Jack Mintz: Fix bad policy if Canada wants investment

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFP CommentJack Mintz: Fix bad policy if Canada wants investmentGet the government out of the way rather than in way of investorsLast updated 5 minutes ago Mark Carney, Canada's prime minister, during a news conference in Beijing, China, on Jan. 16, 2026. Photo by BloombergPrime Minister Mark Carney’s big investment powwow next week is aimed to attract a trillion dollars of private and public investment in Canada over the next five years. However, it is one thing to market our projects — it is another thing for cheques to be written.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThat will be Carney’s biggest challenge in the wake of unpredictable events that investors don’t like. He has upped a tariff war with the U.S. that could last another two and half years. With turtle-like economic growth, investments may not pay off compared to other countries. The regulatory process is still subject to political whims.The dearth in Canadian investment is well illustrated by the table below. The most successful OECD country is Ireland with a GDP per working hour equal to $158 (all values expressed in 2021 international dollars for differences in the cost of living). Corporate investment is 78 per cent of total investment. Households (including self-employed) account for 12 per cent (primarily housing) and public investment’s share is 10 per cent. Overall, Ireland’s corporate investment as share of GDP (averaged from 2021-24) is 18 per cent, highest in the OECD. Corporate investment per working hour is an astounding $28.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againContrast that with Canada. Our GDP per working hour is only two-fifths of Irish levels. While Irish total investment as a share of GDP is like Canada’s (roughly 23 per cent), Canadians prefer to invest in housing rather than businesses (Canada’s corporate share of total investment is 47 per cent, lowest of all OECD countries and the household share is highest at 36 per cent). Corporate investment as a share of GDP is 11.7 per cent, about two-thirds of Irish levels. Corporate investment per working hour is only $7.23, one quarter of Irish levels.As for other countries, Canada’s corporate investment as a share of GDP is below Sweden, the European Union and Mexico and close to others. We don’t spend as much on investment since we have less income due to our low productivity. When we do invest, we put it in real estate.Given the lack of domestic capital, the Liberal government seeks financing from international investment and pension funds. Carney’s strategy will use $75 billon in public investment funds like the Canada Strong Fund, Canada Growth Fund and the Canada Infrastructure Bank to “catalyze” private investment with the government subsidizing chosen investment opportunities.Call this industrial policy on steroids. Some joint public-private ventures will be mixed enterprises with both private and public ownership, which is are used in Europe and Asia. Even the Trump government has joined the fray with US$28 billion invested in 39 deals since early 2025, including with Intel, Lithium Americas and the recent energy deal with North American Blue Energy Partners in Venezuela. Nothing though compares to China with mixed enterprises with at least 10 per cent public ownership representing almost 15 per cent of the stock market’s capitalization of the top 100 Chinese companies.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Investors will be attracted to work with governments if they get financial, regulatory and competitive benefits in return. However, it is not the best way to build economy if you are not invited to the party. Instead, only the winners get picked.Instead of catalyzing investment, we get crony capitalism. Investments are chosen based on political favouritism rather than quality. Law and regulations are set up to squeeze out competitors to protect public-supported businesses. Profits are generated by manipulating government policy rather than finding new innovations.Besides, governments will pay for subsidies with higher taxes or a larger deficit pushing up interest rates. Subsidies are often justified on the basis that they pay for themselves. However, this assumes unrealistic high multiplier effects rather than other investment being crowded out.Is there a better way? Yes, get the government out of the way rather than in way. The regulatory system needs to be improved to reduce risks and delay costs. Reduce the number of bureaucracies involved with approvals but if the final approval is left to politicians, investors will remain skittish. Lower corporate taxes for all firms rather than subsidize the few.Governments should fund public infrastructure like roads and ports using taxpayer money and government debt. However, not all infrastructure needs to be publicly operated such as power companies. After all, we have a successful telecommunications sector without public ownership.Will next week’s shindig bring investment to Canada? I hope so but I would rather see real policy change rather than an investment banker approach to public policy. Governments should not operate like Goldman Sachs.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.