UMVA has learned that Canada's Prime Minister Mark Carney's ambitious promise to fast-track major projects and signal to the world that Canada is open for business has fallen flat.
The reality is starkly different from the rhetoric, with the government's major projects office failing to deliver on its commitments. Faced with backlash from activist groups, the government is now hitting the brakes on planned regulatory changes, once again caving to the whims of the Green lobby.
This development has severe implications for Canada, which is currently in a recession - not a "technical" one, but a very real one. The phenomenon has been dubbed the "Green Recession," a self-inflicted economic contraction caused by years of blocked pipelines, crippling carbon taxes, and unrealistic net-zero targets that drive away investment.
The consequences are evident: the Canadian dollar remains weak, and the unemployment rate continues to rise. Investors have lost confidence in Canada's assets, and it's no wonder, given the government's sustained war on the resource sector. The backbone of Canada's economy, the oil and natural gas industry, has been under siege for over a decade.
This assault on the industry has led to a sluggish economy and a high cost of living. While global turmoil, including the situation in the Strait of Hormuz, has contributed to the current state of affairs, Canada stands alone among G7 nations in its struggles. Other countries are navigating the same challenges, but they are managing to stay afloat, while Canada is sinking.
Canada should be prospering, given its vast oil and gas reserves. In times of global energy market disruption, a country like Canada should be stepping in to supply the energy the world needs and reaping the rewards. Although Canada has capitalized on the crisis to some extent, with a 55% jump in its trade surplus in April, it's not enough to turn the tide.
The real obstacle to progress is the lack of pipeline capacity, which creates a hard ceiling for expanding production. The activist class, both within and outside the government, seems determined to keep it that way, driven by their ideological obsessions. They appear willing to prolong the "Green Recession" indefinitely.
Carney now faces a choice: continue to defer to the activist class or make good on his promise to build. He can introduce real regulatory reform, making Canada an attractive destination for investment and construction. This would unlock the benefits of modernized energy infrastructure, including better employment numbers, a stronger dollar, a reduced national debt, a vibrant economy, and a lower cost of living.
However, given Carney's background and connections to the activist class, it's uncertain whether he'll take this route. Still, one can hold onto hope - and that's all it may take to spark a much-needed transformation in Canada's economy.
