The Coalition of Concerned Manufacturers and Businesses Canada (CCMBC) expressed deep concern following the Monday federal election that returned a minority Liberal government under Prime Minister Mark Carney.
Calling the outcome a blow to the country's economic future, CCMBC President Catherine Swift said continued commitment to the net zero agenda and expanded regulatory controls would “further stagnate” both economic growth and Canadians’ standard of living.
“The net zero climate agenda coupled with big government and regulatory overreach has proven itself to be disastrous for the economy generally, and is especially harmful to the small- and medium-sized business (SME) community,” Swift said.
She warned that if Carney maintains policies reminiscent of what she called Canada’s “lost decade” under former Prime Minister Justin Trudeau, the country could see even more business flight and economic stagnation.
Canadian businesses and manufacturers have increasingly relocated to the United States over the past ten years, according to the CCMBC.
Swift argued that the continuation of regulatory and fiscal policies seen as unfriendly to business would accelerate this trend.
“If the regulatory and policy outlook continue to be negative for (businesses), fewer will remain in Canada,” she said, citing declining productivity and obstruction to resource development as key issues.
Swift also pointed to Carney’s support for an industrial carbon tax and a carbon border adjustment measure (CBAM), arguing that such policies fuel inflation and undermine both businesses and consumers.
“If businesses were permitted to retain more revenue, they might be able to fund more climate measures, but this double hit is simply not sustainable,” she said.
Carney’s pledge to govern for all Canadians was also met with skepticism from the CCMBC.
Swift suggested that unless the new government reconsiders its stance on the emissions cap on oil and gas, the West Coast tanker ban, and other climate-related measures, tensions with provinces like Alberta and Saskatchewan could escalate.
“National unity will become more fractious,” she warned, citing recent unrest among Western leaders.
Swift concluded by urging Carney to reconsider his policy direction.
“The only solution is for Carney to put some water in his net zero wine and devise policies that will both enable the economy to grow while implementing more tangible, measurable climate policies,” she said.
“Further damaging the (business) sector by even more government expansion and burdensome regulatory policies does not bode well for a successful future for Canada.”
