Carney announces creation of Canada's first national sovereign wealth fund
Fund will be used to finance construction of major projects of national interest
Social Sharing
Prime Minister Mark Carney has announced his plan to create Canada's first sovereign wealth fund.
The "Canada Strong Fund" will serve as an investment vehicle to finance major projects of national interest and will work in partnership with the private sector, Carney said in a video posted online.
Carney said in the video that Canadians will be able to contribute to and benefit from the fund, investing alongside the private sector and international partners.
"If you have a bit of extra money, we'll make it easy for you to invest in the fund to help build Canada strong for all," he said.
In a statement, the federal government said the fund will include projects in "clean and conventional energy, critical minerals, agriculture, and infrastructure."
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Carney unveils major projects he wants fast-tracked, including new mines, LNG and hydro development
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What will the federal government's Major Projects Office do — and will it succeed?
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Trans Mountain board chair to lead new federal Major Projects Office based in Calgary
At Monday's press conference at the Canadian Science and Technology Museum in Ottawa, Carney said the fund will begin with an initial endowment of $25 billion.
"Over time, the fund will grow through asset recycling and reinvestment, creating even greater opportunities for future generations," Carney said.
Carney announces creation of Canada's first national sovereign wealth fund
Fund will be used to finance construction of major projects of national interest
Social Sharing
Prime Minister Mark Carney has announced his plan to create Canada's first sovereign wealth fund.
The "Canada Strong Fund" will serve as an investment vehicle to finance major projects of national interest and will work in partnership with the private sector, Carney said in a video posted online.
Carney said in the video that Canadians will be able to contribute to and benefit from the fund, investing alongside the private sector and international partners.
"If you have a bit of extra money, we'll make it easy for you to invest in the fund to help build Canada strong for all," he said.
When asked where that $25 billion will come from considering Canada's fiscal situation, Carney said the Spring Economic Update on Tuesday will deliver news that Canada's finances are on a stronger footing than they were when Carney's government projected a $78.3-billion deficit for the fiscal year just ended.
"In order for the numbers to be better, you have to be on top of them, and we are on top of them," Carney said.
The recent spike in the price of oil, due to the war between Iran and the United States and Israel, has boosted revenues in Canada's oil-producing provinces and in turn boosted how much revenue the federal government has collected.
This time will be different, Carney says
Carney said the Canada Strong Fund will be managed by an arm's-length independent Crown corporation that will report to Parliament, and his government will spend the next few months consulting on "specific aspects of the fund."
Describing the fund as "essentially a national savings and investment account," Carney said the fund is being designed to "grow wealth for future generations."
"This will be a Government of Canada fund, but more importantly, this will be a people’s fund. It will be your fund," Carney said.
In order to allow people to contribute to the fund, the federal government will launch a "retail investment product" like a mutual fund or pension scheme where Canadians can buy into the fund and earn a dividend.
"This will give Canadians a direct stake in our nation’s long-term prosperity and help build long-term national wealth," the government said in a statement.
Carney announces Canada's first sovereign wealth fund
Carney also said that like the Canadian Pacific Railway, the major projects his government is trying to get built will mostly be constructed by private companies.
Just like in the 1870s, Carney said "the federal government will support these projects through loans, grants and other incentives."
Carney evoked the spirit of major infrastructure projects that defined Canada's history, but said the proposed plans would be different from things like the Canadian Pacific Railway, which was built by displacing Indigenous peoples from their land, where workers laboured under "appalling conditions" and the only people who benefitted from the projects were the companies that built them.
Carney said Indigenous peoples will be full partners in the projects through equity stakes; that the projects being financed will be built by Canadians in "high-paying union jobs"; and because the government is investing in the fund, all Canadians, whether they invest directly or indirectly as taxpayers, will benefit.
Projects of national interest
Bill C-5, Carney's legislation to speed up approvals for major infrastructure projects identified as being "nation-building," passed through Parliament last June.
The second half of the bill, the Building Canada Act, enables the federal cabinet to pick projects, approve them upfront and override federal laws, environmental reviews and the permitting process.
The legislation speeds approval times from five years to two by introducing a "one project, one review" approach instead of having federal and provincial approval processes happen sequentially.
Poilievre demands Carney cap federal deficit at $31B ahead of spring economic update
Poilievre demands Carney cap federal deficit at $31B ahead of spring economic update
Lower-than-forecasted deficit, new affordability measures expected in spring fiscal update
Lower-than-forecasted deficit, new affordability measures expected in spring fiscal update
Liberals to table spring economic update April 28 amid global instability
Liberals to table spring economic update April 28 amid global instability
The Major Projects Office (MPO), which Carney created last August, is the central place to make pitches, deliver complaints or express concerns about major projects.
When he announced the MPO, Carney said it would "help structure and co-ordinate financing from the private sector, provincial and territorial partners" and the federal government to ensure taxpayers get value for money.
Carney said the projects being financed through the fund will not be limited to ones of national interest, which have to meet certain benchmarks to get that classification.
"It wouldn't be restricted to that, in my judgement. We'll consult on the specifics of that, so it's a broader range than would be just specifically C-5," he said on Monday.
Poilievre criticizes Carney for debt-financing fund
Conservative Leader Pierre Poilievre criticized Carney for using borrowed money to endow the Canada Strong Fund, saying countries need to have wealth for a wealth fund, but all Canada has is debt.
"The investment exists, it comes from our country," Poilievre said. "It just can't get a return in our country. Putting another $25 billion on the national credit card to pad a Liberal slush fund will not change that."
Poilievre said projects in Canada are struggling to get funding and investment from the private sector because of onerous regulations and laws that frustrate development, not because of a shortage of cash.
"If a project has a business case, why would the government need to fund it? If it doesn't have a business case, why would the government want to fund it?" Poilievre asked Monday.
ABOUT THE AUTHOR
Senior writer
Peter Zimonjic is a senior writer for CBC News who reports for digital, radio and television. He has worked as a reporter and columnist in London, England, for the Telegraph, Times and Daily Mail, and in Canada for the Ottawa Citizen, Torstar and Sun Media. He is the author of Into The Darkness: An Account of 7/7, published by Vintage.
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In a statement, the federal government said the fund will include projects in "clean and conventional energy, critical minerals, agriculture, and infrastructure."
Carney unveils major projects he wants fast-tracked, including new mines, LNG and hydro development
Carney unveils major projects he wants fast-tracked, including new mines, LNG and hydro development
What will the federal government's Major Projects Office do — and will it succeed?
What will the federal government's Major Projects Office do — and will it succeed?
Trans Mountain board chair to lead new federal Major Projects Office based in Calgary
Trans Mountain board chair to lead new federal Major Projects Office based in Calgary
At Monday's press conference at the Canadian Science and Technology Museum in Ottawa, Carney said the fund will begin with an initial endowment of $25 billion.
"Over time, the fund will grow through asset recycling and reinvestment, creating even greater opportunities for future generations," Carney said.
When asked where that $25 billion will come from considering Canada's fiscal situation, Carney said the Spring Economic Update on Tuesday will deliver news that Canada's finances are on a stronger footing than they were when Carney's government projected a $78.3-billion deficit for the fiscal year just ended.
"In order for the numbers to be better, you have to be on top of them, and we are on top of them," Carney said.
The recent spike in the price of oil, due to the war between Iran and the United States and Israel, has boosted revenues in Canada's oil-producing provinces and in turn boosted how much revenue the federal government has collected.
This time will be different, Carney says
Carney said the Canada Strong Fund will be managed by an arm's-length independent Crown corporation that will report to Parliament, and his government will spend the next few months consulting on "specific aspects of the fund."
Describing the fund as "essentially a national savings and investment account," Carney said the fund is being designed to "grow wealth for future generations."
"This will be a Government of Canada fund, but more importantly, this will be a people’s fund. It will be your fund," Carney said.
In order to allow people to contribute to the fund, the federal government will launch a "retail investment product" like a mutual fund or pension scheme where Canadians can buy into the fund and earn a dividend.
"This will give Canadians a direct stake in our nation’s long-term prosperity and help build long-term national wealth," the government said in a statement.
Carney announces Canada's first sovereign wealth fund
Carney also said that like the Canadian Pacific Railway, the major projects his government is trying to get built will mostly be constructed by private companies.
Just like in the 1870s, Carney said "the federal government will support these projects through loans, grants and other incentives."
Carney evoked the spirit of major infrastructure projects that defined Canada's history, but said the proposed plans would be different from things like the Canadian Pacific Railway, which was built by displacing Indigenous peoples from their land, where workers laboured under "appalling conditions" and the only people who benefitted from the projects were the companies that built them.
Carney said Indigenous peoples will be full partners in the projects through equity stakes; that the projects being financed will be built by Canadians in "high-paying union jobs"; and because the government is investing in the fund, all Canadians, whether they invest directly or indirectly as taxpayers, will benefit.
Projects of national interest
Bill C-5, Carney's legislation to speed up approvals for major infrastructure projects identified as being "nation-building," passed through Parliament last June.
The second half of the bill, the Building Canada Act, enables the federal cabinet to pick projects, approve them upfront and override federal laws, environmental reviews and the permitting process.
The legislation speeds approval times from five years to two by introducing a "one project, one review" approach instead of having federal and provincial approval processes happen sequentially.
Poilievre demands Carney cap federal deficit at $31B ahead of spring economic update
Poilievre demands Carney cap federal deficit at $31B ahead of spring economic update
Lower-than-forecasted deficit, new affordability measures expected in spring fiscal update
Lower-than-forecasted deficit, new affordability measures expected in spring fiscal update
Liberals to table spring economic update April 28 amid global instability
Liberals to table spring economic update April 28 amid global instability
The Major Projects Office (MPO), which Carney created last August, is the central place to make pitches, deliver complaints or express concerns about major projects.
When he announced the MPO, Carney said it would "help structure and co-ordinate financing from the private sector, provincial and territorial partners" and the federal government to ensure taxpayers get value for money.
Carney said the projects being financed through the fund will not be limited to ones of national interest, which have to meet certain benchmarks to get that classification.
"It wouldn't be restricted to that, in my judgement. We'll consult on the specifics of that, so it's a broader range than would be just specifically C-5," he said on Monday.
Poilievre criticizes Carney for debt-financing fund
Conservative Leader Pierre Poilievre criticized Carney for using borrowed money to endow the Canada Strong Fund, saying countries need to have wealth for a wealth fund, but all Canada has is debt.
"The investment exists, it comes from our country," Poilievre said. "It just can't get a return in our country. Putting another $25 billion on the national credit card to pad a Liberal slush fund will not change that."
Poilievre said projects in Canada are struggling to get funding and investment from the private sector because of onerous regulations and laws that frustrate development, not because of a shortage of cash.
"If a project has a business case, why would the government need to fund it? If it doesn't have a business case, why would the government want to fund it?" Poilievre asked Monday.
ABOUT THE AUTHOR
Senior writer
Peter Zimonjic is a senior writer for CBC News who reports for digital, radio and television. He has worked as a reporter and columnist in London, England, for the Telegraph, Times and Daily Mail, and in Canada for the Ottawa Citizen, Torstar and Sun Media. He is the author of Into The Darkness: An Account of 7/7, published by Vintage.
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