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As Ottawa meddles with pension funds, Albertans should consider provincial pension plan

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8 minute read

From the Frontier Centre for Public Policy

By Marco Navarro-Genie 

Who Should Control Canada’s Pension Wealth?

Ottawa wants to compel large pools of Canadian money to be invested in Canada, instead of allowing investment funds to find the best return for Canadian investors.

Last week, another scandalous and potentially corrupt string of federal activities popped up.

This one has deep implications for pension plans in Canada, including the debate about an Alberta Pension Plan. Mark Carney’s double game of politics and profit enhances the drive to patriate Alberta’s pension wealth.

At issue is a report in the media saying that Brookfield may be looking to raise a $50 billion fund with contributions from Canada’s pension funds and an additional $10 billion from the federal government.

This report has drawn significant attention for several reasons. Toronto-based Brookfield is one of the world’s largest alternative investment management companies, claiming about one trillion in assets under management. Their portfolio spans real estate, renewable energy, infrastructure, and private equity, making them a significant player in domestic and international markets. The magnitude of Brookfield’s investments places them at the forefront of global financial movements, giving considerable weight to any fund they propose to establish.

The second reason is that Finance Minister Chrystia Freeland and Prime Minister Justin Trudeau have voiced their ambitions to boost home-grown investments. One of the government’s strategies includes tapping into Stephen Poloz, the former Governor of the Bank of Canada. Poloz succeeded Mark Carney as the head of the bank. The Liberal government has tasked Poloz with leading a working group to identify “incentives” that would “encourage” institutional investors to keep their capital in Canada.

Moreover, Finance Minister Freeland has suggested implementing new regulations to ensure that more of Canada’s substantial pension fund reserves, which amount to an impressive $1.8 trillion, are allocated toward Canadian ventures. This comes when a staggering 73% of Canadian pension funds are invested abroad.

On its face, a plan to invest more Canadian wealth in Canada might sound reasonable. However, the plan avoids the crucial question of why money experts prefer investing outside Canada. Considering that question, one must consider the Trudeau government’s economic record.

Put differently, Ottawa is looking for ways to compel large pools of Canadian money to be invested in Canada instead of allowing investment funds to find the best return for Canadian investors. Those large cash pools typically belong to hard-working Canadians, such as teachers’ pensions. They would be forced to earn less for their pension money.

Forcing such large sums to remain in Canada would mask the continuous slump in productivity in the Canadian economy.

Given current economic policies and layers of taxation that do not exist elsewhere (such as the unpopular carbon taxes), Canadian companies are less competitive. Forcing pools of money to stay in Canada rather than seeking the best return for their clients offers an artificial boost that makes Ottawa policies seem less harmful.

It is, therefore, a politically motivated move. That level of government intervention historically always results in disastrous consequences. Politics directing traffic for the movement of capital rarely achieves good outcomes. The real issue is sagging productivity.

But that is only half the problem. The other significant issue is ethics.

Prime Minister Trudeau has recently named Mark Carney as his special economic advisor. Carney is the Chair of Asset Management and Head of Transition Investing at Brookfield.  The Brookfield website shows Carney is responsible for “developing products for investors.”  Carney is also the most mentioned name among people likely to succeed Justin Trudeau as leader of the Liberal Party of Canada.

In short, the man who closely advises the government of Canada on how to compel gargantuan pools of money to be invested in Canada conveniently oversees the development of the “product” for the private Toronto firm, through which that money would be forced to be invested in Canada. Furthermore, the same firm reportedly seeks (read lobbying) from the federal government an infusion of $10 billion for the new fund.

As a Liberal and a potential party leader, given Justin Trudeau’s fortunes, Mark Carney could become prime minister in the immediate future. This means that Carney would benefit from creating new rules forcing investment money to stay in the country in two ways: As a leading man at Brookfield, Carney and the firm stand to make tens of millions from the policy. Second, as a carbon tax enthusiast, once squarely in political office, Carney would benefit from masking the ill, underproductive effects of the radical green agenda and carbon taxes he supports.

When Alberta progressives oppose the desire of many Albertans to patriate Alberta pension funds to the province, they cite concerns that the province might use the funds for political purposes, undermining the maximum return. This is not an outlandish concern, in some respects, given the history of the Alberta Heritage Fund.

However, it is not an exclusive danger inherent to the Alberta government. It does not warrant the presupposition that the federal government is a better steward of Alberta’s pension wealth, as demonstrated by the developments above. All things being equal, and unless human nature is outlawed by federal statute, the risks are the same.

But if something goes wrong with Albertans’ pension wealth, would they rather deal with people in Alberta than people in Ottawa, half a continent away Raising Alberta voices in Ottawa when Ottawa has been bent on doing the opposite of what is good for Albertans has never produced good results or reversed the nefarious effects on Albertans.

Ottawa politicians will do what is best for Laurentians every single time. The history of the Dominion, from the national policy to Crow rates and the National Energy Policy to Carbon Taxes, shows Ottawa policies always favour vote-rich Laurentia first and foremost.

Mark Carney’s product development for Brookfield shows, at worst, that Alberta’s pension wealth is just as much as risk with federal policies driven by political motivations. This one would be doubly bad because it is meant to serve and benefit Carney and his Bay Street friends as much as it is designed to help his future colleagues in Ottawa. And on both counts, Carney would benefit as a financier and politician.

Albertans should take their money and run.

Marco Navarro-Genie is Vice President Research with the Frontier Centre for Public Policy. He is co-author, with Barry Cooper, of COVID-19: The Politics of a Pandemic Moral Panic (2020).

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Education

Schools should focus on falling math and reading grades—not environmental activism

Published on

From the Fraser Institute

By Michael Zwaagstra

In 2019 Toronto District School Board (TDSB) trustees passed a “climate emergency” resolution and promised to develop a climate action plan. Not only does the TDSB now have an entire department in their central office focused on this goal, but it also publishes an annual climate action report.

Imagine you were to ask a random group of Canadian parents to describe the primary mission of schools. Most parents would say something along the lines of ensuring that all students learn basic academic skills such as reading, writing and mathematics.

Fewer parents are likely to say that schools should focus on reducing their environmental footprints, push students to engage in environmental activism, or lobby for Canada to meet the 2016 Paris Agreement’s emission-reduction targets.

And yet, plenty of school boards across Canada are doing exactly that. For example, the Seven Oaks School Division in Winnipeg is currently conducting a comprehensive audit of its environmental footprint and intends to develop a climate action plan to reduce its footprint. Not only does Seven Oaks have a senior administrator assigned to this responsibility, but each of its 28 schools has a designated climate action leader.

Other school boards have gone even further. In 2019 Toronto District School Board (TDSB) trustees passed a “climate emergency” resolution and promised to develop a climate action plan. Not only does the TDSB now have an entire department in their central office focused on this goal, but it also publishes an annual climate action report. The most recent report is 58 pages long and covers everything from promoting electric school buses to encouraging schools to gain EcoSchools certification.

Not to be outdone, the Vancouver School District (VSD) recently published its Environmental Sustainability Plan, which highlights the many green initiatives in its schools. This plan states that the VSD should be the “greenest, most sustainable school district in North America.”

Some trustees want to go even further. Earlier this year, the British Columbia School Trustees Association released its Climate Action Working Group report that calls on all B.C. school districts to “prioritize climate change mitigation and adopt sustainable, impactful strategies.” It also says that taking climate action must be a “core part” of school board governance in every one of these districts.

Apparently, many trustees and school board administrators think that engaging in climate action is more important than providing students with a solid academic education. This is an unfortunate example of misplaced priorities.

There’s an old saying that when everything is a priority, nothing is a priority. Organizations have finite resources and can only do a limited number of things. When schools focus on carbon footprint audits, climate action plans and EcoSchools certification, they invariably spend less time on the nuts and bolts of academic instruction.

This might be less of a concern if the academic basics were already understood by students. But they aren’t. According to the most recent data from the Programme for International Student Assessment (PISA), the math skills of Ontario students declined by the equivalent of nearly two grade levels over the last 20 years while reading skills went down by about half a grade level. The downward trajectory was even sharper in B.C., with a more than two grade level decline in math skills and a full grade level decline in reading skills.

If any school board wants to declare an emergency, it should declare an academic emergency and then take concrete steps to rectify it. The core mandate of school boards must be the education of their students.

For starters, school boards should promote instructional methods that improve student academic achievement. This includes using phonics to teach reading, requiring all students to memorize basic math facts such as the times table, and encouraging teachers to immerse students in a knowledge-rich learning environment.

School boards should also crack down on student violence and enforce strict behaviour codes. Instead of kicking police officers out of schools for ideological reasons, school boards should establish productive partnerships with the police. No significant learning will take place in a school where students and teachers are unsafe.

Obviously, there’s nothing wrong with school boards ensuring that their buildings are energy efficient or teachers encouraging students to take care of the environment. The problem arises when trustees, administrators and teachers lose sight of their primary mission. In the end, schools should focus on academics, not environmental activism.

Michael Zwaagstra

Senior Fellow, Fraser Institute
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2025 Federal Election

Conservative MP Leslyn Lewis warns Canadian voters of Liberal plan to penalize religious charities

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From LifeSiteNews

By Anthony Murdoch

A Liberal government plan for pro-life and religious groups to be stripped of their tax charity status is an ‘assault’ on people’s faith, MP Leslyn Lewis said.

Canadian Conservative pro-life MP Leslyn Lewis said a plan supported by Mark Carney’s Liberal government that calls for pro-life and religious groups to be stripped of their tax charity status should be an election issue as it’s an “assault” on people’s faith.

“The Liberal plan to revoke the charitable status of religious organizations is an assault on people of faith across Canada,” Lewis wrote on X last week.

Lewis linked her post to an opinion piece published in the Niagara Independent by Lee Harding with the headline “Canada’s sleeper election issue: the loss of charitable status for religious organizations.”

Harding observed that the “potential loss of charitable status for religious charities might be the biggest sleeper issue in the federal election.”

“The Liberal government proposed the change and only Conservatives opposed,” Harding said.

Lewis noted that 40 percent of the 85,600 charities in Canada are religious organizations.

“These are organizations that feed the hungry, support the elderly, rally around people in crisis, provide addiction recovery services – and this is just the tip of the iceberg,” she wrote.

“It is quite honestly disgusting that the Liberals would try to sneak in this unconscionable attack in a Finance Committee report, just before Parliament prorogued.”

She noted how a recent Cardus study shows that if these charities lose their tax status “Canadians would lose $16.5B in services.”

“Fortunately, Canadians can vote down this misguided attack on religious charities. Whether they do so is up to them.”

Last month, the Conservative Party of Canada launched a petition blasting a recent finance committee recommendation supported by Carney that calls for pro-life and religious groups to have their charity tax status revoked.

The Finance Committee’s pre-budget report proposal released in December 2024 by the all-party Finance Committee suggested that legislation is needed to strip pro-life pregnancy centers and religious groups of their charitable status.

The legislation would amend the Income Tax Act and Income Tax. Section 429 of the proposed legislation recommends the government “no longer provide charitable status to anti-abortion organizations.”

All federal parties except for the Conservatives under Pierre Poilievre support the finance report’s recommendation.

Canada’s Catholic bishops have blasted the report’s recommendations and have urged the Liberal federal government to not proceed with any legislation that would target pro-life groups of religious organizations’ charity tax status.

The good news is that in light of former Prime Minister Justin Trudeau’s shutting of Parliament in order to step down from office, already planned legislation to strip pro-life pregnancy centers of charity status is on pause, at least for now.

Despite the reality that Poilievre is also pro-abortion, the former Trudeau now Carney Liberal government has in recent months ramped up his abortion rhetoric on social media in a seeming bid to rally its base, consistently boasting about his government’s desire to make killing a child in the womb easier than ever. Trudeau also repeatedly bragged about his pro-abortion record in the House of Commons.

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