Thank you so much, Mr. Chair and honourable members of the committee, for allowing me to be here today.

My name is Shaena Furlong. I'm the President and CEO of the Richmond Chamber of Commerce in British Columbia, situated on the traditional territory of the Musqueam Nation. The Richmond chamber, celebrating its 100th year in 2025, is the longest-standing business organization in our community.

As MP Bains will know, Richmond is a tremendously diverse community. It's home to Vancouver International Airport, which brings in visitors and newcomers to Canada from around the globe. Richmond's diversity extends beyond demographics to our employers, with over 13,000 businesses employing nearly 130,000 workers. The agri-food sector is significant, given that 39% of Richmond's land mass is dedicated to agriculture. Additionally, our proximity to the U.S. border, the airport and the Vancouver Fraser Port Authority make Richmond a major west coast hub for intermodal transportation and distribution. We also boast an emerging clean tech sector, key local manufacturers and a significant tourism economy.

Today I'll be highlighting some challenges faced by our employers and suggesting potential solutions identified by our chamber network.

Regulation and red tape remain a major concern. While we share the goal of making Canada attractive for investment and entrepreneurs, the regulatory burden often acts as a disincentive. In 2006, Canada ranked fourth in the World Bank's “ease of doing business” list but fell to 23rd in just 14 years, largely attributed to a challenging regulatory environment. Postpandemic, national productivity has lagged. Reforming Canada's regulatory framework is crucial to our economic competitiveness.

In 2023, the Toronto Stock Exchange saw the record net sell-off of $48.7 billion in Canadian equities, indicating a loss of investor confidence. At the same time, Canadian investment abroad has grown significantly, while foreign direct investment in Canada lags, resulting in a net direct investment position of nearly $811 billion, which is nearly an order of magnitude greater than 10 years prior.

As investment dwindles, so too does our GDP per capita. Real GDP growth was only 1.1% in 2023—the lowest since 2016—with GDP per capita now 2.5% below prepandemic levels, equating to a decline of about $4,200 per person.

Despite these challenges, there is great opportunity within Canada for major projects and emerging industries. The clean energy sector, for example, is crucial. According to the Canadian Climate Institute, achieving net zero will require electricity production to increase by 1.6 to 2.1 times. This necessitates significant growth in generation facilities, transmission infrastructure and distribution networks, requiring public support and streamlined approvals processes. The federal government's own estimates are that we currently have an investment gap of $115 billion annually in clean tech.

Unfortunately, Canada's reputation for enabling that necessary investment is a bit challenged. For instance, the Parkland Corporation recently abandoned plans for a $600-million renewable diesel complex in Burnaby, B.C., due to rising project costs, market uncertainty and the competitive advantage of the U.S. Inflation Reduction Act. The resources sector also faces long timelines and overlapping review processes. However, the 2022 critical minerals strategy's "one project, one assessment" commitment is promising and could be applied across all major projects.

The Western Transportation Advisory Council's 2024 “Compass Report” highlights the deteriorating business climate. Over half of respondents rated the regulatory environment as poor, with concerns centred on restrictive regulations and long approval processes. One respondent to that survey, representing a railway operator, said, “It is tough to invest in a geography that has unpredictable rules. At any minute, things could change, and it never seems like they change to help business.”

To address these issues, we need to take decisive, bold steps as a nation. We believe Canada can absolutely once again attract much private sector investment, domestically and from abroad, by implementing an economic competitive mandate for all federal regulators; leveraging new technologies for regulatory design and review with a focus on efficient implementation; and identifying areas of regulatory overlap. We agree that a firm grasp on the one-for-one rule, with an eye to reducing time to project approvals, is necessary.

Canada's regulatory environment presents some significant challenges to economic prosperity and our global investment reputation. However, by adopting a balanced approach to regulation that protects public interests while promoting economic competitiveness, Canada can reverse its declining productivity and investment trends.

Thank you so much for your time and consideration.