Budget Season Begins | Your Look Ahead from Summa Strategies

6 minute read

What We’re Watching

  • Ontario is set to announce a $10.2 billion deal today with the federal government that will see the introduction of $10-dollar a day childcare in the province. Ontario is the last province to sign onto the agreement, which was a significant part of the Trudeau government’s re-election campaign last Fall.  
  • Early last week, it was announced that the New Democratic Party would support the Liberal government on matters of confidence and supply (thereby avoiding an election) until at least 2025. In exchange, the Liberals have committed to take action on key NDP priorities including universal pharmacare, dental care, and climate action. This deal comes ahead of the 2022 federal budget with many wondering if the cost of these programs may appear in the federal government’s fiscal plans. 
  • This week, several provinces unveiled their 2022 budgets, with Quebec, Nova Scotia, New Brunswick, and Saskatchewan releasing their fiscal plans for the upcoming year. Ontario and Manitoba’s budgets are in the works and should be presented in the coming weeks. Last week, Alberta also successfully passed its budget in the province’s legislature.

In the House

In the Senate

  • The Independent Advisory Board for Senate Appointments launched a call for new applicants to fill current and upcoming Senate vacancies through 2022. Canadians in British Columbia, Manitoba, Ontario and Saskatchewan are invited to apply for a seat in the Senate of Canada before April 20, 2022.
  • On Monday, the Senate Standing Committee on National Security and Defence will see expert witnesses discuss geopolitics and defence in the Arctic. 

ICYMI

  • Last week, Prime Minister Trudeau attended an emergency meeting with NATO leaders in Brussels to review the Russian invasion of Ukraine and plan the alliance’s next steps.
  • During his trip to Brussels, Trudeau gave a speech to the European Parliament that received criticism from some members in attendance for his handling of the convoy protest in Ottawa earlier this year. 
  • On Thursday last week, the federal government tabled Bill C-14, An Act to amend the Constitution Act, 1867 (electoral representation). This bill would impose a new minimum electoral seat count in each province. It comes after a proposed reduction in the number of MPs in Quebec sparked outrage in the province and with the Bloc Quebecois. If passed as presented, the bill would ensure that in future riding redistributions, no province will ever be allocated fewer seats than they have now. 
  • The Conservative leadership race reached a total of nine contenders either declared or rumoured to be seeking to lead the party. Former MP Leona Alleslev joined the Conservative leadership race late last week. Alleslev crossed the floor from the Liberals to the Conservative party in 2018, and was later appointed Deputy Leader of the Conservatives under Andrew Scheer. 

Provincial Updates:

#ONpoli

  • The federal government and Ontario are expected to sign an agreement for a $10-a-day childcare deal today.
  • On Wednesday, the Federal and Ontario Governments jointly announced Canada’s first lithium-ion electric vehicle (EV) battery manufacturing plant in Windsor, Ontario. This investment is part of a $4.9-billion joint-venture deal between Stellantis and LG Energy Solution. 
  • On Thursday, Premier Doug Ford revealed his critical mineral strategy, earmarking $29 million in new government funding devoted to the initiative. This strategy aims to capitalize on the growing global demand for minerals that are crucial to technologies like electric vehicle batteries, smartphones and laptops.
  • As Ontario prepares for its 2022 budget, the Standing Committee on Finance and Economic Affairs tabled its report on its 2022 pre-budget consultations. The report is based on public consultations that took place in January of this year. 
  • As the Ontario June 2nd election approaches, Ontario Liberal Party leader Del Duca and Ontario NDP leader Horwath have both firmly ruled out supporting a Progressive Conservative minority government. With the recent federal Liberal-NDP deal, many are wondering if Ontario is in for a similar deal in the province. 
  • Toronto Mayor John Tory announced that he will seek re-elected for a third term in the upcoming Ontario Municipal elections on October 14th. If Tory is re-elected and serves a full third term, he will become the longest-serving mayor in the city’s history. 

#QCpoli 

  • Quebec’s spring budget was released last week and includes several notable investments including proposing a one-time payment of $500 to every adult earning $100,000 or less to help offset the impact of inflation. This money is scheduled to arrive a few months ahead of the provincial election in Quebec. 
  • Last week, Quebec Premier Francois Legault tested positive for COVID-19. Quebec has experienced a spike in COVID-19 cases and hospitalizations in recent days, but public health officials have said it’s too early to determine whether the province is experiencing a sixth wave.

#BCpoli

  • On Friday last week, Premier John Horgan addressed the rising price of gasoline and oil in British Columbia. Today, Horgan announced that the Insurance Corporation of British Columbia (ICBC) will distribute a $110 rebate to a majority of customers, and a slightly higher rebate of $165 to commercial ICBC customers. Customers can expect to receive the payment in May and June, and the program is estimated to cost the government $395 million.
  • After record population increases, British Columbia is considering legislation that would allow the province to override municipalities’ decisions not to approve affordable housing projects. This comes as migration rates from other parts of Canada are at a 30-year high and vacancy rates in the province are at an all-time low. 

#ABpoli

  • Last week, Alberta’s 2022 budget passed in the provincial legislature, despite concern from opposition parties. If the United Conservative Party government sticks to its proposed spending, and oil prices remain above $70 US/bbl, Alberta could see its first balanced budget in eight years. Opposition parties called the plan a “no-help budget,” citing concerns about “meagre” investments in health, education, justice, and social services.
  • Last week, Premier Jason Kenney received additional calls to resign from his position as leader of the United Conservative Party. On Friday, two more MLAs from the UCP released public calls for Kenney to resign, calling the leadership review process a “circus.” 
  • The United Conservative Party in Alberta changed their voting requirements for Premier Jason Kenney’s leadership review on April 9th. The ballots will now be mailed in, as opposed to the former plan of having one-day, in-person voting in Red Deer, Alberta. The President of the UCP, Cynthia Moore, cited a surge in UCP memberships for the change. Moore noted that the mail-in process aims to make it “easy for our grassroots members to participate by eliminating the registration fee and the need for travel.” This means that the result of the vote may not be known until mid-May.

#ATLpoli

  • On Tuesday last week, the New Brunswick government tabled a $11.3-billion budget. Premier Blaine Higgs’ fourth budget includes investments in affordable housing, health care, and some tax relief for low-income earners. 
  • On Wednesday last week, Nova Scotia’s Progressive Conservative government proposed a $1.5-billion capital budget for 2022-23 that focuses on health care, roads, schools, and improving infrastructure. This is the largest budget in the province’s history. 
  • The Nova Scotia government is proposing a bill to address systemic racism, hate, and inequity in the province. The bill includes definitions for hate and racism, and would require the government to submit annual progress reports on equity and anti-racism measures beginning in July 2023. 
  • After months of paused trade, the United States re-opened the importation of Prince Edward Island potatoes on Thursday. The two parties reached an “understanding” four months after concern regarding a soil-borne fungus first blocked the export of the province’s famous potatoes, disrupting its single most crucial market.

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