Gary Mar
Published in the Financial Post
May 2, 2025
Gary Mar: It’s time for a shift in approach to Western Canada that is focused on action, not words
To succeed in his promise to unite the country, Prime Minister Mark Carney must recognize that Western Canada is not a problem to be managed — it’s the engine room of the national economy.
For too long, federal policy has overlooked this reality. A Mark Carney-led government has the opportunity to change course, starting with one fundamental truth: respect for provincial jurisdiction and serious engagement with Western provinces as full partners.
Alberta, British Columbia, Saskatchewan and Manitoba not only drive key industries such as energy, agriculture, forestry, and mining, but Alberta and B.C. (along with Ontario) also disproportionately fund the federal government’s equalization and transfer programs.
That fiscal contribution supports national programs and services far beyond the region.
Yet too often, the very projects that generate this prosperity — pipelines, critical mineral and mine projects, LNG facilities and port expansions — are held up by federal regulatory delays, redundant environmental reviews and one-size-fits-all policies.
In fact, a study by the Canada West Foundation found that between 2019 and mid-2023, almost all projects submitted for approval under the Impact Assessment Act were still in the first or second stages of a four-stage process. This act was designed to speed up approval processes. Results have been mixed.
If a future federal government truly wants to support national unity and shared prosperity, it must take bold steps to streamline project approvals, reduce red tape and limit federal interference in provincial resource development. This isn’t just about regional fairness. It’s about what’s possible when Canada gets serious about maximizing its economic potential. Consider this: In 2022, the three westernmost provinces generated more than $400 billion in GDP and supported hundreds of thousands of high-paying jobs across the country.
Those figures should not come as a surprise; we are resource rich and have what the world wants. Oil and natural gas are always top of mind when talk turns to resources, but the West is so much more. Potash, forest products, key primary agricultural products including peas, canola, beef and pork, petrochemicals, pharmaceuticals and medicines, to name a few. Revenues from these products are, to paraphrase Manitoba Premier Wab Kinew, the economic horse pulling Canada’s social cart. Imagine the boost to Canadian productivity if the full value of these industries were harnessed efficiently and strategically. Imagine the Canada we could build.
There are promising areas of potential alignment. Alberta’s focus on clean-energy innovation — through hydrogen, carbon capture and other emerging technologies — fits with the Prime Minister’s work in global climate finance. Strategic investment in trade infrastructure corridors would benefit both Western producers and Central Canadian manufacturers. And reforming the federal Fiscal Stabilization Program to ensure the program benefits all Canadians would be a powerful signal that Ottawa is listening to the region’s economic realities.
What’s needed is a shift in approach. Instead of imposing timelines and policies from the top down, the new government should commit to working alongside provincial governments, industry leaders, First Nations and entrepreneurs. Not just for consultation, but in shared decision making. The current process not only results in bad relationship building, but the decisions imposed by Ottawa are also damaging to the economies of specific provinces and sectors, and also to our global reputation as a reliable exporter.
The 2024 decision to impose 100 per cent tariffs on EV imports from China was taken with no consultation with Western producers, even though it was easy to predict it was going to leave the West exposed. And — surprise, surprise — earlier this year China retaliated by imposing tariffs on agriculture and the agri-food industry, including 100 per cent tariffs on canola oil, oil cakes and peas, that are disproportionately hurting the West. The impact on farmers could be devastating and the fact there was no communication, consultation or planning with the West salts the wound. This is but one example of grievances that have built up over decades.
The seeds of mistrust have taken deep root and will not easily be removed. If we are truly going to see a reset in provincial-federal relations, stakeholders need to be brought into the conversations much earlier in the policy development process.
The Canada West Foundation has long advocated for the idea that Western prosperity is national prosperity. Mark Carney’s government is signaling the same and indicating a willingness to mend fences. But the repair will require a federal partner who sees Western Canada not as an obstacle, but as a cornerstone.
If the Prime Minister wants to unite the country and unlock Canada’s full potential, he must start with the West — not just by saying, but by doing.
Gary Mar is CEO and President of the Canada West Foundation.