Prime Minister Justin Trudeau attends a US-Canada summit hosted by the Eurasia Group, in Toronto on April 4.Chris Young/The Canadian Press
Prime Minister Justin Trudeau pitched his government’s budget to Bay Street on Tuesday, arguing that billions in new government spending on green technology was needed to “crowd in” private capital, while offering a populist message that “real wealth” is not created on bank trading floors.
In a Tuesday evening speech in Toronto, Mr. Trudeau focused on the green industrial policy promises in the latest federal budget, unveiled two weeks ago. These add up to $21-billion in new spending over the next five years, largely in the form of tax credits to encourage private investment in low-carbon technologies.
The government made its green spending blitz in response to massive U.S. subsidies contained in last year’s Inflation Reduction Act. The U.S. government plans to spend around US$370-billion in the coming years to help decarbonize the American economy, sparking concerns in Canada about competitiveness and capital flight south across the border.
Mr. Trudeau framed his government’s response to the U.S. act as a pro-active move.
“Our budget is not a defensive economic posture,” he told business leaders gathered at a conference hosted by Bank of Montreal and Eurasia Group.
“The strategic clean economy investments we’ve been making since 2015 are about growing the economic pie for everyone, and securing new investment opportunities for a lot of you here on Bay Street.”
The measures in the budget include an investment tax credit for clean energy manufacturing that is worth $4.5-billion over five years and a tax credit for clean hydrogen production, worth $5.6-billion. The government has also launched a $15-billion fund aimed at investing alongside private-sector investors in low-carbon projects.
While Mr. Trudeau highlighted the investment opportunities created by the green energy transition, he also took a passing swipe at the banking sector.
“Real wealth isn’t made on the trading floor. It’s created in factories, in fields, in labs, in mines,” he said.
“People are the engine of our economy. We can never forget that. And I proffer this warning, because there was a time not too long ago, when the establishment seemed to lose sight of that,” he said, highlighting earlier drives for lower regulations and what he called “unencumbered globalization.”
Ottawa has not been shy about tapping Bay Street for additional revenue over the past two years. The budget announced plans to amend tax treatment on dividends of Canadian shares held by financial institutions, which is expected to yield $3.15-billion in taxes over five years.
That follows two measures in the 2022 budget: a one-time 15-per-cent tax on bank and insurance company income above $1-billion, and a 1.5 percentage point increase on their corporate income taxes for profits over $100-million.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
