Bill C-5 passes Commons amid urgency for economic growth, Carney pledges Indigenous consultation
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After weeks of opposition and criticism from Indigenous communities about the lack of consultation on Bill C-5, the One Canadian Economy Act, Prime Minister Mark Carney said he will hold full-day summits with First Nations, Inuit and Métis rights holders to launch the implementation “the right way.”
"With this bill, the word nation carries a much greater meaning. These projects will build our national economy and through Indigenous equity and resource management, these projects will be built with Indigenous nations and communities. This is not an aspiration. It is the plan embedded in the bill itself,” Carney said during a press conference Friday just after the legislation passed the House.
“To that end, I will be meeting with First Nations rights holders on July 17, here in Ottawa, Inuit leadership in late July and Métis leadership soon thereafter. I'll attend these meetings, alongside the responsible ministers, which will include working sessions and public roundtables,” he said.
The bill, which establishes a statutory framework to remove federal barriers to the interprovincial trade of goods and services and to improve labour mobility within Canada as well as fast-tracking projects of “national interest” for approval, was introduced June 6 in the House of Commons. It moved quickly through second reading at the House Transport, Infrastructure and Communities committee. The legislation was amended Thursday to withdraw the power it gave cabinet to sidestep the Indian Act to address concerns from First Nations.
In parallel, the Senate scheduled three days, June 16–18, for a Committee of the Whole review — a rare move that underscored the government’s eagerness to fast-track the bill.
Indigenous leaders and legal experts raised red flags, arguing that the bill risks undermining the duty to consult and accommodate Indigenous communities on major infrastructure projects.
‘Economic coercion’
Chief Shelly Moore-Frappier of the Temagami First Nation condemned the legislation as a violation of Indigenous rights and a betrayal of reconciliation. “Bill C-5 is not reconciliation; it is a betrayal of it,” she told the Senate Wednesday.
She warned the bill “proposes a future where extractive projects can proceed with vague consultation, without transparency and without respect.”
Chief Moore-Frappier criticized the lack of Indigenous involvement in drafting the legislation, noting, “It asserts power over First Peoples, our resources and our rights. It was developed without us.” She described the bill as “economic coercion” and a step backward to a time when “we do not have a right to exist.”
Other business, labour and political leaders appealed this week for swift passage of Bill C-5, a key Liberal Party reform under Carney.
Coalition for a Better Future co-chair and former Conservative cabinet minister Lisa Raitt, testifying as part of a non-partisan expert panel before the Senate’s Committee of the Whole, backed the bill but said Indigenous communities must be involved and consulted.
“The government is giving themselves power to be able to move these national projects along, but that’s only paper power. What the power really resides in is having the proponent and the Indigenous community be partners, quite frankly, and it’s up to the Indigenous community if they would like to be an equity partner or they don’t want to be an equity partner. It’s completely their own decision-making on it,” she said.
“Even if you have this national priority designation, without having the meaningful cooperation, participation and partnership of an Indigenous community, it’s going to be very difficult for a board to give you that final investment approval, quite frankly.”
She added: “Regardless of what is said here in the act, the onus is still going to be on companies and proponents to make sure that they do what is needed to be done, and that is to work with, obtain the consent, partnership and advice of the First Nation community as they go through their process. It doesn’t happen without them.”
Opposition is also mounting to the Building Canada Act provisions, with environmental groups warning that the fast-tracking mechanism could weaken regulatory oversight and bypass environmental assessments.
Losing market share
Business Council of Canada CEO Goldy Hyder told senators that immediate action is needed to strengthen Canada's economic and energy sovereignty. “This is an existential moment. These are not normal times that we are in. We are facing a legitimate threat — if I can call it that — to our very sovereignty, our ability to defend ourselves and our ability to have economic prosperity and growth where we control our controllables and not allow someone else to do that,” he said.
He pointed to the broader global context: “Our world-class resources — whether it’s uranium, nickel, potash, grain or oil and gas — compete in global markets. Unfortunately, we’re losing market share.”
Raitt pointed to the need for businesses to have certainty. “Yes, government has a lot of power, and there’s a lot of legislative ability, but the reality is that sometimes it’s not wielded appropriately, quickly or decisively. Business seeks that certainty. The act may be one piece of it, but actually seeing the proof of the projects being approved and put in place is what will give comfort to companies around the world,” she said.
Hyder urged that the bill’s proposed framework would help Canada “diversify and build the infrastructure,” enabling the country to respond to rising demand from global allies: “Numerous world leaders have called on Canada to help meet their demands for affordable and reliable clean energy and technologies to augment their domestic supply.” He said business leaders are not waiting for handouts — they are waiting for clarity.
He highlighted the need to streamline regulations and overcome internal bottlenecks that discourage capital investment: “Capital goes where it grows, and so as they look at Bill C-5, they see directionally, and they see good intentions and goodwill.”
Addressing worries about competition and regulatory complexity, Hyder pointed to Canada’s lagging productivity: “We’re not competitive. We have to be honest with ourselves. We’re having a hard time speaking to Canadians truthfully and candidly about the kind of country we can afford today.”
As Parliament faces a tight timeline to pass the bill before July 1, Hyder urged collaboration over conflict: “The will is there, the way is there.”
Don’t waste the moment: Former New Brunswick Premier Gallant
Former New Brunswick Premier Brian Gallant told senators Canada has waited too long to break down internal barriers: “We have a moment, and we can’t waste it.”
He said the bill works to harmonize regulatory frameworks of the provinces and the federal government to prevent duplication.
“This moment is an opportunity for Canada to step up on the world stage. The challenges and opportunities created by this moment must be met with Canada acting strategically, swiftly and boldly. This moment is an opportunity that we can’t squander,” he said. “In order to do all of this, we, as Canadians, must work closer together, be nimbler and get big things done all while creating economic opportunities for all, addressing inequalities and inequities, combatting climate change and protecting our environment, improving the health and standard of living for Canadians and advancing Indigenous reconciliation.”
Raitt agreed, saying it’s time for action.
“We have to do something. Status quo is not working. We’re falling behind, and we are going to lose the things we cherish and value in this country if we don’t do something on the economy,” she said.
“The truth of the matter is this: We have spent the last 20 years skating. Across governments, we have avoided the hard questions about competitiveness, resilience and sustainability, and now, unfortunately, we are running out of time. But we’re not out of options.”
