McKay: 'We bubble wrap way too many things in this country because we're afraid of making a mistake'
Canada’s largest bank chief has warned that Canada’s fear of risk and slow approvals are holding back economic growth and hurting its global competitiveness.
Speaking at a Calgary Chamber of Commerce luncheon, Royal Bank of Canada CEO Dave McKay said, “We bubble wrap way too many things in this country because we’re afraid of making a mistake.”
McKay pointed to lengthy approval timelines and repeated false starts on major infrastructure projects as key obstacles. “Time costs money. Uncertainty costs money. Therefore, it’s very difficult for us as a country to move forward on things with any degree of confidence and speed, and the rest of the world feels that,” he said.
He argued that this climate of hesitation has led companies to balk at investing capital, with some turning to the United States where projects move more swiftly.
“That capital tells you very clearly, ‘I’ve got other options.’ And even in this room, in the energy industry, those options often seem more attractive in the United States to build out energy infrastructure,” McKay said.
The comments came as Alberta announced plans to fund early work on a new pipeline to the northern BC coast, aiming to attract private sector investment. Premier Danielle Smith and industry leaders have blamed federal policies, such as the oil tanker ban and emissions cap, for deterring private proposals.
The province intends to file a proposal to the new federally created Major Projects Office this spring, hoping to accelerate approvals for projects deemed in the national interest.
McKay’s remarks also touched on Canada’s trade challenges, particularly with the US. “I don’t think that we’re going to be better off through this,” he said of ongoing tariff disputes. “I don’t know how much worse off.”
Canada’s international trade deficit swelled to $6.3 billion in August, its second-largest shortfall on record, as new United States tariffs took a heavy toll on key exports and injected fresh volatility into cross-border flows.
He warned that even if a deal is reached, the underlying US skepticism toward trade is unlikely to change. “The whole idea of the world preying on America and taking advantage of America... is not held just with the president. It’s held deeply within the ideology of the White House and of the (Republican) party,” McKay said.
To secure future prosperity, McKay urged Canada to leverage its natural resources and agricultural products to strike “grand-bargain” trade agreements with Europe and Asia Pacific.
“The royalties that will come from leveraging these deals are significant. What are we afraid of? We’re afraid of making a mistake. Therefore, how do we minimize that risk? We’ll have to accept some risks to do that, to create options for the next generation,” he said.
Industry, government, Indigenous partners, and communities must work together, McKay argued, to push projects forward and capitalize on global demand. “We bubble wrap our economy, and we’re waiting for someone else to solve it. We have to solve it ourselves,” he said.
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