From scrapping the consumer carbon levy to a new “One Canadian Economy” law, here’s what’s real, what’s pending, and why it matters in Northwestern Ontario
THUNDER BAY – POLITICS 2.0 – Aug. 6 marked 100 days since Mark Carney was elected prime minister. It’s an early checkpoint, but a useful one to separate deliverables from headlines—and to gauge the impact for Northern Ontario.
Delivered (or in force)
1) Consumer carbon levy removed (household side)
Ottawa ended the federal fuel charge at the pump effective April 1, 2025, via regulations—followed by legislation tabled in May to retroactively repeal the charging provisions. Independent analysis from the Bank of Canada says the removal should trim the CPI level by ~0.7 percentage points over one year (all else equal).
Why it matters here: Lower pump prices and home-heating costs hit Northern households and small carriers directly, especially along Highways 11/17 freight corridors.
2) Middle-class tax cut (in paycheques now)
The government reduced the lowest federal income-tax bracket (to 14% on income earned from July 1, 2025). CRA source-deduction tables were adjusted so the change shows up mid-year. Ottawa says ~22 million Canadians benefit; a two-income family could save up to ~$840 in 2025.
Local angle: More take-home pay helps offset Northern price premiums on food, fuel and travel.
3) “One Canadian Economy Act” became law
Bill C-5 received Royal Assent on June 26, creating two statutes: a federal push to remove internal trade and labour-mobility barriers, and a new framework (the Building Canada Act) to fast-track “nation-building” projects through a Major Projects Office with Indigenous advisory structures.
Local angle: Faster approvals and mobility could accelerate Ring of Fire access roads, Northern transmission lines, forest-sector projects, and modular housing supply chains through Thunder Bay. (Note: implementation details will determine how fast anything moves.) However the passage of this legislation has created a rift between many First Nation communities and the government.
Announced / in motion (but not yet delivering outcomes)
4) Build Canada Homes (BCH) – early steps
Carney campaigned on getting the federal government “back in the business of building.” Ottawa launched public engagement on BCH this month; policy papers outline funding/financing to scale factory-built/modular and affordable units on public land.
Local angle: Potential demand for Northern timber, prefab yards, and skilled trades (think Confederation College grads). But this is consultation-stage—no units delivered yet.
5) Defence/NATO spending pledge
Within the first 100 days, the government signalled a sharp defence-spending ramp-up, saying Canada will reach or approach NATO’s 2% of GDP target this fiscal year/early 2026, paired with CAF pay measures and procurement shifts.
Local angle: Defence dollars often flow to shipyards, vehicles, aviation and comms—sectors with supply-chain links into Northwestern Ontario fabrication and logistics. Verification will come in the fall fiscal update and Public Accounts.
(Note: Carney’s Aug. 22 move to lift many retaliatory tariffs on U.S. goods is after the 100-day mark but shapes the next phase of affordability and supply chains.)
Fact-checking Liberal claims (scorecard)
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“We removed the consumer carbon tax.”
Accurate for households. Regulations ended the fuel charge April 1; legislation to entrench the change is moving/introduced. Industrial carbon pricing remains. Impact on inflation is modest but real (BoC est. –0.7 p.p. on y/y CPI for one year). -
“Canadians are paying less tax as of July 1.”
Accurate. The lowest federal rate cut took effect July 1; households see it in payroll now. The full-year 2025 effect is 14.5% (because it starts mid-year), then 14% in 2026+. Savings vary by income. -
“We passed a law to break down internal trade barriers and build projects faster.”
Accurate (framework passed). Bill C-5 is law. Actual speed gains hinge on regulations, the Major Projects Office rollout, Indigenous partnership terms, and potential legal challenges flagged by First Nations leaders. -
“We’re fixing housing by getting the feds building again.”
**Partly true—**the plan and engagement are underway; delivery is pending. Watch for capital allocations, land releases, and unit starts before calling this a win. Housing Infrastructure Canada -
“Canada will meet NATO’s 2% target now.”
Claim made; verification pending. The pledge is clear; the proof will be in enacted appropriations and NATO-validated accounting.
What this means for Thunder Bay & the Northwest
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Fuel & freight: Carbon-levy removal + tax cut marginally ease grocery and fuel transport costs across Highway 11/17 and remote resupply routes.
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Projects pipeline: If C-5 works as advertised, expect quicker timelines on energy, roads, ports and critical minerals—with duty-to-consult standards decisive for Ring of Fire access roads and grid links.
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Housing capacity: BCH could open doors for modular manufacturing and timber supply rooted in Northern mills—if Ottawa matches rhetoric with procurement and land.
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Defence spillovers: A sustained 2% path could channel procurement and MRO work through Ontario supply chains, with indirect boosts to local fabrication and logistics hubs.
Bottom line
In the first 100 days, the Carney government did: remove the household carbon levy, cut taxes for the bottom bracket, and pass C-5 to rewire internal trade and project approvals. It started (but hasn’t finished) a federal building push on housing and a big defence ramp-up. The next test is execution—dollars out the door, permits approved, and units built—the things people in Thunder Bay, Marathon, and Sioux Lookout can see on the ground.
