
Mark Carney likes to catalyse.
It’s one of his favourite words. When he finally agreed to join a Liberal task force in September — bowing to repeated entreaties from a flailing government — he described himself as “a catalyst in a much broader effort.” Read through official plans for “a Mark Carney government” and the term appears again and again.
A Carney team would
a new fiscal approach “so that scarce public investment dollars catalyse multiples of private investment.” It would “catalyse major investments in AI infrastructure to reinforce Canada’s leadership in AI model development” and also “catalyse massive private investment in cutting-edge industries.” It would “focus on ensuring that government capital investment dollars catalyse multiple times their value.” It would “fundamentally reform the tax system and incentives to catalyse building.”
In terms of official Ottawa vocabulary, catalysing Canada would be a relief even if all it does is replace “robust” as the reigning champion of overused terminology. Everything in the Trudeau government was robust. They held robust discussions, considered robust plans, got involved in robust examinations, called for robust inquiries and generally went through life being very robust.
Catalysing is different. A catalyst, according to one dictionary, is “a substance that enables a chemical reaction to proceed at a usually faster rate or under different conditions than otherwise possible.” More pertinently, it’s “an agent that provokes or speeds significant change or action.” It doesn’t alter the action, it just makes it happen faster. Used in the context of Carney, it suggests the Liberal leader doesn’t consider his predecessor’s approach to such government mainstays as budgeting, investment, housing, immigration or affordability as necessarily bad, just badly done. The Trudeau regime was notably good on announcements, great at overspending but lousy at delivery and management. It was skilled at optics but not impressive at getting things done.
To give a for instance, the Trudeau team actively sought participation by private investment in major building projects. Its goal was “leveraging.” Ottawa would kick in a few billion dollars of seed money for much-needed investments, while “leveraging” it by drawing in several times the amount from private sector investors. Trudeau’s ministers liked the idea so much they tried it twice, with the $35 billion Canada
Bank and
$15 billion Canada Growth Fund.
Neither produced
promised flood of investment dollars, perhaps because neither Trudeau nor his cabinet had the qualities or history to impress potential investors. They were politicians not entrepreneurs. The business of doing business was all a vague theory. Carney’s pitch is that he has the experience, the expertise, the contacts and the credibility they lacked.
While he definitely has the resumé, seeking to catalyse and actually succeeding at it are two different things. Carney has headed two central banks and an asset management firm with well-defined interests and skilled work forces attuned to their tasks. Plans, orders and directives could be clearly communicated and reliably implemented. That does not describe the federal civil service, a vast, sprawling entity resistant to risk, initiative or accountability, any of which might disturb the safety and security of a fixed and predictable work day. Trudeau left behind a bureaucratic blob that was 40 per cent bigger but not noticeably better. To offset its continued shortcomings he spent billions annually on consultants, advisers and outside experts, without achieving noticeable improvement.
How Carney will alter the situation will take more than just determination and brains. The way to reduce deficits without spending cuts or tax increases is to increase revenue. Eliminating the barriers to interprovincial trade is a good place to start, but also a graveyard of failed attempts. Former Conservative finance minister Jim Flaherty worked assiduously to win approval for a single national securities regulator in place of a haphazard collection of provincial poor cousins, but fell victim to lethargy, obduracy and provincial self-interest (though it was his own party that
the final blow). Not to mention that supply management, Canada’s most notorious protectionist racket, is universally supported among the parties, Carney’s included.
Jim Balsillie, the former Blackberry chieftain who splits his time between research, think tanks and philanthropy,
Carney to “a more confident and efficient version of Mr. Trudeau,” pushing tired theorems based on outdated thinking. Carney
that he’s “a different person with a different life experience and a vastly different professional experience than the (former) prime minister. Different person, different policies, different approach to governing.”
While he’s certainly a change in personality, experience and business know-how, if he has a suite of ideas that differ substantially from his predecessor’s, he’s yet to reveal them. On Monday in Victoria he unveiled measures to help seniors deal with financial uncertainties, after Conservatives had earlier released similar initiatives. Both parties are pledging support for workers, incentives for business and spending on infrastructure. His biggest effort to date, cancelling the carbon tax, abandoned years of Liberal climate theology in hopes of protecting votes.
Carney acknowledges that Canada spends too much, invests too little, has a productivity problem and is notably lagging in such technology essentials as data centres, AI systems, supercomputers and the like. His remedy is “a more efficient and effective government — one that delivers better results while spending responsibly.” Every government in memory has promised less waste and greater efficiency at some time or other, yet somehow debt and spending continue to balloon.
Given the Liberals’ record on the economy, more of the same under new management sounds a bit like expecting Hudson’s Bay Co. to rise from the ashes following a quick shuffle in the boardroom. Carney may outshine Poilievre in his business experience and corporate achievements, but he also outshines everyone else in the party he’s leading. It’s the same cast that brought us to this juncture; unless Carney plans to personally handle all the top cabinet posts, some of the familiar old crew will have their hands on the same old levers. Canadians are still waiting to learn what would be new about another Liberal government, other than it would include Mark Carney.
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