s response to the U.S. trade dispute, nearly eight in 10 Canadians (77 per cent) agree that Ottawa’s retaliatory tariffs on American products are driving up the cost of everyday goods.
“Canadians understand that tariffs are just another form of taxation, and that they are the ones footing the bill for any political posturing,” adds Ms. Dagres. “Ottawa should favour unilateral tariff reduction and increased trade with other nations, as opposed to retaliatory tariffs that heap more costs onto Canadian consumers and businesses.”
On the issue of housing, 74 per cent of respondents believe that taxes on new construction contribute directly to unaffordability.
All of this dissatisfaction culminates in 72 per cent of Canadians saying their overall tax burden is reducing their standard of living.
“Taxpayers are not just ATMs for government – and if they are going to pay such exorbitant taxes, you’d think the least they could expect is good service in return,” says Ms. Dagres. “Canadians are increasingly distrustful of a government that believes every problem can be solved with higher taxes.”
A sample of 1,020 Canadians 18 years of age and older was polled between June 17 and 23, 2025. The results are accurate to within ± 3.8 percentage points, 19 times out of 20.
The results of the MEI-Ipsos poll are available here.
* * *
The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
Business
B.C. premier wants a private pipeline—here’s how you make that happen

From the Fraser Institute
By Julio Mejía and Elmira Aliakbari
At the federal level, the Carney government should scrap several Trudeau-era policies including Bill C-69 (which introduced vague criteria into energy project assessments including the effects on the “intersection of sex and gender with other identity factors”)
The Eby government has left the door (slightly) open to Alberta’s proposed pipeline to the British Columbia’s northern coast. Premier David Eby said he isn’t opposed to a new pipeline that would expand access to Asian markets—but he does not want government to pay for it. That’s a fair condition. But to attract private investment for pipelines and other projects, both the Eby government and the Carney government must reform the regulatory environment.
First, some background.
Trump’s tariffs against Canadian products underscore the risks of heavily relying on the United States as the primary destination for our oil and gas—Canada’s main exports. In 2024, nearly 96 per cent of oil exports and virtually all natural gas exports went to our southern neighbour. Clearly, Canada must diversify our energy export markets. Expanded pipelines to transport oil and gas, mostly produced in the Prairies, to coastal terminals would allow Canada’s energy sector to find new customers in Asia and Europe and become less reliant on the U.S. In fact, following the completion of the Trans Mountain Pipeline expansion between Alberta and B.C. in May 2024, exports to non-U.S. destinations increased by almost 60 per cent.
However, Canada’s uncompetitive regulatory environment continues to create uncertainty and deter investment in the energy sector. According to a 2023 survey of oil and gas investors, 68 per cent of respondents said uncertainty over environmental regulations deters investment in Canada compared to only 41 per cent of respondents for the U.S. And 59 per cent said the cost of regulatory compliance deters investment compared to 42 per cent in the U.S.
When looking at B.C. specifically, investor perceptions are even worse. Nearly 93 per cent of respondents for the province said uncertainty over environmental regulations deters investment while 92 per cent of respondents said uncertainty over protected lands deters investment. Among all Canadian jurisdictions included in the survey, investors said B.C. has the greatest barriers to investment.
How can policymakers help make B.C. more attractive to investment?
At the federal level, the Carney government should scrap several Trudeau-era policies including Bill C-69 (which introduced vague criteria into energy project assessments including the effects on the “intersection of sex and gender with other identity factors”), Bill C-48 (which effectively banned large oil tankers off B.C.’s northern coast, limiting access to Asian markets), and the proposed cap on greenhouse gas (GHG) emissions in the oil and gas sector (which will likely lead to a reduction in oil and gas production, decreasing the need for new infrastructure and, in turn, deterring investment in the energy sector).
At the provincial level, the Eby government should abandon its latest GHG reduction targets, which discourage investment in the energy sector. Indeed, in 2023 provincial regulators rejected a proposal from FortisBC, the province’s main natural gas provider, because it did not align with the Eby government’s emission-reduction targets.
Premier Eby is right—private investment should develop energy infrastructure. But to attract that investment, the province must have clear, predictable and competitive regulations, which balance environmental protection with the need for investment, jobs and widespread prosperity. To make B.C. and Canada a more appealing destination for investment, both federal and provincial governments must remove the regulatory barriers that keep capital away.
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