Canada Action Plan: 5 Ways to Boost Employment, Make Life More Affordable, and Take Control of Our Economic Security

Canada Action Plan: 5 Ways to Boost Employment, Make Life More Affordable, and Take Control of Our Economic Security

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Key Points:

#1 - Natural resources are Canada's economic strength; we can no longer afford to say "no" to resource development

#2 - Canada must build new trade infrastructure to help get our energy, forestry, mining, and food products to new international markets

#3 - Canada needs to re-evaluate its over-burdening regulatory processes and ill-conceived policies in order to attract investment back into our country

#4 - Indigenous participation in the resource economy is key to getting projects built and also nurturing an equitable future for everyone

Canada Action Plan cover

Canada must act now to take control of our future economic security.

With ongoing challenges including U.S. tariffs on Canadian exports, low labour productivity, and weak GDP growth per capita amongst our peers, it’s clear Canada needs a plan to put itself on a better path. As an export-based economy, that means building new pipelines, ports, power lines, railways, and roads to attract new job-creating investment while diversifying our export markets to maximize the value of our natural resources.

At Canada Action, we’ve advocated for well over a decade that our natural resource wealth is one of our greatest competitive advantages and backstops the social programs all Canadian families rely on. By unleashing resource development across our energy, forestry, mining, and agriculture sectors, Canadians can regain the economic competitiveness we’ve lost over the past several years due to the obstruction of and lack of development of our greatest wealth-generating assets.

Below, we go over our five-point Canada Action Plan that will help our country get back on its feet – and usher in a new era of prosperity for Canadians.

#1 – Canada Must Prioritize the Development of Natural Resources

canada needs to build pipelines, ports, power lines, railways, and roads

Natural resources form the foundation of the Canadian economy at large. Accounting for 21% of national gross domestic product (GDP) [3], about 50% of our exports [3], 45% of our manufacturing output [4], and 3 million jobs nationwide [3], the resource industries are an irreplaceable part of our economy. Despite all this, our country has seen over $670 billion in stalled or cancelled natural resource projects since 2015.

All levels of government must recognize the economic importance of our natural resource industries and the role they will play in building a stronger, more affordable future for our families. Federal, provincial, and municipal leaders should staunchly support the growth of our energy, forestry, mining, and agriculture sectors through a variety of means, including:

  • Expedited project approvals and streamlining of regulatory processes to build investor confidence and attract capital back into Canada
  • Expansion of value-adding industries such as refineries and mineral processing facilities
  • Enforce and uphold the rule of law in the face of obstructionist activism which seeks to keep all of our natural resource wealth in the ground

#2 – Canada Must Fast-Track Critical Infrastructure and Diversify Our Export Markets

Infrastructure investment is critically important to building a stronger, more resilient, and more competitive economy [1]. Canadian governments must take immediate steps to fast-track key projects including pipelines, ports, power lines, railways, and roads to allow Canadian-made goods to find their way to international markets more efficiently while maximizing the value of our natural resources in the process. Building new transportation infrastructure will also allow for the efficient and reliable importation of goods, vital to growing the Canadian economy [3].

Canadians need not look any further than the Trans Mountain Pipeline Expansion (TMX), which, after its long-delayed construction, effectively narrowed the oil price differential between Western Canadian Select (WCS) and West Texas Intermediate (WTI) by about $10 in Q4 2024 versus Q4 2023. Analysts estimated this reduction increased revenues by $10 billion since the expanded pipeline began operations – billions of dollars that would have been lost to our economy if it weren’t for TMX. The pipeline, once operational, was also expected to contribute more to Canada’s economic growth than the entire province of B.C. [2].

#3 – Canada Must Reduce Regulatory Barriers and Attract Investment

global demand for oil and natural gas is growing - it should be Canadian

Canada must reevaluate its current regulatory framework which, judging by past developmental timelines and cancelled projects, should be streamlined to be more efficient, timely, and predictable [3]. This includes [3]:

  • Reducing approval processes and timelines
  • Deferring to provincial regulators when appropriate
  • Eliminating political interference in regulatory decision-making
  • Engaging in meaningful consultations with stakeholders, including local and Indigenous communities
  • Ensuring regulating legislation is clear and consistent to advance projects forward

Canada must also reevaluate its current tax regime to compete with other jurisdictions abroad and help attract investment back into our country [3].

An excellent example of a past resource project that was cancelled largely in part due to Canada’s overbearing regulations is the Energy East pipeline. According to project proponents, the pipeline experienced protracted regulatory uncertainty where the goalposts were continually moved for its approval. Eventually, after high startup costs of over $1 billion and a lack of government support, the project was cancelled.

Another example is the $36 billion Pacific Northwest LNG, where project proponents eventually cancelled the project after years of gruelling regulatory reviews and $10 billion spent [5].

#4 – Canada Must Support the Competitiveness of Our Resource Industries on the Global Stage

Canada must take a long hard look at current policies that make our resource industries uncompetitive with other jurisdictions abroad and deter investors at large. Such policies give rise to uncertainty and often layer on incremental cost pressures that discourage investment altogether [3].

The federal oil and gas emissions cap is just one of many examples of ill-conceived policies that are being layered onto a litany of other regulations, deterring investment into new natural resource projects.

Bill C-48 is another example of disastrous legislation that effectively bans oil tanker traffic from the northern tip of Vancouver Island to the Alaska border despite the same coastal traffic being allowed on the east coast. Why is that?

#5 – Canada Must Support Indigenous Communities to Take Part in the Resource Economy

oil and natural gas is an irreplaceable part of Canada's national economy

Indigenous communities are vital stakeholders in Canada's natural resource development landscape. Recognizing their rights and supporting their participation in the resource economy is essential for achieving inclusive growth for all. Canada must:

  • Collaborate with Indigenous people to create clear pathways for participation in resource projects, including equitable ownership opportunities and profit-sharing arrangements.
  • Provide training and capacity-building programs to equip Indigenous workers with the skills needed in resource industries, ensuring they have access to well-paying jobs that support their local communities and help businesses thrive.
  • Engage in respectful and meaningful partnerships that honour treaty rights and address historical injustices, fostering a spirit of economic reconciliation and shared prosperity.

By supporting Indigenous communities in resource development, Canada can promote economic empowerment, enhance social equity, and harness the potential of a more diverse workforce.

What Are We Waiting For?

global natural gas demand is growing banner

Canada is at a critical juncture where decisive action is required to ensure a prosperous future for all Canadians. Prioritizing the development of our natural resources will unleash significant economic potential, creating countless jobs, generating critical government revenues to support our standard of living, and securing our long-term economic independence and security.

By following our five-point Canada Action Plan above, we can overcome today’s economic challenges and build a brighter, more resilient future. Together, we can take control of our economic security and pave the way for a new era of growth and opportunity for all Canadians. It’s time to build Canada up.

SOURCES:

1 - https://www.thebusinesscouncil.ca/report/ambition-and-action/

2 - https://www.resourceworks.com/tmx-outperforming-bc

3 – https://businessdatalab.ca/wp-content/uploads/2024/09/Canadas_Natural_Wealth.pdf

4 – https://macdonaldlaurier.ca/canadas-resource-sector-protecting-the-golden-goose-philip-cross-jack-mintz-paper/

5 - https://financialpost.com/commodities/energy/pacific-northwest-lng-2012-2017-how-to-kill-an-lng-project-in-canada