What is a Snap Election?

If the Liberal Party loses a vote of non-confidence in the House of Commons, this could lead to either a snap election or the resignation of the Prime Minister and Cabinet. A snap election is an unexpected, early election held before the next scheduled vote. For a snap election to occur, all opposition parties must vote in favour of it, after which Elections Canada can organize the election.

While this may be unlikely, the results could bring a significant shift in government. The Conservative Party, under Pierre Poilievre, has been campaigning to support Canadian businesses, which could change some aspects of the economic environment.

The Conservative Party is gaining momentum. In a change of federal government, it’s a best practice for business leaders to stay on their toes and consider the implications.

Key Conservative Party Policies Affecting Business Leaders

The Conservative Party has consistently emphasized its focus on the free market – promoting economic growth, reducing taxation, and fostering a competitive business environment. Below are some key policies, taken from their lengthy document of core policies, that could directly impact Canadian businesses.

1. Tax Regulations

One of the cornerstones of Conservative policy is simplifying the tax system and lowering the tax burden. As they have advocated for the past year, to “Axe the Tax,” they will likely seek to revise or eliminate Canada’s carbon pricing system. This could create a more attractive environment for investments and expansion in the private sector. Lower corporate taxes would mean more available capital for businesses to reinvest in innovation, growth, and job creation.

2. Deregulation

Conservatives are committed to reducing government regulations that they believe stifle economy growth and business innovation. Many point to the fact that bureaucracy is delaying affordable housing projects. This approach could mean fewer bureaucratic hurdles for businesses, particularly in sectors like energy, manufacturing, and real estate. By cutting red tape, businesses could expect more streamlined processes, reducing costs associated with compliance and approval delays. However, reduced oversight can potentially lead to higher instances of corporate fraud and unethical practices.

3. Investment in SMEs

The Conservative platform has pledged additional support for small and medium-sized enterprises (SMEs), including encouraging innovation and efficiency through R&D, increased capital funding, and measures to help businesses recover from the economic effects of the pandemic. It is too soon to say exactly where funding will be directed, we will have to wait and see if they get elected. For business owners, this could be a welcome relief, enabling them to remain competitive and continue their growth.

4. Energy Sector Growth

The Conservatives have been vocal about their support for Canada’s energy, natural resources, particularly oil and gas. They’ll likely reduce barriers to resource development, potentially unlocking economic opportunities in key provinces such as British Columbia, Alberta, and Saskatchewan. Business leaders in this sector and adjacent ones could expect a resurgence in energy infrastructure investment and job creation.

5. Infrastructure Investment

The Conservative Party has also indicated a focus on enhancing infrastructure, particularly in areas that facilitate trade and commerce. This could mean investing in transportation networks, ports, and digital infrastructure. All these are important for better business operations and economic efficiency.

6. Housing Market Reforms

The Conservatives plan to address Canada’s housing crisis by increasing the supply of homes and incentivizing construction. Business leaders in real estate, construction, and related industries could benefit from increased development projects.

7. Free Trade and Global Markets

A Conservative government would likely focus on expanding free trade agreements and strengthening ties with international markets, benefitting export-oriented businesses. Increased global trade can provide Canadian businesses with more opportunities to tap into international consumer bases, enhancing revenue and growth potential.

Alternatively, international competition could strain local businesses as they compete with imports. Ultimately, it will depend on the industry and how competitive the Canadian business is, in any given sector. For example, Canadian businesses dealing with commodities such as wheat, lumber, or natural gas are typically better positioned internationally than our manufacturing sector.

What It Could Mean for the Economy

A Conservative victory could usher in a more business-friendly government focused on economic recovery, job creation, and competition. Their policies aim to stimulate the private sector and entrepreneurship.

• Short-Term Boost to Business Confidence

Business leaders may feel more confident in investing and expanding if taxes are reduced, and regulatory barriers are minimized. This could lead to immediate boosts in hiring, innovation, and overall economic activity.

• Long-Term Economic Growth

The Conservatives’ focus on energy development, infrastructure investment, and international trade could position Canada for long-term economic growth. A more open and competitive environment may attract foreign investment and bolster Canada’s standing in global markets.

• Balancing the Federal Deficit

Critics of the Conservatives may ask how they plan to balance the deficit with reduced tax income. The party has indicated plans to implement responsible spending while maintaining core services. However, they may enact measures to reduce government spending on social programs and the public sector to control the deficit.

Considerations for Business Leaders

If Conservatives win, business leaders will need to adapt to new policies and take advantage of opportunities. For some a Conservative government could provide a clearer pathway to growth. However, some businesses may need to navigate potential policy shifts related to labour laws, environmental regulations, and public spending.