Juno News - May 20, 2025


Foreign leaders are already lavishing PM Carney with costly gifts


Episode Stats

Length

13 minutes

Words per Minute

146.7535

Word Count

1,998

Sentence Count

115


Summary


Transcript

00:00:00.000 Prime Minister Mark Carney's barely a month in office and he's already accepting lavish gifts
00:00:09.880 from foreign leaders. In just 10 years, Canada racked up the largest government spending and
00:00:15.560 debt increase in the G7, nearly outpacing every advanced country on earth. Canada is building
00:00:21.160 fewer homes in 2025 than it did last year and the biggest slowdowns are coming from Ontario
00:00:27.040 and British Columbia. Hello Canada, it's Tuesday, May 20th and this is the True North Daily Brief.
00:00:32.960 I'm Cosmin Georgia. And I'm Jeff Knight. We've got you covered with all the news you need to know.
00:00:38.460 Let's discuss the top stories of the day and the True North exclusives you won't hear anywhere else.
00:00:46.600 Despite having only held office for a few months, Prime Minister Mark Carney has already received
00:00:51.380 several expensive gifts from world leaders on international visits. Just days after
00:00:56.900 being sworn in on March 14th, Carney embarked on a European tour, stopping in the United Kingdom
00:01:02.540 to meet with Prime Minister Keir Starmer and in France to meet President Emmanuel Macron.
00:01:07.960 During his meeting in Paris, President Macron and his wife Brigitte Macron presented Carney
00:01:13.220 with a bottle of Chateau Lynch Bage 2014, a prestigious red wine from France. According to
00:01:20.700 WineSearcher.com, this vintage averages 208 US dollars or approximately 291 Canadian dollars,
00:01:28.620 far more than the cost of a typical bottle of red wine. The Macron's also gifted Carney a bottle of
00:01:34.920 Martel Cordon Bleu Cognac, a premium spirit produced in Cognac, France. Bottle of the same Cognac retails for
00:01:43.460 $292.75 at Ontario's Provincial Liquor Store, significantly above the price of an average 750
00:01:54.020 milliliter bottle of Cognac. In addition, President Macron gave Carney a necktie from the French luxury
00:02:00.360 fashion house Hermes. Known for its high-end apparel and steep price tags, Hermes ties typically cost around
00:02:08.200 $325, with some priced as high as $1,400. While in London, England, Carney received a laser-engraved
00:02:16.060 crystal bowl featuring the iconic 10 Downing Street door, a gift from Prime Minister Starmer.
00:02:22.200 Carney disclosed receiving these gifts a week after his European trip. However, no official estimates of
00:02:27.840 their individual or total value were provided. According to public disclosure rules, the Prime
00:02:32.680 Minister and all members of Parliament must declare any gift worth $200 or more. Jeff, there is a set of
00:02:40.080 rules that determine how politicians elected representatives are supposed to receive and
00:02:47.560 process these gifts. Could you elaborate on some of these procedures regarding gift disclosures in the
00:02:55.060 House of Commons? And what sort of penalties apply for failing to report gifts that are worth over a
00:03:02.920 certain amount? Yeah, so you're talking about the Federal Conflict of Interest Act, which applies to
00:03:09.140 public office holders, including members of Parliament and the Prime Minister himself. The Act mandates that
00:03:14.440 any gift or benefit worth $200 or more from a single source within a 12-month period must be publicly
00:03:20.720 disclosed within 60 days of receipt. This threshold applies regardless of whether the gift
00:03:25.060 is deemed acceptable. Acceptance is only permitted if the gift is a result of protocol, customary
00:03:29.780 diplomatic practice, or a courtesy, as is likely the case with Carney's gifts from Macron and Starmer.
00:03:35.020 Gifts below $200 don't require public disclosure, but must still be reported internally if they could
00:03:40.120 be seen as influencing the official's duties. Additionally, the Act prohibits gifts that might
00:03:44.840 reasonably be seen to influence decision-making, even if under the threshold, to prevent conflicts of
00:03:49.580 interest. Penalties for failing to report gifts over the $200 threshold can be significant.
00:03:54.420 The conflict of interest and ethics commissioner can impose fines of up to $500 per infraction
00:03:59.880 for late or non-disclosure, and these violations are made public, potentially damaging an official's
00:04:05.380 reputation. More severe breaches, like accepting a gift that creates a conflict of interest, can lead
00:04:10.220 to further investigation, with the commissioner able to recommend sanctions, including suspension or
00:04:15.300 other disciplinary actions by the House of Commons. For cabinet ministers like Carney, the Prime
00:04:19.660 Minister's office could also intervene, potentially leading to a cabinet shuffle or resignation if the
00:04:24.360 violation is deemed serious enough. These rules aim to ensure transparency and maintain public trust,
00:04:29.120 especially for high-profile figures receiving valuable gifts like the laser-engraved crystal bowl
00:04:33.920 Carney got from Starmer, which likely exceeds the disclosure threshold.
00:04:37.540 Canada measured the largest increase in government spending and debt burden among G7 countries and
00:04:46.520 nearly the highest among advanced countries over the last 10 years. A recent study by the Fraser
00:04:51.300 Institute found that Canada's growth in debt burden and government size outpaced virtually every
00:04:56.320 advanced country in the world. Between 2014 and 2024, Canada saw a 6.3% increase in government
00:05:03.020 spending and a 25.2% increase in its debt burden. The study took data from the International Monetary
00:05:08.520 Fund's World Economic Outlook database, highlighting the economies of 40 advanced countries.
00:05:13.840 Out of the pack, Canada had the second largest increase in the size of its government out of any
00:05:18.120 advanced economy during the 10 years marked almost entirely by liberal government rule. Canada had the
00:05:22.880 most significant government spending growth in the G7 and was second only to Estonia out of all the
00:05:28.080 countries compared. Canada's gross debt as a share of its GDP increased by the third largest amount of
00:05:33.200 any advanced economy between 2014 and 2024, behind only Singapore and San Marino. Half of the countries
00:05:39.520 reduced their debt as a share of their economies during the same time. In 10 years, advanced economies
00:05:44.380 experienced an average 2.79% decline in their total debt burden. In 2014, Canada's government spent 38.4%
00:05:52.740 of its national economy, ranking 25th highest among advanced economies. But by 2024, its total spending rose to
00:05:58.740 44.7% of GDP, landing its 17th highest. At the same time, France reduced its spending by 1.2% and Italy by 0.2%.
00:06:08.400 The US saw a 2.3% increase in spending and a 16.4% increase to its debt burden. Similarly, Canada's gross debt
00:06:16.440 represented 85.5% of GDP in 2014 and was the 14th highest of those 40 advanced countries. After 10
00:06:23.580 years of liberal reign, the burden rose to 110.8% of GDP, and Canada now has the 7th highest debt to
00:06:30.680 GDP burden among advanced economies. While Canada's debt and spending grew faster than most other
00:06:35.880 advanced countries, 20 advanced economies were able to reduce their debt burdens over the decade.
00:06:40.600 The report's authors warn that increasing debt would mean the Canadian taxpayer would have to foot an
00:06:45.480 ever increasing bill on debt interest, which could lead to worsening economic growth and declining
00:06:50.520 living standards. So Cosman, are there any other economic organizations showing that Canada is not
00:06:56.400 performing as well as it should economically? Yeah, some of the figures you mentioned are part of
00:07:02.220 the OECD data as well. And they've been reporting some pretty bleak projections for the Canadian economy.
00:07:11.360 So recently, they put out a report, including long term forecasts for Canada. And it found that since
00:07:20.200 2014, Canada has ranked the third lowest in GDP per capita growth out of the 30 OECD countries. And
00:07:31.040 compared to some of our peers that we actually used to lead, allies like the United States, United Kingdom,
00:07:38.720 Australia and New Zealand, we are losing ground, particularly over the 10 year span from 2012 to 2022.
00:07:48.320 And it's continuing to trend downwards. And our gap with the United States, our biggest trading partner,
00:07:55.120 is also widening. So Canada's GDP per capita dropped from 80.4% of the US level in 2012,
00:08:03.760 to just 72.3% by 2022. Additionally, like when they project into the future, all the way up to 2060,
00:08:13.920 Canada is projected to have the lowest GDP per capita growth in the entire OECD. And some of the reasons
00:08:23.520 they cite for this is weak productivity. Canada is just simply not generating more economic value per worker.
00:08:31.200 And on top of that, when you look at the policy measures introduced over the last 10 years,
00:08:36.800 they have burdened companies and entrepreneurs who would otherwise be willing to invest in the
00:08:44.480 Canadian economy and create jobs. Now, in turn, they are turning elsewhere.
00:08:52.640 Housing starts in 2025 are down compared to last year, with large provinces like Ontario and British
00:08:59.040 Columbia standing out as poor performers. According to the Canada Mortgage and Housing Corporation,
00:09:05.200 67,022 residential housing starts were reported from January to April 2025, down from the 68,107 housing
00:09:16.320 starts during the same period. While some provinces saw their housing starts rise substantially,
00:09:21.520 two of Canada's biggest provinces, Ontario and British Columbia, saw significant regression. Builders
00:09:27.600 in Ontario managed to start 23,434 residential housing projects from January to April 2024, but have only
00:09:36.240 started 16,000 and 115 housing projects during the same time this year, marking a 31.2% decline.
00:09:45.680 The collapse of housing starts in Toronto was a major driver of the poor results, as 15,202 housing starts
00:09:52.720 last year plummeted to 7,362 housing starts this year. That's a 51.6% drop. Overall, Ontario had already
00:10:03.200 suffered a 12% drop in housing starts from 2023 to 2024 during these four months. In British Columbia,
00:10:11.360 the province managed 15,212 housing starts in 2024 from January to April, but saw a 22.1% decline this year,
00:10:21.680 down to 11,839 housing starts. In August 2023, Ontario Premier Doug Ford promised to build 1.5 million
00:10:31.360 new homes by 2031, but is set to fall far short of the goal at current home-building rates. In April 2024,
00:10:39.920 former Prime Minister Justin Trudeau made a similar promise to build nearly 3.9 million homes by
00:10:46.160 2031. However, as there were only 227,697 housing starts in 2024, Canada is on track to building 1.82
00:10:57.680 million homes by 2031, less than half of the promised amount. Meanwhile, Prime Minister Mark Carney has
00:11:04.880 pledged to double the rate of home development to 500,000 per year by 2030, creating a government entity
00:11:11.520 to build homes called Build Canada Homes and cutting the GST for first-time home buyers for properties
00:11:17.920 up to $1 million. Jeff, with the new cabinet, Canada has a new housing minister, former Vancouver Mayor
00:11:26.400 Gregor Robertson. Is Prime Minister Mark Carney's pick for the housing minister equipped to deal with
00:11:33.920 tackling this ongoing housing crisis? Yeah, the housing minister, Gregor Robertson, faces significant
00:11:40.320 skepticism about his ability to tackle this housing crisis. Given his track record and the current
00:11:45.360 downturn in housing starts, Robertson, who was appointed housing minister after serving as Vancouver
00:11:50.480 Mayor, oversaw a 179% rise in housing prices during his tenure, making Vancouver one of North America's
00:11:57.600 most unaffordable markets. This history raises doubts about his ability to address the crisis effectively,
00:12:03.040 especially as British Columbia, his home province, saw a 22.1% decline in housing starts,
00:12:08.720 from 15,212 in 2024 to 11,839 in 2025, with Vancouver itself dropping 24.8%. Ontario, another key region,
00:12:20.720 experienced a 31.2% decline, with cities like Toronto seeing a 51.6% drop, underscoring the scale of the
00:12:27.600 challenge Robertson inherits. Carney's housing plan, which includes doubling home development to 500,000
00:12:33.440 units per year by 2030, through Build Canada Homes and cutting GST for first-time homebuyers on homes
00:12:39.360 up to $1 million demands a minister who can reverse these trends. However, Robertson's past suggests
00:12:44.960 the focus on urban density over affordability. Vancouver's reliance on high-rise condos during
00:12:50.160 his mayoral term didn't curb price growth, and with 61% of Canadians preferring single-family homes,
00:12:55.920 per the Wahee survey, his approach may not align with public demand. Critics argue his experience leans more
00:13:01.440 towards managing growth in a single city rather than addressing a national crisis, especially with
00:13:06.160 Canada on track to build only 1.82 million homes by 2031, far short of Trudeau's 3.9 million goal.
00:13:13.520 Robertson's appointment seems more symbolic than strategic,
00:13:16.640 leaving many questioning whether he can deliver on Carney's ambitious targets.
00:13:19.680 That's it for today, folks. Thanks for tuning in. You can stay on top of new episodes every weekday
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