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Trudeau’s Christmas Gifts to Canadians: Unaffordable Housing, Inaccessible Health Care, Out-of-Control Immigration and Sagging Productivity

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16 minute read

From the C2C Journal

By Gwyn Morgan

On Tuesday Statistics Canada reported that Canada’s population leapt by 430,635 people from July through September of this year, after previously reporting that our nation added 1,050,110 people in 2022. That was the largest such annual number ever recorded and the nation’s highest percentage growth rate since 1957. The ostensibly non-political federal agency proclaimed this result as “certainly cause for celebration.” Ninety-six percent of the growth came from international migration. People accepted as new permanent residents accounted for 437,000 of those immigrants, while 613,000 were classified as non-permanent. In November, the federal government announced plans to grant permanent residency to 465,000 this year, with a goal of half a million by 2025. Combined with a high rate of non-permanent arrivals – such as students and temporary foreign workers – this means Canada will continue to have by far the highest immigration rate of any G7 country.

The Justin Trudeau government says we need all those immigrants to make up for a chronic shortage of skilled workers. Permanent immigrants fall into four broad acceptance categories: economic (and, thus, presumably skilled), family reunification, refugees and protected persons, and a final category described as “humanitarian, compassionate and others.” Economic immigrants make up about 60 percent of the total.

1.1 million per year, nearly 450,000 in the last quarter alone: The Justin Trudeau government vows to continue inviting new immigrants at record rates, allegedly to fill shortages of skilled workers, yet private-sector job creation in Canada is lagging, and many immigrants appear to go straight into government work. (Sources of photos: (top) Diary Marif; (middle) Michael Charles Cole/CBC; (bottom) JHVEPhoto/Shutterstock)

But before one jumps to the conclusion that our immigration system is working as it should, providing Canadian companies large and small from coast to coast with the skilled employees they would otherwise lack, one must pose this question: how many of those skilled immigrants are simply being added to the already massive number of federal, provincial and municipal government employees? The answer to that question is alarming.

A study by the Fraser Institute, released one month ago, with the revealing title Government-sector job growth dwarfs private-sector job growth across Canada, found that governments added far more employees than the private sector in all ten provinces between February 2020 and June 2023 – a period spanning from just before the pandemic set in, across the hard times of Covid-19, and onward for a year after it faded. During this time, the number of government jobs increasing by 11.8 percent compared to just 3.3 percent in the private sector – a whopping total of 446,000 government bureaucrats added.

There’s no doubt that immigrants are needed to help fill shortages of workers in some categories and certain regions. But more than 1 million per year? Of whom tens if not hundreds of thousands have probably ended up on the public payroll, i.e., going straight to being consumers of public resources rather than ever being productive contributors.

Canada’s immigration policy should be (but isn’t) considering two stark realities: a serious housing shortage/price crunch and a disintegrating health care system. Both situations – it’s no exaggeration to call them crises – are getting worse every day. While some housing markets are plagued by chronically slow construction, a lack of home building isn’t the main culprit. Last year actually saw a new national record set for housing starts at 320,000 units. Yet even that is far less than what’s needed to house our surging population.

Further, Canada’s population has been increasing by 600,000 or more every year for the past five years, while housing starts are typically far lower than the 2022 record – meaning we are falling ever-farther behind on housing. The Trudeau government’s much-boasted-about Housing Accelerator Fund has been a dismal failure. A recent article in Policy Magazine noted that Canada faces a housing shortfall of 3-4 million units by 2030. While high interest rates, zoning and NIMBYism are all playing roles, the article warns: “Historically high immigration levels will push up demand and drive up housing prices and rental rates across the country.”

While this seems to have all escaped the notice of Trudeau, even some of Canada’s elite are starting to catch on. Last week Tiff Macklem, the hapless Bank of Canada governor whose dithering helped heighten Canada’s pandemic-induced inflation to crisis levels, noted in a speech at Toronto’s Royal York Hotel that, “Canada’s housing supply has not kept up with growth in our population, and higher rates of immigration are widening the gap.”

While housing starts hit all-time records in 2021 and 2022, the new construction was subsumed beneath Canada’s surging population; the national housing shortfall is growing every year and projected to reach 3-4 million units by 2030. (Source of graph: Canadian Politics and Public Policy)

As bad as Canada’s housing situation is, health care is even worse – and deteriorating rapidly. A bulletin two weeks ago from public policy think-tank Second Street reported that more than 17,000 Canadians died while waiting for surgery or diagnostic scans in a one-year period straddling 2022-2023. Second Street’s figure is based on a series of Freedom of Information requests. It was an increase of 64 percent since 2018 and a five-year high.

Because many provincial health authorities provide incomplete data, Second Street believes the true figure is actually much worse: nearly 31,400 preventable deaths. The deceased victims had waited as long as 11 years for treatment. These horrific results are further evidence that Canada’s healthcare system is failing even to tread water and can be described as disintegrating or even collapsing. The situation is quite literally deadly. “We’re seeing governments leave patients for dead,” says Second Street’s president, Colin Craig.

And yet, incomprehensibly, the Trudeau government decided 2022 was the time to bring in nearly 1.1 million newcomers, and vowed to continue immigration flows at similar rates for years. And, as I pointed out near the end of this recent article, the published immigration figure is on top of 550,000 student visas and 600,000 work permits for temporary foreign and “international mobility” workers. Many of these workers are semi-skilled or completely unskilled and go straight to work in fast food or other low-paid services. How could any sane government follow such a foreseeably disastrous path?

“We’re seeing governments leave patients for dead”: According to Colin Craig (left), president of public policy research organization Second Street, the catastrophic state of Canada’s health care is likely responsible for over 30,000 preventable deaths-while-waiting per year. (Sources of photos: (middle) The Canadian Press/Nathan Denette; (right) Shutterstock)

During my long career in the energy sector, our company faced numerous existential challenges (not least how to survive the disastrous “Trudeau Number One’s” National Energy Program). I realized that two essential and entwined priorities were to do whatever it took to retain our highly proficient employees while also reining in expenditures as much possible – keeping the company both solvent and capable. We also developed a priority list for increasing capital expenditures to resume growing when conditions improved (much of which had to do with getting rid of Trudeau Number One). In such a situation, continuing to hire and spend would have been a path to certain disaster.

Sadly for our benighted country, the Trudeau government has done exactly that, following a path that has brought us to the brink of national disaster in several critical areas at once. Now, our unprecedented housing crisis has resulted in even job-holding and fully functional Canadians camping long-term in vehicles and tents. Fellow citizens are suffering and dying on health care waiting lists while being forbidden to access private care by federal legislation (and some provincial policies), with Canada’s courts often siding with government when challenged. And yet the Trudeau government has reconfirmed an immigration goal of half a million permanent residents with no lessening of non-resident immigrants that together will add another 1 million-plus newcomers in 2024.

Down and down: While Canada’s aggregate gross domestic product (GDP) continues to expand weakly, the metric that really counts – real GDP per individual Canadian – has been plunging and is projected to keep falling, signalling a weakening standard of living. (Sources: (photo) Pexels; (graph) TD Canada)

It’s hard to comprehend how much worse Canada’s housing and health care crises will get under these toxic policies. But they most assuredly will.

Adding to these self-inflicted wounds, our country now faces economic stagnation. While Canada’s aggregate (or “headline”) gross domestic product (GDP) has continued to increase, though weakly, the metric that really counts – GDP per individual Canadian – has stalled. Per capita GDP is critical because it is closely tied to individual income; to over-simplify slightly, workers can’t earn more if they don’t produce more. And here the situation is dire. “Real GDP per capita has contracted over the last three quarters,” states a July 15 report from TD Economics. “Longer term, the OECD projects that Canada will rank dead last amongst OECD members in real GDP per capita. Without fundamental changes, Canada’s standard-of-living challenges will persist well into the future.”

The key to producing more (without simply working more hours) and, hence, to earning more, is to increase the productivity of workers. And that is driven by private-sector capital investment in buildings/infrastructure, machinery/equipment, processes, software and other “intellectual capital,” research-and-development, and anything else that allows workers to increase their output without working more hours. Part of that increased output can be returned to workers in the form of higher compensation. That is how “real” wages grow without spurring inflation.

And in this critical dynamic, Canada has been lagging the U.S. and even Europe for over 20 years. Today our GDP per hour worked is stalled out and may actually be regressing. The TD Economics report cited above forecasts that this key metric will continue to experience “persistent contractions” at least throughout 2024. Meaning Canada’s shortfall in productivity – and personal income – versus the U.S. and leading European countries will continue to increase.

No longer a gap, a chasm: Canada’s invested capital per worker, once comparable to that of the U.S., has fallen dramatically since the Trudeau Liberals came to office in 2015. Says the C.D. Howe Institute: “Businesses see less opportunity in Canada and [this] prefigures weaker earnings and living standards.” (Sources: (photo) The Canadian Press/Paul Chiasson; (graph) TD Canada)

A report last year from the CD Howe Institute, Decapitalization: Weak Business Investment Threatens Canadian Prosperity, points out that the invested capital per worker, key to a country’s ability to produce goods and services, “has been weak since 2015” – the year the Trudeau government came into office. “Before 2015, Canadian business had been closing a long-standing gap with the U.S.,” the report states, before warning, “Since 2015, the gap has become a chasm.” The report’s ominous conclusion: “Having investment per worker much lower in Canada than abroad tells us that businesses see less opportunity in Canada and prefigures weaker earnings and living standards.”

The stark reality is that those millions of hopeful immigrants entering Canada will find a country not only unable to provide health care and housing for its citizens and temporary residents, but also with a diminishing overall standard of living. And a national government that doesn’t seem to care.

Gwyn Morgan is a retired business leader who was a director of five global corporations.

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Energy

Canadians will soon be versed in massive West Coast LPG mega-project

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An accumulator tank arrives at Prince Rupert. One of three tanks at the project, it is equivalent in size to 12 Olympic-sized swimming pools, or about half a football field. Photo courtesy AltaGas

Welcome to the world of REEF

Most Canadians, know who Connor McDavid is.

Most Canadians, know who Connor Bedard is.

And, well … most Canadians know who Howie Mandel is, right?

Household words.

But do any Canadians, know what REEF is? Probably not.

The Ridley Island Energy Export Facility project, a large-scale terminal near Prince Rupert, B.C., being built by AltaGas to export liquefied petroleum gas (LPG) and other bulk liquids to global markets.

Did you know it is providing valuable propane to Japan? No, not for barbecues, but for crucial energy demands in the Asian nation.

Japan uses propane (LP gas) for a wide range of purposes, including household use for cooking, water heating, and room heating, as well as for a majority of taxis, industrial applications, and as a raw material for town gas production.

Construction is progressing, with a target startup around the end of 2026. The project involves building significant infrastructure, including large storage tanks.

And it just so happens that Resource Works CEO Stewart Muir, paid a visit this past week to get a close-up look at a part of Canada’s export story that almost nobody talks about: a brand-new accumulator tank built to hold chilled propane and butane.

“It’s the largest of its kind anywhere. Two more are on the way, and together they’ll form a critical piece of the AltaGas Ltd. REEF project,” Muir said in a report.

”What stood out to me is the larger pattern: projects like this only happen because of the crown jewel of the B.C. economy — the Montney Formation.”

“It’s the triple-word-score of Canadian resource development: LNG, valuable natural gas liquids like propane, and the diluent streams that help unlock Canada’s single biggest export category, crude oil.”

The REEF project at Prince Rupert. Photo Courtesy AltaGas

Like the oilsands, the industry has long known about the Montney formation, which stretches 130,000 square kilometres in a football-shaped diagonal from northeast British Columbia into northwest Alberta.

According to CBC News, underneath this huge tract of land, the National Energy Board (NEB) estimates there’s 90 billion barrels of oil equivalent (boe), most of it natural gas. That’s more than half the size of the oilsands, yet the Montney has received only a fraction of the attention, at least from the public at large.

For oil and gas types, the gold rush is on.

Without question, and despite the ire of green groups who seem to be against any kind of resource development in Canada, the Montney is the quiet force multiplier behind local jobs, municipal tax bases, and the national balance of trade.

And it’s all being done at the highest environmental standard, with producers like Tourmaline Oil Corp already posting a 41% reduction in CO2 emission intensity and a target of 55% less methane emission intensity.

”Congrats to AltaGas for pushing this project forward, and a nod as well to other major employers on the North Coast — Trigon, CN and Pembina, writes Muir.

“Quietly and steadily, they’re building the future prosperity of Canadians. And thanks to Mayor Herb Pond, who took the time to walk us through the regional dynamics that make this corridor such a strategic asset.”

Muir was gobsmacked by the size of the project.

Sources say Alberta’s midstream bottleneck and rapid growth of Shale oil and gas exploration and production, has created an absolute glut in ethane, propane and butane. Ridley Island takes this glut and transports it to the Prince Rupert region by railcar and exports to Asian markets.

An LNG tanker arrives in the Sea of Japan. File photo

Ridley Island’s current export capacity of 92,000 bpd is undergoing aggressive expansion to growth by another 115,000 bpd over the next few years in two more phases of construction.

Recent images detail active construction efforts of the storage, jetty and rail infrastructure.

Alas, every issue that threatens to derail the ambitions of Canada’s oil and gas industry — access to market, First Nations land rights, public acceptance of infrastructure projects and, especially, the climate consequences of burning fossil fuels — is writ large in the Montney.

There are now seven separate lawsuits, and threats of further escalation, centred on claims by the Lax Kw’alaams and Metlakatla First Nations (collectively the Coast Tsimshian) that they were misled and lied to by the Crown when they agreed to developments on their traditional lands at Prince Rupert, John Ivison at the National Post reported.

The dispute over a future propane export facility at the port has spread to other resource projects, and the two First Nations have launched lawsuits against the Ksi Lisims LNG project that was one of the Liberal government’s major projects announced by the prime minister last week.

Further, the conflict threatens to negatively impact any plans Ottawa and the province of Alberta have to build an oil pipeline to the port.

Prime Minister Mark Carney’s recent announcements giving the green light to Alberta’s oil & gas industry has stirred the energy pot to new levels.

B.C. Premier David Eby — who prides himself on Indigenous virtue signalling — is pissed off. It appears he was largely left out of the loop and he is digging in.

Eby said the B.C. government needs to make sure this pipeline project doesn’t become an “energy vampire.”

“With all of the variables that have yet to be fulfilled — no proponent, no route, no money, no First Nations support — that it cannot draw limited federal resources, limited Indigenous governance resources, limited provincial resources away from the real projects that will employ people,” Eby added.

B.C.’s Coastal First Nations also say they will use “every tool in their toolbox” to keep oil tankers out of the northern coastal waters.

It is now apparent that all roads, or, shall we say, pipelines, lead to Prince Rupert.

The feds now face an imposing uphill battle, to leverage their standing as a regulator and resolve a dispute that threatens Canada’s crucial growth agenda.

— with files from CBC News, National Post

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Food

Canada Still Serves Up Food Dyes The FDA Has Banned

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From the Frontier Centre for Public Policy

By Lee Harding

Canada is falling behind on food safety by continuing to allow seven synthetic food dyes that the United States and several other jurisdictions are banning due to clear health risks.

The United States is banning nine synthetic food dyes linked to health risks, but Canada is keeping them on store shelves. That’s a mistake.

On April 22, 2025, the U.S. Department of Health and Human Services and the Food and Drug Administration (FDA) announced they would ban nine petroleum-based dyes, artificial colourings that give candies, soft drinks and snack foods their bright colours, from U.S. foods before 2028.

The agencies’ directors said the additives presented health risks and offered no nutritional value. In August, the FDA targeted Orange B and Citrus Red No. 2 for even quicker removal.

The good news for Canada is that Orange B was banned here long ago, in 1980, while Citrus Red No. 2 is barely used at all. It is allowed at two parts per million in orange skins. Also, Canada reduced the maximum permitted level for other synthetic dyes following a review in 2016.

The bad news for Canadians is that regulators will keep allowing seven dyes that the U.S. plans to ban, with one possible exception. Health Canada will review Erythrosine (called Red 3 in the U.S.) next year. The FDA banned the substance from cosmetics and drugs applied to the skin in 1990 but waited decades to do the same for food.

All nine dyes targeted by the FDA have shown evidence of tumours in animal studies, often at doses achievable through diet. Over 20 years of meta-analyses also show each dye increases the risk of attention deficit hyperactivity disorder in eight to 10 per cent of children, with a greater risk in mixtures.

At least seven dyes demonstrate broad-spectrum toxicity, especially affecting the liver and kidneys. Several have been found to show estrogenic endocrine effects, triggering female hormones and causing unwanted risks for both males and females. Six dyes have clinical proof of causing DNA damage, while five show microbiome disruption in the gut. One to two per cent of the population is allergic to them, some severely so.

The dyes also carry a risk of dose dependency, or addiction, especially when multiple dyes are combined, a common occurrence in processed foods.

U.S. research suggests the average child consumes 20 to 50 milligrams of synthetic dyes per day, translating to 7.3 to 18.25 kilograms (16.1 to 40.2 pounds) per year. It might be less for Canadian kids now, but eating even a “mere” 20 pounds of synthetic dyes per year doesn’t sound healthy.

It’s debatable how to properly regulate these dyes. Regulators don’t dispute that scientists have found tumours and other problems in rats given large amounts of the dyes. What’s less clear are the implications for humans with typical diets. With so much evidence piling up, some countries have already taken decisive action.

Allura Red (Red 40), slated for removal in the U.S., was previously banned in Denmark, Belgium, France, Switzerland, Sweden and Norway. However, these countries were forced to accept the dye in 2009 when the European Union harmonized its regulations across member countries.

Nevertheless, the E.U. has done what Canada has not and banned Citrus Red No. 2 and Fast Green FCF (Green 3), as have the U.K. and Australia. Unlike Canada, these countries have also restricted the use of Erythrosine (Red 3). And whereas product labels in the E.U. warn that the dyes risk triggering hyperactivity in children, Canadians receive no such warning.

Canadian regulators could defend the status quo, but there’s a strong case for emulating the E.U. in its labelling and bans. Health Canada should expand its review to include the dyes banned by the E.U. and those the U.S. is targeting. Alignment with peers would be good for health and trade, ensuring Canadian manufacturers don’t face export barriers or costly reformulations when selling abroad.

It’s true that natural alternatives present challenges. Dr. Sylvain Charlebois, a food policy expert and professor at Dalhousie University, wrote that while natural alternatives, such as curcumin, carotenes, paprika extract, anthocyanins and beet juice, can replace synthetic dyes, “they come with trade-offs: less vibrancy, greater sensitivity to heat and light, and higher costs.”

Regardless, that option may soon look better. The FDA is fast-tracking a review of calcium phosphate, galdieria blue extract, gardenia blue, butterfly pea flower extract and other natural alternatives to synthetic food dyes. Canada should consider doing the same, not only for safety reasons but to add value to its agri-food sector.

Ultimately, we don’t need colour additives in our food at all. They’re an unnecessary cosmetic that disguises what food really is.

Yes, it’s more fun to have a coloured candy or cupcake than not.What’s less fun is cancer, cognitive disorders, leaky gut and hormonal disruptions. Canada must choose.

Lee Harding is a research fellow for the Frontier Centre for Public Policy.

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