Parliament Resumes Debate on Bill C-39 as Defence Procurement and Energy Motions Advance
Canadian Parliament has resumed debate on the 243-page Bill C-39, which proposes one-year timelines for federal project decisions, pre-approved national interest zones, and expanded ministerial powers to intervene in labour disputes. The bill faces opposition from First Nations leaders and labour unions, while business groups argue it is insufficient. Concurrently, new defence procurement legislation was introduced to support NATO spending targets, and Conservative Leader Pierre Poilievre proposed motions to boost diesel production amid near-record-high fuel prices.
The Canadian Parliament has resumed debate on Bill C-39, a 243-page economic and labour bill that proposes a one-year timeline for federal project decisions and creates zones of "national interest" where certain projects are pre-approved. The House of Commons will create a special committee to study the legislation instead of using a regular standing committee.
Bill C-39 also changes when the jobs minister can intervene in a labour dispute, aiming to reduce work stoppages. Jobs Minister Patty Hajdu stated the bill will put "guardrails" around ministerial powers to intervene in strikes or lockouts. However, the legislation has drawn criticism from multiple sides. Business groups argue the bill does not go far enough to prevent job action, while labour organizations contend it threatens the right to strike.
Cindy Woodhouse Nepinak, national chief of the Assembly of First Nations, warned that the bill could affect First Nations rights if it limits mandatory consultation. Bea Bruske, president of the Canadian Labour Congress, stated that the International Trade Union Confederation wrote a letter to Prime Minister Mark Carney warning that the proposed labour regulations are likely to violate international labour obligations. The Canadian Union of Public Employees (CUPE) has pledged to defy Bill C-39 if it passes without amendment.
In related legislative activity, Procurement Minister Joel Lightbound introduced legislation entitled "an act respecting production, procurement and investment in relation to national defence and national security." The government aims to meet the NATO target of spending five per cent of GDP on defence annually.
Meanwhile, with average diesel prices reaching $2.60 per litre and G7 countries having released 100 million barrels of oil, Conservative Leader Pierre Poilievre proposed a motion calling for Canada to produce one-million barrels of diesel per day using emergency permits and tax relief. His motion also calls for extending the fuel excise tax exemption until at least July 1, 2027, and creating a strategic energy reserve. Canada is currently exempt from the International Energy Agency rule requiring a 90-day supply of net fuel imports because it exports more fuel than it consumes. The current fuel excise tax pause was extended last month until Jan. 31, 2027, with the tax gradually climbing back to full implementation by April 1, 2027.