Western Standard - September 25, 2026


Carney has until Christmas to deliver the goods

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Transcript

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00:00:00.000 Good evening, Western Standard viewers, and welcome to Hannaford.
00:00:19.940 Parliament returned on Monday, and after a month of announcements before that,
00:00:24.900 Prime Minister Carney used the occasion in the House of Commons to add more promises
00:00:29.700 to those he's made over the last 18 months. Since he was elected prime minister, it's also worth
00:00:36.500 our attention that on Mr Carney's watch, Canada's outstanding federal debt has grown by a not
00:00:43.540 insignificant $106 billion. So a lot of money borrowed, and from what we can see, not much
00:00:52.500 happening to put people to work and generate wealth no pipelines yet that's for sure we're
00:00:58.500 very aware of that in alberta and as taxpayers struggling with inflation and with our kids
00:01:03.300 trying to find meaningful work what are we supposed to make of it with us today is political advisor
00:01:10.020 yaroslav paran he's principal at pendulum strategies he's advised prime ministers
00:01:16.420 welcome back to the show yaroslav it's always good to be here nigel that's the stuff well
00:01:21.620 Jaroslav, what do you make of it in the Prime Minister's Monday announcement? Are they going 0.97
00:01:26.340 to make a difference? Tell us what they want. The big recent developments have been
00:01:32.100 tiddling of legislation of very big fat omnibus bill. We could call it a big beautiful bill,
00:01:37.780 Mr. Carney's point of view, that does a couple of things. It rewrites some of the machinery,
00:01:43.700 some of the enabling legal infrastructure to grease the skids of the operations of his major
00:01:53.860 project office. He's been trying to expedite major projects, especially trade enabling
00:02:00.660 and economic development projects to make them move faster, get them through approvals much
00:02:07.540 more quickly. So this bill really helps to make that happen. At least that's the intention.
00:02:16.500 I was going to say, let me just ask you about that before we leave that behind.
00:02:21.220 This major projects office has actually not created anything that didn't exist before it.
00:02:27.620 But this bill that you're talking about actually establishes it as a permanent fixture. It removes
00:02:33.700 the sunset clause. So something that has yet to prove its worth is now being established as a
00:02:40.020 permanent operating procedure. Is there anything a little cynical about that? Well, one of the most
00:02:46.360 amusing things that I think about this is the very concept of the major project office, which has been
00:02:52.640 one of the key pillars of Mr. Carney's governing agenda, was really modeled directly after the
00:03:02.740 late and lamented major project management office that was created under the harper government
00:03:08.340 uh specifically for resource projects to expedite them get you know get them moving much more
00:03:12.980 quickly and that's something that the liberals at the time roundly and thoroughly criticized
00:03:19.220 uh as being anti-environmental and anti-indigenous and far too capitalist friendly but they've now
00:03:27.620 taking that same model and built their new major projects office according to the same basic
00:03:34.820 principles. So that's a little bit of cute irony, I think, but hey, this is politics,
00:03:40.900 governments change and political parties need to change the circumstances. And right now we need
00:03:46.100 to build. They're trying to do that. That's what this bill is trying to enable. There's also
00:03:50.340 a controversial labor component to this bill as well that gives the labor minister a stronger
00:03:59.980 ability to impose an order ending a labor disruption, forcing a striking union back
00:04:11.200 to work or ending a lockout. So this is something that's going to be facing a lot of criticism
00:04:16.320 from some of the major unions.
00:04:19.320 I have to wonder even how effective that is.
00:04:22.260 I mean, when you've got two sides locked in conflict
00:04:24.240 and they both want it to end,
00:04:25.820 the Labour minister can go in and say,
00:04:27.620 all right, everybody back to work, and it's all okay, you know.
00:04:31.040 And then they grumble about the government being heavy-handed,
00:04:33.720 but they're deeply grateful that they're able to go back to work
00:04:37.780 and the burden of blame has been lifted from them.
00:04:40.740 What happens when you get Labour unions
00:04:42.960 that really don't want to go back to work
00:04:44.720 Can they control the federal government or they control some vital industry?
00:04:49.740 And, you know, labor unions can still do a lot through even just taking a work-to-rule posture rather than striking outright.
00:04:57.940 But, you know, this is intended to, you know, on the face of it, and I believe that the government is genuine in its desires here,
00:05:07.620 they want to stop the ability of labor disruptions completely demobilizing a port.
00:05:15.580 Think of the Port of Vancouver, for example, Canada's largest port.
00:05:19.420 It's got bigger capacity than all other Canadian ports put together.
00:05:23.760 So labor disruption, say, by the longshoremen at the Port of Vancouver
00:05:28.120 should not be able to shut down most of Canada's exports through Canada's primary port.
00:05:33.240 Or, for example, Canada posts a stoppage due to a labor disruption that can severely impact the operations and viability of many small businesses that use it as their shipping vehicle or an Air Canada strike or whatever.
00:05:51.220 So anything with major economic consequences.
00:05:52.940 Now, the government has said that it's putting parameters or guardrails, as their favorite term, that this would only apply to labor disruptions with an economic impact.
00:06:06.200 Well, I've never met a labor disruption that didn't have an economic impact.
00:06:11.400 That's the whole point of a strike to create economic pressure.
00:06:17.200 The government has also, there's quite a bit of political spin around this as well.
00:06:21.140 The government has claimed that this legislation will actually curtail their ability to impose back-to-work legislation by putting strict parameters around it.
00:06:30.600 I frankly don't buy that for a second because for a government that has had to impose back-to-work orders during economic disruptions, why on earth would they want to limit their ability to do that?
00:06:50.080 It just simply doesn't make sense. They want to create a new set of rules that make it easier to justify. They certainly do not want to limit their ability to impose back-to-work orders.
00:07:00.340 I also think that this is a gift for Avi Lewis, the new leader of the New Democratic Party, because it gives him a tangible, specific, concrete issue that he can that he can climb on to really focus on to help to rebuild his brand and build more support, get attention for the NDP, which has really been floundering for a number of years.
00:07:22.380 I want to return to the person of Mr. Lewis a little later, but right now, so what we've
00:07:29.260 got at the moment with Mr. Carney is that we've got his own version of a big beautiful
00:07:35.260 bill, $500 million, which mostly seems to come from institutional sources, not private
00:07:41.560 industries, banks, it's pension funds, and a couple of other things, but it's not really
00:07:48.200 like uh the major oil company has stepped up and said we we're going to invest in canada and here's
00:07:54.840 our 40 billion dollars this is institutional money so he's got but he's got that and he's got his
00:08:01.880 plans for the off of the major projects office uh which hasn't produced anything but he's obviously
00:08:08.760 still committed to that idea it's also the major investment summit he just held yes well and that's
00:08:16.520 where I think the 500 billion dollar fund was rolled out. So he has these things and over the
00:08:22.920 past 18 months we've seen quite a number of memorandums of understanding. Here in Alberta,
00:08:29.480 we're hanging our hat on an MOU that says there'll be a pipeline, brackets, as long as we don't
00:08:35.560 encounter any resistance from indigenous interests. So those things that we've already seen,
00:08:41.000 now in the very recent weeks we've seen him approach Europe and I failed to
00:08:50.120 understand what Europe can do for Canada back in mr. Harper's time we
00:08:56.780 established the comprehensive trade agreement with Europe it depended upon
00:09:01.280 individual countries rational ration ratifying the the agreement not all did
00:09:09.620 but there certainly has been a significant uptick in trade with Europe but a significant uptake
00:09:15.680 takes you sort of like from four percent to ten percent and it's not anywhere close to the trade
00:09:21.220 we have the United States so if that isn't likely to change what is the point of cozying up to
00:09:28.740 Europe they're in worse shape than we are yeah well some of this is symbolic a big part of this
00:09:34.340 a symbolic broadcasting and attitude reset.
00:09:39.540 It's the message is really, hey, folks, we can no longer depend on the United States
00:09:47.140 to be a reliable partner because they're talking about potentially annexing us or
00:09:55.060 absorbing us into the union.
00:09:56.660 They're imposing tariffs.
00:09:58.180 These are not the actions of a trust partner.
00:10:01.620 So we need to find others. And hey, we've got a lot in common with Europe. Canadians like Europe. Why don't we do more business with Europe?
00:10:11.340 So it's really a symbolic pivot, one that can make some difference in terms of our trade statistics.
00:10:21.160 But as you note, we so overwhelmingly depend on the United States as our current export market that is going to take a really long time to move those markers meaningfully.
00:10:32.720 Now, they have moved already. When this trade war started with the United States about a year and a half ago, 76% of Canada's exports went to the U.S.
00:10:41.340 That figure is down now to about 66% or 67%.
00:10:45.120 So it's already dropped about 10%.
00:10:48.820 I'm actually quite surprised that the Canadian economy,
00:10:53.300 that our export industries have been able to move the markers
00:10:58.140 that significantly in such a short period of time.
00:11:01.120 But bear in mind, the first move is always going to be the lower hanging fruit.
00:11:05.400 The next 10% is going to be much harder and going to take much longer
00:11:09.480 than the first 10% of trade diversification.
00:11:12.300 So that's something to bear in mind.
00:11:14.040 Diversifying from the US is going to be a long, hard slog.
00:11:19.660 Moreover, it's a lot cheaper and a lot easier to export to the US.
00:11:24.360 So yeah, great.
00:11:25.500 Let's look at other markets.
00:11:27.380 Let's not put all of our eggs or too many of our eggs into the same basket.
00:11:30.660 But shipping a basket of widgets from Canada to France is always going to be more expensive than dropping it on the train, sending it down 200 or 300 kilometers across the Canada-U.S. border.
00:11:48.460 So we've got to keep that in mind.
00:11:49.760 Diversified trade is going to be less efficient, less expensive.
00:11:53.160 So it's really a necessary evil rather than an optimally kind of ideal scenario.
00:12:01.260 Now, Europe, you asked what a new association agreement can do for Canada.
00:12:07.560 It's a good question.
00:12:09.160 The best thing that we can do for Canada was already done.
00:12:12.740 It's the Canada-EU trade agreement that was concluded under the Stephen Harper government.
00:12:19.560 That's the big opening of the floodgates for greater trade between the between the two countries.
00:12:24.680 Now, I would note that there are 10 European countries that still have not ratified it.
00:12:30.580 I would say let's focus on getting those countries to ratify it.
00:12:34.180 Let's get this thing into full implementation.
00:12:36.900 That's going to have the biggest impact on Canada's economy and Canada's exports.
00:12:41.440 What they're talking about now is unrelated to allowing that currently signed free trade agreement to come into effect more fully.
00:12:52.460 They're talking about, they seem to be talking about things like student exchanges, allowing Canadian students to study in Europe and vice versa, integrating supply chains better for things like defense procurement.
00:13:07.600 a good thing. But again, the kind of things that really, really get juiced by a fully implemented
00:13:14.700 free trade agreement. So I would say that should probably be the focus. So I think this is more of
00:13:20.120 a symbolic move than anything else, because the real heavy lifting was already done by the
00:13:25.180 Harper government in concluding that free trade agreement to begin with. Now, we're watching our
00:13:31.540 international trade minister trying to sign free trade agreements left, right and center. Good.
00:13:36.640 probably makes sense when you're trying to diversify trade but free trade agreements alone
00:13:42.500 do not diversify trade they enable trade to be diversified but then you need trade missions you
00:13:49.780 actually need signed contracts between canadian companies and importers abroad to really really
00:13:58.400 move the needle when you said that canadian companies had been successful in diversifying
00:14:05.380 and you said that their sales to us were down by i think it was 10 yeah around there are they
00:14:12.260 actually selling their product elsewhere or are they just kind of businesses down 10 because we
00:14:18.180 sold less to the us oh well actually that's more that's a more detailed question i'd probably have
00:14:24.420 to defer that to the people who really analyze our trade stats more thoroughly but on the face
00:14:30.820 of it about 66 percent of our exports are now going to the u.s rather than uh rather than uh
00:14:37.700 76 so it is it is more to china sorry are we selling more to china um marginally yes because
00:14:46.260 we were in a pre in the depths of a deep freeze when the carney government took over but that's
00:14:51.780 something we want to be really really careful about and i hope that the government is is taking uh 1.00
00:14:56.500 Chinese threats seriously they are certainly not a reliable trading partner
00:15:01.840 I would argue they are less reliable and at least as arbitrary as a Trump
00:15:10.180 administration has been though the Chinese wake up in a bad mood this
00:15:14.000 morning they declare by fiat that Canadian pork is dangerous no more
00:15:18.700 Canadian pork or there are rebels and Canadian canola products so no more
00:15:23.000 canadian canola they do this all the time on a whim that's no more predictable no more reliable
00:15:29.140 than the kind of stuff we've been seeing uh from the trump administration where he wakes up one
00:15:34.040 morning and decides he doesn't like canada so more tariffs on our automobiles well you see if you
00:15:39.660 knock off if you knock off canadian trade and canola and then you can give it back but the
00:15:44.860 prices you've got to buy our motor cars or electric cars that's actually beyond arbitrary
00:15:51.600 That's smart business, but they're in a position to do it, and we're not.
00:15:56.540 How dependent do you think Mr. Carney is on his relationship with China?
00:16:02.740 Oh, boy.
00:16:04.960 You know, the signals that his primary cabinet ministers involved in this relationship are sending
00:16:17.700 is that our Chinese trade is going to be cautious
00:16:20.200 and where necessary.
00:16:22.260 And it's going to be as low value
00:16:23.800 or at least not low value and dollar value,
00:16:26.960 but as unstrategic as possible.
00:16:31.800 So things like food commodities,
00:16:34.380 things like canola or things like that,
00:16:37.620 rather than more strategic trade relationships
00:16:41.620 impacting things like semiconductors,
00:16:44.280 critical minerals, et cetera,
00:16:45.480 the kinds of things that if they decide to turn it off are not going to have uh an impact on
00:16:50.920 canadian national security canadian economy maybe but not necessarily natural security so they're
00:16:56.520 sending the signals that they're taking this strategic approach but the fact is the more you
00:17:03.960 become reliant on any new trading partner the more exposed you potentially are that by the way
00:17:11.640 is what theoretically makes the European Union such an attractive new trade partners, because
00:17:18.200 there's a greater expectation by the government of Canada that they will be reliable and predictable
00:17:23.880 and less arbitrary. So if we can deepen those trade links between Canada and European Union
00:17:31.240 states, the expectation is that they will be honest, fair brokers rather than the same kinds
00:17:41.080 of uh you know belligerent maneuverings that we've seen from from both uh beijing and from washington
00:17:47.960 but it really begs the question what is in this new arrangement or so far there's been very little
00:17:54.440 information about what an associate membership in the eu uh meets uh mr paulia has certainly
00:18:01.640 uh laid down some important markers so has his canada u.s um shadow minister shuv majumdar
00:18:09.400 they said look um open to having discussions table something in parliament let's have debates
00:18:17.240 in parliament because canada is not going to accept eu regulations on canadian products
00:18:24.000 canada is not going to accept eu immigration and refugee standards and we're certainly not going
00:18:30.980 to accept a taxpayer burden to help fund the massive eu bureaucracy those are red lines
00:18:37.380 that the Conservatives have drawn,
00:18:39.700 I think they've got their finger on the pulse.
00:18:41.700 I do not think that such measures
00:18:44.360 would fly with the Canadian public.
00:18:46.400 Whereas if it's more kind of nice to have stuff
00:18:50.540 like allowing students to travel
00:18:52.680 and study for longer periods of time,
00:18:56.000 sure, you know, what's there to oppose there?
00:18:58.320 But let's have some clarity,
00:18:59.920 let's have some transparency
00:19:00.720 and let's have those debates.
00:19:03.400 Okay, so just to bring this together a little bit
00:19:07.160 because I want to go back to the status of the NDP
00:19:09.380 before we conclude this conversation.
00:19:12.120 So we have a string of promises.
00:19:16.340 We have some apparently new money.
00:19:19.420 There's $100 billion more in debt than there was 18 months ago.
00:19:23.180 In fact, it's more than that,
00:19:24.460 but let's not split hairs over $10 billion.
00:19:29.380 We have the possibility of a pleasant trading relationship with Europe.
00:19:37.160 Not so much with China, but at least if we can keep it in a box, so to speak, then that might have some benefit.
00:19:44.840 So these things that Mr. Carney has going for him, he says, this is the big picture.
00:19:51.860 We have the Special Projects Office.
00:19:54.260 But so far, after 18 months, we don't have anything.
00:19:58.240 How long do you think, Yaroslav, that he has got to actually pull a bunny out of the hat and say,
00:20:06.100 Here it is. This is the first of many things that our approach to government is going to yield, and it's going to be great for everybody.
00:20:14.160 Oh, boy. Look, it probably depends on which element we're talking about.
00:20:20.460 He's talked about attracting a trillion dollars.
00:20:23.980 He has one trillion dollars in foreign direct investment.
00:20:28.120 That was the intent behind his big investment summit in Toronto the other week.
00:20:33.160 um it's it's a positive thing to broadcast to the world to major investors that were open for
00:20:41.180 business sure that's good but there's still some significant roadblocks for international investors
00:20:48.260 to see canada as a safe place to invest specifically we do not have an integrated
00:20:54.560 single market we solve inter-provincial trade barriers here so there's no such thing right
00:20:59.740 now is investing in the Canadian economy because there isn't one. We've got sort of a somewhat
00:21:06.000 intertwined architellego of separate economies. It's not attractive.
00:21:12.060 If nothing is happening in the new year, I mean, even Canadians of goodwill, I think,
00:21:16.640 would be saying, well, okay, you promised a lot. Show me something.
00:21:21.060 Well, and that's where I'm going with this. There are barriers for that investment to happen. We
00:21:26.900 have a single economy we have two separatist movements also toxic for yeah for attractiveness
00:21:34.020 for for investment and we haven't settled our uh our uh relationship issues our economic
00:21:40.980 relationship issues with our single biggest economic partner that does not make us look
00:21:45.300 attractive so so far we're seeing a whole lot of big aspirations but not much happening behind it
00:21:52.500 um i think the biggest test is going to be how quickly and how well the prime minister can sign
00:21:59.460 a trade deal with the united states he's going to have to sign one we're going to have this has to
00:22:04.100 come to a conclusion we will not survive a long-term economic or great war of attrition
00:22:10.100 with the us we simply can't and i would say the the window the ideal window is probably between
00:22:17.460 the U.S. midterms, and January 1st. Once January 1st hits, Canada is going to face even fresh new
00:22:26.180 tariffs on already beleaguered sectors, specifically automobiles, auto parts, and steel.
00:22:33.420 If new tariffs hit those sectors, those sectors will not survive. So right now, Mr. Carney is
00:22:40.240 Captain Canada, elbows up, yeah, I'm going to fight for Canadians, and Canadians like that.
00:22:44.860 They're buying it. The polling shows they're into that. But once this tangibly starts to turn into job losses, mill closures, auto plant closures, then that public mood is certainly going to sour.
00:23:02.240 So I would say on the Canada-U.S. front, it's really a double-edged sword. Mr. Carney is benefiting in the immediate term politically, but that can flip on a dime, particularly in the new year if new tariffs come into effect.
00:23:19.660 So what would you say? You were in the business of giving strategic advice. Would you suggest to Mr. Carney that he have a snap election and grab a solid majority while it's there to be taken?
00:23:30.640 look there aren't really any signs that he's planning a snap election these things always
00:23:39.060 create ripples out there if somebody starts to make a phone call to inquire about
00:23:45.700 um bus wraps you know they always have a logo and a big face of your leader you know that can
00:23:52.200 those kinds of phone calls create buzz or you start to make inquiries about releasing phone
00:23:57.660 bank spaces or about, you know, local campaign office, you know, rentals, it creates waves out
00:24:04.920 there. There are no waves out there suggesting that this planning is underway. But I would posit
00:24:11.380 that strategically, it would be negligent of Mr. Carney's advisors not to be having these
00:24:21.140 conversations because their polling is through the roof right now. Structurally, that probably
00:24:28.220 will not last much, much longer. Again, January 1st could be a pivot point or a hinge moment
00:24:34.380 in Carney speak. So the window is sort of guaranteed, the safe window of buoyant polling
00:24:42.380 is finite. It's short. So it would be foolish for them not to be seriously considering
00:24:49.780 a snap election the the seat projections show that they would definitely pick up seats they
00:24:55.200 would almost certainly pick up a lot of seats the conservatives would drop seats like we're talking
00:25:00.440 you know 20 or more so why would they not be thinking about doing this now that's why i asked
00:25:07.460 the question last question because we're out of time the ndp under mr lewis abby lewis former
00:25:13.140 journalist excellent ndp leadership credentials inherited from his grandfather are they going to
00:25:20.420 make a difference anybody going to vote for them the ndp has got the proofs in this country it has
00:25:27.940 not been big and powerful in the last uh last decade last two decades at least at the federal
00:25:36.100 level it's got significant presence in the organizational ability at the provincial level
00:25:40.580 and it's a pretty fairly provincially federally integrated party so they've got on the ground
00:25:45.780 strength its biggest handicap i would say with the greatest respect to jagmeet singh who i'm sure is
00:25:51.540 a super swell and nice guy he was not a strong leader and he was not a very strategic leader
00:25:57.460 so the removal of mr singh um probably removes their biggest uh their biggest impediment of
00:26:04.420 recent years abby lewis so far has kept a pretty low profile and despite that ndp support has
00:26:12.500 already started to rise if an election were held today most of the seat projections most of the
00:26:17.060 polling suggests they would uh potentially triple the number of seats that they currently hold and
00:26:23.220 that's basically doing nothing that's basically just having anybody else at the expense of the
00:26:29.300 the liberals wouldn't they it would be liberals by and large by and large yes uh i i don't think
00:26:36.420 that in any of those seats they'd be uh they'd be taken away from the from the conservatives
00:26:41.380 so just by replacing sorry what is is there anything that mr polio should be doing in your
00:26:47.380 view that he's not doing that to restore his fortunes because right now i just don't see it
00:26:51.380 as a particularly good time to have much to say nobody's listening yeah right now people are
00:26:56.900 are focused on Karni. They're focused on Karni. They're focused on Trump. As long as the Canada
00:27:02.140 U.S. relationship remains top of mind, that's going to give an advantage or it seems to be
00:27:07.340 giving an advantage to Trump. What Mr. Kualiev should be doing and frankly is doing is focusing
00:27:12.860 on his dominant issue, which is cost of living, which is affordability. The polling all suggests
00:27:19.960 that when Trump is more in the headlines,
00:27:23.900 when he is more in our faces,
00:27:26.180 that's an advantage to Carney.
00:27:27.640 The liberals go up relatively
00:27:29.220 at the expense of the conservatives.
00:27:31.880 When Trump recedes from the headlines,
00:27:34.980 liberals start to dip
00:27:36.020 and the conservatives start to go up
00:27:37.680 because then the dominant issue
00:27:39.120 becomes cost of living.
00:27:40.760 And the pollsters are saying
00:27:41.860 that Polly have still leads
00:27:43.560 and has the most cost on cost of living. 0.96
00:27:46.580 Conservatives use how to Cox,
00:27:47.880 or Treatment and Ticton.
00:27:49.900 He made it clear that cost of living, that affordability,
00:27:53.960 that saving people money is going to be his singular priority.
00:27:58.740 That's a smart move.
00:28:00.040 It's the right move, given what the pollsters are saying
00:28:03.820 are the relative strengths of the Liberals versus their Conservatives.
00:28:07.860 Jaroslav, we're right bang up against the clock.
00:28:10.400 Thank you for this.
00:28:11.120 It's been most helpful.
00:28:13.580 We'll have you back again soon.
00:28:15.160 There's so much to talk about.
00:28:16.680 Great.
00:28:17.100 Always a pleasure, Nigel.
00:28:18.000 For the Western Standard, I'm Nigel Hannaford.