Champagne defends fiscal track as defence, infrastructure spending ratchets up

By Craig Lord, The Canadian Press

OTTAWA — Finance Minster François-Philippe Champagne asserted Monday that the Liberals are keeping federal finances under control even as key defence and infrastructure spending details remain under wraps.

Champagne told reporters Ottawa has been “very transparent” with Canadians about the pace of federal spending and the need to focus on what the government can control in a period of geopolitical instability.

He said last week’s commitment of federal funding for a proposed pipeline from Alberta to the B.C. coast will help turn Canada into a global energy superpower.

‘There are still going to be discussions as to the exact financial model behind it,” Champagne said in response to questions about what the public contribution to that project would look like.

Champagne also said the federal government is following a model successfully executed by other nations that sees higher defence spending fuel innovation in the country.

“Canada is no different. We’ll do that in a very smart way and in a way that can benefit workers, that can benefit industries and across the nation,” he said.

Reporters pressed Champagne for details on how Canada would pay for rising defence commitments as Prime Minister Mark Carney prepares to head overseas for the NATO summit in Turkey this week.

Canada marked a milestone earlier this year when NATO confirmed the country had met the group’s target of spending two per cent of GDP on defence.

But that bar is set to rise in the years ahead, hitting five per cent of GDP by 2035. About 1.5 per cent of that figure can be on related defence spending, such as transportation infrastructure.

Champagne said the government has been clear about demands for defence spending and claims Canada is on track to meet the NATO targets. He pointed reporters to annexes in the 2025 budget and the recent spring economic update for details.

“We have provided the direction of that, and as programs and as acquisitions are coming forward, we’ll provide more detail on these things,” he said.

Ottawa’s published fiscal projections only show defence spending commitments out to 2030-31.

The parliamentary budget officer and other critics have meanwhile said there’s a gap in the federal books around a proposed path to the five per cent target.

A May 4 report from Parliamentary Budget Officer Annette Ryan projects that Ottawa would need to reach $159 billion in core defence cash spending by 2035-36 to meet the NATO targets.

Absent other savings, that would raise the federal deficit by $63 billion and push the debt-to-GDP ratio up 6.3 percentage points, according to her office’s projections.

Prime Minister Mark Carney said in May if Ottawa put out a full defence spending plan last year, it would already be dated because of how quickly modern warfare is changing.

En route to Turkey for the NATO summit, Carney stopped Monday in Halifax to announce German firm TKMS as the successful bidder for Canada’s next generation submarine fleet — a procurement he said marks “the largest in Canadian history.”

Canada is planning to buy up to 12 submarines, and the estimated purchase cost has been pegged at as much as $24 billion. Maintenance and operations costs are much higher.

Champagne made his comments to reporters ahead of an event on Monday to launch pre-budget consultations for the fall spending update.

Members of the media were invited to sit-in on his opening remarks with a roundtable of business leaders from the Canadian Chamber of Commerce but were escorted out before discussions began.

Champagne suggested to reporters that the federal government is planning measures in the 2026 budget that will support its ability to grow the economy and meet its defence commitments.

“We’re investing in the things that will generate growth to the country and therefore making sure that we can afford what we’re going to be doing in order to meet our NATO requirement,” he said.

This report by The Canadian Press was first published July 6, 2026.

— with files from Kyle Duggan

Craig Lord, The Canadian Press

Keep it Factual
Add CityNews Halifax as a trusted source on Google to see more local stories from us.

Top Stories

Federal researchers using driftwood to study and track seabird deaths off N.S. coast

HALIFAX — Federal researchers want to know where dead seabirds off the coast of Nova Scotia are most likely to wash up, and they’re using a low-tech solution to find out: driftwood. Environment and Climate Change Canada has dropped about 600 wooden blocks in the ocean this summer. Coated in non-toxic, bright orange paint and affixed with contact information, the floating blocks are essentially standing in for bird carcasses. Researchers are hoping birders and beachcombers who find them will report their date and location, ultimately helping to create a picture of where seabirds might drift after a mass death in the ocean. “So you release these blocks and they help you figure out where carcasses could drift and what proportion of the carcasses end up on shore," Rob Ronconi, a biologist and wildlife emergency response coordinator for the federal environment department, said in an interview. “When there's oil spills and such … we try to assess what we've been seeing on the shoreline versus what might have happened for an incident offshore." Researchers will use the data to build computerized tools helping to extrapolate where in the ocean bird die-offs are happening, or where they will likely wash up. That will help officials manage wild seabird populations and respond to outbreaks of disease such as avian flu, or artificial problems, such as oil spills. Ronconi said the method has been used for decades but it’s the first time it’s been done at this scale in the open ocean around Nova Scotia. About 600 blocks were released across three sites in the past few weeks — two spots between Halifax and the remote Sable Island, as well as another off the north coast of Cape Breton. The Sable Island area was chosen partly because there were already government wildlife surveys in the area, but also because the long, crescent-shaped sandbar has traditionally seen a lot of dead birds wash up, Ronconi said. Scientists want to know where they came from. Nova Scotia is also trying to roll out oil, gas and offshore wind development in the area, which could increase future risks of a spill. Ronconi said the federal government wants to have emergency response plans in place. Ronconi said researchers have concerns about avian influenza, which peaked in 2022 in Atlantic Canada but still has a presence in the region. The project could give insights into future outbreaks. There are natural deaths in wild seabird populations all the time, but scientists want to use data to track large scale mortalities, he said. “What was the source? Where was the occurrence of this incident? Was it localized offshore in one spot or was it more general across the whole seaboard?” he said. About 18 of the blocks have GPS trackers, and so far their readings show they haven't yet reached any shore. This suggests most of the blocks are still at sea, he said. When they do reach land, Ronconi hopes residents and tourists who find them will use the contact information on the blocks to report where and when they found them. Tony Millard, president of the Nova Scotia Bird Society, said his group has 30,000 social media followers and another 500 to 600 paying members, and they’re ready to watch the shoreline like hawks for the bright orange blocks. “Birders are all over the place, they're literally on the beaches, they are on the coastline, at the rocks, looking for birds at all times of the year and it's great to have all these eyes out there,” he said in an interview Tuesday. “(The project) will help give the people behind the scenes more data to figure out if there is, God forbid, a big oil spill or a diesel spill or some illegal dumping at sea.” He said avian influenza is also a huge concern, with mortality rates in some parts of the world reaching 40 per cent to 50 per cent of local populations. Ronconi said there are plans for more block releases in September and January, in part to address seasonal differences in weather patterns. This report by The Canadian Press was first published July 14, 2026. Devin Stevens, The Canadian Press

16h ago

Top Stories

Federal researchers using driftwood to study and track seabird deaths off N.S. coast

HALIFAX — Federal researchers want to know where dead seabirds off the coast of Nova Scotia are most likely to wash up, and they’re using a low-tech solution to find out: driftwood. Environment and Climate Change Canada has dropped about 600 wooden blocks in the ocean this summer. Coated in non-toxic, bright orange paint and affixed with contact information, the floating blocks are essentially standing in for bird carcasses. Researchers are hoping birders and beachcombers who find them will report their date and location, ultimately helping to create a picture of where seabirds might drift after a mass death in the ocean. “So you release these blocks and they help you figure out where carcasses could drift and what proportion of the carcasses end up on shore," Rob Ronconi, a biologist and wildlife emergency response coordinator for the federal environment department, said in an interview. “When there's oil spills and such … we try to assess what we've been seeing on the shoreline versus what might have happened for an incident offshore." Researchers will use the data to build computerized tools helping to extrapolate where in the ocean bird die-offs are happening, or where they will likely wash up. That will help officials manage wild seabird populations and respond to outbreaks of disease such as avian flu, or artificial problems, such as oil spills. Ronconi said the method has been used for decades but it’s the first time it’s been done at this scale in the open ocean around Nova Scotia. About 600 blocks were released across three sites in the past few weeks — two spots between Halifax and the remote Sable Island, as well as another off the north coast of Cape Breton. The Sable Island area was chosen partly because there were already government wildlife surveys in the area, but also because the long, crescent-shaped sandbar has traditionally seen a lot of dead birds wash up, Ronconi said. Scientists want to know where they came from. Nova Scotia is also trying to roll out oil, gas and offshore wind development in the area, which could increase future risks of a spill. Ronconi said the federal government wants to have emergency response plans in place. Ronconi said researchers have concerns about avian influenza, which peaked in 2022 in Atlantic Canada but still has a presence in the region. The project could give insights into future outbreaks. There are natural deaths in wild seabird populations all the time, but scientists want to use data to track large scale mortalities, he said. “What was the source? Where was the occurrence of this incident? Was it localized offshore in one spot or was it more general across the whole seaboard?” he said. About 18 of the blocks have GPS trackers, and so far their readings show they haven't yet reached any shore. This suggests most of the blocks are still at sea, he said. When they do reach land, Ronconi hopes residents and tourists who find them will use the contact information on the blocks to report where and when they found them. Tony Millard, president of the Nova Scotia Bird Society, said his group has 30,000 social media followers and another 500 to 600 paying members, and they’re ready to watch the shoreline like hawks for the bright orange blocks. “Birders are all over the place, they're literally on the beaches, they are on the coastline, at the rocks, looking for birds at all times of the year and it's great to have all these eyes out there,” he said in an interview Tuesday. “(The project) will help give the people behind the scenes more data to figure out if there is, God forbid, a big oil spill or a diesel spill or some illegal dumping at sea.” He said avian influenza is also a huge concern, with mortality rates in some parts of the world reaching 40 per cent to 50 per cent of local populations. Ronconi said there are plans for more block releases in September and January, in part to address seasonal differences in weather patterns. This report by The Canadian Press was first published July 14, 2026. Devin Stevens, The Canadian Press

16h ago

Most Watched Today