Debt‑Financed ‘Wealth’? Why Ottawa’s New Investment Fund Deserves Scrutiny
Today, in the House of Commons, I spoke against the federal government’s proposal to create a new so‑called “sovereign wealth fund.” While the name may sound appealing, Canadians deserve to look past the branding and ask a more fundamental question: how can a country build “wealth” by borrowing tens of billions of dollars, especially when it is already running large and persistent deficits?
Around the world, genuine sovereign wealth funds are built on real fiscal surpluses and long‑term resource revenues. Canada, however, is facing a $67‑billion deficit this year and has more than doubled its federal debt over the past decade. In that context, borrowing money to invest it is not wealth creation — it is leverage, and leverage comes with real risks for taxpayers. If investments succeed, private participants often capture the returns. If they fail, it is Canadians who are left carrying the losses.
I also raised concerns about the growing number of arm’s‑length funds, agencies, and Crown corporations established by the federal government. Canada already has a long list of public investment vehicles, many of which operate with limited parliamentary oversight. Instead of improving accountability or fiscal discipline, this new fund would add another layer of complexity while relying on even more borrowed money.
“Borrowing money to invest it is not wealth creation — it is leverage, and the risk ultimately rests with taxpayers.”
Greg McLean, M.P.
At a time when Canadians are struggling with affordability and when private Canadian capital is increasingly being invested abroad, I believe Parliament’s focus should be on restoring confidence in Canada’s investment climate — through predictable rules, faster approvals, and responsible fiscal management. Before creating another state‑directed, debt‑financed investment vehicle, we must ask whether this approach truly serves Canadians’ long‑term interests.
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Review the official Hansard transcript of Greg’s remarks.