Carney proposes private investment in airports, tax cuts at investors summit

The Carney government is planning to attract private investors to run major Canadian airports, and to slash the tax rate to attract foreign investors.

The prime minister made the announcement at the second and final day of Canada’s first ever national investment summit. The Prime Minister’s Office says the summit has already resulted in $450 billion in new investments.

Carney started the day with a keynote address filled with several announcements.

“Your investment dollars will go a lot further in Canada than anywhere else in the advanced world,” Mark Carney said.

The prime minister says he will make Canada a more attractive place to invest — by slashing the marginal effective tax rate from 13 per cent to 6.4 per cent.

The feds say it’s the lowest rate in any major economy and less than half the rate in America.

Carney said companies will have twice the incentive to invest in Canada instead of America.

On the trade war, he said the relationship with the U.S. will be best when there is respect for traditions and sovereignty.

He promised that when the trade war is over, Canada will be a stronger, more resilient and more independent partner.

“We will always be neighbours. And Canada will continue to be the U.S.’s most important partner in many key areas,” Carney said.

WATCH MORE: Canada aims for $1T in global investment amid U.S. trade war

Carney also announced he wants private investors to operate the nation’s four biggest airports.

He said that will raise tens of billions that will be reinvested in smaller regional airports and other infrastructure.

“The Government of Canada will retain ownership of the underlying land and assets, but we will unlock their true value, by bringing in new capital and expertise into their operations and their growth,” Carney said.

The Prime Minister’s Office says the summit has already raised $450 billion in new investment:

• Nearly $100 billion in new capital for Canadian assets from Canadian pension funds, insurers and institutional investors.
• Nearly $325 billion in new financing for Canadian businesses from Canada’s big banks.
• More than $14 billion in capital for Canadian business, infrastructure and strategic sectors from investment funds.

That is almost half of the $1 trillion in new investments Carney wants to drum up over the next five years.

The prime minister is heading to France next, where he is calling for a unique alliance with the European Union.

He is set to address the European Parliament on Thursday.

When asked for reaction to the prime minister’s plan to have private investors operate Canada’s four biggest airports, the Ford government said the expansion of the Toronto Island airport is the “perfect, shovel-ready project.”

WATCH MORE: Canada aims for $1T in global investment amid U.S. trade war