44th Parl. 1st Sess.
June 20, 2022 11:00AM
Mr. Speaker, after two years hampered by a global pandemic, Canadians are starting to rebuild. Communities large and small across the country are looking to a brighter, sustainable and inclusive future.
The Government of Canada is committed to bolstering that rebuild. The Canada Infrastructure Bank is playing an important role in that effort. The bank's innovative approach is empowering the work by provinces, municipalities and indigenous communities to bring key projects to fruition. It is doing so, from planning to design to delivery, with the added benefit of a reduced reliance on public dollars.
By leveraging the expertise and capital of private and institutional investors, the Canada Infrastructure Bank brings its investment, advisory and know-how to all orders of government, including indigenous investment partners. This is a partnership that is transforming how infrastructure is planned, funded and delivered to Canadians.
That means bringing innovative financing tools to the table. It means getting more projects built. It means advancing Canada's demonstrated success in leveraging public-private partnership, or P3, models to bring better trade and transportation, public transit and green infrastructure to Canadians, and to further broadband connectivity, develop clean power and support indigenous projects.
The G20 and OECD have for several years encouraged countries to promote more long-term private investment in infrastructure. Moreover, there are large pools of private and institutional capital available for investment, including our pension funds, that are looking to support long-term public policy priorities. The Canada Infrastructure Bank works to attract this capital to help address public policy objectives in the infrastructure space, particularly in projects that generate revenue, such as transit fares, electricity rates and other forms of revenues that support service delivery and provide the underpinning of the new innovative financing structures.
These influential organizations are now looking to Canada as a global leader in advancing the P3 model and the next generation of innovative financing and partnerships with the private sector. Stakeholders are watching and learning as the Canada Infrastructure Bank moves to deliver on its important mandate.
To date, the Canada Infrastructure Bank is actively involved in 33 projects, including the commitment of over $6.8 billion in capital, while attracting over $7.2 billion in private and institutional investment. This investment is making a real difference for projects such as rural broadband in Manitoba, zero-emission buses in communities across the country and energy retrofits in Quebec with the Société de financement et d’accompagnement en performance énergétique.
The Canada Infrastructure Bank is also supporting the advancement of key projects such as high frequency rail, helping to find innovative ways to transition Atlantic Canada off coal through clean power transmission with the Atlantic Loop, and supporting Manitoba fibre's plan to provide broadband access to tens of thousands of additional households and businesses. Realizing these vital projects will mean connecting Canadians, creating good jobs and helping us to reach our climate goals as we navigate a path to net-zero emissions by 2050.
To advance the government's commitment to close the indigenous infrastructure gap and support the prosperity of indigenous communities, the government has set a target for the Canada Infrastructure Bank to invest at least $1 billion in total across its five priority sectors for revenue-generating projects that benefit indigenous people. The Canada Infrastructure Bank has developed and implemented its indigenous community infrastructure initiative, which provides low-cost and long-term debt for indigenous community-based projects.
This initiative is designed to bring results to indigenous communities through projects that can bring greater renewable, sustainable and reliable hydro power to Canada's north and projects that support connections, such as through the maintenance and modernization of Tshiuetin Rail Transportation, the first indigenous-owned and operated railway company in Canada. The Canada Infrastructure Bank is a key resource for driving Canada's recovery and a key partner to investors banking on Canada.
Moreover, since its introduction in 2017, the Canada Infrastructure Bank has succeeded at adapting its role and priorities to respond to evolving circumstances and opportunities, enabling the bank to better support Canada's response to the pandemic and the transition to a low-carbon economy. The Canada Infrastructure Bank has done so under the stewardship of a board of directors that is skilled, bilingual and diverse, a board that benefits from indigenous representation, gender parity and representation from across Canada. Members of the board of directors are appointed through a transparent, merit-based and competitive process.
The Canada Infrastructure Bank represents a crucial conduit for communities, provinces, territories and indigenous partners seeking to get things done for Canadians. It is making a difference by enabling a number of projects to be planned, financed and constructed.
It is an innovative and effective way to spur investment in key projects, to build confidence in our economy after two years of unprecedented challenges and to work with Canadians to ensure a strong, inclusive recovery that works for everyone. It is a crucial resource to promote improved infrastructure, with a reduced need for public dollars, through collaborative efforts that leverage the expertise of each partner to meet clearly defined public needs through the appropriate allocation of resources, risks and rewards.
For Canadians this is a win-win. It is an arm's-length Crown corporation working co-operatively with all levels of government and indigenous communities to facilitate and accelerate the delivery of high-quality infrastructure through new and innovative investment models. Also, through the Canada Infrastructure Bank's innovative financial tools, it is a means to reduce the burden on taxpayers and constrained government budgets, while expanding private sector investment and promoting innovation.
It is working for investors, workers and communities. It is working for Canadians.
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Madam Speaker, I am very pleased to rise on Bill C-245, especially after about three hours of sleep due to a late flight. Thanks Air Canada. I wish we were debating something about Air Canada. I am in the mood for that right now.
Bill C-245 would nominally change Canada's failed Infrastructure Bank from a colossal, failed boondoggle that is wasting taxpayers' money to a potentially massive failure that is also wasting taxpayers' money but in a different way and under different leadership.
Bill C-245 wants to change infrastructure investment to something that is in the public interest and relates to climate change mitigation or adaptation, except we already basically have a department for that. It is called Infrastructure Canada. The idea is that we are going to take $35 billion from the failed Infrastructure Bank, move it from one failed institution and hand it over to another poorly led institution.
It reminds me a bit of the even-steven Seinfeld episode where Jerry Seinfeld always ends up even at the end of the day. He gains a friend and loses a friend. He takes $20 out of his pocket and throws it out the window, then grabs a jacket and finds $20. That is all this is. We are shuffling things from one failed department to another failed department.
We have immense problems at Infrastructure Canada. The old PBO, Jean-Denis Fréchette, who is retired now and beekeeping, and I wish him well, noted often that billions could not be found from infrastructure spending. The 2018 PBO report showed the federal government was able to reduce its deficit in 2018, which is shocking, I know. It is almost heresy for the government. However, that was only because it did not spend the infrastructure money that was set aside.
I want to read a quote from the PBO report:
The PBO has published 4 reports regarding [Infrastructure Canada]. Our previous findings indicated that data gaps existed in the tracking of federal money; planned spending lagged; job creation and economic growth was lower than anticipated; and, increases in federal spending were partly offset by decreases in provincial money.
There is limited evidence that increased federal money resulted in increased provincial spending (while federal...transfers increased by $1 billion...overall provincial [transfers] decreased by $733 million).
The Senate did a report on infrastructure spending, and it said that the only measurement for success for all this spending on infrastructure was not actual results. It was not whether it actually helped the economy. Was it whether it helped the environment? No. Was it about productivity improvements? No. The only measurement of success the Senate was able to find for Infrastructure Canada was whether dollars were spent. This bill wants another $35 billion spent by the same people, who just want to spend the money, and the only metric of success is spending the money, not achieving results.
This is right from GC InfoBase on the Treasury Board's website on results: In 2021, Infrastructure Canada only achieved 25% of its goals for 2020-21. If we think about that, this bill wants to add $35 billion more to Infrastructure Canada to not achieve targets.
I have some of the missed targets for Infrastructure Canada. Again, this is right from the government's website, GC InfoBase. It missed out on the value of infrastructure spending. It failed to achieve its goal on projects that it was committed to. Here is a good one: It failed in its goal on changes in GDP, or increases in GDP attributed to spending. Again, what is the point of spending all this money when it is failing on its goals? Now it wants to add another $35 billion.
There is another good one, and the NDP should be interested, especially given where the riding of the member for Churchill—Keewatinook Aski is. The Liberals failed on the percentage spent toward clean drinking water and percentage spent on improving transit. Again, these failures from the government and failures on infrastructure are certainly telling us we should not be moving money from this failed boondoggle to another group that shows it can fail quite spectacularly. There is another good one: The Liberals actually failed on their projects for reducing GHG emissions.
That is Infrastructure Canada. Let us move on to the other half of our Laurel and Hardy pairing, the Infrastructure Bank. The Infrastructure Bank, when we look at it, is certainly in the competition for the most inept government department.
The Canada Infrastructure Bank has a lot of competition for this top ranking, including of course PSPC, Public Services and Procurement Canada, which has managed to bungle the jet fighter procurement and the ship procurement. We found out about its buying 100 million dollars' worth of vaccines that went to waste.
Another runner-up is, again, Public Services and Procurement Canada, on Phoenix. It has been six and a half years since the Liberals pushed the start button on Phoenix and we are still dealing with that.
The Canada Infrastructure Bank is in a tight race for the most incompetent with the CRA. Of course, this was before it started taking people three hours to finally get through to a CRA agent only to have the agent hang up on them. During the pandemic, the CRA managed to send CERB cheques to dead people and send cheques overseas.
Of course, recently, number one or number two would be Global Affairs. Despite Russia committing genocide, murdering children and women and targeting civilians, Global Affairs sent a top official to the Russian embassy tea party last week.
Service Canada, of course, wants to be recognized for its incompetence with respect to passports. We gave it months of notice. I rose in this same seat several months ago with respect to the complaints. The health minister got up and commented on how hard the staff were working. We found out that two-thirds of them are still sitting at home. They may be working from home, but probably not as efficiently as is needed to get passports to Canadians.
Rounding that out with another competitor, we have CATSA through Transport Canada, which ironically oversees the Canada Infrastructure Bank. With respect to the results of its departmental plan, through the public accounts we found out that one-quarter of CATSA funding for screeners had lapsed. It kept all the bureaucrats working, but not the screeners, the ones who are hired on contract to take a look at and screen the luggage that goes through, a vitally important cog in the scheme of airports. Twenty-five per cent of that lapsed, even though in January, February and March, the final three months of the fiscal year, the department produced numbers that very clearly showed that the number of Canadians being screened was growing exponentially. I think at one point it was within 70% of prepandemic numbers, but the department let the money lapse and let the screeners stay at home. Then we found out, just last week, that the department was unprepared for the increase. It had actually released its own numbers showing exponential growth in air travel, but it was caught unawares.
Apparently, the government was also caught unawares with respect to Service Canada and passports. Who would have known 10 years ago that a 10-year passport would be expiring at this time? I certainly would not have expected a 10-year passport to expire in 10 years. Who would have possibly known that we would see an increase in travel with the pandemic? The government said it was caught off guard.
The Canada Infrastructure Bank, knowing it had tough competition, doubled down for the goal of most incompetent government department. It has been over five years and it does not have a single project built. One more year, and the Canada Infrastructure Bank will be eligible for an MP pension. Like most MPs, it also has not done much in five years. There has been $35 billion into the Canada Infrastructure Bank, and nothing has been completed. One year it actually spent more money on termination benefits for executives than on salaries in its own department. The Canada Infrastructure Bank was set up to guarantee decent returns for large for-profit companies and investment firms, not to look after Canadian taxpayers. Those companies would be guaranteed profits, while the taxpayers would be guaranteed any risks or losses.
The main project the Canada Infrastructure Bank is so proud of, the urban rail project in Montreal, has been a disaster, which is no surprise. People do not want it. The actual construction does not look at all like the design. The cost has been $7 billion and growing, and this is its best product.
I understand the intent of the bill, but I have to say it is rather silly to take money from one failed government department to give it to another failed government department. Therefore, I will not be supporting it.
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Madam Speaker, it is a pleasure to see you today, as always, and it is very interesting to debate Bill C-245 and the Canada Infrastructure Bank.
The bank is a newly designed institution. It has only been around for a few years and, even though it is still in its infancy, there is already talk about a lack of transparency and changes to the management approach and the board of directors. This institution has hardly been around for any time at all and we are already talking about the many problems with it.
The Bloc Québécois's position has always been clear. This bank never should never have existed, for the very simple reason that we did not need it. To date, the bank has basically been a failure, not because it did not fund any projects, but because it failed to do its job properly and to ensure that projects were carried out. To understand why the bank makes no sense, we need to look back at the past.
Let us go back to 2015. The current Prime Minister was on the campaign trail. He said that there was an economic slowdown and that we had to invest, in particular in infrastructure, since it was urgent that we help Quebec, the provinces and municipalities.
When things are urgent, the thing to do is to sit down with partners and finance projects. However, the government’s Liberal reflexes took over. It decided that, instead of taking action, it would waste time: It would create a new institution with various layers of public servants and invest in a big machine in Ottawa instead of delivering for Canadians.
That was what it announced in the 2015 electoral campaign and again in 2016. In 2017, the bank was legislated into being. However, it was still not in operation, and it was finally up and running when the economy was no longer in a slowdown.
So far, they have not learned from their mistakes. Since then, we have had a pandemic and another slowdown. The bank has not changed since then, and has not met its objectives. The government is once again behind in its projects. This is an example of poor service delivery and an inappropriate investment vehicle.
With his banker’s mentality, the finance minister at the time, Mr. Morneau, said that taxpayers would benefit. He said that the bank would drive job creation and economic development and that, for every dollar invested by taxpayers, it would draw four, five or six dollars in investments from the private sector. It was supposed to be a windfall.
Finally, nothing much happened, except for a few small projects that could very well have been financed more quickly using other methods, such as bilateral agreements.
If we look at the three-year growth plan of the Canada Infrastructure Bank, we can see that, by 2028, $2.5 billion will be invested in clean energy. We have a list of emergencies. At the same time, the Liberals tabled a budget in which they plan to invest—surprise, surprise—$2.5 billion a year, and not by 2028, in dirty energy. They are investing $2.5 billion in clean energy through the Canada Infrastructure Bank with their right hand and doing five times worse with their left.
That is what we call an inconsistent government. The Liberals are investing $1 in clean energy and $5 in dirty energy, and then they will tour the country this summer saying that oil is green. That is our federal government for you. They are investing $2.5 billion in broadband connectivity projects. The digital transition should have accelerated during the pandemic but, because we were wasting time with the Canada Infrastructure Bank, we were unable to speed up the process.
They are also investing $2 billion in building upgrades. These projects are closest to those on the ground, closest to the people, while the federal government is the level of government farthest from the people. The government thinks it is smart to invest like that.
There were a few good projects. I know that the hon. member for Winnipeg North will be talking about zero-emission vehicles. There were also good projects in Ontario, but that is not enough.
Here is what the Liberals did: They made a list of emergencies and created a huge bank. After years of wasting time, the projects were not carried out in time. However, the Liberals told us that they were urgent. Today, when we look at the institution’s performance, we can see that all of this was so urgent that they did not meet their commitments. That is exactly what happened with the bank.
No one can ask us to like the Canada Infrastructure Bank, because we like our people, we like Quebec, we like our infrastructure projects and we like our economy. That is why we do not like the Canada Infrastructure Bank.
Today, we are in a situation where they will try to meet their targets. They have money to spend and they have to meet their targets. They are looking for projects, because there are not enough of them.
I will give the same example as the Liberal member just gave, namely the famed high-frequency rail line between Quebec City and Windsor. This is not a high-speed train. It is a bad project. Everyone wants a high-speed train, but everyone is resigned to never getting anything from the federal government. We will therefore get a tortoise that passes by twice as often and we will be told that it is a great project.
The project, which is supported by the Canada Infrastructure Bank, will prove to be a bad risk for taxpayers and a good risk for the private sector. The project’s sponsor, VIA Rail, has decided that we should privatize the public infrastructure in the profitable corridor. However, the key mission of the government, that is to say, projects that provide a public return, will be paid for by taxpayers. They will privatize the good part and leave the bad part for the taxpayers.
Things are so bad that, in the last budget, the Liberals had to set aside $400 million in public funding for the project. We asked public servants what was going to happen with the $400 million and they said it would be used to find partners for the train project. I do not know of any functioning bank that has so few projects or friends, or that operates so poorly that it has to invest that kind of money to find partners. When you have to spend $400 million to find friends, maybe you need to change the way you do things.
The same is true for the REM light rail project. It did not need the Canada Infrastructure Bank. Normally, this would have been a Quebec government project. Investissement Québec would have bought shares, and the federal government would have helped. It would have been done quickly and properly, in a bilateral manner. We have a loan for the REM here, but this could have been done more efficiently without the new layer of administration in the federal government.
That is quite the bank we have. It is slow and does not meet its objectives. The Parliamentary Budget Officer said that the Bank of Canada would likely never be able to disburse the $35 billion it has to spend by 2028. There is now a $19-billion discrepancy. This is $19 billion for emergencies, according to the Liberals, that will never be used to meet the needs on the ground for the people who really need infrastructure. The bank does not work.
Now, if we are going to have a bad bank, we might as well improve the way it operates. That is why Bill C-245 is interesting. There is a lack of transparency in the management of these funds and in the reporting to the House. Even the Parliamentary Budget Officer said that the Canada Infrastructure Bank did not provide information or respond when his office tried to evaluate its performance, on the grounds that it was keeping trade secrets confidential. The bank is becoming like Export Development Canada, which is one of the major funders of oil projects in Canada and which also hides behind supposed trade secrets.
Another positive aspect of the bill is that it requires that the board of directors include indigenous and Inuit members. The idea behind this is that we are our own best advocates. This proves that the Canada Infrastructure Bank is not listening to people on the ground, and that is the least of it. I would be surprised if the Liberals did not support this bill for that reason.
The Canada Infrastructure Bank was supposed to be a miracle. My grandfather, and I am sure many others, used to say that if something looks too good to be true, it likely is neither good nor true.
The federal government is capable of meddling in Quebec's affairs. It has been no better at delivering infrastructure through its Canada Infrastructure Bank than at managing passports, airport services, unconditional health transfers or the temporary foreign worker program, as Quebec and the provinces have been calling for.
This is a reminder that Quebec must be in charge of its infrastructure projects, that the federal government needs to be smaller and that it needs to provide the money to Quebec and the provinces.
As Quebec's national holiday approaches, I want to take this opportunity to remind members how important it is for Quebec to have all of its revenue and resources and that it be the master of its own destiny. This bank serves as a reminder that Quebec must be free. Vive le Québec libre.
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Madam Speaker, I am here today to speak to Bill C-245, an act to amend the Canada Infrastructure Bank Act. I want to thank the member for Churchill—Keewatinook Aski for bringing this bill forward. I am very proud to stand in the House to speak in support of it.
The bill looks at something that is fundamentally important. It would take the Canada Infrastructure Bank Act and change it to focus on things that matter. The thing that matters most right now in this country is addressing the realities of climate change.
It is on the record since 2016 that I am not in support of the Infrastructure Bank. I am tired of seeing public money going to support private infrastructure and making the wealth of those few grow while the rest of us struggle. To me, it just makes sense that we have profound support and input into public ownership of public infrastructure, especially as we take on the crisis of climate change. If we are going to be serious about addressing this issue, we need to look at how we are going to adapt and respond in local communities, and make sure that those areas are recognized. We do not see that happening in this country right now under the leadership of the Liberals.
I come from a large rural riding, and one of the biggest challenges is transportation. A lot of people in my communities have to take one or two ferries and drive a long distance to get to the health care supports they need. There is very little support for bus services or for looking at how we are going to get people from one place to another in a safe and affordable way. This continues to be a massive concern and one that this bill addresses. This bill looks at the reality that more needs to be done, and it looks at taking the priorities of the Infrastructure Bank and supporting communities.
In the last Parliament, I put forward Motion No. 53. That motion talked about the fact that we are not seeing enough sustainable funding and resources going to smaller communities across the country to respond to the changes that we are seeing in the climate.
We are also not seeing funding to support adaptation to, and mitigation of, what is happening in the climate, or to address the issue of making sure there is sustainable employment in our areas. We need to have the climate addressed by local solutions. The people in communities and regions know what they know, and what they know often works. My motion, similar to this bill, also brought forward the idea of making sure that at every step, we acknowledge and recognize UNDRIP and look at following the leadership of indigenous communities across the country. We need the voices of rural and remote communities, and of indigenous communities, to actually be heard because they are on the front lines. As we look at what is happening in our country, we see that they are on the front lines of climate change and its impacts.
I live in B.C. Our region is seeing the impacts of climate change significantly. Last year, we saw heat domes that killed so many because we were not prepared for that level of heat in our region. We saw excessive and extreme flooding that wiped out whole highways and made areas inaccessible. We actually had to have the military fly in and take out people who were stranded in their vehicles. They could not get out because those areas were completely destroyed. We have seen forest fires eliminate a whole community and threaten so many more. This is the new reality that we are living in today, and it concerns me greatly because it is expensive and it is threatening our way of life.
What is frustrating to me as well is the fact that we are not seeing the level of action that we need to see from the current government. For the past six years, the Prime Minister has pretended to care about the climate crisis, but at the same time his government has looked at raising subsidies for oil companies. They are higher now than they were under former Prime Minister Harper. Over $4.5 billion in public money was used to buy a pipeline, and we do not even know where that is going to end.
Canada has the most GHG emissions per capita in the G7. Greenhouse gases emitted by the government have increased by 11%, and Canada is the only G7 country where GHG emissions have increased since the Paris Agreement: so much for our Prime Minister standing in that place saying that Canada is back. We are not back. We are not doing what we need to do to invest in a future that is safer for our children, and we are not investing in a future that leads us to opportunity for business and growth, because the future will be dealing with the climate. We have already pushed things that far.
It is time for action. It is time for a vision, and this bill addresses these very important issues. We need solutions that focus on growing and sustaining the wealth of everyday Canadians and not just the top 1%. One part I spoke of earlier that is so pivotal to this bill is following the leadership of indigenous communities in this country.
The first people of this country need to be at every single table, and this bill would assure that this is the reality. We need to listen to those voices, we need to listen to traditional knowledge and we need to accept that there is a long history of awareness in regions all over Canada that only indigenous voices can bring to the table.
We also have to acknowledge that, when it comes to adapting to climate change, indigenous communities are largely underfunded for basic infrastructure. I think of the Dzawada'enuxw in my riding up in Kingcome. It is a very remote community. They have been facing immense flooding from the river for multiple years, and they have been very clear that they need an access road so they can get to the ocean in case the community floods, as it has. I want members to understand that they have been building their houses up every year to address the fact that their whole community is being flooded, and all they need is a road so that a boat can come to get them. Right now, their only solution is to stand and wait for a helicopter to land on a pad, which means only a few people can be taken out at a time. This leads to higher risk, and we do not see any support in that. Exactly what this bill would say is that we need to address these issues.
I live in, work in and serve communities that are small, rural and indigenous, and I will tell members that the leaders of those communities are often working very hard with their staff to write the proposals and do the work that needs to be done so they can get the support they need. Often, when they are trying to find the resources to do those key things they do not have them, and the complex processes do not acknowledge the different sizes of communities.
This bill really would open the door for these communities to have a voice. We know there is $35 billion in the Canada Infrastructure Bank. This is so important, because we need to start addressing these really important issues.
I think I will end there. All I can say is that this bill would make a difference for communities trying their best to adapt to a climate that is going to win. If we do not take action soon, we are going to see devastation, and all of us will have to take a part of that responsibility.
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Madam Speaker, I thank my friend for North Island—Powell River for that excellent speech. I also want to recognize my colleague for Churchill—Keewatinook Aski for bringing forward this important bill that we are debating today.
There are a couple of things I want to do in the next 10 minutes. First of all, I want to take us down memory lane to talk a bit about the infrastructure bank and what it has achieved, and more importantly what it has failed to achieve, over the past five years. I also want to talk about the infrastructure context and the needs of communities.
We are debating this bill in the context of an infrastructure crisis in our country. The infrastructure deficit in Canada is estimated at $150 billion. The AFN estimates that the infrastructure deficit in indigenous communities alone is at least $30 billion, and we have this deficit in the face of a global climate crisis that is pounding our country. Communities are feeling the effects more and more every year, and the damage and the implications for our infrastructure are only going to get more severe as time goes on, so this is a very important topic to be discussing.
I would also note that the Standing Committee on Transport, Infrastructure and Communities just recently tabled a report in the House with a single recommendation: to abolish the Canada Infrastructure Bank altogether. The bill we are talking about today proposes a different route. It proposes to reform the enabling legislation so that the Canada Infrastructure Bank can recover from its many failings and troubled track record, and meet the infrastructure needs of Canadian communities.
I thought perhaps we could go back to the origins of the Canada Infrastructure Bank, because I think it is very illustrative and speaks to the strategy that the Liberal government has tried to employ in addressing infrastructure. Of course, this all started with a meeting at the glitzy Shangri-La Hotel in Toronto, where the Prime Minister invited the who's who of private capital. I believe Blackrock even wrote the PowerPoint presentation for the government at that meeting. The promise was a simple one: that public infrastructure could be used as an opportunity to deliver private returns of 6% to 7% for these investors. Of course, that was a promise that this government has not been able to deliver on, I would say thankfully.
Early in the bank's five-year history, it tried to get a pilot project going in the small community of Mapleton, Ontario, to prove that its vision of public-private partnerships and using public infrastructure as a private-profit opportunity could work for communities of all sizes. Mapleton had a very important waste-water and drinking-water project that it needed funding for. The bank came in. It put $20 million on the table, and promoted the approach of bringing in a private investor to deliver these critical public amenities at a profit.
I come from a community not dissimilar in size to Mapleton, so I know how important those conversations are. Members of that municipality engaged in good faith with the bank. They spent a whole bunch of time and a whole bunch of money assessing the risk and value of the approach that the bank was proposing. In the end, they came away and said, “The risk is too great, the value is not there, and it is going to cost our taxpayers more”, so they chose to go with a more conventional financing model for that important project. Of course, they were left with legal fees of over $300,000, and at the end of the year ended up posting a significant deficit to which that contributed significantly. The private-public approach that the Infrastructure Bank was touting certainly was not a Shangri-La for the community of Mapleton, Ontario.
At the transport and infrastructure committee, we did a detailed report on the bank's track record to date. We heard from expert witness after expert witness. We heard from academics, unions and communities. Many of them were telling us that this public-private approach to infrastructure results in two things: higher costs for Canadians and longer project timelines and delays.
The PBO, in a recent report, had some very critical words about the track record of the Canada Infrastructure Bank. His report said that, “funding delays are pervasive for public-private infrastructure investors.” This should give us all pause because, of course, we know that we need infrastructure to be delivered in a timely way. Communities are depending on it.
Now the next project, of course, that we are talking about when it comes to the Canada Infrastructure Bank is high-frequency rail. My colleague here from the Bloc spoke a little bit about that project. It is incredibly concerning. The Canada Infrastructure Bank has been a part of the design of that project since the very beginning through the joint project office, so we are talking about high-frequency rail on Canada's busiest passenger rail corridor from Toronto to Quebec City.
This is a very important infrastructure project. Canada is way behind the rest of the world when it comes to rail transportation. The Liberal government insists that it has to be a part of this model, this failed model of bringing in private investors. Back in March, it put out an expression of interest for a private partner to design, construct and operate passenger rail on that critical passenger corridor between Toronto and Quebec City. Going back to the expression of interest documents, there is a very telling statement saying, “the Private Partner is expected to receive income from the farebox and other ancillary income.... These combined revenues will be used to pay for operating expenses, to service debt and to provide equity returns”.
This passenger rail corridor contributes a huge amount of revenue to Via Rail, Canada's public passenger rail provider. What is going to happen to Via Rail when the Liberal government hands over this busy passenger corridor to a private investor? We can look to the U.K. In the U.K., the House of Commons Library just tabled a report on rail privatization in that country. They found that, since rail was privatized in 1995, the cost to passengers has gone up 20% in real dollars.
Again, we are seeing evidence that this approach of trying to deliver private profits using public infrastructure has to be paid for somewhere. It is going to come out of someone's pocket, and the pockets it will come out of are those of the users of that infrastructure, the people who need to use the train to get to where they need to go, the people who need to use the infrastructure every day. We are very concerned that that project is not going to deliver what Canadians need. It is an important opportunity. We cannot take that risk.
I talked a little bit about the failings of the bank. I do not want to belabour that. I could easily use up 10 minutes just going through all of the many critiques in the media and the evidence that we heard at committee. However, the reality is that we have to get this right. We have to get the infrastructure right. That is why this bill is so important.
This bill goes into the enabling legislation for the Canada Infrastructure Bank and it does four key things. The first would be to replace the mandate of leveraging private capital and delivering private profits. It would replace that mandate with a focus on rural, remote and indigenous communities because we know that their infrastructure needs are so huge right across this country. The second would be to explicitly set out the mandate of the bank to focus on responding and tackling the climate emergency, which is probably the biggest threat to Canadian infrastructure that we face. The third would be to reform the governance of the bank so there would be indigenous representation. That is important, I think, for any of our institutions, but particularly for one that is going to focus on the needs of indigenous communities. The fourth would require the bank to report regularly to this place, so we can have accountability and ensure that the bank does not suffer from the many failings and shortcomings that we have seen over the past five years.
I represent northwest B.C. It is entirely a rural and remote part of this country. There are so many communities that have critical infrastructure needs, from the village of Klemtu, which needs to replace its power lines, to the Heiltsuk, where they need to build a governance building. They also have an ambitious climate action plan. Smithers has waste water and drinking water projects that need to be built. In Takla and so many other indigenous communities, they are struggling to build housing. There is shoreline erosion in communities such as Old Massett. Skidegate has waste water needs, and Prince Rupert, one of the biggest cities in the part of the world that I represent, has an infrastructure deficit in the hundreds of millions of dollars.
Communities need this bill. They need the Infrastructure Bank to succeed. I appreciate having had the time to speak to how that might be done.
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Madam Speaker, I rise today for the second time to proudly speak to my bill, Bill C-245, an act to amend Canada's Infrastructure Bank, with a plea.
Time is running out, and our communities need help. It is clear the climate emergency is here. Our region is already being hit hard. Yesterday, in Winnipeg, we saw record high temperatures. Over the last month, Peguis first nation has seen unprecedented flooding. First nations such as Tadoule Lake had winter storm warnings in June, and we are already experiencing extreme forest fires, which have caused extensive damage. In parts of Ontario and Quebec, tornados and severe storms have been wreaking havoc the last number of weeks.
The bill is rooted in this reality, the reality that communities on the front lines, particularly indigenous and northern communities, need action to survive climate change now. Since I tabled this legislation, I have heard from many indigenous and northern leaders across the country who have advocated tirelessly for federal support, support they have yet to receive. I have also heard from many who have reached out to the Canada Infrastructure Bank only to be rejected.
I have heard stories of first nations that were refused funding to upgrade a community hall in desperate need of fixing because they could not show the Canada Infrastructure Bank how it would be profitable, and of a northern community that was trying to switch off from diesel and were told to apply for solar panel funding without any recognition of the infrastructure needed to transition the community.
Communities do not need band-aids. They want to work with government to build infrastructure that mitigates and adapts to the increased precarious realities they face. Two first nations in our region, Poplar River and York Factory, have been left stranded in the last few weeks. It is clear they need all weather roads.
The government might show up to put a on band-aid for a short-term solution, but that is it, and we continue slowly and surely down a path, and we know where it ends. This is not how the federal government should be governing. Canadians deserve better. Communities at the forefront of the climate crisis deserve better. Time is running out and communities need our help.
Instead of getting that help, indigenous and northern leaders, and advocates can tune into this debate and hear the Liberals tell us that the Infrastructure Bank is doing great and that nothing needs to change. It is business as usual.
What we heard from the Liberals today on the bank is pure fiction. Communities know it. Canadians know it. The bank is a corporate welfare scheme. It is not doing the job the Liberals promised it would. Ironically, this week marks five years since the bank was founded. Five years later, the bank does not have a single success story to point to. It has given plenty of ammunition to those that were critical from the beginning, and it reinforces what many of us believe, which is that Liberals are more concerned with helping their wealthy friends than standing with Canadians.
In committees, in the House and in private meeting with Liberal MPs, I have consistently heard an acknowledgement that the bank is not what the government hoped for. We in the NDP have made serious propositions to fix it so it is there for the communities that need it most. We believe that public ownership is a critical tool in taking on the climate crisis. We believe that reconciliation ought to mean investing in critical infrastructure in indigenous and northern communities.
We cannot afford to miss this opportunity. When this historic agreement between the NDP and the Liberals was signed, there was talk about our shared principles on the environment and reconciliation. The Liberal opposition to our bill flies in the face of the spirit of that agreement. It used to be that the Liberals would steal good ideas from the CCF and the NDP. Now they cannot even see the value of a good idea in front of them.
The bill has unprecedented support, and for that I am thankful, from indigenous and northern leaders, climate activists, labour leaders, economists and Canadians from coast to coast to coast. We need to wake up. The world is burning. Indigenous and northern communities are fighting to survive. We do not need the Liberal greenwashing.
Indigenous and northern leaders are fighting for a better future. We cannot miss the opportunity to create a livable future for the communities that are already on the front lines. I hope that members of Parliament will read the hundreds of letters they have received from constituents and communities on the front lines. Time is running out. Our communities need help. Bill C-245 is a step in that direction.
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- Jun/20/22 2:50:20 p.m.
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Mr. Speaker, an investment in recreational and sports infrastructure is an investment in the health and well-being of our constituents.
Could the minister update us on what he is doing to give Quebeckers access to safe, sustainable facilities that promote recreational and sports activities in our communities?
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- Jun/20/22 3:57:05 p.m.
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Mr. Speaker, I have the honour to present, in both official languages, the sixth report of the Standing Committee on Transport, Infrastructure and Communities, entitled “Targeted Infrastructure Investments to Influence Social, Economic and Environmental Outcomes”.
Pursuant to Standing Order 109, the committee requests that the government table a comprehensive response to this report.
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- Jun/21/22 12:06:46 a.m.
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Mr. Speaker, I want to start by quickly acknowledging the work of an incredible organization in my riding.
I am very pleased to highlight the incredible work of the Société francophone de Victoria, which serves more than 5,000 people who speak French in Victoria. In addition to promoting, representing and protecting the French language and culture, this organization has created spaces that foster inclusion and celebrate expression. From June 21 to August 18, it will hold Rendez-vous Victoria, a community event with music activities and performances, all in French.
To support its objective of creating an inclusive francophone community space in the downtown area, the Société francophone de Victoria has applied for federal funding to help buy the building it currently occupies and make it more accessible. I am very grateful to this organization for its passion and dedication, and I am asking the government to support its work.
Now I will get to a critical issue.
Last week, we found out that internal documents from Environment and Climate Change Canada and Natural Resources Canada showed that the Liberal government’s climate plan and targets are not feasible. Sadly, it is not surprising. Canada has never met a single climate target it set. Under the Liberals, Canada has the worst record in the G7, and Canada has the worst track record in the G20 when it comes to handing out public money to oil and gas companies.
It has now been three years since the Liberals declared a climate emergency, but they are still not taking action at the scale or speed required. Their claim that they could reduce oil and gas emissions while increasing oil and gas production never made any sense. It is clear that we will not meet our targets by relying on costly, unproven carbon capture technology, technology that those same internal documents called “high risk”.
The Liberals’ emissions reduction plan only aims to meet the low end of their target to reduce emissions by 40% to 45%, which is not adequate. It does not leave any room for error, yet they are relying on “high risk” carbon capture technology.
The IPCC is clear that the world urgently needs to move away from fossil fuels and make significant investments in renewable energy if we have any hope of securing a livable future. They have also warned against relying too heavily on carbon capture. They point out that it is one of the most costly and least effective options.
Renewable energy technology is ready and available, and over the past decade the costs have decreased significantly. The International Energy Agency reports that wind and solar are the cheapest sources of new electricity generation in history, and their cost continues to drop. If we are going to meet our climate targets and avoid the most catastrophic consequences of the climate crisis, Canada needs to dramatically boost investments in renewable energy.
These investments, along with strengthening grids and electrifying infrastructure, not only help us fight the climate crisis, but also create good, long-term jobs for Canadians. Instead of investing in renewables and in a just transition for workers, Canada continues to hand out billions in public financing to profitable oil and gas companies.
Will the government commit to ending all fossil fuel subsidies, stop funnelling billions of dollars to profitable oil and gas companies through a carbon capture tax credit and instead invest in real climate solutions?
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