Mark Carney will return to the Canadian parliament with a strengthened mandate, after his Liberal Party triumphed in a snap election that he called soon after becoming prime minister.
Although one of his most pressing tasks is to deal with his US counterpart President Donald Trump – who has targeted Canada with trade tariffs and even vowed to make the country the 51st state of America – Carney has also promised action on a range of domestic issues.
1. Double home-building rates
In his victory speech in the early hours of Tuesday, Carney pledged to “build, baby, build” – an apparent nod to Trump’s pledges on oil drilling.
“It’s time to build twice as many homes every year with an entirely new housing industry using Canadian technology, Canadian skilled workers, Canadian lumber,” Carney told supporters.
Housing prices have skyrocketed across the country in the last decade. By doubling the rate of building, Carney hopes to have a supply of 500,000 new homes a year.
The Liberals want to create a standalone federal entity that would act as a developer for affordable housing. They plan to use this body to supply tens of billions of Canadian dollars in debt-financing for prefabricated home builders.
2. Cut tax to ease cost of living
Like people in other countries, Canadians have been grappling with higher prices for everyday goods while wages have failed to keep up – an issue over which Carney’s party was criticised while under the stewardship of his predecessor Justin Trudeau.
The Liberals have proposed a slight tax cut for those in the lowest bracket, who are due to see their rate reduce from 15% to 14%.
Carney’s party has also vowed to scrap sales taxes on homes under C$1m ($720,000; £540,000) for first-time buyers.
It also wants to make dental care cheaper, by opening applications to a national insurance programme for 4.5 million Canadians aged 18 to 64.
3. Build a national electricity grid
The Liberals have vowed to maintain the push on reducing emissions – as part of the fight against climate change – while ensuring Canadian companies are still competitive.
Carney has promised to build a national “east to west” electricity grid to reduce energy dependence on the US.
One of his first moves as PM, before the election, was to repeal Trudeau’s unpopular carbon pricing programme, which was designed to give financial incentives for people and firms to turn away from fossil fuels.
But Carney maintained a similar tax on large carbon emitters.
In his victory speech, he said: “It’s time to build Canada into an energy superpower in both clean and conventional energy.”
4. A massive hike in defence spending
Carney has vowed to raise defence spending to 2% of Canada’s GDP, which is the target for all countries in the Nato military alliance. Last year, it spent less than 1.4%.
Trump has been critical of countries not meeting the 2% benchmark, and says Canada relies too much militarily on the US.
And Trump’s pursuit of Canada as a “51st state” of the US has focused minds north of the border on their own security independence.
The Liberals say they will spend C$18bn on defence over the next four years, which will go to purchasing new equipment like submarines and heavy icebreakers that can be used in Canada’s north.
5. Boost domestic trade and car-making
Carney has pledged to find new ways to trade in light of the impediments placed on cross-border commerce by Trump’s tariffs regime.
In his speech on Tuesday, Carney vowed new “trade and energy corridors working in partnership with the provinces, territories, and Indigenous peoples”.
Among his plans are an “all-in-Canada” network for vehicle parts, under which more manufacturing will happen domestically – meaning less reliance on imports from the US.
The Liberals also want to invest C$5bn in national ports, railways, roads and other infrastructure that would help the country further diversify its trading partners.
By BBC News
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