Prime minister Carney appears comfortable continuing the tradition of conducting federal-provincial relations in a first ministers’ bubble comprising the prime minister and his provincial counterparts, disconnected from elected representatives both in parliament and provincial legislatures, and operating through ad hoc bilateral and multilateral federal-provincial deals.
It is increasingly clear, however, that ad hoc interactions and arrangements between federal and provincial leaders are insufficient to support the workable, coherent Canadian position we require in negotiations both with the US, and within Canada. So, Canada-US relations are floundering and, after an initial burst of enthusiasm, the much overdue action to build a true Canadian economic union and diversify trade outside the US orbit is losing momentum.
Most recently, the Alberta premier easily disrupted any fragile intergovernmental peace by reporting on her direct discussions with the US administration regarding trade in oil, gas (hello Keystone XL) and critical minerals, and demanding that Carney commit to build an inter-provincial pipeline to northern British Colombia as a “test of Canada”.
We urgently need a functional intergovernmental structure designed to facilitate the collaboration and harmonization across jurisdictions, so Canadians come together to build and sustain a coherent Canada again.
We need transparent, accountable plans of action to keep Canadians informed and to maintain a vibrant democratic consensus in the country, especially for dealing with a hostile US, and strengthening our economic productivity.
We need immediate action by all provincial governments to reciprocally recognize each other’s rules and regulations impacting the free movement of goods, services, investment and people.
We need all levels of governments to implement fully transparent and accountable governance, and strengthen their resolve to turn down the multiple demands by business and other lobbies, large and small, for special treatment or special exemptions from free exchange that are not in the national interest.
One possible structure to improve intergovernmental relations is discussed in Part Three of my eBook Canada on the Edge: a Council of Canadian Governments based on an Australian council structure used for almost three decades, as well as an arms-length Commission on Fiscal Transfers to improve transparency of, and accountability for, federal-provincial transfers, including the controversial equalization program.
If we proceed with a serious federalism reset and initiate an informed debate with Canadians, the focus could be on rebalancing federal and provincial powers, with relatively stronger provincial governments in their areas of jurisdiction, as the basis for a fiscally-responsible Canadian federation and economic union.
This could mean a slimmed down federal government focused on strengthening the Canadian economic fundamentals to support robust growth and productivity, rebuilding our national defences, diversifying trade, and re-establishing a more effective, modest international presence in areas like migration, the environment, and international assistance. Provincial governments could be strengthened with more taxation room for their growing provincial responsibilities especially for healthcare, education, and social supports.
But in exchange, Canadians must insist on tangible benefits such as simpler and lower taxes, user-friendly regulations designed to assist not impede productive business and employment activities across Canada, and a much less complex, much more transparent, system of federal-provincial transfers (including a new equalization program).
And as part of concluding a successful agreement on a federalism renewal, we must extinguish, once and for all, the secession threats of both Quebec and Alberta. The Canadian federation cannot move forward coherently any longer with secession threats hanging over us. All Canadians, including the citizens in the impacted provinces, must be consulted in a free, informed, national referendum, and asked whether we approve the proposed renewal of the Canadian federation – a positive alternative to the dysfunctional status quo.
More on this in my blog: End secession threats now or end Canada as we know it.
The ultimate sine qua non of any successful federalism reset is ending the creeping faux-democracy that our political elites have assiduously cultivated in recent decades, camouflaged by hollowed-out political parties, governing with pre-tested, pre-packaged, “expert” messaging, and deliberately avoiding citizen engagement.
Faux-democracy is responsible for the growing fragmentation of our civil society and alienation of citizens, as more and more of us lose confidence in, and increasingly disrespect, all governments and their inability to address our pressing challenges like affordability, precarious employment, and declining productivity.
Our professional political elites no longer connect meaningfully with citizens in parliament and have lost the ability to persuade and inspire Canadians to work together. If the will to stay together in one Canada still exists, Canadians must insist on parliamentary and related reforms to rebuild our crumbling democratic institutions and practices that have been hijacked and gravely weakened by our faux-democratic leadership. We urgently need to restore thoughtful, collaborative governance across partisan and regional divides. (This is discussed in Part Two of my eBook Canada on the Edge)
If we fail to reestablish a vibrant true democracy to underpin a sovereign Canada, we fail Canada and future generations. And whatever the shape of the Canadian federation, we will be no better than the emerging autocracy south of the 49th parallel, and elsewhere.
For more information, see Deborah Coyne, Canada on the Edge: Canadians must end our faux-democracy now, and urgently rebuild a stronger, united federation (2025).