The federal government is promising a tougher stance on competition as part of its strategy to restore affordability and boost productivity.
Speaking at the Competition Bureau’s annual summit in Ottawa, Industry Minister Mélanie Joly said Wednesday the government will be “hawkish” on competition, arguing that stronger market forces will mean more consumer choice and lower prices.
“Expanding competition in sectors such as telecom will give Canadians more options and a path to affordability,” Joly said. She highlighted her August decision to uphold a ruling allowing large telecom firms to let rivals operate on their networks as an example.
Competition Commissioner Matthew Boswell reinforced the message, warning that shielding firms from competition breeds complacency. He cited bureau studies showing that the addition of a single new airline on a route can cut fares by an average of nine per cent.
Boswell also pointed to barriers such as licensing costs, ownership restrictions and high fees as obstacles to business creation, noting that federal regulations rose 37 per cent between 2006 and 2021. He urged “smart regulation” that fosters innovation rather than protecting incumbents.
Bank of Canada deputy governor Carolyn Rogers echoed that competition is key to productivity, describing it as the “grease” that drives businesses to invest and perform better.
As Ottawa prepares for the Nov. 4 federal budget, Prime Minister Mark Carney has pledged productivity reforms, including faster approvals for major projects. Meanwhile, the Competition Bureau is studying barriers faced by small and medium businesses seeking financing in Canada’s bank-dominated lending market.
“My message today is clear,” Joly said. “Canada is open for business, but we expect companies to compete fairly.”
