Building Canada: A new generation takes charge

The episode of Disruptors, the Canada Project, features John Stackhouse discussing Canada's evolving economic landscape with guests Daniel DeBeau and Lucy Hargreaves from Build Canada. The conversation highlights the need for Canada to diversify trade, enhance sovereignty, and leverage its unique resources and talents. Build Canada, a movement promoting entrepreneurial growth and innovation, encourages Canadians to adopt a builder mindset, focusing on bold actions and economic strength. The discussion also touches on the importance of private capital, public-private collaboration, and fostering a culture that rewards risk-taking to propel Canada's prosperity and global influence.

• The imposition of tariffs by President Trump highlighted the necessity for Canada to diversify its trade to ensure economic resilience.
• Canada's focus on sovereignty includes ensuring that core services and data are protected from foreign influence and coercion.

"When President Trump came into power and tariffs were levied against Canadian goods, really amplified the need for us as a nation to diversify our trade."

• This quote underscores the urgency for Canada to expand its trade partnerships to mitigate risks from reliance on a single country.

"HEC sovereignty would guarantee Canadians their core services and core data are free from coercion by outside powers."

• Sovereignty is crucial for protecting national interests, particularly in the digital age where data security is paramount.

• Nunavut's reliance on imported diesel for energy highlights the environmental and logistical challenges faced by remote regions in Canada.
• Addressing these energy needs is crucial for sustainable development and reducing dependency on imported fossil fuels.

"It's important to know that Nunavut is relying 100% by burning diesel that is imported into the territory, mostly from the United States."

• This quote highlights the energy dependency of Nunavut and the need for sustainable energy solutions.

• Canada is envisioning a future defined by innovation, including AI data centers, power grids, and new infrastructure like ports and fiber lines.
• The emphasis is on creating added value products and services that can be exported globally.

"It's a map of ports and launch pads, of power grids and AI data centers, and for that matter, battery belts and northern fiber lines."

• This quote illustrates the vision of a modern, interconnected Canada leveraging technology and infrastructure for economic growth.

• The Arctic region is identified as a key area for growth, with potential in emerging sectors such as data centers and AI.
• The region's abundant resources and strategic location offer significant opportunities for development.

"When Canadians think about growth, we don't always think about the Arctic, but we should."

• The Arctic's potential for economic expansion is often overlooked, yet it holds significant promise for Canada's future.

• Build Canada is a movement connecting entrepreneurs and innovators to foster a prosperous future for the country.
• The initiative emphasizes policy development and community engagement to drive growth.

"Build Canada is a network and really a movement that connects and amplifies entrepreneurs, creators, and innovators committed to a more prosperous Canada."

• This quote describes Build Canada's role in uniting diverse stakeholders to achieve national prosperity.

• Canadians are described as having agency and the power to influence their country's direction through informed choices and policy decisions.
• The "Giver" spirit is emblematic of Canadian resilience and determination to overcome challenges.

"Cautiously optimistic, Rationally optimistic. I think it's important to remember Canada didn't get here by accident."

• The quote reflects the belief that Canada's success is a result of deliberate choices and the collective will to progress.

"I've always loved that Canadian expression of giver, like you're behind the car, you're in a ditch, things suck. But Canadians, they rally, they just say, yeah, I know that this sucks, but we gotta go."

• The "Giver" mindset captures the essence of Canadian perseverance and positivity in the face of adversity.

• Canada's history of innovation and achievement serves as a reminder of its potential to accomplish ambitious goals.
• The nation is characterized as a work in progress, continually building towards greater achievements.

"Canada is a nation of builders. Like it was forged by explorers, people who were risk takers."

• This quote emphasizes Canada's legacy of innovation and the ongoing journey to build a prosperous future.

• The mindset for a builder nation involves principles such as boldness, growth, and action over complaint.
• Encouragement to strive for excellence and not settle for mediocrity, aiming for the best outcomes.
• Emphasis on individual agency and responsibility rather than reliance on government solutions.

"Bold, beat, safe. Growth is good. You can just do things. Doing things is better than complaining."

• Encourages proactive problem-solving and taking initiative rather than passivity.

"We cannot wait for the government to solve every problem. Right. People have to step up."

• Highlights the importance of individual action in addressing societal issues.

"Getting a bronze medal is as much effort as going for gold. You might as well go for gold."

• Encourages striving for the highest achievements and not settling for less.

• Canada needs to become a global force by leveraging its economic and military strengths.
• Sovereignty is linked to the collective actions of Canadians and their daily choices.

"We have to go be a force in the world. If you believe the world...needs more Canada, we...have to go make it want what we have."

• Stresses the need for Canada to assert itself internationally through strength and innovation.

• Highlighting Canadian efforts in space, subsea robotics, and critical minerals as areas of growth and innovation.
• The importance of retaining talent and capital within Canada to build and own unique advantages.

"We already do such a great job as Canadians training our workforce...We have a massive exodus of talent, of capital, of sovereignty, of national pride."

• Points to the need for retaining talent and resources to strengthen national industries.

"If it can work off the coast of Newfoundland, then it can work anywhere."

• Indicates the rigorous testing and resilience of Canadian technology.

• Growing momentum and support for Canadian entrepreneurs, particularly in sectors like defense and space.
• Encouragement for private initiative without waiting for government incentives.

"I see all sorts of military folk who are quite interested in, like, a new way, a new approach of doing these things."

• Shows openness to innovative approaches in traditional sectors.

"They're just moving ahead, right? They're not waiting for the government to create a new subsidy program or a grant program or a tax incentive."

• Emphasizes the determination and independence of Canadian innovators.

• Recognition of fast-growing sectors such as space and natural resources, with potential for significant Canadian involvement.
• Interest from international investors in Canadian talent and opportunities.

"We've been doing research here at RBC on the potential of the space sector...investors in Europe and the US...are so keen to invest more in Canada."

• Highlights the attractiveness of Canadian sectors to international investors.

"Those are positive things. I'm not saying it's the end of the story, but that's optimistic to me."

• Reflects optimism about the future potential and growth of Canadian industries.

• The reward function for entrepreneurs in Canada needs to be reconsidered to enhance both tangible and intangible rewards.
• Entrepreneurs should be celebrated as national heroes, and this recognition should be backed by substantial support beyond mere words and photo opportunities.
• Financial incentives, including tax structures, play a crucial role in retaining talented entrepreneurs and employees within Canada.
• Canada's capital gains tax structure is less competitive compared to the U.S., which impacts decisions regarding business location and investment.

"We want Canadian entrepreneurs, whether it's the people who created Mike's Hard Lemonade or the people who create Lululemon or the people who create Cirque du Soleil or Shopify. Like, we need those folks. Those are great and those are capitalistic profit-seeking enterprises. That's not a dirty word. That should be a positive thing."

• Entrepreneurs are essential to Canada's economy, and their profit-seeking nature should be viewed positively as it drives innovation and growth.

"The reward is both tangible and intangible, and they are both incredibly powerful. And we need to lean into both."

• Rewards for entrepreneurs should encompass both financial and social recognition to effectively motivate and retain talent.

"We operate in a global economy, and we have to think about our reward and incentive and tax structure in that context. Entrepreneurs have options."

• Canada's reward and tax structures must be competitive globally to prevent talent and businesses from relocating to more favorable environments.

• Canada's current capital gains cap is significantly lower than the U.S., affecting decisions on business risk-taking and investment.
• The U.S. has a more competitive capital gains structure, which includes a higher cap and the ability to stack across multiple exits.
• Investors often encourage Canadian companies to relocate to the U.S. to benefit from the U.S. capital gains structure.

"Our capital gains cap in Canada right now is around 1.5 million, whereas the US has this 15 million cap that can be stacked across multiple exits."

• The disparity between Canadian and U.S. capital gains caps is a significant factor in entrepreneurial decision-making and investment strategies.

"Often investors are, you know, looking for Canadian companies and Canadian founders to relocate to the US so that the investors can benefit from the US Capital gain. Structure."

• Canadian companies are incentivized to move to the U.S. due to more favorable capital gains structures, which impacts the Canadian economy.

• The public sector traditionally has a risk-averse culture, focusing on steady operations rather than bold initiatives.
• Setting ambitious goals and deadlines can drive focus and growth within the public sector.
• The difference between a builder mindset and an operator mindset is crucial for innovation and progress in public service.
• The Build Canada Exchange program aims to integrate private sector expertise into the public service to enhance innovation and understanding.

"The culture of the public service and the incentive structure in the public service is one that reinforces a risk-averse mindset to operating."

• The public sector's risk-averse culture limits its ability to take bold actions and innovate effectively.

"Having deadlines and focusing attention on the things that really matter. We have to focus on growth and make the main thing the main thing."

• Setting clear priorities and deadlines is essential for driving focus and achieving significant outcomes in the public sector.

"The Interchange program, Build Slash, Build Canada Exchange has been around for a number of years in the public service and has been designed to bring in private sector experts on sort of like a secondment basis into the public service."

• The Build Canada Exchange program facilitates the exchange of expertise between the private and public sectors to foster innovation and mutual understanding.

• The Build Canada Exchange aims to integrate 50 private sector experts into the public service for 12 to 18 months.
• The initiative seeks to leverage private sector expertise to enhance public service efficiency and collaboration.
• This approach promotes mutual learning between public and private sectors and redefines public service as a temporary, impactful career choice.

"This idea that you recognize that, you know, there's various sectors where you need help and that the help exists in the private sector."

• The quote highlights the recognition of the need for private sector expertise within public service sectors.

"Public service doesn't have to be a 40-year career. It could be a tour of duty, a period in your life where you step in, help build something better for the greater good."

• This statement redefines public service as a temporary, impactful career choice, emphasizing its potential for significant societal contributions.

• Canada's vast geography and small population necessitate robust connectivity and transportation infrastructure.
• Current infrastructure lacks integration needed for speed and resilience in international trade.
• Investment in trade infrastructure is crucial for future economic competitiveness and connectivity.

"Canada is a country with a large geography, but a small population. And so we literally need connectivity and transportation infrastructure to make our country work."

• This quote underscores the necessity of infrastructure to connect Canada's vast geography and facilitate international trade.

"If I was prime minister for a day, I would spend 100 billion on trade infrastructure. It will pay for generations to come."

• The statement emphasizes the long-term benefits of investing in trade infrastructure to enhance economic competitiveness.

• Young Canadians are encouraged to engage with national projects and infrastructure development.
• Emphasis on rational optimism and personal agency to drive change in communities and beyond.
• Encouragement to utilize digital tools and technology for innovation and impact.

"Just because there are challenges, that does not mean that there's no future for you. You have to be kind of a rational optimist."

• The quote encourages young Canadians to maintain optimism and recognize their potential to overcome challenges.

"You can see people building tools with AI, learning how to do things that run circles around the folks of us on this call."

• This highlights the potential of digital tools and technology for young Canadians to innovate and make significant contributions.

• Canada is viewed as a collaborative project where everyone has a role in shaping the future.
• Encouragement to think boldly, take risks, and actively participate in national development.
• The importance of community involvement and speaking up for desired changes is emphasized.

"Canada is a project, and we all have agency to help build it."

• This statement frames Canada as an ongoing project requiring collective effort and individual agency.

"There are so many ways to show up, to get involved. That is what actually makes change at the end of the day."

• The quote stresses the importance of active participation and involvement in driving change and building the future.

• Canada's future is shaped by the choices and actions of its citizens.
• Emphasis on Canada's resources, geography, and global credibility as opportunities for growth.
• Encouragement to explore nation-building stories and engage with the Canada Project for inspiration and involvement.

"Canada's future isn't something that happens to us. It's something that we build through the choices we make, the jobs we take on, the risks that we lean into, and the communities that we strengthen."

• This concluding thought emphasizes the proactive role Canadians must play in shaping their nation's future.

"Each of us has a role in shaping what comes next. Yes, the world is throwing a lot of disruption at us all at once."

• The quote highlights the individual responsibility and potential of Canadians to turn challenges into opportunities.