With the start of the federal government’s fall session less than a month away, Ottawa businesses are “cautiously optimistic” about plans laid out by Prime Minister Mark Carney, two local government relations firms tell OBJ.
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With the start of the federal government’s fall session less than a month away, Ottawa businesses are “cautiously optimistic” about plans laid out by Prime Minister Mark Carney, two local government relations firms tell OBJ.
On Sept. 15, MPs will return to the House of Commons. The fall session will include the federal budget, which is typically presented in the spring but was delayed this year. Despite that delay, Carney has made some of his priorities clear and businesses are feeling hopeful, according to Marci Surkes of Ottawa government relations and public affairs firm Compass Rose.
“I think there is a genuine curiosity and cautious optimism about how the government is comporting itself thus far,” Surkes, chief strategy officer and managing director, told OBJ.
“The tone that the prime minister himself is setting (is of) running the government more like a business,” she said. “Even some of those measures that the government is leaning into immediately — in terms of spending reviews in order to modernize the public service and the way in which the government operates — it’s actually a really important signal.”
With the pre-budget submission period closing this month, Surkes said she has her eye on the process to see if the government will fulfill the core objectives laid out in the mandate letters sent by Carney to his ministers. Those core objectives include removing interprovincial trade barriers, improving housing affordability, investing in defence and spending less on government operations.
The letters also referenced a new economic and security relationship that needs to be established with the United States, something that Surkes said is weighing on the minds of businesses.
“There is no question in anyone’s mind that this is a critical and very complicated moment for Canada in the global trading system,” she said. “The president of the United States is not only taking direct aim at Canada, but obviously reshaping the way in which we do business. In addition to that sort of cautious optimism around this government, there is still a deep feeling of insecurity and I find that transcends sectors.”
Because of that, Surkes said her clients are hoping to see action to remove interprovincial trade barriers and strengthen Canada’s own infrastructure to lessen the country’s reliance on the U.S. Businesses are also looking to place more emphasis on other markets and find new business partners around the world.
Immediately following the election, Surkes said government procurement remained quiet, but that machine has since sprung back to life. Given the government’s priorities, she said tech and other IT partners are eager to learn more about federal procurement plans.
“(There’s) an opportunity for vendors to look at ways to partner with the government to bring in solutions to IT problems and digital overhaul where there’s no question this government is due to make some pretty significant investments in terms of its systems management,” she said. “We are detecting a lot of interest and hearing from vendors who have the ability to provide cost-effective, smart solutions to help them manage it. The trend line there is on the up and up.”
Defence is another area that will likely be seeing significant investment, she added.
“Most people in defence and security are kind of like, ‘hallelujah!’” said Surkes. “Finally, a recognition of how important the investment is in our collective security. There is, in that space, considerable excitement and activity in the lead-up to the budget.”
For some sectors, it’s still unclear “who’s in the zoo” when it comes to the departments that influence their industries, Surkes said, both on the political staffing side and on the department officials side.
Michael Sabia, the new clerk of the Privy Council, is expected to shake things up, she added.
“Many people are anticipating that Mr. Sabia will put his own stamp on how each of the departments are run, either switching around deputy ministers or other senior officials, possibly bringing in fresh blood from the outside, as he’s coming in from a utility and private-sector experience,” said Surkes.
Chris Day has also noticed significant goodwill for the new government from his clients and said businesses are hoping their voices will be heard.
“They’re generally saying, ‘Bring us in, let’s have a discussion. We want a voice. We want a seat at the table.’” said Day, senior vice-president and Ottawa general manager at Burson Hill & Knowlton.
The objectives laid out by Carney have been encouraging for some sectors, like tech and defence, he said. But for others, they’ve raised uncertainty. He said companies in the health-care space, for example, were disheartened by a lack of attention paid to the sector during the campaign, despite health being a top concern for voters.
But Day said businesses shouldn’t worry quite yet.
“This government is deliberately narrow, casting a relatively tight set of priorities and aligning to those priorities,” he said. “It is setting expectations sky-high on its ability to deliver. What that means, in a practical sense, is that I think some people are fearing that if they’re not immediately outlined in those priorities, are they going to get anything done?”
Day added that, particularly in Ottawa, eyes are on the public sector, where cuts to the workforce and operation spending are anticipated. While such changes could have far-reaching implications for the city, Day said some of his clients are glad to see the government cut back on costs and “bring back fiscal responsibility on that front.”
“It was a very spirited election campaign with lots of different forces at play and the result was very illuminating for people in terms of where priorities need to be,” said Day. “What (business clients) are saying is that (the government) has got this ambition and now we need to see the action. That will be the test for this government over the next weeks and months. Can they match ambition with action and provide on these sky-high priorities and expectations of Canadians?”
