Debates of May 26th, 2026

Department of Finance—Main Estimates, 2026-27

[Melissa Lantsman, Conservative, Thornhill, ON]

Mr. Chair, I will answer the question for the minister, since he does not want to. The answer is 45%, nearly half. Can the minister explain to Canadians, as the finance minister, what a merger and acquisition actually means in that context? It does not mean a new factory. People at home will know that. It does not mean a new research centre, and it does not mean a new job. What does it mean?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, I am trying to understand the line of questioning of my colleague. I think she should be celebrating the fact that Canada received record levels of foreign direct investment in 2025 and that we are leading the G7 on per capita FDI. It is good news, and we are going to continue to work with colleagues to attract investment in this country.

[Melissa Lantsman, Conservative, Thornhill, ON]

Mr. Chair, that answer is condescending and it does not show that he, as finance minister, understands what foreign direct investment is. It means a foreign company buying a Canadian one. Strategic decisions are moved abroad. The intellectual property moves abroad. The profits move abroad. He knows that as the finance minister. Again, he is treating those in the House like we are stupid.

C.D. Howe finds mergers and acquisitions generally do not create new jobs or investments, so why is the minister celebrating in the House the hollowing out of the Canadian economy?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, a good Conservative, which I know my colleague is, would celebrate an open economy. Canada has an open economy where we welcome investment in our country. We have seen these investments that have grown the GDP in this country. They have created jobs.

Let us think about Volkswagen if they want to talk about the auto sector. It is the largest gigafactory outside of Europe. European manufacturers are choosing to come to Canada, just like a number of investors, such as Shell and LNG Canada, and they are creating opportunities, jobs, growth and wealth in this country.

[Melissa Lantsman, Conservative, Thornhill, ON]

Mr. Chair, the Minister of Finance knows, and if he does not know, he can ask the officials sitting right in front of him, that the true measure of Canada's health is the domestic investment. Canadians investing in Canada, businesses investing per worker, is the single best indicator of whether Canadian firms are growing and becoming more productive. He knows this. He is not telling the House this, but he knows it.

Can the minister tell us if domestic investment per worker is up or down in the last decade?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, I know that my colleague will be happy to learn that Canada has the second-fastest growth in the G7. We are growing twice as fast as countries such as Germany and the United Kingdom, and even three times faster than Italy. We are growing twice as fast as Japan.

Tonight, we should celebrate the workers, the industry and the small and medium-sized businesses. These numbers speak for themselves.

[Melissa Lantsman, Conservative, Thornhill, ON]

Mr. Chair, what is true is that we have the only shrinking economy in the G7, and the answer is that it is 30% down. If he were truly interested in investing per worker, he would do so, and it has fallen by nearly a third.

Stats Canada projects that non-residential capital spending across all industries will grow by less than 2% going forward. Does this sound to the minister like an economy that has turned around or is turning around? It certainly does not sound like that to anyone on this side of the House or anybody watching at home.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, Canadians have a choice to listen to the opposition or to the International Monetary Fund, which does not need a clip or to grandstand. The IMF forecast for 2026 real GDP growth in the G7 is as follows: Italy, 0.5%; Japan, 0.7%; Germany, 0.8%; United Kingdom, 0.8%; France, 0.9%; and Canada, 1.5%. These numbers speak for themselves.

[Ginette Petitpas Taylor, Liberal, Moncton—Dieppe, NB]

Mr. Chair, I want to thank my colleague, the Minister of Finance, for his hard work and for the economic update he provided in the spring.

I also want to thank him for his recent visit to Moncton. I was very pleased to be able to welcome him. He gave my community a very good briefing with some highlights from the spring economic update. I thank him.

We all know that the world is changing. With the new geopolitical dynamics, the supply chain disruptions and the rapid technological breakthroughs, including in artificial intelligence, the world is changing quickly, and Canada must adapt to thrive.

In budget 2025, our government seized this once-in-a-lifetime opportunity, making generational investments to foster vibrant communities, empower Canadians, protect our country and build the strongest economy within the G7. Many of these initiatives were reflected in the main estimates tabled earlier this year, one of the reasons we switched to the fall budget cycle.

Now, though, with the spring economic update 2026, we are staying the course with further measures to build a stronger, more independent and more resilient Canada, to advance our progress of building more affordable homes and major infrastructure, and to bring down the costs to help all Canadians get ahead. I look forward to speaking today to some of these key investments with both publications that we have made.

When the Minister of Finance tabled the budget in 2025, he presented Canadians with a plan to build a single Canadian economy powered by major projects of national interest that will connect our regions, diversify our markets and create hundreds of thousands of well-paying jobs. This plan includes a $115‑billion investment in infrastructure to strengthen public services, such as public transit and water systems, to build hospitals, to support indigenous communities, and to build trade and transportation infrastructure that will ensure that our goods and services move efficiently across the country and around the world.

At the same time, we have invested $25 billion to build affordable housing at scale. Through initiatives such as Build Canada Homes, targeted tax measures and strategic incentives, these investments form the cornerstone of the most ambitious housing supply plan that Canada has seen in a generation.

Budget 2025 also introduced a five-year, $110-billion framework to strengthen Canada's productivity and global competitiveness. The productivity superdeduction is a central part of this framework. It is a set of accelerated tax deductions that allow businesses to immediately write off a larger share of the cost of any capital asset, including an immediate deduction of 100% for investments in manufacturing or processing machinery and equipment, digital infrastructure, scientific research equipment, and clean energy technologies.

This is complemented by the enhancements to the scientific research and experimental development tax incentives, increasing the maximum amount of expenses eligible for the refundable tax credit to $6 million, simplifying eligibility criteria and reintroducing capital expenditures as eligible costs. Taken together, these measures support both innovation and capital investment and are a coordinated strategy to drive long-term economic growth and competitiveness.

We know we cannot build Canada strong without protecting our people and also protecting our values. This is why budget 2025 also included generational investments to secure our sovereignty, including meeting NATO's 2% of GDP core defence spending target this year, five years ahead of schedule, and putting Canada on a path to meeting NATO's 5% defence investment pledge by 2035.

To keep Canadians safe at home, we are strengthening border security, taking action against organized crime and illegal trafficking, and upholding the rule of law in every region. We are doing so by implementing Canada's border plan and delivering key investments in budget 2025, such as hiring 1,000 additional Canada Border Services Agency officers, upgrading border technology and enhancing intelligence sharing to combat the smuggling of illegal firearms, drugs and people.

Canada's government is making all of these investments possible by changing how government works. We have cut back on operational expenses, including by rightsizing the public service, cutting red tape and eliminating wasteful spending to prioritize long-term investments and to deliver better services to all Canadians. In fact, we are slowing the average growth in direct program expenses from 8% over the last decade to 2.2% from 2025-26 to 2030-31. These efforts are reinforced by the government's comprehensive expenditure review, which is systematically reducing inefficiencies and refocusing spending on core priorities, contributing, along with other measures, to a total of $60 billion in savings and revenues over the next five years.

At the same time, we introduced a new capital budgeting framework, detailed in budget 2025, that distinguishes day-to-day operational spending from capital investment, helping guide decisions and investments that generate long-term benefits for Canadians. This new approach will enhance, not replace, existing financial reporting while providing a clearer picture of the investments that will strengthen Canada's economy in the years ahead.

Rightsizing government through the discipline brought by the comprehensive expenditure review is critical in realigning resources for generational investments that build more and deliver results, because that is how we invest in Canada's future.

This brings me to the spring economic update, which maintains this fiscal discipline while investing in Canadians. I want to highlight one of the main measures, namely the Canada Strong fund, a sovereign wealth fund designed to deliver infrastructure projects and historic projects of national interest and to grow wealth for future generations. This new fund will invest in key strategic Canadian projects and companies alongside the private sector, creating jobs, supporting innovation and making Canada more competitive. What is more, Canadians themselves will have the opportunity to invest in the fund, sharing in its success.

We are also launching team Canada strong, a nationwide effort to recruit, train and hire 80,000 to 100,000 new Red Seal skilled trade workers. This innovative program will be especially useful for Canadians pursuing apprenticeships, because it offers up to $16,000 in weekly income top-ups during their training and a $5,000 completion bonus. It should also interest employers, because they are eligible for direct incentives of up to $10,000 in wage subsidies per apprentice.

To provide greater support for young people, our government is making education more affordable by extending the increases to Canada student grants and interest-free Canada student loans for another year, which will benefit thousands of students across the country.

The economic update also continues the work of Build Canada Homes with a plan to increase supply, lower costs and help more Canadians find a safe, affordable home. The plan also involves cutting red tape to build homes faster, supporting innovation in construction, quickly unlocking over $7 billion in low-cost financing, boosting the housing supply and protecting construction jobs across Canada. It will help those most in need by extending support for people experiencing homelessness and ensuring that survivors of gender-based violence have access to safe housing.

That is not all, but since my time is almost up, I want to take a few minutes to ask some questions to my dear friend and colleague, the minister.

Can the finance minister tell us more about the sovereign wealth fund? More specifically, can he explain how it will support government investments and help Canadians?

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Chair, I would like to take a moment to thank my colleague because I know how proud the young people of Moncton—Dieppe are tonight to have a strong voice in Ottawa. She is a colleague I can applaud. She is a strong voice for the region and for New Brunswick. When my colleague speaks, Ottawa listens. The proof is that my colleague was one of the architects of many of the measures found in the budget and the economic statement. I really want to tell the people of Moncton—Dieppe that they made an excellent choice, because my colleague has been doing an extraordinary job for many years. It has been a privilege to serve alongside her.

She is right. In our economic statement, we said we need to build Canada strong for all, by putting structural measures in place. One of the key measures is the Canada Strong fund, our first national sovereign wealth fund. Together with the Prime Minister, we decided that we wanted to create a vehicle for collective wealth. We have seen how the sovereign wealth funds set up in Nordic countries, for example, have benefited communities, workers and families. In a very Canadian way, we are allowing individuals to invest. Ordinary folks will also be able to invest in this major fund, if they are interested and have a bit of savings. They will see their investment grow over the years, and they will be able to say that they helped build this great country. We talk about a strong Canada for all, and there is something very Canadian about telling people that they can contribute if they want to.

I want to once again thank my colleague for her outstanding leadership, because she has always been there to remind us of how we can build communities. I know that she comes from a part of the country that is a lot like mine. We often talk about rural areas and the regions. My colleagues also understand the importance of the regions. I have to say that she is an outstanding colleague who has done important work, and many of her ideas found their way into the 2025 budget and the economic statement.

This evening, I would like to thank her for her work on behalf of the people of Moncton—Dieppe.

[Ginette Petitpas Taylor, Liberal, Moncton—Dieppe, NB]

Mr. Chair, we heard a bit earlier about the issue of direct foreign investments and how Canada is at a record high at this point in time. I am wondering if my hon. colleague could elaborate on what the conditions were that really created this environment and perhaps elaborate on the benefits to Canada.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, it is good to have amazing colleagues like the minister who come and have very pointed questions.

In fact, I know my Conservative colleagues understand as well that Canada offers unparalleled stability, predictability and the rule of law. Like many of my colleagues, I studied law. I remember that I had this professor who said, “Find me a place in the world that does not have the pillar of investment. We saw that when we do not have that, we do not get investment.” The pillar of investment is stability, predictability and the rule of law. In a very divided world, in a world where we see the uncertainty index at its peak, almost since 1945, we can see why Canada stands out in the world. In the fog of uncertainty, we are the lighthouse. That is what I said at the IMF meeting at the G7. Canada is a lighthouse in the fog of uncertainty. Those were the words of the executive director of the International Monetary Fund. She said the world is wrapped in this fog of uncertainty, and our mission in a world that is more complex and volatile is to provide that kind of certainty.

What is certainty today? Certainty today has to do with what we can control. As our Prime Minister has said, we will focus on what we can control: remove interprovincial trade barriers, open our markets abroad, export to new markets, build the infrastructure, build the housing, be more competitive, invest in innovation and build a country strong. That is exactly what we are doing. We are building Canada strong with investment. I would say confident countries invest in themselves.

Canada has been singled out again. My colleagues in this House will understand that. There are only two countries that the IMF said are standing out, Germany and Canada, two countries with AAA credit rating that have the fiscal capacity to invest. It said that if those countries invest in housing, infrastructure, competitiveness and innovation, they will succeed.

That is why we see that Canada has the second-fastest growth in the G7, growing twice as much as our colleagues in Europe, twice as much as Germany, twice as much as Japan and three times more than Italy. Growth happens because of our policies. Growth happens because we have the best workers. Growth happens because we have strong industry. Growth happens—

[The Chair, Conservative, Tom Kmiec]

Resuming debate, the hon. member for Newmarket—Aurora.

[Sandra Cobena, Conservative, Newmarket—Aurora, ON]

Mr. Chair, I will be splitting my time with the member for Calgary East.

Norway's sovereign wealth fund is considered the gold standard, and its success is driven by reinvested budget surpluses and oil and gas revenue. Where is the $25-billion seed money coming from for Canada's fund?

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Chair, I am happy to see that my colleague is talking about the Canada Strong fund. As she mentioned, Nordic countries have already created, in their way, something quite similar. I think it was about time that Canada created one of these pillars of investments to be able to create—

[The Chair, Conservative, Tom Kmiec]

The hon. member.

[Sandra Cobena, Conservative, Newmarket—Aurora, ON]

Mr. Chair, the minister did not answer the question. They will be borrowed funds, $25 billion in borrowed funds, whereas Norway funds it by surpluses.

My next question is this: Norway also ensures diversified global investments, so how is this fund expecting the best-in-class returns without global diversification?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, my colleague was asking where she can find the details of where the funds are coming from. She will find that on page 129 in the English version of the budgetary balances. She will be able to find out exactly where the money is booked in the fiscal accounts of Canada.

[Sandra Cobena, Conservative, Newmarket—Aurora, ON]

Mr. Chair, my question was about diversifying investments. I did not receive an answer. Norway does not, in fact, invest the funds domestically. The minister is proposing exactly the opposite, to invest only in Canada.

My next question is this: Norway, which is the best-in-class example, ensures that the fund is free from political interference, so how can the fund be independent if it is prioritizing public interests selected by politicians like himself?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, my colleague is very knowledgeable, as she was in finance for most of her career before being in politics.

We have been extremely clear about its governance, that it is going to be at arm's length from the government and it will make its own independent decisions. What we have said is that the fund will invest in projects of national interest and also invest in Canadian companies. A mandate like that is very consistent with other funds around the world. I think she should see the benefit of creating collective wealth for Canadians.

[Sandra Cobena, Conservative, Newmarket—Aurora, ON]

Mr. Chair, on the one hand, the minister is saying it will not have political influence, but then, in the same sentence, he says “we” will ensure that it will be in the national interest, and “we” will decide which projects those will be. The reality is that Norway has zero political influence, and here the fund will have tons.

My question to the minister is this. If the fund does not follow any of the traditional pillars of a traditional sovereign wealth fund, why did the minister tell Canadians that in fact it is one?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, my colleague is very learned in finance. There is a difference between the mandate, which we have said is very clear, and the governance, which we say is going to be independent. It will have its own separate board and will be independent from government. We know this is very important. When creating a sovereign wealth fund, governance is very important.

The hon. member can be assured that we have consulted widely with funds around the world and we are integrating best practices because, again, we want to have a best-in-class fund that will serve the—

[The Chair, Conservative, Tom Kmiec]

The hon. member has the floor.

[Sandra Cobena, Conservative, Newmarket—Aurora, ON]

Mr. Chair, the minister assures Canadians that it will be independent. Who will appoint these independent board members?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Mr. Chair, as I have said time and time again, and we have been very clear, the fund will be independent from the government. We know this is a very important feature of this fund. It is going to be at arm's length from the government. It will make its investment decisions in accordance with the—