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By-election Bombshell! Justin Trudeau’s Liberals lose safe Toronto riding

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8 minute read

JUN 25, 2024

Benefit of hindsight

Feel free to start coming back any time, big guy

Well, of course I saw it coming all along. What kind of fool could have imagined the Liberal in Toronto — St. Paul’s had any chance?

Hang on. I’m just getting word that I didn’t see it coming. In fact, as recently as Monday night I wrote a post I’ll be hearing about until the cows come home. Sorry about that!

Here are the actual final results, barring any recounts, which may not happen because Conservative Don Stewart’s margin of victory, while slim, is too large to trigger an automatic recount.

Congratulations, Don Stewart! I never doubted you’d win. Hang on. I’m just getting word that I doubted you’d win as recently as last night.

Things will now start to happen quickly. Expect Liberals to work their way through four of the five Kübler-Ross stages of grief before lunch. Denial will come easily, benefiting as it does from long practice. Acceptance may take longer.

The Paul Wells newsletter is fun reading even when I’m calling the results of a by-election wrong! Imagine how much you’ll enjoy it when I’m right about something!

In part this is because on paper there isn’t that much to accept. The day’s news is not earth-shaking and, in isolation, should not be taken as definitive. It’s true that by-elections are strange events, though if you add them together they do have some predictive power. It’s true that Leslie Church’s long service as Chrystia Freeland’s chief of staff turned out to be more of a hindrance than a help, a data point whose implications the Deputy Prime Minister won’t want to think much about today. It’s true the Liberals didn’t even try all that hard, if by “didn’t try all that hard” you mean “they tried as hard as they possibly could, my God they tried so hard, my God.”

But a single off-season defeat in a riding the Liberals have, in fact, previously lost during the Paleozoic era is not a larger thing to accept than, say, a punishing loss to Ireland and Norway in a Security Council vote at the UN. Or the loss of two senior cabinet ministers in a controversy in which the ministers who quit were radiantly, obviously in the right. Don’t take my word on that, incidentally: ask David Lametti, who agreed with Jody Wilson-Raybould but managed to keep his job anyway. For a while.

A single by-election defeat is not a larger thing to accept than the prime minister’s documented history of slapping on dark makeup for social occasions, a habit that stretched from junior college to young adulthood. It’s not a bigger deal than firing your finance minister during a global fiscal calamity so you can replace him with somebody who knows less about money. It’s not evidence of poorer strategic thinking than the choice of Parliament as the venue for dismantling a new Conservative leader, given that Parliament has long been where Justin Trudeau and most of his government perform worst.

It’s not a bigger deal than mocking monetary policy during an election campaign. It’s not a big new development, compared to the Prime Minister’s reluctance to meet his own cabinet ministers to discuss business, an oddity of his management style that’s been documented in a growing number of books (look out for Marc Garneau’s this fall!).

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The prime minister has been on the ropes before, so to speak, and all those trials have made him the man he is today. Or rather, I suppose, his response to them has. I have no particular advice for Justin Trudeau today, or to the party he leads with the unstinting consent of its members. I screwed up last night by sending a column before the facts were in, so I’m feeling a little sheepish this morning. I’ll let Liberals decide what to do next.

As recently as two summers ago, I used to give them advice. It amounted to this: Notice when something you’re doing isn’t working. Change it. Make sure people see you changing it, so you don’t look quite so full of yourself. Rinse and repeat.

That post from 2022 ends:

“Don’t worry. He won’t take this advice either. Whatever the Liberal leader does on his return from the sunless south, it probably won’t resemble anything we’ve mentioned today. He’ll probably keep doing what he’s been doing. With the same results.”


Let me read to you

My excellent short bestselling book, Justin Trudeau on the Ropes: Governing in Troubled Times, is now an audiobook, narrated by the author, who is me. Here it is on Audible. Other platforms soon.

Here’s the story of the book, if you’re just catching up. Here’s an episode of my podcast with guest host Vassy Kapelos interviewing me about the book. Paper and ebook editions remain easy to find and buy, for yourself or friends.

We decided to make the audiobook some time after we published the, uh, more booky formats. It’s a response to surprising and gratifying demand. It’s also a promissory note: If this belated audiobook edition finds an audience, it won’t be my last.

There’s a school of thought that says there’s not much demand for nonfiction Canadian audiobooks. Here’s your chance to confound the skeptics. Thanks as always for your support.

For the full experience subscribe to Paul Wells.

 

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Business

The great policy challenge for governments in Canada in 2026

Published on

From the Fraser Institute

By Ben Eisen and Jake Fuss

According to a recent study, living standards in Canada have declined over the past five years. And the country’s economic growth has been “ugly.” Crucially, all 10 provinces are experiencing this economic stagnation—there are no exceptions to Canada’s “ugly” growth record. In 2026, reversing this trend should be the top priority for the Carney government and provincial governments across the country.

Indeed, demographic and economic data across the country tell a remarkably similar story over the past five years. While there has been some overall economic growth in almost every province, in many cases provincial populations, fuelled by record-high levels of immigration, have grown almost as quickly. Although the total amount of economic production and income has increased from coast to coast, there are more people to divide that income between. Therefore, after we account for inflation and population growth, the data show Canadians are not better off than they were before.

Let’s dive into the numbers (adjusted for inflation) for each province. In British Columbia, the economy has grown by 13.7 per cent over the past five years but the population has grown by 11.0 per cent, which means the vast majority of the increase in the size of the economy is likely due to population growth—not improvements in productivity or living standards. In fact, per-person GDP, a key indicator of living standards, averaged only 0.5 per cent per year over the last five years, which is a miserable result by historic standards.

A similar story holds in other provinces. Prince Edward Island, Nova Scotia, Quebec and Saskatchewan all experienced some economic growth over the past five years but their populations grew at almost exactly the same rate. As a result, living standards have barely budged. In the remaining provinces (Newfoundland and Labrador, New Brunswick, Ontario, Manitoba and Alberta), population growth has outstripped economic growth, which means that even though the economy grew, living standards actually declined.

This coast-to-coast stagnation of living standards is unique in Canadian history. Historically, there’s usually variation in economic performance across the country—when one region struggles, better performance elsewhere helps drive national economic growth. For example, in the early 2010s while the Ontario and Quebec economies recovered slowly from the 2008/09 recession, Alberta and other resource-rich provinces experienced much stronger growth. Over the past five years, however, there has not been a “good news” story anywhere in the country when it comes to per-person economic growth and living standards.

In reality, Canada’s recent record-high levels of immigration and population growth have helped mask the country’s economic weakness. With more people to buy and sell goods and services, the overall economy is growing but living standards have barely budged. To craft policies to help raise living standards for Canadian families, policymakers in Ottawa and every provincial capital should remove regulatory barriers, reduce taxes and responsibly manage government finances. This is the great policy challenge for governments across the country in 2026 and beyond.

Ben Eisen

Senior Fellow, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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Business

Land use will be British Columbia’s biggest issue in 2026

Published on

By Resource Works

Tariffs may fade. The collision between reconciliation, property rights, and investment will not.

British Columbia will talk about Donald Trump’s tariffs in 2026, and it will keep grinding through affordability. But the issue that will decide whether the province can build, invest, and govern is land use.

The warning signs were there in 2024. Land based industries still generate 12 per cent of B.C.’s GDP, and the province controls more than 90 per cent of the land base, and land policy was already being remade through opaque processes, including government to government tables. When rules for access to land feel unsettled, money flows slow into a trickle.

The Cowichan ruling sends shockwaves

In August 2025, the Cowichan ruling turned that unease into a live wire. The court recognized the Cowichan’s Aboriginal title over roughly 800 acres within Richmond, including lands held by governments and unnamed third parties. It found that grants of fee simple and other interests unjustifiably infringed that title, and declared certain Canada and Richmond titles and interests “defective and invalid,” with those invalidity declarations suspended for 18 months to give governments time to make arrangements.

The reaction has been split. Supporters see a reminder that constitutional rights do not evaporate because land changed hands. Critics see a precedent that leaves private owners exposed, especially because unnamed owners in the claim area were not parties to the case and did not receive formal notice. Even the idea of “coexistence” has become contentious, because both Aboriginal title and fee simple convey exclusive rights to decide land use and capture benefits.

Market chill sets in

McLTAikins translated the risk into advice that landowners and lenders can act on: registered ownership is not immune from constitutional scrutiny, and the land title system cannot cure a constitutional defect where Aboriginal title is established. Their explanation of fee simple reads less like theory than a due diligence checklist that now reaches beyond the registry.

By December, the market was answering. National Post columnist Adam Pankratz reported that an industrial landowner within the Cowichan title area lost a lender and a prospective tenant after a $35 million construction loan was pulled. He also described a separate Richmond hotel deal where a buyer withdrew after citing precedent risk, even though the hotel was not within the declared title lands. His case that uncertainty is already changing behaviour is laid out in Montrose.

Caroline Elliott captured how quickly court language moved into daily life after a City Richmond letter warned some owners that their title might be compromised. Whatever one thinks of that wording, it pushed land law out of the courtroom and into the mortgage conversation.

Mining and exploration stall

The same fault line runs through the critical minerals push. A new mineral claims regime now requires consultation before claims are approved, and critics argue it slows early stage exploration and forces prospectors to reveal targets before they can secure rights. Pankratz made that critique earlier, in his argument about mineral staking.

Resource Works, summarising AME feedback on Mineral Tenure Act modernisation, reported that 69.5 per cent of respondents lacked confidence in proposed changes, and that more than three quarters reported increased uncertainty about doing business in B.C. The theme is not anti consultation. It is that process, capacity, and timelines decide whether consultation produces partnership or paralysis.

Layered on top is the widening fight over UNDRIP implementation and DRIPA. Geoffrey Moyse, KC, called for repeal in a Northern Beat essay on DRIPA, arguing that Section 35 already provides the constitutional framework and that trying to operationalise UNDRIP invites litigation and uncertainty.

Tariffs and housing will still dominate headlines. But they are downstream of land. Until B.C. offers a stable bargain over who can do what, where, and on what foundation, every other promise will be hostage to the same uncertainty. For a province still built on land based wealth, Resource Works argues in its institutional history that the resource economy cannot be separated from land rules. In 2026, that is the main stage.

Resource Works News

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