The first rule when you find yourself in a hole is “stop digging.”
Canada’s next government should heed that rule, and a first order of business should be retracting and repealing policies that are digging us further in. For too long, Canada has been its own worst enemy. Our country is rich in resources, talent, and opportunity, yet over the last decade, government policies have undermined economic growth, driven away investment, and increased costs for both businesses and consumers. These policies, while occasionally well-intentioned, have made it harder, not easier, for Canadians to thrive.
It’s time to change course. We must put Canada first, prioritizing policies that enhance prosperity rather than hinder it. That starts with repealing regulations that discourage investment, increase the cost of living, and weaken our competitive advantage.
Here are a few policies that must be retracted or repealed to restore economic strength and reaffirm our commitment to a prosperous future:
Cut excessive fees on air travel
Air travel is essential, but we’re treating it like a government cash cow instead. Canada is the second-largest country in the world, and air travel is the only reasonable method to move between most of our cities. But for many Canadians, traveling within their own country is prohibitively expensive. Federal policies have burdened air travel with layers of taxes and fees that drive ticket prices sky-high. This not only makes it harder for Canadians to stay connected but also diverts economic activity to U.S. border airports. Instead of treating aviation as a rent stream, the government must recognize it as an essential service and make it more affordable by reducing or eliminating costly taxes, user fees, and airport rents.
Reverse the capital gains tax hike
Taxing capital is one of the surest ways to slow down productivity. It’s an exceptionally bad idea, and other countries around the world are racing to lower taxes on capital investment. That’s because capital investment is the lifeblood of economic growth, yet the federal government’s proposed, and somehow partly implemented, increase in the capital gains tax would discourage investment, reduce job creation, penalize hard-working Canadians like farmers and small business owners, and weaken Canada’s competitiveness. Government policy has already made it difficult enough to attract investment—this tax hike would only make matters worse. Instead of making it more expensive to invest in capital in Canada, we should be making it easier. Thankfully, it looks like this realization is broadly dawning now.
Scrap the clean electricity regulations
The Clean Electricity Regulations (CER) are a textbook example of a one-size-fits-all approach that simply doesn’t work. Provinces like Alberta and Saskatchewan rely on natural gas to ensure affordable and reliable power; Nova Scotia is also highly reliant on fossil fuel power generation. Yet under the CER, they will be unfairly penalized despite having few alternative stable and reliable energy options. This regulation will drive up electricity costs, deter investment in high-energy industries, and put jobs at risk. A Canada-first approach means recognizing regional realities.
Abolish the oil and gas emissions cap
This policy is as offensive as it is counterproductive. It is regionally and sectorally discriminatory. It will do nothing to help the global climate, and it fails every test of good public policy. Canada is a global leader in responsible energy development, yet the government has continued to target the oil and gas sector with punitive policies that do little to no good, while significantly harming our economy. The oil and gas emissions cap is a clear example of this—by restricting production, we aren’t reducing demand; we’re simply handing over market share to less responsible producers abroad. This policy must be abandoned to ensure Canadian energy remains a pillar of national prosperity.
Repeal the oil tanker moratorium act
The Oil Tanker Moratorium Act (Bill C-48) has needlessly restricted Canada’s ability to export oil from the northern Pacific coast, limiting market access and reducing economic opportunities—specifically, it has precluded many Indigenous communities from participating in the generational prosperity these projects could have enabled, and represents a significant denial of wealth to Indigenous Canadians by the government of Canada. This policy not only hampers investment in Canadian energy but also forces Canada to remain overly dependent on the U.S. market—something we really don’t want to be doing right now. If we are serious about energy security and economic growth, we must lift this unnecessary restriction and allow Canadian energy to reach global buyers.
Rescind the zero-emissions vehicle mandate
“Untethered from reality” is probably the most generous description one could have for this policy. Encouraging innovation in transportation is important, but the zero-emissions vehicle mandate ignores economic and infrastructure realities. The policy forces automakers to sell EVs regardless of consumer demand, and regardless of the ability to produce them. It raises costs for Canadians and fails to account for the challenges of charging infrastructure, battery production, and supply chain constraints. Rather than dictating what Canadians must drive, we should focus on policies that foster choice and innovation while keeping affordability in mind.
Let’s be first
The next federal government has an opportunity to take a Canada-first approach by eliminating unnecessary regulations, restoring investor confidence, and reducing costs for Canadians. Not only should we put Canada first, but we should also aspire for Canada to be first. To be the best at what we compete in, not to simply be content with the middle of the pack. Repealing bad policies is only half the battle. We need to be putting great policies in place. By doing so, we can build a stronger, more prosperous future for all.
This article is made possible by the Business Council of Alberta and readers like you. Donate today.
