When Will Canada Start Caring About Competition?

The Air Canada strike is over, but the frustration is not. The strike, at our largest airline, is a stark reminder that competition is not alive and well in Canada for one simple reason: governments are letting it happen.

No good comes of limiting competition. It stifles innovation and productivity. It’s bad for the economy and hurts consumers. When Air Canada and its flight attendants could not reach a timely resolution, thousands of stranded passengers were left in the lurch, struggling to salvage their travel plans. In Canada, little airline competition = few options when flights are grounded, unlike the U.S. or Europe where fewer government policies restrict competition.

It’s no secret that Canada suffers from a lack of competition, and the political will to do anything about it. Government policies that limit competition and consumer choice don’t just apply to airlines, but many other sectors from banking, grocery and telecom to construction.

Like so many other industries, construction impacts all Canadians. When governments care so little about making Canadian industries competitive, we all pay. And it’s happening right across Canada.

For example, on many major public projects in B.C, the provincial government only allows firms connected to specific unions to bid. There are similar restrictions on certain projects in Manitoba and Ontario. For decades, the City of Toronto has stuck with a closed bidding system, that studies show costs taxpayers an additional $347 million annually in higher construction costs.

Opening up the construction market has undeniable benefits. Competition saves an average of 21 percent on public construction work. That’s billions in savings that could be redirected to building more community housing, expanding transit and taking some of the sting out of President Trump’s tariffs.

Competition drives economic growth. It leads to better quality, lower prices and more choice. As the trade war with the U.S. drags on, the benefits of competition across every industry, can no longer be ignored.