Carney's corporate slush fund nothing like a sovereign wealth fund

OTTAWA, ON: The Canadian Taxpayers Federation is pointing out that Prime Minister Mark Carney’s new Canada Strong Fund is nothing like a sovereign wealth fund such as the one in Norway. Instead, the Canada Strong Fund will run up the debt and put taxpayers’ money at risk.

“Norway uses its sovereign wealth fund to save money and only spends the interest, but Carney’s fund is built on borrowed money and will gamble taxpayers’ money on corporate handouts,” said Franco Terrazzano, CTF Federal Director. “Carney’s debt-fuelled corporate slush fund is nothing like Norway’s sovereign wealth fund.”

Today, Prime Minister Mark carney announced the creation of the Canada Strong Fund. Carney announced he is borrowing another $25 billion that he will dump into the fund. The fund will subsidize “Canadian projects and companies,” according to the government.

The government claims the Canada Strong Fund is a “national sovereign wealth fund.” But the Canada Strong Fund is nothing like a sovereign wealth fund such as the gold-standard policy in Norway.

Norway saves its oil revenues in its wealth fund. Norway only spends the anticipated rate of return and invests that money outside of the country. This practice ensures diversification and protects the fund from being used for corporate welfare or politicians’ pet projects.

In stark contrast, the government of Canada is borrowing billions for the fund and will spend that money picking winners and losers among Canadian companies.

The federal government is more than $1 trillion in debt and is planning to borrow about $65 billion this year, according to Budget 2025. Debt interest charges will cost taxpayers $60 billion this year. That’s more than the federal government will send to the provinces in health transfers ($57.4 billion) or collect through the GST ($56.5 billion).

“Carney isn’t creating a sovereign wealth fund, he’s borrowing tens of billions of dollars to put taxpayers on the hook for risky corporate welfare,” Terrazzano said. “Interest charges on the federal debt already cost taxpayers more than $1 billion every week and Carney shouldn’t be dreaming up new ways to borrow billions more on corporate subsidies.”

For more information or to schedule interviews, please contact:

Franco Terrazzano
CTF Federal Director
Phone: 403.918.3532
Email: fterrazzano@taxpayer.com

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