Canada Minute: Issue 35

Canada Minute - Your weekly one-minute summary of Canadian politics.

📅 This Week In Canada: 📅

• Prime Minister Mark Carney has appointed Dawn Farrell, Chair of Trans Mountain Corporation, as CEO of Canada’s new Major Projects Office (MPO), which will be based in Calgary. The MPO is intended to speed up approvals for “nation-building” infrastructure projects under the recently passed Building Canada Act, which shortens timelines from five years to two through a single review process. Farrell, with decades of experience in the energy sector, is expected to help Ottawa strengthen ties with Alberta while overseeing major initiatives such as potential new port developments in Churchill and Montreal. The office will also coordinate funding from federal, provincial, and private partners while incorporating guidance from an Indigenous Advisory Council set to launch in September. Supporters, including industry groups, say the MPO will boost investment and position Canada as an energy leader, while critics, including some Indigenous leaders and Conservatives, warn it risks undermining environmental protections and community rights. The federal government has pledged up to half a trillion dollars for future infrastructure projects ranging from ports to energy facilities.
  
  
• Federal Minister of Housing and Infrastructure Gregor Robertson says Canada needs to strengthen its approach to protecting domestic jobs, suggesting the country should adopt a “buy Canada” policy similar to the US “buy American” strategy. The remarks come after BC Ferries secured a $1-billion loan from the Canada Infrastructure Bank to purchase four electric-diesel ships from a Chinese state-owned company, a decision Robertson says was made independently by the provincial ferry corporation. Conservative leader Pierre Poilievre has called for the loan to be cancelled in response to China’s tariffs on Canadian canola. Robertson emphasized that the federal government is gradually implementing policies to prioritize Canadian procurement across government projects. 
  
  
• Canada is renewing talks with Germany to supply liquefied natural gas (LNG), with Prime Minister Mark Carney signalling announcements on port infrastructure funding in the coming weeks. Key projects include expanding the Port of Montreal and revitalizing the Port of Churchill, which could facilitate LNG exports and shipping of critical minerals. Energy Minister Tim Hodgson says Canada aims to start shipments within five years, though some caution that building the necessary pipelines and gaining approvals from First Nations and local communities will be challenging. Past proposals for East Coast LNG facilities faced high costs and opposition, but Quebec’s government has recently expressed more openness to such projects. Meanwhile, Canada is racing against the US, which is expanding its own LNG exports to Europe under trade deals.
  
  
• Speaking of deals with Germany, Canada has narrowed its competition for a new $20-billion-plus submarine contract to two bidders - South Korea’s Hanwha Ocean and Germany’s ThyssenKrupp Marine Systems. Hanwha Ocean promises a faster delivery schedule, claiming it could provide four submarines to replace Canada’s aging Victoria-class fleet before 2035 and deliver the full 12-sub fleet by 2043. The German firm’s timeline is slower due to existing commitments to build submarines for Germany and Norway. Hanwha Ocean emphasizes potential cost savings and a long-term industrial partnership with Canada, including opportunities in defence, space, sustainable energy, and critical minerals. Prime Minister Mark Carney and his Cabinet are considering whether to request detailed proposals or begin negotiations with a preferred bidder, with a final decision expected next year. Defence Minister David McGuinty highlighted that timeliness, interoperability, Arctic readiness, and industrial benefits will all influence the selection. 
  
  
• Canada Post reported a $407-million loss in the second quarter of 2025, marking its largest quarterly deficit ever. The drop is largely due to a decline in parcel revenue, which fell by $288 million as 25 million fewer packages were delivered compared to the same period last year. The Crown corporation attributes the revenue shortfall to prolonged contract negotiations and labour uncertainty, which have driven customers to alternative carriers. While transaction mail, including bills and election-related mailings, showed some gains, the overall financial picture remains bleak. The Canadian Union of Postal Workers has been in talks with Canada Post for over 18 months, with workers rejecting the latest wage offer and maintaining a national ban on overtime. Critics argue Canada Post should focus on growing revenue instead of blaming labour disputes, especially as some business is diverted to its subsidiary, Purolator. An Industrial Inquiry Commission report earlier this year warned the postal service is “effectively insolvent” and recommended reforms such as phasing out door-to-door delivery to stabilize finances. Without immediate changes, experts say Canada Post’s fiscal situation will continue to worsen.
  
  
• The Quebec government plans to introduce a bill banning prayer in public spaces, citing concerns over the “proliferation of street prayer,” according to Secularism Minister Jean-François Roberge. Premier François Legault has indicated the Province might invoke the notwithstanding clause to enforce the law, emphasizing that public prayer should not occur in parks or streets. The move follows ongoing efforts by the Coalition Avenir Québec government to strengthen secularism, including laws on immigrant integration and religious symbols for school staff. The Canadian Muslim Forum and the Canadian Civil Liberties Association have criticized the proposal, arguing it infringes on freedoms of religion, expression, and assembly, and could stigmatize communities. A recently released advisory committee report on secularism did not recommend a public prayer ban, suggesting municipalities already have the authority to regulate it. Despite this, Roberge said the committee’s report contributed to the government’s decision to pursue legislation. Critics argue the government should focus on addressing healthcare, housing, other pressing problems rather than regulating religious practices.

🚨 This Week’s Action Item: 🚨