Prime Minister Mark Carney's main focus will be on project development as he sits down with provincial and territorial premiers this week.

First ministers are gathering in Saskatoon Monday for the first time since the April 28 federal election.

Carney told CBC's Power & Politicsin an exclusive interview last week that "major projects" will be his main agenda item for Monday's meeting.

Carney talks U.S. relations, his government’s ambitions in exclusive interview | Power & Politics

 

Prime Minister Mark Carney sat down for a wide-ranging one-on-one interview with CBC’s Power & Politics host David Cochrane on Tuesday. Carney addressed Canada’s current relationship with the U.S. along with the challenges ahead for his new government, including housing affordability and separatist sentiment in Alberta.

Prime Minister Mark Carney's main focus will be on project development as he sits down with provincial and territorial premiers this week.

First ministers are gathering in Saskatoon Monday for the first time since the April 28 federal election.

Carney told CBC's Power & Politicsin an exclusive interview last week that "major projects" will be his main agenda item for Monday's meeting.

Carney talks U.S. relations, his government’s ambitions in exclusive interview | Power & Politics

"If we sit around talking about politics, it's going to be like the family dinner table. We're always going to be arguing. But if we get down to work and we choose some economic projects to build the country — that's how we bring people together," Kinew said in a separate interview on Power & Politics last week.

"When we get together for our formal first ministers' meeting with the prime minister, I think you're going to see a unity of purpose."

Like Kinew, Ontario Premier Doug Ford wrote to Carney laying out his ideas for major projects that he would like to see developed, including critical mineral deposits in Ontario's Ring of Fire. Saskatchewan Premier Scott Moe also sent a list of priorities to the prime minister that included the expansion of pipeline projects.

Alberta Premier Danielle Smith sent a letter to Carney in mid-May and said the prime minister has "the opportunity to address serious issues plaguing Canada's economic well-being — and the very real sense of alienation felt across the west."

Smith said there are several preconditions necessary to make Carney's nation-building ambitions a success: Include an oil pipeline on the initial list of nation-building projects, abandon the "unconstitutional" oil and gas emissions cap, overhaul the Impact Assessment Act and repeal Canada's industrial carbon tax as well as clean electricity regulations.

Alberta Premier Danielle Smith speaks during a news conference in Edmonton on May 6. (Jason Franson/The Canadian Press)

The Alberta premier also said she's appointed a provincial negotiating team and called on Carney and B.C. Premier David Eby to do the same. 

"A collaborative approach between the relevant federal departments and the Governments of Alberta and British Columbia that enables a common understanding of project economics, barriers and opportunities will be critical to reaching a positive outcome," Smith said.

Carney told Power & Politics that he's seeking to have projects compete for federal approval, with the best ideas winning out.

"In effect, we're going to have a competition with projects. Some projects are good ideas, but they're not ready. Others are ready, but they're bad ideas," he said.

Carney had previously met with premiers in March and committed to removing internal trade barriers by July 1.

Ontario members of provincial parliament are getting big raises and access to a pension plan, under legislation introduced by Finance Minister Peter Bethlenfalvy and passed with the support of all parties at breakneck speed.

Shortly after members sent the pay raise bill barrelling through the legislative process — it spent about 13 minutes from tabling to passage — representatives from all parties stood shoulder-to-shoulder outside the chamber in rare agreement.

"When we're looking for other candidates, qualified people, to actually direct the future of this province, for most of them, they have to take a huge pay cut to come here and give up, in many cases, pensions," said NDP Opposition house leader John Vanthof.

"We're not going to build the future of this province by excluding the people who have the qualifications and have the knowledge to move us forward. So we're fully in support and I'd like to thank Premier (Doug) Ford and his government for, quite frankly, having the guts to do this."

The base pay for Ontario's elected officials has been frozen since 2009 at $116,550, and the changes would boost the salary to $157,350, which is 75 per cent of what federal MPs make. That will still be less than what city councillors in Toronto earn.

Premier Doug Ford's salary would rise from about $209,000 to about $282,000. (Laura Proctor/The Canadian Press)

Premier Doug Ford's salary would rise from about $209,000 to about $282,000 and cabinet ministers would see their pay increase from about $166,000 to about $224,000.

The bill would also resurrect a pension plan for the members of provincial parliament, 30 years after the previous one was abolished by former premier Mike Harris' government.

Increase 'fair and reasonable,' finance minister says

The new plan would see members enrolled in the existing Public Service Pension Plan, and they would then be entitled to supplemental benefits for MPPs who serve at least six years.

Representatives of the Liberals, Greens and the lone Independent member also said it was time for the pay freeze to end.

"I want to thank the premier," said Bobbi Ann Brady, who represents Haldimand-Norfolk as an Independent.

"I want to thank the minister and the government house leader for righting what I feel is almost a 16-year wrong," she said. "I continually talk about the spirit of co-operation amongst us all and I think today there is a nice spirit of co operation here."

Bethlenfalvy said it is the right thing to do.

"I know that many people across the province work tirelessly each day to put food on the table and pay the rent," he said.

"It's fair and reasonable. It'll be at 75 per cent of the federal compensation. It's still less than a Toronto city councillor will be paid or a Mississauga city councillor and we're going to work tirelessly each and every day, sometimes in different ways, to help all Ontarians."
 

A new report projects that New Brunswick will lag behind the rest of Canada this year on gross domestic product growth in 2025. 

Deloitte Canada's latest economic outlook forecasts a 0.6 per cent change in GDP for the province in 2025 — tied with Quebec for last in the country. 

That figure also slashes the last provincial projection nearly in half. In March, the province tabled its own outlook alongside the budget, and it forecast growth of 1.1 per cent this year. 

The report also projects Canada's economy will see a downturn over two consecutive quarters this year. This would meet the conventional definition of a recession, although the report does not use that term.

New Brunswick Finance Minister René Legacy says the forecast is concerning, but he hopes infrastructure projects to begin this year will help offset the estimate.

"There's still some major projects that are supposed to begin in New Brunswick this year that potentially could have a positive impact," Legacy said Monday. "I'm not sure if Deloitte factored any of these in, or if they're just looking at the macroeconomic factors.

"There's the transmission corridor between Nova Scotia and New Brunswick, we are starting to prep for the Isthmus ... hopefully we'll see these infrastructure projects move the needle."

 

Province still confident, despite report’s forecast of economic downturn

 

Deloitte Canada predicts an economic downturn across Canada in 2025 because of an unstable trading relationship with the U.S. and a decrease in consumer confidence. The report puts New Brunswick at the bottom of the pack for growth.

Construction on the transmission line is to begin this year, while a news release from the province estimates work on the Chignecto Isthmus will take about a decade. Preliminary engineering studies, design and land acquisition are expected over the first five years, with construction to follow after that.

Legacy noted the Department of Finance and Treasury Board will soon be preparing the economic update for the quarter that ends in June. 

Chief economist Dawn Desjardins said in a statement that Deloitte's forecast draws on the current trade environment and economic data.

"New Brunswick is highly exposed to trade and not only at risk of being impacted by U.S. tariffs but [it] also exports seafood to China, with much of those goods facing 25 per cent Chinese tariffs," Desjardins said in a statement.

"N.B. also faces U.S. duties on its softwood lumber exports."

Desjardins noted that aside from tariff concerns, New Brunswick is also seeing weaker immigration and lower sales in the housing market.

Consumers showing caution

Louis-Philippe Gauthier, Atlantic vice-president of the Canadian Federation of Independent Business, said small and medium-sized business owners are feeling the impact.

"When you look at consumers being more careful with their dollars, small businesses not necessarily in the mood to invest their money, to grow their business, because of all the uncertainty, what we're seeing is potentially a slowdown on the horizon," Gauthier said in an interview. 

"It's a time of pressures, it's a time of uncertainty, and unfortunately that's the moment in time." 

He said it's too soon to know what government interventions might help businesses weather the storm. 

"Over the last few years, business owners have lived ups and downs like never before," Gauthier said. "So unfortunately, it's more of that."

Legault wants 'global negotiation'  

Shortly after arriving for the meeting, Quebec Premier François Legault told reporters that he wants the next prime minister to ask Trump for a "global" negotiation of a trade agreement rather than one that is piecemeal.

"Right now, Mr. Trump doesn't respect the agreement between Canada, the U.S. and Mexico, especially on steel and aluminum. So it's important we renegotiate all the agreement," he said.

He said premiers and the prime minister need to be careful about counter-tariffs and "eventual" counter-tariffs to maximize the negative impact on U.S. businesses but minimize the impact on Canadian ones. 

The Quebec premier said his province would be "open" to pipeline projects, due to Trump's threats, but there needs to be social acceptability.

Yukon Premier Ranj Pillai acknowledged that, with increased focus on the North and the Arctic, it's important to hear the plans of all political parties for the region, especially in light of the rhetoric south of the border.

Pillai said he wants to make sure the prime minister is aware that it is a "special moment in time for us" and that his visit to Iqaluit, the first domestic trip of his leadership of Canada, was "important and set a tone."

"Other people are focusing on the North and we sure need to do the same," Pillai said. "In the first week, personally, I'm very impressed with what I've seen."

Carney, centre, Ford, left, and Legault, right, are seen at Friday's meeting. (Adrian Wyld/The Canadian Press)

Nunavut Premier P.J. Akeeagok agreed, saying it was great to see Carney underline "how important the North is and how much incredible of an opportunity we have to provide the country with an opportunity to diversify."

Manitoba Premier Wab Kinew emphasized the need for a "solid plan for Canada's economy" because the country is "fighting a trade war on two fronts."

"Trump tariffs certainly attract so much attention, but in Manitoba and in Western Canada, the tariffs from the People's Republic of China on canola and pork are having a major impact already," Kinew said.

With files from CBC's Olivia Stefanovich, Lisa Mayor, Meagan Fitzpatrick, Kate McKenna, Raffy Boudjikanian