BARBER: Why September for the ‘investment summit’

As is well known, the Canadian economy has stagnated for much of former prime minister Justin Trudeau’s tenure and continues to lag under the current Prime Minister Mark Carney. It has fallen behind other advanced economies since 2000, according to the “RBC Growth Project.” This is not surprising, given that Mr. Carney previously served as Trudeau’s advisor. Although $96.8 billion came to Canada as foreign direct investment last year, this needs to be scrutinized carefully. The US was the largest investor, according to Statistics Canada. Much of this foreign direct investment was directed toward mergers and acquisitions in sectors such as transportation, trade, and management companies, according to TD Economics. Colin MacLeod’s Lessons for Alberta from Canada’s ‘Brain Drain’ Crisis provides multiple examples of the effects of Canada’s weak economy, including people voting with their feet. It is not just individuals — and the businesses they create — who are leaving due to the poor business climate; this trend is also reflected in a weak investment environment, particularly for innovation, created by Ottawa. The Prime Minister has repeatedly stated that he is working to address the economic challenges; however, critics argue that his policies have contributed to them. Furthermore, he has faced criticism for encouraging his former company, Brookfield Investments, to move to the US just prior to becoming the Prime Minister. Perhaps he could encourage Brookfield to return to Canada, thereby creating jobs here. If he believes that his own company is better off in the US, then are his efforts to fix Canada’s problems nothing more than a Kabuki show?Now, Carney has announced plans to convene a Canadian “Investment Summit” this fall, bringing together one hundred of the world’s largest investors and key players in an effort to address Canada’s ongoing economic challenges. Major investment firms such as BlackRock Inc. (USA), Blackstone Inc. (USA), the UAE’s sovereign wealth fund, Singapore’s GIC, among others, have been invited. Government officials from Australia, India, Japan, Qatar, and several Middle Eastern nations have also been invited. Both Canadian premiers and American government officials are expected to participate in the summit, which is scheduled to take place on September 14 and 15..Why would these very savvy investors take a gamble on Canada when the indicators are not favourable? The Prime Minister has refused to eliminate legislation and practices that are anti-business, such as the Output-Based Pricing System (OBPS) — i.e., the industrial carbon tax — the slow permit approval process, and various taxes on businesses. He may make exceptions occasionally, but he could also remove those exceptions. Businesses of all kinds, from factories to data centers, need cheap energy. Net-zero policies and carbon taxes will increase the cost of energy. As many news stories over the past few years have informed readers, Canada’s regulations are burdensome, and taxes are too high.In order to attract investors, the Prime Minister will have to create incentives. Government funding, tax breaks, and other mechanisms are usually part of such negotiations. That was the case with the Swedish Northvolt Six battery factory in Quebec. This facility was intended to produce EV batteries, with the goal of selling them in Canada and the US. Both Ottawa and Quebec had pledged billions of dollars. However, with EV sales continuing to decline sharply, along with other contributing factors, the company went bankrupt and closed its doors only a couple of years after the initial announcement. Quebec lost $270 million of taxpayers’ money.Western Standard readers do not need to look far for an answer to why mid-September was chosen. The positive media coverage of Carney signing multiple MOUs — and perhaps even a contract or two, incentivized with your tax dollars — is an attempt to dissuade Alberta voters who may still be undecided from voting “yes” in Alberta’s referendum if an independence question is added to the other nine questions, only a month later. The point is positive publicity. Albertans can certainly expect more nonsense and publicity stunts from Ottawa over the summer.Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.

BARBER: Why September for the ‘investment summit’

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