John Nater says the federal Liberal’s proposed sovereign wealth fund triggers concern.
The Perth-Wellington MP has had time to digest the recent spring fiscal update, and told MyStratfordNow the Canada Strong Fund was one of the big ticket items announced that he does not agree with.
“It will be debt financed. Obviously this is a significant concern. It carries on the underwhelming performance of the Canada Infrastructure Bank (CIB), which was supposed to do a very similar thing but it is now significantly behind.”
The wealth fund will be kickstarted by a $25 billion federal commitment and it will allow Canadians to contribute cash to fund major projects.
Details on how investors are paid back is still being finalized.
Nater said that is unlike other countries where surpluses from oil and gas or natural resources, for example, contribute to sovereign wealth funds. The MP said he is concerned how it is going to play out and what kind of impact that will have on Canada and Canadians in their day-to-day life.
Prime Minister Mark Carney also outlined a $6 billion expenditure to recruit, train, and hire 80,000 to 100,000 new Red Seal trades workers in the next five years.
Nater said no one will criticize getting people into skilled trades in Canada, however, there is inconsistency and uncertainty around how the Liberals are handling it.
“Almost exactly a year ago at the end of the last fiscal year, the government cancelled the apprenticeship grants. A lot of folks were in their training, in the middle of their apprenticeships, then all of a sudden the grant was cancelled.
“It’s what we need to do… we need more electricians, we need more plumbers, we need more skilled trades people if we are going to build the houses, build the homes that are very much needed.
Nater says that it’s been a “hodge-podge, patchwork approach” especially over the last 12 months.
Nater said he is optimistic and hopes for the best for the skilled trades project but will need to see more details and how it rolls out.
