Business
Doubling Down on Missing the Mark
By Chris Gardner
President, Independent Contractors and Businesses Association
Earlier this year, public opinion research company Leger published the results of a nationwide poll. One result stood out: 70 per cent of Canadians agreed with the statement: “It feels like everything is broken in this country right now.”
To young people, families and business owners struggling to buy or stay in a home, find a doctor, pay for gas and groceries, hire people, worried about how unsafe our streets have become, or having to navigate a never-ending web of red tape to get projects approved, a deep sense of helplessness has set in.
Over the past few years, Canada’s long slow decline has become the subject of an avalanche of scrutiny and by every measure of social well-being and economic competitiveness, Canada is coming up short among its global peers. Canada’s ability to generate opportunities and long-term prosperity for its people is now at serious risk.
But anyone reading the 9th budget of the Trudeau Government looking for some relief from the big challenges that Canadian families and entrepreneurs are facing, will come away sorely disappointed.
It seems that every day there is a new report telling Canadians what they already know – buying or staying in a home has never been harder in this country. Just last week, RBC reported that it is the ‘toughest time ever’ to afford a home and that the share of household income needed to cover ownership costs is now 64% in Canada and an almost inconceivable 106% in Vancouver and 85% in Toronto.
CMHC estimates that we need to build 800,000 homes a year between now and 2030 to meet demand, while CIBC says it’s closer to 1 million. Keep in mind that in 2023 we built about 230,000 new homes.
With the shortage of people across every part of our economy now acute, a central question asked by many is ‘who will build all these homes?’. Our labour markets are undergoing a seismic shift – absent immigration, our population is flat-lining and will start to decline. Indeed, in B.C., in 2022, for the first time ever, natural births exceeded natural deaths – and it happened again last year.
Part of the answer is immigration. However, our immigration system is failing us. Last year we added a city the size of Calgary to our national population, and we are on track to do the same in 2024. Two major challenges have emerged. First, we have failed miserably to assess the skills gaps in our economy – doctors, nurses, technicians, teachers and trades workers – and attract them to Canada. Case in point: only 2% of all permanent immigrants in 2023 will pursue a career in the construction trades. Second, the torrid pace of our population growth is crushing affordability and overwhelming the infrastructure in our major centres. In 2021 there was a total of 1.3MN non-permanent residents in Canada; today we have 2.6MN. We must find a better balance – attract the people with the right skills to power our economy and in numbers that our schools, hospitals, transit systems and housing stock can reasonably absorb.
Canada has a remarkable competitive advantage in its natural resources – energy and minerals in abundance and in high demand. And, harnessing them provides some of the highest paying jobs in the country. Budget 2024 offered barely a passing reference to this enormous potential for Canada. No one should be surprised. Leaders from Germany, Japan and Greece have visited Canada and received the diplomatic equivalent of a cold shoulder at the suggestion that Canada supply their economies with much needed energy. One federal minister stated that Ottawa is ‘not interested in funding LNG projects.’ He missed the point completely – no one was asking Ottawa to fund anything; they simply want Ottawa to get out of the way.
Finally, last year, the CD Howe Institute reported that for every dollar that an American business spends on training, technology and capital – the essential ingredients for innovation – a Canadian company invests 58 cents. Business investment in Canada from 2015 to 2023 ranked 44 out of the 47 most advanced economies, according to the OECD. This matters because the more innovative Canadian firms, the more they spend on upskilling their people and on adopting new technology, the more they can increase the size of paycheques for workers. Canada’s lagging productivity is to the point where the Deputy Governor of the Bank of Canada said, “You know those signs that say, ‘In an emergency, break the glass?’ Well, it’s time to break the glass.”
After reading the budget it’s hard not to come away with the feeling that Canada is not a serious country, and the Trudeau Government is incapable of addressing the big challenges facing the country.
Why do so many people feel like everything in this country is broken? Because so much is breaking all around us.
Chris Gardner is the President and CEO of the Independent Contractors and Businesses Association.
The Independent Contractors and Businesses Association (ICBA), the largest construction association in Canada, represents more than 4,000 members and clients. ICBA is one of the leading independent providers of group health and retirement benefits in Canada, supporting nearly 170,000 Canadians, and the single largest sponsor of trades apprentices in B.C. ICBA is Merit Canada’s affiliate in B.C. and Alberta. www.icba.ca
Business
CBC’s business model is trapped in a very dark place
I Testified Before a Senate Committee About the CBC
I recently testified before the Senate Committee for Transport and Communications. You can view that session here. Even though the official topic was CBC’s local programming in Ontario, everyone quickly shifted the discussion to CBC’s big-picture problems and how their existential struggles were urgent and immediate. The idea that deep and fundamental changes within the corporation were unavoidable seemed to enjoy complete agreement.
I’ll use this post as background to some of the points I raised during the hearing.
You might recall how my recent post on CBC funding described a corporation shedding audience share like dandruff while spending hundreds of millions of dollars producing drama and comedy programming few Canadians consume. There are so few viewers left that I suspect they’re now identified by first name rather than as a percentage of the population.
Since then I’ve learned a lot more about CBC performance and about the broadcast industry in general.
For instance, it’ll surprise exactly no one to learn that fewer Canadians get their audio from traditional radio broadcasters. But how steep is the decline? According to the CRTC’s Annual Highlights of the Broadcasting Sector 2022-2023, since 2015, “hours spent listening to traditional broadcasting has decreased at a CAGR of 4.8 percent”. CAGR, by the way, stands for compound annual growth rate.
Dropping 4.8 percent each year means audience numbers aren’t just “falling”; they’re not even “falling off the edge of a cliff”; they’re already close enough to the bottom of the cliff to smell the trees. Looking for context? Between English and French-language radio, the CBC spends around $240 million each year.
Those listeners aren’t just disappearing without a trace. the CRTC also tells us that Canadians are increasingly migrating to Digital Media Broadcasting Units (DMBUs) – with numbers growing by more than nine percent annually since 2015.
The CBC’s problem here is that they’re not a serious player in the DMBU world, so they’re simply losing digital listeners. For example, of the top 200 Spotify podcasts ranked by popularity in Canada, only four are from the CBC.
Another interesting data point I ran into related to that billion dollar plus annual parliamentary allocation CBC enjoys. It turns out that that’s not the whole story. You may recall how the government added another $42 million in their most recent budget.
But wait! That’s not all! Between CBC and SRC, the Canada Media Fund (CMF) ponied up another $97 million for fiscal 2023-2024 to cover specific programming production budgets.
Technically, Canada Media Fund grants target individual projects planned by independent production companies. But those projects are usually associated with the “envelope” of one of the big broadcasters – of which CBC is by far the largest. 2023-2024 CMF funding totaled $786 million, and CBC’s take was nearly double that of their nearest competitor (Bell).
But there’s more! Back in 2016, the federal budget included an extra $150 million each year as a “new investment in Canadian arts and culture”. It’s entirely possible that no one turned off the tap and that extra government cheque is still showing up each year in the CBC’s mailbox. There was also a $93 million item for infrastructure and technological upgrades back in the 2017-2018 fiscal year. Who knows whether that one wasn’t also carried over.
So CBC’s share of government funding keeps growing while its share of Canadian media consumers shrinks. How do you suppose that’ll end?
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ESG
Can’t afford Rent? Groceries for your kids? Trudeau says suck it up and pay the tax!
Watch Canada’s Prime Minister tell an anti-poverty group, your ability to buy “groceries for my kids” is less important than sacrificing to pay his carbon tax.
In case you still thought there might be even the tiniest chance Justin Trudeau might come around.. well this settles it. He is as they say, ‘beyond the pale’.
Sure we’ve pieced this together over the last number of years, but it’s still SHOCKING to see him say it directly, proclaim it proudly. This week Trudeau received applause from an audience of the intellectually suffering at something called the “Global Citizen Now” panel discussion on the sidelines of the G20 Leaders’ Summit in Rio.
Much appreciation for the first short video below to Opposition Leader Pierre Poilievre who shared his ferocious reaction to Trudeau’s anti-human comments, challenging the current PM to call an immediate election.
Or course there will be no quick election call. To Justin, it’s more important to cling to the undercarriage of a taxpayer funded jet so he can fly the globe stunning audiences unfortunately already stunned by their utter terror of losing the planet.
In their horror at their inability to turn the switch off and let us all freeze/starve to death this winter, they applaud lovingly for their intellectual leader/sock model as he describes how hard it is to convince angry, hungry people they really need to suck it up.
If only he read a history book.. any history book.. apologies, any book at all. Truly even spending some time with the literary version of an Al Gore video rant would at lest keep JT occupied so he couldn’t speak for a few moments. I’m pretty sure every time he opens his mouth, the temperature in Canada rises as millions of frustrated hotheads (hello there) explode, spewing steam high up into the upper atmosphere where water particles do much more damage to our planet than the final exhaling of a non grocery-eating-planet-loving-Canadian.
Watch Pierre Poilievre’s video and assuage the ensuing headache by mapping out your route to a polling booth. If this doesn’t sell a couple of those ‘Axe the Tax’ shirts for the Poilievre team, well.. enjoy your stroll to the foodbank.
Here’s a link to his entire discussion. If you have a strong stomach and 20 minutes of your life to donate to a higher cause… No silly, not the intended cause of the anti-poverty group… But to the intellectual cause of understanding just how twisted the logic has become for those who fly around the world to wine and dine, only to break long enough to tell us they think it’s perfectly fine if we can’t buy groceries for our kids.
By the way, please save a bit of your shock and disappointment for the hapless host of the ‘anti-poverty’ Global Citizen. This was apparently on the sidelines of a G20 Summit. I would expect this drivel to be called out at a respectable middle school debate. Apparently the ‘anti-poverty’ Global Citizen people aren’t overly concerned with poverty. Do we need to say that not being able to afford groceries is in fact THE definition of poverty? Or course not. It would be much easier for them to change their name to Former Global Citizens.
You were warned.
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