The Lethbridge Chamber of Commerce is responding to this week's federal economic statement. (Photo: Lethbridge News Now)

By David Opinko

Lethbridge Chamber concerned following federal economic statement

Dec 18, 2024 | 10:32 AM

The local business community was not impressed by this week’s economic statement from the Government of Canada.

The Lethbridge Chamber of Commerce is echoing the concerns of its federal counterpart regarding the country’s fiscal trajectory, economic productivity and global competitiveness.

“From a Southern Alberta perspective, the lack of responsiveness to the economic realities faced by our region raises serious concerns about the federal government’s willingness to listen to the voices of rural communities, agriculture producers, small businesses, and families,” reads a statement from the Chamber.

A breakdown of the economic statement was provided by the Lethbridge Chamber of Commerce, as well as its thoughts on the impacts it could have on the region:

Key Concerns and Observations

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

Escalating Deficit and Rising Debt:

The Fall Economic Statement reveals a $48.3 billion deficit, marking a 21.3% increase just eight months after Budget 2024.·

Incremental spending has surged by $14.9 billion from 2025-26 to 2028-29, while public debt charges are projected to hit $53.7 billion—surpassing federal health transfers to provinces.·

Such unchecked spending raises concerns about the government’s ability to fund critical priorities like housing, healthcare, and social support without compromising long-term fiscal sustainability.·

Southern Alberta Perspective: In rural and mid-sized communities like Lethbridge, rising debt limits the government’s ability to fund key infrastructure projects—such as irrigation systems, roadways, and broadband expansion—that are critical for supporting agriculture and rural businesses. The continued growth of the deficit jeopardizes the investments needed for long-term regional economic success.

Disconnect Between Spending and Affordability:

While targeted reforms such as the Scientific Research and Experimental Development (SR&ED) program adjustments, Digital Adoption for Small Business Financing, and EV Supply Chain Investment Tax Credits are welcomed, these measures are limited in scope.· Rising costs for businesses and consumers continue to undermine the ability of small and medium-sized enterprises (SMEs) to invest and grow.·

Southern Alberta Perspective: The affordability crisis hits small businesses and households particularly hard in Southern Alberta. With agriculture as the backbone of our economy, rising fuel, energy, and regulatory costs create additional strain on farm operations and agri-businesses, which are essential drivers of jobs and exports in our region.

Economic Uncertainty and Investment Risks:

New measures to unlock private and pension fund investments introduce significant risks, including the removal of the 30% cap on pension fund ownership.· Additionally, the $1 billion in venture capital funding, while ambitious, could distort market dynamics and exacerbate economic uncertainty.· Recent Draft Oil and Gas Cap Regulations further illustrate the unpredictable and complex regulatory environment discouraging business investment.·

Southern Alberta Perspective: Energy remains critical to Southern Alberta’s economy, and regulations targeting oil and gas continue to create uncertainty for workers and communities. At the same time, businesses in our region rely heavily on clear and consistent policy frameworks to attract investment in emerging sectors like renewable energy, agri-tech, and logistics.

Competitiveness and Global Capital:

Canada’s ability to attract and retain investment is undermined by inconsistent policies, including increases to the capital gains inclusion rate and the introduction of a global minimum effective tax rate.· These measures conflict with the government’s rhetoric on securing Canada’s position in the global competition for capital.·

Southern Alberta Perspective: Businesses in Lethbridge and surrounding regions need policies that reduce barriers to growth and innovation. For agriculture and manufacturing, which drive exports across North America, these tax increases erode confidence and competitiveness in global markets at a time when stability is most needed.

Impact of U.S. Economic Nationalism:

Deputy Prime Minister Chrystia Freeland’s resignation, citing concerns about the anticipated U.S. economic policies under a new administration, underscores the looming risks for Canadian businesses. Trump’s tariff threats present a clear and immediate danger to Canada’s economic stability and jobs, particularly in export-dependent sectors.· While the $1.3 billion investment in border security is a positive step, broader measures are needed to prepare Canada’s economy for this evolving challenge.·

Southern Alberta Perspective: Southern Alberta’s agricultural producers—including beef, grains, and pulse crop exporters—are especially vulnerable to U.S. tariff policies. Trade disruptions could have devastating impacts on rural communities, further amplifying concerns about affordability and economic resilience.

Listening to Southern Alberta The Fall Economic Statement reinforces concerns that the federal government is disconnected from the unique challenges facing Southern Alberta and similar small – medium regional pockets of the country. Whether it is the rising costs of production for farmers, regulatory burdens on energy and manufacturing, or the need for critical infrastructure in rural communities, local businesses and families are being left behind. The federal government must engage with our communities and prioritize policies that align with regional economic realities.

The Lethbridge Chamber of Commerce urges the federal government to immediately:·

• Adopt Fiscal Discipline: Prioritize measures that reduce deficits, stabilize public debt, and restore economic confidence.·
• Invest in Infrastructure: Support investments in irrigation, transportation, and broadband to drive agricultural productivity and rural growth.·
• Address Affordability for Agriculture and SMEs: Introduce policies that reduce energy, regulatory, and tax burdens to ensure local businesses can thrive.·
• Support Trade Stability: Mitigate risks posed by U.S. economic policies by protecting Southern Alberta’s agriculture exports and supply chains.·
• Engage with Southern Albertans and Regions that Share a Border Crossing with the U.S.: Actively listen to the priorities of rural communities, agricultural producers, industrial producers and regional business leaders to foster policies that drive prosperity and sustainability that can be shared throughout the country.

Canada’s economic future depends on sound fiscal management, regional engagement, and a commitment to fostering a competitive and resilient business environment. From a Southern Alberta perspective, this requires investments in infrastructure, trade stability, and policies that reflect the realities faced by rural communities, farmers, and SMEs. The Lethbridge Chamber of Commerce calls on the federal government to listen to Southern Albertans and work collaboratively to secure long-term economic prosperity for all Canadians.

READ MORE: Lethbridge News Now.

—

If you have a news tip, question or concern, please email Lethbridge.newsroom@Pattisonmedia.com.

For local news delivered daily to your email inbox, subscribe for free to the Lethbridge News Now newsletter here. You can also download the Lethbridge News Now mobile app in the Google Play and the Apple App Stores.