The Top Line
Earlier today, His Majesty King Charles III delivered the Speech from the Throne to open the 45th Parliament of Canada. This was the first time since 1977 that the Monarch of Canada addressed Parliament. The Speech followed and built on the publication of a single mandate letter for Cabinet from Prime Minister Carney on May 21. Both documents outlined a focused, economic-oriented agenda for the new Liberal Government.
The Throne Speech in particular had a heavy emphasis on economic goals, such as fast-tracking national infrastructure projects, increasing homebuilding, and making Canada an energy superpower. The Government believes those and other objectives, if met, will result in Canada having the strongest economy in the G7 – which is the “overarching goal” and “core mission” that the Government has set for itself.
Marking a major departure from Prime Minister Trudeau’s Government’s philosophy, Prime Minister Carney reiterated his commitment to “spend less so Canadians can invest more”. That approach of a smaller government role in the economy will include a focus on controlling operational costs of the Federal Government and pursuing Federal investment in projects deemed to enable the Government’s core mission.
Overall, and like much of the Prime Minister’s early tenure in office, the Throne Speech was marked by its ambition and sense of urgency. To further signal urgency, immediately following the Speech, the Government tabled a Motion to begin fulfilling three key election commitments: Cutting the lowest marginal personal income tax rate from 15% to 14%, eliminating/reducing the Goods and Services Tax (GST) on homes for first-time homebuyers, and removing the consumer carbon tax (abandoned in practice in early April) from law.
Speaking to the Liberal Party caucus ahead of the Speech, Prime Minister Carney called on his colleagues to be prepared for an active and high-pressure session of Parliament. As such, stakeholders should be prepared for a busy June, with a lot of competition for the Government’s attention to your key issues.
A Deeper Dive
The Throne Speech laid out the Government’s vision for making Canada the strongest economy in the G7, while also emphasizing intentions to make the country more affordable, self-reliant, secure, and unified. The Speech further framed national security and economic strength as deeply connected, with economic independence put forward as a national objective.
To that end, and standing in stark contrast to Prime Minister Trudeau’s Government, which rarely highlighted Canada’s status as a major energy producer, the Speech restated Prime Minister Carney’s desire to make Canada an energy superpower. That goal will be facilitated through a commitment to promote both “clean and conventional” Canadian energy, including by creating a new Major Federal Project Office, reducing project approval times from five years to two, establishing a Federal – Provincial “One Project, One Review” system within six months, and moving forward more quickly with major infrastructure projects.
More broadly, for all sectors of the economy, the Government committed to removing interprovincial trade barriers and harmonizing professional credentials by Canada Day. These efforts are intended to build what the Prime Minister has called “one Canadian economy” – or single national marketplace.
Housing supply and affordability was also a core focus of the Speech, with the Government focused on increasing the rate of homebuilding. In addition to the aforementioned GST cut, a Build Canada Homes initiative will act as an enabler for the Government’s housing supply initiatives, offering “significant” financing for affordable home developers. The Government also committed to “cutting municipal charges for multi-unit housing by half” – though that is a measure that would require municipal and provincial collaboration.
In another departure from Prime Minister Trudeau’s Government approach, reconciliation was framed in the Speech mostly as an economic priority, with the Government focused on enabling Indigenous co-ownership of major projects, and less emphasis on governance, land, and social outcomes.
And amid the Government’s plans to renegotiate Canada’s economic and security relationship with the United States, the Throne Speech detailed extensive security, defence, and trade initiatives. Specifically, the Government signalled major investments in border and customs policing, an intention to join the Re-Arm Europe initiative and invest in transatlantic security, and re-arming of the Canadian Armed Forces while strengthening its presence in the Arctic. Notably, however, no mention was made of NATO spending commitments based on GDP.
Finally, the Throne Speech also contained commitments to address crime and immigration, two policy areas on which the Liberals were vulnerable during the last election campaign. On crime, the Government intends to reduce access to bail for repeat offenders and plans to amend the Criminal Code to strengthen penalties for human trafficking, drug and weapons smuggling, and car theft. Notably, the Speech highlighted the need to protect the rights of law-abiding gun owners and Indigenous peoples, and did not make mention of the previous Government’s gun buyback program. On immigration, the Speech pledged the Government will enact a cap on temporary residents, limiting the number of temporary foreign workers and international students to below 5% of Canada’s population by 2027.
Opposition Reaction
The Liberals return to Parliament with 169 seats, forming a stable minority government. With the NDP losing official party status, and pledges by the Bloc and Conservatives to cooperate with the Government in the short-term on energy, cost-of-living, and Canada-U.S. trade-related issues, the Liberals have political capital and runway to implement their core agenda.
That said, Conservative Leader Pierre Poilievre criticized the Speech for lacking real plans to address the important issues of energy project development, reducing crime and controlling spending. He indicated the Conservatives will be introducing an amendment that includes specific plans to address these issues.
Bloc Québécois Leader Yves-François Blanchet was extremely critical towards the Government’s invitation of King Charles to deliver the Speech, saying that was disrespectful to Quebecers who supported the Liberals and a bad start for Prime Minister Carney’s Government.
Interim NDP Leader Don Davies noted that the Speech had some alignment with NDP priorities, like economic growth and housing, but criticized the Government for ignoring healthcare, climate change, and Indigenous housing. He also argued that cutting revenue and capping spending risks public service cuts, calling those measures more reflective of a Conservative Government.
What This Means to You
Parliament is scheduled to sit until June 20. In that short window of time, Prime Minister Carney’s Government plans to introduce legislation regarding tax relief, housing, crime, and interprovincial trade – though likely not all of that legislation will pass by the end of the session. If the current schedule is maintained, Parliament will then recess for the summer and return on September 15.
On the global stage, Canada will host the G7 Leaders’ Summit in Alberta in June. That will serve as an opportunity for the new Prime Minister to showcase his vision for Canada as a global leader on energy, international security, and democratic values, but also presents challenges for the management of the Canada–U.S. relationship, given President Trump’s unpredictable nature in high-profile venues. Later in the month, Canada will also attend the NATO Summit, where the Government’s defence spending commitments will be scrutinized.
In the meantime, staffing of MP and Ministerial offices will remain a key focus as the Government shifts into medium-to-long-term planning mode. Parliamentary Secretaries must also be appointed and House of Commons Committees will be formed.
The summer months will be dedicated to policy development and stakeholder engagement, setting the stage for a fall budget — Prime Minister Carney’s Government’s first major opportunity to comprehensively implement its agenda.
For stakeholders, timely engagement is the next step. The Government has laid out a clear and focused plan, and will be moving fast. Key files — from affordability and infrastructure to trade, energy, and national security — are already underway. Organizations should align their strategies with government priorities and move quickly to influence outcomes.
