Weekly Roundup - June 6, 2025
The Carney government survived its first confidence test this week when the Address in Reply to the Speech from the Throne was voted on Wednesday afternoon. Despite some political grandstanding and an amendment urging the government to table an economic update or budget this spring, the Liberals passed the motion without a recorded vote, a sign that despite the bluster, opposition parties aren't ready to trigger an election. What followed was a legislative blitz, with the Liberals introducing several major bills aimed at reshaping Canada's economy and reducing dependence on the U.S.
The biggest move came on Friday with the introduction of the One Canadian Economy Act, legislation designed to slash project approval times from five years to two. The bill creates a Major Federal Projects Office with powers to designate infrastructure as "national interest" with an eye to cutting through red tape across multiple departments.
The Liberal government intends to shift federal reviews from "whether" projects should happen to focusing on "how" to approve them faster.
The Act also tackles interprovincial trade barriers that economists say cost Canada $200 billion annually. The federal government intends to provide a framework to recognize provincial and territorial licenses and certification for workers and eliminate further federal exceptions to the Canadian Free Trade Agreement by Canada Day.
In addition, the Liberals introduced three other significant pieces of legislation this week. Bill C-2, the Strong Borders Act landed June 3 and would give law enforcement sweeping new powers, including warrantless access to internet subscriber information and expanded mail inspection authority. It restricts asylum claims to within one year of arrival and requires irregular border crossers to claim asylum within 14 days.
Bill C-3 tackles the "Lost Canadians" issue. The bill would restore citizenship to children born abroad to foreign-born Canadians, fixing a constitutional problem the Ontario Superior Court flagged in 2023.
Bill C-4, the Making Life More Affordable for Canadian Citizens Act would formalize the tax cuts passed unanimously through a ways and means motion earlier in the week, dropping the lowest bracket to 14.5 per cent this year and 14 per cent next year. It also includes a temporary GST rebate for first-time homebuyers and repeals the federal consumer carbon pricing system entirely.
Meanwhile, Prime Minister Carney and President Trump have reportedly established a direct line of communication through evening calls and texts. Sources say "intensive discussions" are happening, with hopes for a breakthrough on the economic and security relationship between Canada and the United States ahead of the G7 summit in Kananaskis.
Following discussions between Prime Minister Carney and with Chinese Premier Li Qiang, Canada and China have agreed to high-level talks to resolve bilateral tensions. The two countries have agreed to further cooperation on fighting illegal production of fentanyl and will convene deputy-minister level talks to try to tackle a damaging trade war.
Indian Prime Minister Narendra Modi has accepted an invitation from Prime Minister Carney to attend the G7 summit in Kananaskis later this month. The Canada-India relationship was another relationship that faced strain during the Trudeau government after the then-Prime Minister told the House of Commons in September 2023 that "agents of the Indian government" had been linked to the murder of a Canadian Sikh activist in British Columbia.
Canadians are mourning the death of Marc Garneau. The first Canadian astronaut to go into space and former Liberal Transport and Foreign Affairs minister died at the age of 76. Prime Minister Mark Carney said Garneau will be remembered for his national pride, while Conservative leader Pierre Poilievre called Garneau a great Canadian and a trailblazer who was proud to serve the country he loved.
Top Alberta Stories
Premier Danielle Smith started the week in Saskatoon, meeting with the Prime Minister and her fellow premiers. It was the first time in more than 40 years the meeting has taken place in Saskatchewan, something Prime Minister Carney was quick to highlight in a statement issued after the meeting.
The location wasn’t the only nod to the west with the First Ministers agreeing that Canada must work to urgently get Canadian natural resources to domestic and international markets, including oil and gas.
It’s left Alberta’s Premier feeling encouraged, with Premier Smith extending an olive branch – in the form of a hockey stick – inviting the Prime Minister and fellow Oilers fan to join her at a Stanley Cup playoff game.
How long this new tone lasts will likely depend on how fast the federal government can turn promises into progress, particularly when it comes to Alberta’s calls to overhaul the Impact Assessment Act (Bill C-69) which Premier Smith has dubbed the “Don’t Build Anything Anywhere Act.” Other energy policy disputes will be just as difficult to unwind, including the north coast tanker ban, oil and gas emissions cap, net zero electricity regulations, and greenwashing legislation.
Following the First Ministers’ Meeting, the Premier turned her attention south, travelling to Washington, DC with Minister of Energy and Minerals Brian Jean, Minister of Affordability and Utilities Nathan Neudorf, and Parliamentary Secretary for Affordability and Utilities, Chantelle de Jonge.
The itinerary included meeting with industry partners and a keynote address to the US Energy Streams 10th Washington Energy Forum. It’s just one of many trips the Premier has taken since Donald Trump was elected president, and the associated expenses have caught the eye of some reporters and the opposition. Premier Smith has steadfastly defended the value of her US engagement. With the reduced 10 per cent tariff on energy products still in place, the Premier said Wednesday there’s been a “breakthrough” in the conversations and optimism there may be an interim Canada-US trade agreement by the G7 Summit later this month. The message from the US ambassador to Canada Pete Hoekstra to the Globe and Mail regarding direct talks between PM Carney and President Trump was positive but much more open ended on timing: “Sure, September is possible. Is possible to be earlier. Sure. Is it possible that it will be later, sure. When the President is ready to announce an agreement and the Prime Minister is ready to announce an agreement. That is when it will happen.”
While energy has been front and centre at the Council of the Federation, we now know the mandate for Alberta Investment Management Corporation (AIMCo) will largely resemble the old mandate, despite major changes to the board and executive in recent months. Late last year, the Smith government abruptly dismissed the board and executive team of Canada’s sixth largest pension fund manager, appointing former Prime Minister Stephen Harper the new chair.
On Wednesday, the Alberta Government published a mandate letter, dated January 22, that President of Treasury Board and Minister of Finance, Nate Horner, sent to Harper. The letter outlines the pillars of a renewed mandate for AIMCo, with a focus on the pension fund manager being “a cost-efficient provider of investment management services” and reinforcing that AIMCo investment decisions will remain independent and arms-length from any government influence. The Alberta Crown pension fund manger is one of the largest in Canada with over $179 billion in assets under management. According to AIMCo, the letter has been made available to “improve government transparency, and ensure better collaboration between government and citizens.”
Top Ontario Stories
The Ontario legislature has risen for an extended summer break until October 20, giving MPPs 20 weeks off from House duty following a contentious spring session that ended with the Ford government using its parliamentary majority to pass controversial legislation.
Premier Doug Ford's Progressive Conservatives used their final sitting days to ram through Bill 5, the Protect Ontario by Unleashing our Economy Act, passing it Wednesday afternoon with a 71-44 vote. The legislation grants the province sweeping new powers to fast-track development through "special economic zones" where provincial and municipal laws can be suspended. Ford notably skipped the final vote, prompting jeers of "shame on you!" from packed public galleries.
The bill, designed to expedite projects like Ring of Fire mining and Ford's proposed Highway 401 tunnel, became a lightning rod for criticism about ignoring Indigenous rights. Ford said he intends to designate the mineral-rich Ring of Fire as a special economic zone "as quickly as possible" despite fierce opposition from First Nations leaders who warn of potential highway blockades and court challenges. Grand Chief Alvin Fiddler of the Nishnawbe Aski Nation called Ford a coward and warned that blockades are "on the table," while NDP MPP Sol Mamakwa was ejected from the legislature for accusing Ford of telling "untruths" to First Nations communities.
The extended summer recess became another flashpoint with Opposition NDP Leader Marit Stiles criticizing the timing saying, "it's pretty clear that Doug Ford and his government can't get out here fast enough." The 20-week break comes at an awkward time given that MPPs recently gave themselves a 35 per cent pay increase and new pension benefits.
On the housing file, Ford's carrot-and-stick approach to municipalities is yielding mixed results. The province awarded Toronto $67.2 million for exceeding its housing starts target last year, with Mayor Olivia Chow's city achieving 88 per cent of its goal. However, Housing Minister Rob Flack acknowledged they'll be handing out fewer such rewards in 2025 as fewer cities hit their goals with housing starts remaining well below what's needed to meet the government's 1.5 million homes by 2031 target.
Healthcare challenges continued with Ontario reporting its first measles-related death of the current outbreak – a premature infant who died after contracting the virus in utero from an unvaccinated mother. The death highlights the ongoing measles outbreak that has infected more than 2,000 Ontarians since October. Separately, the Ford government announced measures to streamline licensing for US-trained doctors and nurses to address physician shortages in Ontario.
The week also saw regulatory developments on multiple fronts, including proposals to loosen blue box recycling regulations, citing cost pressures on producers, as well as detailed regulations flowing from Education Minister Paul Calandra's crackdown on badly behaved school boards, which would centralise control over school naming decisions at Queen's Park.
The opposition parties will use the extended break to build their case against Ford's governance approach, particularly around Indigenous relations and democratic accountability. One challenge for Bonnie Crombie, Leader of the Ontario Liberal Party, will be managing questions about her leadership. Despite returning to official party status at Queen's Park, Crombie failed to win a seat, spurring discussion amongst Liberal rank and file on whether she is the leader needed to defeat the PCs in the next election.
Meanwhile, the Ford government will be relieved to have reached the end of the session and will use the summer recess to restaff and rebuild after several senior staff exited the Premier's Office. Premier Ford will host Canada's premiers for a Council of the Federation meeting from July 21 to 23 in Huntsville.
Upcoming Events Calendar
June 9-14, 2025: Quebec Liberal Leadership Convention
June 10-12, 2025: Global Energy Show in Calgary
June 12, 2025: Hon. Stephen Lecce to speak at Canadian Club Toronto
June 15-17, 2025: G7 Leaders’ Summit
June 16, 2025: The Drive to Double: Premier Danielle Smith & Premier Scott Moe
June 17-21, 2025: Advanced Voting – Alberta By-elections
June 23, 2025: Election Day – Alberta By-elections
June 24-25, 2025: NATO Summit
