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The Trudeau government’s latest assault on transparency is buried in Bill C-69

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6 minute read

From the Macdonald Laurier Institute

By Aaron Wudrick for Inside Policy

The new powers granted to the minister of health under Bill C-69 are considerable. For example, they allow the minister to unilaterally make decisions regarding drug approvals and food safety regulations, effectively pulling products off the shelves of stores without the typical procedural safeguards. This concentration of power in the hands of the minister circumvents much-needed scrutiny and risks politicizing health decisions.

As the Trudeau government scrambles to pass its spring 2024 budget measures through Parliament before the summer recess, most of the media’s focus has centred on the budget’s headline measure, the increase in the capital gains inclusion rate. Unusually, Finance Minister Chrystia Freeland chose not to include that change in its main budget bill, saying she would instead soon introduce those measures in a separate bill.

Meanwhile, the remainder of the budget measures are contained in Bill C-69, an omnibus bill that has attracted little media attention. That is a shame, as it contains provisions that warrant closer scrutiny, particularly the proposed changes to the Food and Drug Act. These amendments grant the minister of health sweeping powers, exacerbating the Trudeau government’s longstanding habit of undermining proper procedural channels when it finds them to be inconvenient.

The new powers granted to the minister of health under Bill C-69 are considerable. For example, they allow the minister to unilaterally make decisions regarding drug approvals and food safety regulations, effectively pulling products off the shelves of stores without the typical procedural safeguards. This concentration of power in the hands of the minister circumvents much-needed scrutiny and risks politicizing health decisions. It is not hard to see how such authority could easily lead to arbitrary or politically motivated actions, further diminishing public trust in a health system battered by the COVID-19 pandemic.

Health Minister Mark Holland defends these new powers by arguing that they are necessary for protecting public health swiftly and effectively and suggests that only a “dishonest” minister would misuse such powers. He fails to mention that governance should not rely solely on the personal integrity of individual ministers but on robust, transparent processes that ensure accountability. It is concerning that Holland advocates bypassing established departmental procedures, which raises questions about the motivations behind these proposed changes.

A more appropriate regulatory approach would trust independent agencies, including Health Canada, to oversee the safety of health products. Establishing clear guidelines and procedures for evaluating and removing unsafe products would ensure consistency, fairness, and transparency in decision-making processes.

Unfortunately, this approach contrasts sharply with the Trudeau government’s preference for consolidating power and limiting oversight.

For instance, the Trudeau government has been criticized for its use of secret orders-in-council, which bypass public scrutiny and reduce transparency. These orders often contain sensitive decisions that the government simply prefers to keep out of the public eye.

The government has also allowed the federal access to information system to atrophy, with frequent delays and heavily redacted documents further undermining the principle of open government.

In 2017, the Trudeau government introduced changes that critics argued would limit the independence and effectiveness of the Parliamentary Budget Officer (PBO). These amendments allowed the government to control the PBO’s work plan and staffing, potentially reducing its ability to hold the government accountable. More recently, the government cut the budget of the Information Commissioner’s office, undermining the capacity of an already overwhelmed independent officer of Parliament to hold the government to account, with the commissioner herself noting that “this reduction in my budget will spell long delays for complainants who are seeking information from government institutions.”

Further examples of this troubling trend include the government’s proposal in the early days of the  COVID-19 pandemic that sought to grant the government extraordinary powers to tax and spend unilaterally – without parliamentary approval – for almost two years. Later in the pandemic, the government faced significant criticism from Auditor General Karen Hogan for the lack of transparency and accountability regarding the allocation and spending of tens of billions in relief funds: “I am concerned about the lack of rigour on post-payment verifications and collection activities,” Hogan said in 2022.

Taken together, a clear pattern emerges of a government that regularly seeks to undermine transparency, limit oversight, and concentrate power within the executive branch, and Bill C-69 is just the latest attempt.

The government should back off and drop these proposed new unilateral ministerial powers. Strong regulatory oversight, coupled with transparency and accountability, won’t impair the government’s ability to regulate health products – all while safeguarding democratic principles and public trust.


Aaron Wudrick is the Director of the Domestic Policy Program at the Macdonald-Laurier Institute.

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Agriculture

It’s time to end supply management

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From the Frontier Centre for Public Policy

By Ian Madsen

Ending Canada’s dairy supply management system would lower costs, boost exports, and create greater economic opportunities.

The Trump administration’s trade warfare is not all bad. Aside from spurring overdue interprovincial trade barrier elimination and the removal of obstacles to energy corridors, it has also spotlighted Canada’s dairy supply management system.

The existing marketing board structure is a major hindrance to Canada’s efforts to increase non-U.S. trade and improve its dismal productivity growth rate—crucial to reviving stagnant living standards. Ending it would lower consumer costs, make dairy farming more dynamic, innovative and export-oriented, and create opportunities for overseas trade deals.

Politicians sold supply management to Canadians to ensure affordable milk and dairy products for consumers without costing taxpayers anything—while avoiding unsightly dumping surplus milk or sudden price spikes. While the government has not paid dairy farmers directly, consumers have paid more at the supermarket than their U.S. neighbours for decades.

An October 2023 C.D. Howe Institute analysis showed that, over five years, the Canadian price for four litres of partly skimmed milk generally exceeded the U.S. price (converted to Canadian dollars) by more than a dollar, sometimes significantly more, and rarely less.

A 2014 study conducted by the University of Manitoba, published in 2015, found that lower-income households bore an extra burden of 2.3 per cent of their income above the estimated cost for free-market-determined dairy and poultry products (i.e., vs. non-supply management), amounting to $339 in 2014 dollars ($435 in current dollars). Higher-income households paid an additional 0.5 per cent of their income, or $554 annually in 2014 dollars ($712 today).

One of the pillars of the current system is production control, enforced by production quotas for every dairy farm. These quotas only gradually rise annually, despite abundant production capacity. As a result, millions of litres of milk are dumped in some years, according to a 2022 article by the Montreal Economic Institute.

Beyond production control, minimum price enforcement further entrenches inefficiency. Prices are set based on estimated production costs rather than market forces, keeping consumer costs high and limiting competition.

Import restrictions are the final pillar. They ensure foreign producers do not undercut domestic ones. Jaime Castaneda, executive vice-president of the U.S. National Milk Producers Federation, complained that the official 2.86 per cent non-tariffed Canadian import limit was not reached due to non-tariff barriers. Canadian tariffs of over 250 per cent apply to imports exceeding quotas from the European Union, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Canada-United States-Mexico Agreement (CUSMA, or USMCA).

Dairy import protection obstructs efforts to reach more trade deals. Defending this system forces Canada to extend protection to foreign partners’ favoured industries. Affected sectors include several where Canada is competitive, such as machinery and devices, chemicals and plastics, and pharmaceuticals and medical products. This impedes efforts to increase non-U.S. exports of goods and services. Diverse and growing overseas exports are essential to reducing vulnerability to hostile U.S. trade policy.

It may require paying dairy farmers several billion dollars to transition from supply management—though this cartel-determined “market” value is dubious, as the current inflation-adjusted book value is much lower—but the cost to consumers and the economy is greater. New Zealand successfully evolved from a similar import-protected dairy industry into a vast global exporter. Canada must transform to excel. The current system limits Canada’s freedom to find greener pastures.

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.

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Agriculture

Grain farmers warn Canadians that retaliatory tariffs against Trump, US will cause food prices to soar

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From LifeSiteNews

By Anthony Murdoch

 

One of Canada’s prominent agricultural advocacy groups warned that should the federal Liberal government impose counter-tariffs on the United States, it could make growing food more expensive and would be a nightmare for Canadian farmers and consumers.

According to Grain Growers of Canada (GGC) executive director Kyle Larkin, the cost of phosphate fertilizer, which Canada does not make, would shoot up should the Mark Carney Liberal government enact counter-tariffs to U.S. President Donald Trump’s.

Larkin said recently that there is no “domestic phosphate production here (in Canada), so we rely on imports, and the United States is our major supplier.”

“A 25% tariff on phosphate fertilizer definitely would have an impact on grain farmers,” he added.

According to Statistics Canada, from 2018 to 2023, Canada imported about 4.12 million tonnes of fertilizer from the United States. This amount included 1.46 million tonnes of monoammonium phosphates (MAP) as well as 92,027 tonnes of diammonium phosphate (DAP).

Also imported were 937,000 tonnes of urea, 310,158 tonnes of ammonium nitrate, and 518,232 tonnes of needed fertilizers that have both nitrogen and phosphorus.

According to Larkin, although most farmers have purchased their fertilizer for 2025, they would be in for a rough 2026 should the 25 percent tariffs on Canadian exports by the U.S. still stand.

Larkin noted how Canadian farmers are already facing “sky-high input costs and increased government regulations and taxation.”

He said the potential “tariff on fertilizer is a massive concern.”

Trump has routinely cited Canada’s lack of action on drug trafficking and border security as the main reasons for his punishing tariffs.

About three weeks ago, Trump announced he was giving Mexico and Canada a 30-day reprieve on 25 percent export tariffs for goods covered by the United States-Mexico-Canada Agreement (USMCA) on free trade.

However, Ontario Premier Doug Ford, despite the reprieve from Trump, later threatened to impose a 25 percent electricity surcharge on three American states. Ford, however, quickly stopped his planned electricity surcharge after Trump threatened a sharp increase on Canadian steel and aluminum in response to his threats.

As it stands, Canada has in place a 25 percent counter tariff on some $30 billion of U.S. goods.

It is not yet clear how new Prime Minister Mark Carney will respond to Trump’s tariffs. However, he may announce something after he calls the next election, which he is expected to do March 23.

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