Liberal leadership hopeful Mark Carney says he'd run a deficit to 'invest and grow' Canada's economy
Carney also promises to balance federal government's operational spending as PM
Liberal leadership hopeful Mark Carney confirmed Sunday that a federal government led by him would run a deficit "to invest and grow" Canada's economy, but it would also balance its operational spending over the next three years.
Carney, a former governor of the Bank of Canada, invoked U.S. President Donald Trump's ongoing threat of sweeping tariffs on Canadian goods to justify his proposed deficit.
The intent, Carney said during an interview on Rosemary Barton Live, is to invest in Canada's economy "at a time when we absolutely have to build as a country."
The taxpayer dollars would "catalyze many multiples of private dollars" to build homes, energy infrastructure, AI systems and trade corridors — "all of which are fundamentally necessary if we are going to grow this economy, irrespective of how President Trump is feeling on one day or another," Carney said.
Carney also said a federal government led by him would balance its operational spending — such as government-run programs, federal transfers to provinces and territories and debt service charges — over the course of the next three years.
"Where we are willing to borrow is to invest and grow this economy," Carney told Barton. "That is an absolutely crucial point."
Carney says he would assess tariff situation before calling an electionThe former central banker also discussed his views on several other economic objectives. Carney said he supports "the concept" of a west-east oil pipeline — an idea that's regained steam from some federal cabinet ministers and Conservative Leader Pierre Poilievre.
"We as a nation need to build some new pipelines for conventional energy," Carney said. He added his government would accelerate approvals for such pipelines and accelerate approvals for clean energy.
Canada is also making a push to dismantle interprovincial trade barriers. Carney said he would "quickly convene" the country's premiers to work on the issue in the service of making "one economy here, not thirteen."
Carney, Trump and getting into politics
Looming over the Liberal leadership race is Trump's tariff threats and continual talk of annexation, raising the stakes for the federal government as it works to stave off a trade war with the United States.
Carney, who may manage those negotiations in just a few weeks if he wins the leadership race, said he would pick up discussions "where they are" upon taking office.
When asked why he's being reticent to share details of how he would respond to Trump's tariffs, Carney said it's "not a good idea to insert yourself in the middle of a negotiation [and] give conflicting signals."
U.S. President Donald Trump speaks to reporters upon departure from Joint Base Andrews in Maryland on Friday. (Kevin Lamarque/Reuters)
So far, Carney has pledged dollar-for-dollar retaliatory tariffs— as has his main leadership opponent, former finance minister Chrystia Freeland.
Should Carney win the leadership race, he would become the first prime minister who has never won an election. He was asked by Barton why Canadians should believe he's up to the job.
In response, Carney said he first needs to be elected Liberal leader and took credit for his role in growing the number of party members. At the end of January, the Liberals announced nearly 400,000 people had registered to vote in the leadership race.
"So members of the Liberal Party … will decide who they want as their leader and I'll be elected or not by those individuals," Carney said.
"Then Canadians in short order will get a decision whether or not which government they want to return to Ottawa."
Carney also said former prime minister Stephen Harper asked him to be finance minister in 2012, but he "didn't feel it was appropriate to go directly from being governor into elective politics."
Harper's former director of communications, Dimitri Soudas, said in a statement to CBC News that "Mark Carney is not telling the whole story, and prime minister Harper certainly does not support Mr. Carney in any way."
Conservatives target Carney as resurgent Liberals make gains in the pollsCarney, who was previously tapped by Trudeau to chair a Liberal Party task force on economic growth, was also asked why Canadians should believe he'd do anything different than the outgoing prime minister.
"I focus on the economy," Carney said in response. "[Trudeau] has had a different focus for Canada."
"Why am I here now? Because we're in a crisis," Carney said. "For better or worse, my career [and] my experience prepares me for this moment."
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Where does Liberal leadership race stand? Will Carney become the next PM? | CTV's Question Period
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Mark Carney's leadership campaign says it's raised $1.9M
Updated:
Published:
Mark Carney, candidate for the leadership of the Liberal Party of Canada, speaks during a news conference in Vancouver, B.C., Thursday, Feb. 13, 2025. THE CANADIAN PRESS/Ethan Cairns
A spokesperson for Mark Carney’s leadership campaign says they’ve raised more than $1.9 million so far in donations from over 11,000 people.
The Liberal leadership hopefuls are required to submit biweekly reports to the chief electoral officer and Carney’s team says their latest report was submitted this week and includes donations up to Feb. 9.
In a statement, a spokesperson for Chrystia Freeland’s campaign said they are “feeling very positive” after holding a number of fundraisers, but did not say how much Freeland has raised.
A representative for Frank Baylis says his campaign has raised over $350,000 and has submitted its final deposit to the Liberal Party as of Friday.
Ruby Dhalla’s campaign says it doesn’t have official numbers yet but “has been very successful.”
Karina Gould’s campaign did not release its fundraising numbers but in an email to supporters, Gould said she has also paid the full entry fee early.
There are just over three weeks to go in the leadership race, and the party will choose the next prime minister on March 9.
Earlier in the campaign, Gould asked her supporters to help her make a fundraising push in order to stay in the race.
The contestants need to raise enough to cover a $350,000 entrance fee, which is broken down into instalments. The final instalment of $125,000 is due on Monday.
The campaigns are allowed to spend a maximum of $5 million each, excluding the entrance fee and select other costs.
The leadership campaign fundraising follows the rules set out in the Elections Canada Act, and campaigns cannot accept contributions from corporations, unions, or non-residents.
Elections Canada is expected to report the first batch of fundraising numbers for all candidates next week.
In the last Liberal leadership race, Justin Trudeau raised just over $2 million. An email to supporters at the time said the money came from 10,500 individual donations and 60 different fundraisers.
That leadership race began in November 2012 and ended in April 2013, and candidates had a spending limit of $950,000.
This report by The Canadian Press was first published Feb. 15, 2025.
Kyle Duggan and Sarah Ritchie, The Canadian Press
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SCOTT FESCHUK
Scott Feschuk is a multiple award-winning former journalist who has written about politics and business for the Globe and Mail, the National Post and Maclean’s. He served as Chief Speechwriter to Paul Martin during his time as Prime Minister. Scott is the author of three books and is a best-selling ghostwriter.
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Scott Reid is one of Canada’s most sought-after crisis and issues managers. A former senior advisor to Prime Minister Paul Martin, he has counselled CEOs, senior executives and political leaders at the federal, provincial and municipal levels. Scott is the former co-host of CTV’s National Affairs. He serves as an analyst for CTV News, Newstalk 1010AM and Bell Media while writing for the Globe and Mail, Maclean’s and CBC.ca.
Saint John tops list of Canadian cities with most to lose in U.S. tariff war
City sends 96.3 per cent of exports south of the border
A report from the Canadian Chamber of Commerce has the Port City at the top of the list of Canadian cities that would be most hurt by tariffs from the United States, something that didn't come as a surprise to Fraser Wells.
Wells, the chair of the Saint John Chamber of Commerce, said he wasn't "entirely surprised" to see the city top the list, but he wasn't expecting to be as firmly in place at number one.
"The gap between us and even second and third place was quite significant," said Wells.
"We're exporting a lot here in Saint John."
The list utilizes a measurement the chamber calls a "trade exposure index," which is essentially the combination of a city's export intensity and dependence on the U.S.
Saint John has a trade exposure index of 131.1 per cent, followed by Calgary at 81.6 per cent and Windsor at 61.7 per cent.
'Seafood
and forestry products are New Brunswick’s other top exports to the
U.S., many of which go to Maine,' the Canadian Chamber of Commerce said. (Graham Thompson/CBC)
Other New Brunswick cities are also on the list, but much further down. Fredericton is in 18th place, with 4.2 per cent, and Moncton is in 30th place at –11.1 per cent.
The chamber reports 96.3 per cent of Saint John's total exports go south of the border, largely focused on energy, forestry and aquaculture products.
"[The Irving Oil Refinery] can process over 320 thousand barrels of crude daily, with more than 80% exported south of the border," the national chamber's report said.
"Seafood and forestry products are New Brunswick's other top exports to the U.S., many of which go to Maine."
Wells said it won't just be exporters that will be hurt by potential tariffs, but everyone in the province.
"A falling tide brings down all boats."
Wells said tariffs are inherently inflationary, so New Brunswickers can expect to pay more for a lot of different goods.
But so can Americans, and Wells is hopeful President Donald Trump's campaign promises on bringing down inflation will lead to a rethink on tariffs.
"We actually saw inflation numbers higher than expected this morning in the U.S.," said Wells.
"With any sort of tariff or trade war that we see, that's just going to keep inflation high and work against that campaign promise."
In the meantime, Wells said, businesses should try to diversify their export markets, if possible, and he is calling on governments to reduce barriers to interprovincial trade.
He'd also like to see more New Brunswickers make an effort to buy local.
"We have a ton of amazing products that are made here in New Brunswick, here in Canada," said Wells.
"Trying to encourage people that are out … for a day of shopping to turn the can around or turn the product around to see where it's made and, and buy local where they can."
With files from Shift
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