Morneau criticizes the economic policies of the Liberals in his first public speech since leaving political life

Former Finance Minister Bill Morneau delivered a sharp critique of the economic policies of the federal Liberals, along with a series of recommendations to boost growth, in his first public speech since leaving politics two years ago.

Mr. Morneau, finance minister in the Liberal government from 2015 to 2020, echoed the concerns of business leaders who urged Prime Minister Justin Trudeau to focus on expanding the Canadian economy, rather than implementing tax and bills.

“When I look at politics in Canada today, from the perspective of a former insider, I have to confess that I am much more concerned about our economic prospects today, in 2022, than I was seven years ago,” he said.

“So much time and energy was spent finding ways to redistribute Canada’s wealth that little attention was paid to the importance of increasing our collective prosperity,” Mr. Morneau said in a speech Wednesday night before the CD Howe Institute.

Mr. Morneau highlighted research by the Organization for Economic Co-operation and Development that forecasts that Canada’s gross domestic product growth over the next four decades will be significantly less than the expansion in the US, Australian and Canadian economies. comparable European.

“There is no real sense of urgency in Ottawa because of our lack of competitiveness,” Mr. Morneau said. “It’s not that this is one of the big problems facing Canada’s economy, it’s that this is our fundamental problem. Nothing else has a solution if we don’t put this problem first.”

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Ahead of April’s federal budget, senior business leaders such as Royal Bank of Canada CEO Dave McKay expressed frustration with the government’s approach, saying they saw trends toward short-term decision-making, lavish spending and sporadic engagement with Canadian companies.

While Morneau never mentioned his successor as finance minister, Chrystia Freeland, or the prime minister by name, he devoted a significant portion of his 20-minute speech to the problems of a partisan political process that favors style over substance. Morneau resigned from her position amid the We Charity investigation.

“We have to stop thinking about politics in terms of short-term gains and refocus our efforts on long-term solutions. I know every political incentive goes against this,” said Mr. Morneau, who ran the nation’s largest employee benefits firm, Lifeworks, formerly known as Morneau Shepell, before entering politics in 2015.

To ensure a long-term focus on trade issues at the federal level, Mr. Morneau said Canada needs a “permanent Growth Commission, drawing on public and private sector expertise, reporting to a federal/provincial body, with contributions from all parties.”

The concept follows recommendations from Bank of Nova Scotia CEO Brian Porter, who recently called for a new federal commission on Canada’s economic prosperity.

Mr. Morneau said that the federal and provincial governments must do more to coordinate policies and the delivery of services such as health care.

“Although many of the levers of our economic opportunity are shared, federal interactions with provinces and territories are, for the most part, episodic, without a clearly identified and executed strategy,” said Mr. Morneau. He noted that the recent resignation of Alberta Premier Jason Kenney offers the prime minister an opportunity to reestablish the relationship with the resource-rich province.

Without singling out conservative leadership candidates specifically, Morneau also took issue with populist campaigns, such as that of Pierre Poilievre, who has repeatedly attacked the Bank of Canada, which works at arm’s length from the federal government.

“Canada is a country with political institutions that are, in many cases, the envy of the world,” Mr. Morneau said. “Yet there are politicians, who absolutely know better, who not only take those institutions for granted, but are willing to actively undermine them if it gives them even the slightest political advantage.”

“When you put ‘exciting the base’ before making good policy… when you cynically pander to conspiracy theorists… you are doing untold damage to the country you claim to love and the people you seek to lead,” said the Mr Morneau.

Mr. Morneau was finance minister when Canada renegotiated trade deals with Mexico and a US administration led by President Donald Trump. He said the federal government must recognize that the pandemic has made protectionism a factor in all industrialized economies and a threat to Canadian companies that depend on exports.

“As much as Canada has benefited from trade liberalization in recent years, it will suffer as countries around the world pull back and adopt more protectionist positions,” said Mr. Morneau, who has recently been teaching at the Yale University.

“China’s withdrawal, combined with broader deglobalization, puts countries like Canada in a tough spot. Natural resources alone will not save us. Neither will cryptocurrencies, just for the record.”

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