Winnipeg Free Press

Winnipeg Free Press (Newspaper) - November 6, 2025, Winnipeg, Manitoba OTTAWA — The federal budget is a “bold response” to a global moment of economic disruption, Prime Minister Mark Carney argued Wednesday, replying to critics who question the ambition of Ottawa’s plans. “These profound changes require a bold response, and that’s what we got yesterday,” Carney told a news confer- ence in a public transit yard in Ottawa. The budget predicts that, in terms of real GDP, Canada’s economy will be 1.8 per cent smaller by the end of 2027 than forecasts suggested late last year — before U.S. President Donald Trump launched his global tariff campaign. Carney claimed measures in the budget will help Canada meet a lofty goal of attracting $1 trillion in invest- ment over the next five years. That level of investment, if it comes to pass, would more than offset the disruption caused by U.S. tariffs. “Now is not the time to be cautious, because fortune favours the bold. It is a time to get big things done for Can- adians, and get them done fast,” he said. Wednesday marked the start of Car- ney’s campaign to sell Canadians on the first government budget released under his watch. He was joined at the event by Nova Scotia MP Chris d’Entremont, who left the Conservative caucus to join the Lib- erals on Tuesday, moving them within two votes of a majority. They’ll need to find those votes — or abstentions — if they are to get the budget passed and survive a confidence vote which could trigger a federal elec- tion. The budget includes nearly $90 bil- lion in net new spending over five years, after government cost-savings goals are taken into account. The plan has received a lukewarm re- ception from opposition leaders. Conservative Leader Pierre Poilievre lambasted the Liberals in question period Wednesday over high levels of spending and maintaining the indus- trial carbon price, which he argues places undue burden on manufacturers and raises costs for Canadians. Poilievre said that the $78.3 billion deficit in the budget is the largest in Canadian history outside the pandemic. Longtime Liberal adviser Tyler Meredith pointed out on social media that, according to the Bank of Canada’s inflation calculator, then-prime minis- ter Stephen Harper’s 2009-10 budget- ary deficit of $55.6 billion is larger than the 2025-26 deficit, in today’s dollars. Poilievre signalled Tuesday that the Conservatives would introduce a budget amendment to cut bureaucracy and kill the industrial carbon price. Typically the Official Opposition introduces the main amendment to a budget and the third party in the House of Commons introduces a subamend- ment. But in the midst of debate over the budget in the House of Commons Wed- nesday Poilievre failed to table his amendment, opening the door for the Bloc Québécois to do so instead. Its amendment calls on parliamen- tarians to reject the budget in its en- tirety, primarily for a lack of measures targeting Quebec. The Conservative party confirmed to The Canadian Press it would table a subamendment to the Bloc’s amend- ment this morning. The first budget vote will take place tonight, on the Conservative subamend- ment, and the second vote will be on the Bloc amendment on Friday. It’s not clear at this point if the gov- ernment will deem the amendment votes to be confidence matters, but the main vote on the budget will be. It won’t take place until the week of Nov. 17, as the House is on a break for Remem- brance Day next week. Carney said there’s “a lot in this budget” that reflects input from other parties. He said there’s alignment across the government and opposition parties on aspects of the budget. Peter Bethlenfalvy, Ontario’s finance minister, said Wednesday he spoke to his federal counterpart after the budget was released and described the spend- ing plan as lacking “some ambition.” “It’s less transformational. It’s more tinkering,” he told reporters at Queen’s Park. Bethlenfalvy said the budget falls short on infrastructure support for the provinces and further tariff relief for the auto sector that supports the econ- omies of many southwestern Ontario cities. Carney was touting a 10-year, $51 billion fund for local infrastructure — bridges, roads, hospitals and transit systems — in Ottawa on Wednesday morning. TD Economics said in a report that much of the budget’s new investments, such as the local infrastructure fund, are the result of reallocation from other pools of funding rather than net new money. TD Bank economists said $9 billion of the funding for local infrastructure over five years in Budget 2025 was new money. The federal government is pitching an increase in capital funding from $32.2 billion this year to $59.6 billion by 2029. In commentary published online in The Hub, University of Calgary econo- mist Trevor Tombe pointed out that $8.3 billion of that increase is actually new and much of it is spent on transfers to provinces. “That’s roughly 0.2 per cent of GDP and in line with commitments seen in many previous budgets. So, for all the hype, this budget does little that’s ‘gen- erational,’” Tombe wrote. Carney pushed back Wednesday against critics and analysts who said the budget does not do enough to en- courage investment. He argued the budget offers a “sea change” by reducing operational spending growth from eight per cent annually to less than one per cent while ramping up government capital invest- ment. Adjustments to the tax code allowing businesses to write off their own cap- ital spending in the first year also make the country a more attractive place to invest in the face of protectionist U.S. policies, Carney said. “Look, I’ve been around a lot of budgets,” he said. “This is a very differ- ent budget.” The TD Economics report said the accelerated capital spending expens- ing measure and enhancements to the existing scientific research and experi- mental development tax credit “do put Canada on somewhat more even foot- ing” with the United States. U.S. President Donald Trump’s One Big Beautiful Bill Act also included im- mediate expensing for businesses. Tombe called that measure — dubbed the “productivity super-deduction” in the budget — a “bright spot” that could help spur manufacturing investment in Canada. “Unfortunately, while a real step to encourage private investment, poten- tially boosting GDP by 0.2 per cent (the government reckons), it’s a temporary measure, so its long-term impact is muted,” he wrote. Bank of Canada governor Tiff Macklem said he would not comment directly on measures in the federal budget during a scheduled appearance before the House of Commons finance committee on Wednesday. But he told members of Parliament he believes the budget got the diagnosis right on what ails the Canadian econ- omy: flagging productivity and low in- vestment levels. Macklem said that to boost growth and make up for the hit from U.S. tar- iffs, Canada needs to create conditions that encourage private investment. That’s a job best suited to targeted fiscal policy, he said, rather than the sweeping effects of monetary policy and changes in the Bank of Canada’s benchmark interest rate. “I think what’s going to be import- ant in moving forward is the quality of those investments, the quality of that spending and the execution,” Macklem said. “That’s not the responsibility of the Bank of Canada, but it is the responsib- ility of parliamentarians.” — The Canadian Press OTTAWA — Prime Minister Mark Car- ney and his fellow Liberal MPs said Wednesday the party is open to talk- ing to any opposition MPs interested in joining their team — a day after Nova Scotia MP Chris d’Entremont quit the Conservatives to join the government caucus. Carney and d’Entremont were met with thunderous applause and cheers as they walked into Wednesday’s Liber- al caucus meeting on Parliament Hill. Some Liberal MPs began chanting the former Conservative’s name. Industry Minister Mélanie Joly said the Liberals had been courting d’Entre- mont behind the scenes for five years. “We’ve been trying to recruit him for a long time,” Joly said in French. “Finally, he saw the light.” D’Entremont, who has been an MP for six years, was first elected in 2019. Ahead of Wednesday’s caucus meet- ing, D’Entremont joined Carney at a post-budget media conference in Ot- tawa’s south end. He told reporters he didn’t believe his values as a “red Tory” were being “represented” in the cur- rent Conservative caucus. “I didn’t find I was represented there … my ideals of an easterner, of a red Tory and quite honestly of trying to find ways to find solutions and help the com- munity rather than trying to oppose everything that’s happening,” he said. D’Entremont said there are probably other Conservative MPs “in the same boat,” but he would let them share their stories “if the time comes.” Carney would not bite when asked whether he is approaching other oppos- ition MPs in an attempt to overcome the two-seat margin keeping his govern- ment in minority status. He thanked d’Entremont for joining the Liberals after the budget’s release on Tuesday and told reporters it was “an honour” to welcome him to his cau- cus. He said global economic uncer- tainty calls for a unified approach to strengthening Canada’s economy. “We’ll speak to anyone publicly or otherwise that can support us,” he said. A senior Liberal government source, speaking on background because they were not authorized to speak publicly about the matter, confirmed there have been discussions with additional MPs, though they would not say who. Publicly, Liberals were tight-lipped Wednesday about whether they have been actively trying to poach from the opposition benches — or if more could follow d’Entremont. Liberal MP Kody Blois — who, like d’Entremont, represents a riding in Nova Scotia — said that the two have spoken “for a long time about the ways in which we can collaborate.” Blois did not explicitly say he was part of an effort to enlist d’Entremont, adding that if the government was try- ing to recruit more MPs that “wouldn’t be a conversation I’m going to have right here in front of the media.” He said the Liberals are offering a big tent and there’s room for more “moderate” conservatives. “It’s great to see Mr. d’Entremont join. If there’s other members of Par- liament feeling the same way, again, I think we’re always welcome to those conversations,” Blois told reporters. Some Liberal MPs still voiced lin- gering concerns about whether the min- ority government can get the two votes its needs to pass the budget and avoid a winter election. It could also pass it if enough opposition MPs don’t vote. Interim NDP leader Don Davies said Wednesday his party is going to take time before the first budget vote to con- sult with stakeholders about what to do. “Caucus members have very serious concerns about this budget. There’s a lot of questions that have been raised about it that we’re going to be consult- ing with people about and seeking an- swers,” Davies said. Quebec NDP MP Alexandre Bouler- ice said these talks will involve meet- ings with constituents and unions. The House of Commons takes a one-week break next week. B.C. NDP MP Gord Johns said he was glad about $258 million set aside in the budget for a federal aerial firefighting fleet, but also referred to the Liberals as “progressive conservatives.” Conservative MPs have been lash- ing out at d’Entremont for crossing the aisle. MP Jamil Jivani called d’Entremont “an idiot” on Wednesday. On Tuesday, Conservative MP Aaron Gunn called his former caucus colleague a “coward.” Ontario Conservative MP Michael Barrett quoted d’Entremont’s past criticisms of the Liberal government and said the newest Liberal MP had de- scribed the anticipated federal deficit as “monstrous.” “Mr. d’Entremont is a man, if he plans to vote for this budget, that can’t be taken at his word. And that should be incredibly disappointing, and I’m sure it is for his constituents,” Barrett said. Conservative Whip Chris Warken- tin said in a statement Wednesday the party caucus is “disappointed” d’Entre- mont “let his own personal grievances of not getting elected deputy Speaker get in the way of his promises, and that he agrees with Liberals that Canadians will have to sacrifice more for their failures.” Several Tory MPs also made a point of stating that they remain steadfastly behind the party’s current leader, Pierre Poilievre. Liberal MP Marc Miller said he does not know what motivated the floor-crossing but d’Entremont has al- ways been seen as a moderate in the House and is well-liked across party lines. “It’s a testament to how miserable the attitude is in the Conservative party currently, particularly with a miserable leader like Pierre Poilievre, to attack Chris,” Miller said. “He’s universally liked and appreciated, and he’s seen as a good guy.” When d’Entremont was asked about the criticisms coming from his for- mer caucus colleagues, he said they should try to build something instead of “knocking people down.” “I think they should look at them- selves and see if they’re offering the right thing to Canadians, of trying to build for the world. We have a great opportunity here in Canada and rather than knocking people down, we should try to find ways to work together, and that’s what I’ve always tried to do in my career,” he said. — The Canadian Press FEDERAL BUDGET A3 THURSDAY NOVEMBER 6, 2025 ● ASSOCIATE EDITOR, NEWS: STACEY THIDRICKSON 204-697-7292 ● CITY.DESK@FREEPRESS.MB.CA ● WINNIPEGFREEPRESS.COM “While the budget frames this as a government-wide savings ef- fort, there are no explicit protec- tions for science positions. This raises serious risks of science staffing cuts and departmental budget reallocations away from core research functions,” O’Reil- ly said. Manitoba Environment Min- ister Mike Moyes said he’s been in talks with his federal counter- part about the budget and will have further discussions about the implications for Manitobans. In 2023, the federal govern- ment announced its intention to fund the water agency to the tune of $85.1-million over five years. The agency guides water policy and administers funding to pro- grams that protect, rehabilitate and respond to emerging issues in eight major watersheds: Lake Winnipeg, Lake of the Woods, the Great Lakes, Lake Simcoe, and the Mackenzie, Fraser, Saint John and St. Lawrence rivers. The agency headquarters is lo- cated in downtown Winnipeg and, at the time of its announcement, was due to open regional offices in Quebec, Ontario and British Columbia. The department em- ploys more than 200 staff, about half of whom are in Winnipeg. In 2024, the federal govern- ment said the agency would distribute $64.5 million over 10 years to protect Lake Winnipeg and its watershed. nicole.buffie@freepress.mb.ca JUSTIN TANG / THE CANADIAN PRESS Prime Minister Mark Carney (left) walks with MP Chris d’Entremont on Wednesday. PHOTOS BY ADRIAN WYLD / THE CANADIAN PRESS Prime Minister Mark Carney began the Liberal campaign to sell the budget to Canadians, and ward off a possible election if it is defeated. Liberals courted MP for years before he quit Conservatives DAVID BAXTER Carney defends ‘bold response’ CRAIG LORD Critics question scale of investment as sales campaign begins; first budget vote tonight WATER ● FROM A1 Conservative Leader Pierre Poilievre delivers his response to the budget Wednesday. ;