These are the top 5 economic takeaways from the English language leaders' debate
It was round two for party leaders on Thursday night, as the English federal leaders’ debate kicked off in Montreal. Trump and the trade war once again led the discussion, followed by affordability concerns, energy, climate and taxes. The Financial Post breaks down the night’s top economic takeaways.
Strength against Trump
The second debate kicked off once again on the question of who is best able to handle U.S. President Donald Trump’s tariff threats and how best to bring about a negotiation with the Americans. Liberal leader Mark Carney said Canada has to come from a position of strength by building up the economy and taking control of “our own economic destiny.” Conservative Party leader Pierre Poilievre attacked the Liberal government’s economic record over the last 10 years, arguing their policies are why Canada’s economy is in such a weakened position, promising a Conservative government would deregulate, cut taxes and help get resource projects built. Bloc Québécois leader Yves-François Blanchet called into question Carney’s claim that he would be the best positioned to negotiate against Trump, arguing he has not yet proven himself. Blanchet also said Carney has yet to sit down with Parliamentary leaders during the trade crisis and said Carney can’t be alone in his “little kingdom.” Carney defended his actions as prime minister, arguing the crisis will need everyone at the table including premiers, First Nations, labour and business leaders.
Getting big projects done
In the fight against Trump, Carney and Poilievre both said major projects needed to be built. Poilievre stressed the need to to build a pipeline from Alberta to Quebec, so that Canada can expand its oil exports beyond just the U.S. Carney outlined a “one window” approval process, which he discussed with premiers in March, that would streamline approvals for large-scale infrastructure projects that are within the national interest, including energy projects. Poilievre pushed back on this, arguing Carney’s intention to keep Bill C-69 — also known as the “no pipelines bill” — makes this impossible, and the legislation will continue make the approval process too long for most project investors. New Democratic Party leader Jagmeet Singh floated the idea of a an East-West energy grid, something that Carney also supports. Blanchet continued to stress the need for provincial approvals of such projects and argued there is no point in building pipelines which take years to build, as Trump will be out of office before they are built. “Mr. Trump will be 90 years old and not the president,” he said.
Cuts on taxes and spending
Poilievre said the last decade under the Liberal government has led to an affordability crisis in Canada, with Canadians paying too much in taxes. Poilievre repeated his promise to cut income taxes for middle class Canadians. Carney defended his decision to end the consumer carbon tax, arguing it had become too divisive for the country, and the cancellation of the capital gains increase, arguing entrepreneurs should not be punished. Singh attacked Carney on his plans to make cuts in operational spending, arguing this will mean cuts to services Canadians depend on. Carney said he plans to slow operational spending, which has increased by nine per cent every year for the last 10 years, while focusing on capital government spending to help grow investment in the Canadian economy.
Support for sectors hit by the trade war
As in the first debate, Blanchet attacked Carney for supporting the auto industry after Trump hit the sector with 25 per cent tariffs while offering little for other sectors hit by tariffs that are important to Quebec. Singh also attacked Carney for not increasing employment insurance (EI). He said jobs losses were already occurring as a result of the current tariff threats, and that existing coverage is not enough for people to cover their bills. In early March, the federal government announced the expansion of an existing EI program that provided partial EI benefits to employees who agree to work reduced hours due to a decrease in business activity beyond their employer’s control. This has fallen short of what has been asked by labour leaders, who want to see the EI payment amounts increased.
Affordable housing
Poilievre and Carney both highlighted their plans to build more homes in Canada. Poilievre reiterated that his party will axe the GST on new homes, incentivize municipalities to approve more housing construction, sell federal land for housing development purposes and train 350,000 tradesmen. Carney said the country has to build at a scale not seen since the Second World War and that his plan his will allow Canada to build 500,000 homes a year. Poilievre took aim at the Liberal government’s record on housing over last decade, arguing housing costs have doubled under its tenure while homebuilding decreased. In response, Carney said Poilievre has spent years running Justin Trudeau, but that he is not Trudeau. Singh said housing costs also increased under the previous Conservative government and stressed the need to focus on affordable housing as well.