Chris Dantremont crossed the floor to join the Liberal Party of Canada, leaving the Tories. Tory MP Michael Cooper questions why he left his seat in the House of Commons. Prime Minister John Carney says he's open to talking to other potential floor crossers.
00:07:54.940These are deficits that are now embedded in the fundamental, you know, spending arrangements of the government.
00:08:01.860And, you know, given the amount of revenue that can come in, we're going to have these shortfalls unless we substantially change the structure of government.
00:08:10.060So, you know, he's fiddling around and saying he's going to shrink the public sector.
00:08:14.440Well, of course the public sector has to be shrunk.
00:08:16.480You have to take a chainsaw to the public sector.
00:08:45.400It's going south of the border and it's leaving.
00:08:47.980And so the private sector is increasingly getting just strangled by this massive public sector, which gets bigger and bigger and bigger.
00:08:56.780And if he thinks he knows how to allocate capital in our economy, then we're in big trouble if that's the way he's going to go about it.
00:09:03.940We need private sector businesses allocating capital based upon return on equity, return on invested capital.
00:09:10.100And we need to get the government out of the way.
00:09:12.480Yeah, I mean, if you believe the fawning coverage in the pages of the Globe and Mail or maybe the CBC, you know, he's made his pitch to private industry to stay in Canada, to invest in Canada.
00:09:24.680But there's very little in this budget that actually provides any incentive for companies not only to invest here and stay here, but just not leave.
00:09:34.820You know, because some of these companies, as you know, I mean, Canada has been hemorrhaging tens of billions of dollars in capital over the years.
00:09:44.000And so you would think there'd be a sense of urgency here.
00:09:46.300So, you know, we've got to keep companies here and we're competing against the United States.
00:09:50.860Jurisdictions down there have lower taxes than we do up here, have lower regulatory burdens.
00:09:57.920You know, they don't have the environmental, the green stipulations that you have to stick to, the rules.
00:10:16.240And then the thing is, I mean, I did a study on this just recently and published some work on this.
00:10:20.600So over the last 10 years, there were six dangerous regulatory changes implemented by the Liberal government, which basically chased capital out of the country.
00:10:29.920And even the best forecasts say that we've missed out on 670 billion plus in capital that would have developed in our resource sector, which is over 1.5 trillion in GDP that we've foregone.
00:10:50.800These regulations are all in this, all remain.
00:10:54.220And they put a stranglehold on businesses.
00:10:56.460And if you can't get something, you know, done in five years or six years or something like that, and it's 10, 15, and you're not even sure you're going to get your resource permits and so forth so you can dig in the ground and get your resources out of the ground, money's not going to come.
00:11:10.560And so we look at this budget, all he's doing is giving, you know, accelerated depreciation and so forth on his crony projects.
00:11:17.560These green projects, these green projects, these ones that are going to be so-called, you know, carbon capture.
00:11:22.760He's still all caught up in the whole green agenda and, you know, net zero 2050.
00:11:29.680I mean, Trump has already passed that.
00:11:34.500They're developing their resources down there, and we're sitting on our hands.
00:11:37.720And so if we think we're going to get capital into this country, there's just no way businesses are going to invest in any significant way, given the little tinkering around the corners, around the edges that he's done in this budget.
00:11:48.960I mean, even some of the climate zealots out there, the Bill Gates of the world, I mean, here was a guy who was pushing to have the sun blocked out, you know, to save the planet from climate change.
00:12:00.160I mean, you see countries like the United States, but others, too, just backing away from the lunacy around this whole net zero agenda.
00:12:07.980And yet here in Canada, we're diehards when it comes to that sort of thing.
00:12:11.540And it's just terrible news for anybody looking to invest here.
00:12:14.700So I don't see how this pitch to private industry to continue investing in Canada is going to work.
00:12:51.780Bill Gates now realizes that if we're going to digitize and have EVs and data centers and electrification and all of this, we need more power.
00:13:02.880And so he can make more money now shifting to developing the energy necessary to digitize and to have all these data centers and develop AI than he can on the green agenda.
00:13:27.100And this has been Carney's pitch from his book until and also in his last 15, 20 years of his professional life.
00:13:35.360And yet there's also a certain amount of unease around this agenda as far as Carney's ongoing relationship with Brookfield, huge company, one that he still has invested heavily in in the form of stock options and so forth.
00:13:50.940And you get the sense that when you're looking at this huge $50 billion allocation of money for infrastructure projects, hospitals, transportation, infrastructure, that some of that money is going to end up in the pockets of Brookfield.
00:14:08.100And by virtue of his investments with that company, that Carney himself would be in a position to profit as well.
00:14:15.720I mean, does any of that make you uneasy?
00:14:37.220They're very shrewd, very sophisticated company.
00:14:39.740So it's almost impossible if there aren't infrastructure projects being offered up in Canada that Brookfield is not going to be on the short list just because of the size.
00:15:34.500And given the lack of cuts in program spending, I mean, to me, it looks like they're just kind of tinkering.
00:15:41.960You know, they're not taking an axe to spending the way some of us think should have happened.
00:15:47.740I mean, inevitably, will the government have no choice but to raise taxes on Canadians?
00:15:52.540I mean, I don't see that that's going to be avoided.
00:15:55.780I think, well, if it continues down this road, we're going to, again, we've seen this movie before in Canada not that long ago in the 90s.
00:16:05.300I mean, after we had this massive buildup of debt, starting with Pierre Trudeau and then through the Mulroney years and then ending in sort of the mid-90s where we had our credit downgraded, our cost of debt skyrocketed, our dollar went to 61.
00:16:18.600We referred to our dollar as a northern peso, and I think that's going to be a good expression if we continue down the road that Carney wants to take us.
00:16:26.880It will be the northern peso and it won't be worth much, even to a crummy U.S. dollar.
00:16:31.500I mean, the U.S. dollar has got problems too, but even compared to that piece of paper, we're going to look even worse.
00:16:37.300And so we can expect this to continue, and if we can't raise the money in the bond markets because we've got too much debt, that's what happened before our debt costs went up.
00:16:49.640Yeah, taxes have to go up, and then they really have to slash the size of government and take this seriously.
00:16:53.960But until that point, I don't really see them doing this.
00:16:57.700They just believe they can just continue wallowing in the debt, increasing the deficits, increasing our overall debt, and putting future generations at risk.
00:17:06.200This is crazy for our own generation, but in particular, again, our kids and our grandkids.
00:18:00.320You have to include our provincial debt.
00:18:03.320The United States, the states, are not allowed to run large deficits and accumulate debt unless it's for infrastructure projects, for big capital projects.
00:18:14.740And so what's happened in Canada, like we take Ontario, for example.
00:18:18.460Ontario has well over $400 billion debt.
00:18:21.220Our debt to GDP in Ontario is like 50% debt to GDP.
00:18:25.380Ontario is one of the most indebted subsovereign states in the world.
00:18:30.540So when you add that to our federal debt, that's when you really get a sense of the indebtedness of Canada is well over 100% debt to GDP when you include the provinces.
00:18:41.060Alberta, of course, is somewhat better.
00:18:43.000But most of our provinces are similar to Ontario.
00:18:46.760They've been trying to fund, you know, social welfare programs, overpriced hospital systems.
00:18:54.060Our health care systems are all breaking down.
00:18:56.780And our education, our educational systems are also horrible.
00:19:00.500I mean, they're not doing the job that they need to be doing.
00:19:02.700So when you think about on the provincial level across our country, 60, 65% of the provincial budget goes to two things, health care and schools.
00:19:11.860And what do we have to show for it, Mark?
00:19:35.460How do people find out more about Rocklink and the services that you provide over there?
00:19:40.620Yeah, we're doing our best to manage around all of this craziness and make sure people's money are in great companies and in the right spaces.