Federal Fall Economic Statement
Federal Government House Leader Karina Gould tabled the Fall Economic Statement (FES) on behalf of the new Minister of Finance, Dominic LeBlanc, and the federal government on Monday afternoon. The FES follows the resignation of the Deputy Prime Minister and Minister of Finance, the Hon. Chrystia Freeland, earlier the same day. Minister LeBlanc will now serve as the Minister of Finance in addition to his roles as Minister of Public Safety and Intergovernmental Affairs.
The FES provides an opportunity for the federal government to share an update on current finances and highlight priorities. Compared to typical timelines for release, this year’s announcement comes after significant delay and in a period of great uncertainty for the federal government.
Affordability and the cost-of-living crisis remain top-line agenda items for the federal government, with Prime Minister Trudeau recently announcing measures such as the GST/HST break and business-focused tax breaks and incentives. The FES also features updates on and commitments to In response to looming 25% tariffs promised by President-elect Donald Trump and pressure from Premiers, the federal government is planning to invest in supporting the Canada Border Services Agency, the RCMP, Public Safety Canada and the Communications Security Establishment, although the details of this remain vague.
The Leader of the Official Opposition, the Hon. Pierre Poilievre, posted online that the Liberals forced “Freeland through the fiscal guardrail and Canadians off the debt cliff” and reiterated the Conservatives’ intention to take a commonsense approach to supporting Canadians.
The federal government has failed to hold its commitment to keep the deficit at or below $40.1 billion. The deficit for the 2023-2024 fiscal year totalled $62 billion. Last week, the Bank of
Canada cut interest rates from 3.75% to 3.25% — factors that influenced this decision included weaker GDP data than expected and slowing economic growth. Prime Minister Trudeau called this action “a step in the right direction to bring down costs for Canadians.” Ahead of 2025, the federal government continues to contend with the ongoing affordability and cost-of-living crisis, rising unemployment rates, and pressure from opposition parties and the public alike to deliver relief and support to Canadians. The federal Cabinet is also in significant disarray and is expected to be shuffled shortly.
Key Highlights for the HVACR Industry
- The 2024 Fall Economic Statement announces the Canada Greener Homes Loan Program will deliver an additional $600 million in interest free loans to support 15,000 to 24,000 more homeowners in reducing energy costs and advancing Canada’s goal of achieving net-zero emissions by 2050. This investment has a fiscal cost of $174.4 million over six years, starting in 2024-25.
- To reduce unnecessary barriers to innovation, productivity, and economic growth, and lower regulatory costs for Canadians and Canadian businesses, the 2024 Fall Economic Statement proposes to provide $27.8 million over five years, starting in 2025-26, for a new Red Tape Reduction Office, sourced from existing resources of the Treasury Board Secretariat. The Red Tape Reduction Office will:
- Accelerate the cutting of red tape from the regulatory system, including strengthened efforts to address overly burdensome or outdated requirements in existing regulations;
- Establish measures to track, assess, and communicate results of regulatory action to ensure a stronger, evidence based regulatory framework; and
- Improve accountability, oversight, and transparency, including through stronger engagement with Canadians and Canadian businesses and a dedicated channel for feedback on regulatory red tape.
- The Red Tape Reduction Office will prioritize work in key sectors including, but not limited to, telecommunications, transportation, power generation and transmission, innovation, medicine, and health.
For questions or comments, please contact Martin Luymes at 1-800-267-2231 ext. 235 or email mluymes@hrai.ca.
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