44th Parl. 1st Sess.
April 6, 2022 02:00PM
- Apr/6/22 2:38:39 p.m.
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Mr. Speaker, for years now, one of our top priorities has been making life more affordable for Canadians.
Extreme weather events, supply chain issues, war in Ukraine and the end of the pandemic have all driven food prices up worldwide. We are taking important steps, such as launching the local food infrastructure fund, which will support community-based, not-for-profit organizations with a mission to reduce food insecurity.
We will continue to be there to make responsible investments in families and growth, to be there for Canadians, in contrast to the Conservatives' proposed austerity.
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moved that Bill C-245, An Act to amend the Canada Infrastructure Bank Act, be read the second time and referred to a committee.
She said: Madam Speaker, I am proud to rise in the House to speak to my private member’s bill, Bill C-245. It is a bill that would amend the act of the Infrastructure Bank of Canada, a bill that would use public ownership in the fight against climate change, and a bill that would give hope to communities like the one I come from, the ones I represent and the ones across our country that are already paying the price for climate change.
This bill would provide a new avenue for indigenous communities, northern communities and all Canadians to develop the infrastructure they need right now.
The climate crisis is on our doorstep, and what we are hearing back home in the north is alarming. The permafrost is melting and jeopardizing our municipal infrastructure. Thousands of people rely on temporary winter roads to receive deliveries of heavy equipment, but the season for using them is getting shorter and shorter. These communities need help dealing with climate change before it is too late.
Meanwhile, the Canada Infrastructure Bank has failed. Not a single project has been completed, and billions of dollars are sitting unspent.
As the UN Secretary-General said this week, time is running out. We must use all of the tools at our disposal to tackle the climate crisis. The bill I am proposing today is part of the solution.
This past September, I sat with the chief and council of Pauingassi First Nation at the hotel in Winnipeg where they had been evacuated. They were into the third month of their forced evacuation from wildfires raging in eastern Manitoba and northwestern Ontario. This was their third evacuation in four years. This time it lasted four months.
We sat in one of the hotel meeting spaces that had been converted into a makeshift school. The leaders and principal of the school shared their concerns. “These fires are only getting worse,” they shared. “We need support to keep our communities safe,” they said. Pauingassi is one of two first nations in Manitoba that, despite years of advocacy, does not even have an airport. They have no all-weather road and no airport. “We felt trapped,” they said.
Pauingassi lost community members during the time of the evacuation. Many community members were desperate to go home, and when they got home, they found hectares of their traditional lands devastated. Traplines were gone and cabins had burned to the ground. A way of life was under threat.
Last summer saw a series of devastating climate events. Perhaps the one that received the most attention was the burning to the ground of Lytton, in British Columbia. The excruciatingly high temperatures of the heat dome created the conditions of a fire that engulfed a village, a community, lives and livelihoods. As Edith Loring-Kuhanga, school administrator for Stein Valley Nlakapamux School in Lytton, said, “The extreme temperatures of 49°C-plus leading up to June 30 contributed to the Lytton Creek fire that destroyed the Village of Lytton in 25 minutes and burned many homes and businesses on IR 17, 18 and 22 of Lytton First Nation and the Thompson-Nicola Regional District. Our lives were forever changed on June 30. Nine months later, those who lost their homes continue to be homeless and struggle with high anxiety and PTSD as they continue to reconnect with their families, culture, way of life and the land.” To this day, Lytton is still waiting to be cleaned up and rebuilt.
Pauingassi, Lytton, Little Grand Rapids, St. Theresa Point, Shamattawa, Thompson, Iqaluit, Old Crow, The Pas, Fort Chipewyan, Prince George, Pinaymootang First Nation, Peguis, Inuvik, Uashat-Maliotenam and Happy Valley-Goose Bay: this bill is for all of our communities. These communities have been sounding the alarm on climate change for some time. They have been clear on what they need and what we need to mitigate and adapt, and they are communities that have been ignored. This must change. Time is running out.
Just this week, the IPCC came out with a damning report highlighting the absolute urgency needed to fight climate change. The report outlined the need to ditch fossil fuels. UN Secretary-General Antonio Guterres described the report, but just as easily could have been talking about the Liberal government record on climate change, as a “litany of broken promises” and “a file of shame, cataloguing the empty pledges that put us firmly on track towards an unlivable world”. He said, “The jury has reached a verdict. And it is damning. We are on a fast track to climate disaster.”
There have been many reports and many words, but not enough action. The Liberals continue to maintain the anti-science fallacy that fossil fuel investments will pay for a clean-energy transition. The government has given more to oil companies than even the previous Conservative government could have dreamed of. We are, shamefully, the worst G7 country when it comes to GHG emissions, and at a time when we should be supporting the transition to green energy, dozens of northern communities in our country are running on dirty diesel.
Time is running out. We must act now. It is time that we commit to investing in indigenous and northern communities and all our communities in supporting their efforts for a just transition by supporting this legislation, because it is that important. The infrastructure needs are that important.
A recent report claimed that the infrastructure gap for first nations is conservatively estimated at $25 billion to $30 billion, yet many of the infrastructure needs we see are for projects between $1 million and $25 million. Bluntly speaking, slapping a profit requirement on Infrastructure Bank projects locks communities like the ones I represent out of these dollars. Do their infrastructure needs not matter?
Chief Owens of Pauingassi First Nation said, “We have already seen the effects of climate change over the last few decades. It’s real. I was surprised in conversations with Niki to even hear of Canada’s Infrastructure Bank. We’ve never heard of it. We’ve never been able to use it. Investments to connect us with the rest of the country or help us deal with fires we would like to see, and this bill would help with that.”
Chief Redhead is from Shamattawa First Nation, a community that as been failed by Canada time and time again. It deals with massive infrastructure gaps, a housing crisis, tuberculosis outbreaks as a result of the housing crisis and a recent COVID outbreak that was so bad that the military had to be sent in. In regard to this bill, he said, “One of the benefits of seeing this bill pass would be the ability to connect Shamattawa to the main hydro line. Right now we’re dependent on burning dirty diesel for the entire community. It’s 2022 and it’s time to bring communities like Shamattawa into 2022. I’d really like to see this bill pass and for all parties to support it so we can make real change in the fight against climate change.”
Chief Flett of St. Theresa Point has talked about the need for an all-weather road system to the Island Lake Region, given the melting ice roads and the chance to cut down on the carbon footprint that comes from an absolute reliance on air travel.
We have heard from leaders about water pipes breaking down in their communities because of melting permafrost, radio towers snapping because of the weight of record snowfalls, historic droughts and unpredictable flooding.
In discussions with indigenous, territorial and northern leaders, we repeatedly heard about how they want to move forward with mitigation and adaptation. We also heard how hard it was for them to access any federal dollars. Overwhelmingly, there was a sense that the federal government existed to serve the needs of the southern part of the country, if that.
In conversations with some of my Liberal colleagues in advance of today, I heard concerns that there are other federal institutions that can do this work, that can fund these type of projects, but the reality is that they are not. That is why so many of these communities are in such dire straits.
If we acknowledge that the need is great, if we acknowledge that current institutions are not getting the job done, why do we not use Canada’s Infrastructure Bank to do the job we originally wanted it to do? We cannot afford to wait in terms of climate, and we certainly cannot afford to wait when it comes to people. If not now, when?
It is clear that the Canada Infrastructure Bank is not living up to its promise. We are talking about a Crown corporation with a budget of $35 billion dollars that has yet to complete a single project in almost five years of existence. A recent PBO report said it would not even spend half its money. In the infrastructure committee study called for by my colleague, the MP for Skeena—Bulkley Valley, witness after witness made it clear that the bank in its current form does not and cannot work, yet when the bank was first established, many folks were excited. Robert Ramsay, senior research officer at CUPE, described the excitement when they thought that they were hearing about the creation of a public infrastructure bank that could invest in desperately needed infrastructure across the country. This has not been the case. The reality is that the bank is refusing to do the work that it promised to do.
At committee, the PBO reported that the Canada Infrastructure Bank had only approved 18% of the projects it considered, with one of the most common reasons given for rejection being that the projects themselves were not considered big enough. This bill would fix that. It would prioritize the infrastructure needs of the communities the bank claims to be working for.
The bank's privatization agenda has been a key part of the problem. There was a consistent feature of testimony at committee from witnesses, including Canadians for Tax Fairness, the Canadian Union of Public Employees and the Council of Canadians, that public-private partnerships, particularly ones that include private operators collecting revenues through user fees, inherently raised questions about which projects are selected. They questioned whether Canadians can be satisfied that an infrastructure project is being funded because it serves the greatest public interest and not because it offers the highest rate of return for private equity providers.
Mr. Sanger testified:
The only purpose that P3s fill is to engage in some off-book financing and provide private finance with lucrative low-risk investment opportunities that taxpayers will cover for decades to come. If these projects are really privatized, we will undoubtedly end up with some really inadequate infrastructure....
In Mapleton, Ontario, it took public outrage to stop the Infrastructure Bank from privatizing water services.
As Angella MacEwen, a senior economist at CUPE, said, “The most critical infrastructure needs in Canada aren’t ones that work with a profit attached to them. It’s basic infrastructure that is needed for communities to go about their daily lives. It should be publicly financed and publicly owned so it benefits the most people. I’m really excited to see this bill. This is what we’ve been asking for at CUPE and the broader labour movement: for the bank to move in this direction.
Along with its privatization agenda, there is a lack of transparency from the bank. At committee, Parliamentary Budget Officer Yves Giroux discussed the bank's refusal to share information, saying that the bank was probably less transparent than the Department of Infrastructure. He also pointed out that parliamentarians had yet to receive a full status update on the bank because the government has not kept track of information on all funded projects. This is obviously unacceptable.
Through this bill we are also calling on the bank to include first nations, Inuit and Métis voices in its governance. If we acknowledge that the greatest infrastructure gap in the country is within these communities, it is frankly inconceivable in 2022 and in an age of reconciliation that these communities do not have a say in what is happening on their land.
It is clear that the foundations of the Canada Infrastructure Bank must be rebuilt. We can do this work. We know that the fight against climate change requires bold collective action. It requires the leveraging of public investment in historic ways. Crown corporations are key tools in this fight. Our Crown corporations belong to us, the Canadian people, and they ought to be leading players in the fight against climate change. Today we can start with the Infrastructure Bank. The Infrastructure Bank can be the solution and not a tepid part of the problem. I urge my Liberal colleagues and indeed all members of the house to be part of that solution. The bank should be issuing green bonds, as many have called for. Let us let the CIB be a driving force in the fight against climate change, in the fight against the infrastructure gaps our communities face.
Rather than allocating public funds to be used by the private sector, which will prioritize profits, let us direct that money to the communities that are struggling to survive in the midst of a climate emergency. Let us use all levers of government and put them to work for the people. Let us create green jobs. Let us join forces with indigenous peoples who are experiencing the climate crisis firsthand. Let us identify all of the government's underperformers, like the Canada Infrastructure Bank. We need to do this for the survival of our planet.
My message to the Liberals is clear: If they want the Infrastructure Bank to live up to its promise, make these changes.
My message to all MPs in the House is clear: If they believe communities across our country deserve federal investment as they take on the climate crisis, vote for this bill. If they believe we need bold action to take on the climate emergency, vote for this bill.
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Madam Speaker, over the years one of the things that I have learned is that the demand for infrastructure dollars far outweighs what the federal government and provincial governments could actually put together in any given fiscal year. I can recall years ago talking about the billions and billions of dollars for the city of Winnipeg alone for street reconstruction, and it was not all of the streets, just those that were in very high demand.
Does the member believe that even the combined public purses of federal, provincial, municipal and indigenous governments have enough in their budgets today to cover the costs of the infrastructure that needs to be built?
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Madam Speaker, I want to be clear that this bill would reform one of our Crown corporations, which has a stated objective of addressing the infrastructure crisis in our country, an objective it clearly is not fulfilling. It is sitting on $35 billion, but has not produced any final results to show for it.
What we are saying is this: Let us leverage public investment, along with other levels of government and public institutions, to meet the urgent infrastructure needs, particularly in the face of climate change. Other countries do this kind of work. Canada is way behind, and it is time that we show leadership, including through the effective use of the Canada Infrastructure Bank.
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Madam Speaker, infrastructure is such an important topic. When we formed government, there was a significant commitment by the Prime Minister and the Liberal government, for the first time in a long time, to truly invest in infrastructure. I can recall standing in the House talking about historic amounts of money being invested in Canada's infrastructure, and I explained then why that was so important.
One of the features that were over and above the types of investments we were talking about was the idea of the Canada Infrastructure Bank. I believe the Canada Infrastructure Bank will be permanent and will continue on well into the future. Where I am a little disappointed, although not necessarily, and where I ask that additional consideration be given to the idea of this Crown corporation, is with respect to the issue of timing.
The member says, for example, that no projects are under way that have actually been finalized. However, when we do a quick Google search, there is a very quick find right away. We get the City of Brampton, for example. It looks like it will be able to conclude a deal for well over $400 million, which will see 450 zero-emission buses going to that community. I suspect that the Canada Infrastructure Bank is playing a critical role in that.
I think the government has demonstrated its willingness to look at ways in which we can build our infrastructure. Even when we passed the legislation, it was agreed back then that there would be a review of the process and what has taken place. That is supposed to be coming up in 2022, later this year. When we talked about this in its creation, a great deal of time was spent talking about trade and transportation and that infrastructure. Canada is a trading nation.
We talked about public transit, and Brampton is a good example of public transit. We talked about green infrastructure too. This government has talked more about green infrastructure in the last couple of years than the previous prime minister did in 10 years. We can take a look at some of the initiatives using the example of Brampton once again. Broadband connectivity is something on which we have put a great deal of emphasis and would anticipate.
My friend is from northern Manitoba, and I would like to think there are opportunities there. On the idea of clean power, Manitoba can be a great benefactor of clean power, whether it is our hydro developments that use our water or the wind power that is there, all of which take massive amounts of money to build upon. There is also an enormous number of indigenous projects, many of which, if they were acted on and could get financing commitments with infrastructure dollars, would provide more opportunities, whether in building or assisting with community development or even in economic trading opportunities.
I think all of us recognize the importance of infrastructure. That is why, if we go back to late 2015 when we took government, we will find that we had put into place a multi-billion dollar long-term commitment toward building Canada's infrastructure.
The question that I had posed to my friend opposite was with regard to just how severe the need for infrastructure dollars is today. The number of projects is, quite frankly, unbelievable. We have a serious infrastructure deficit. That is something that has not been created over the last few years. It is because of many years of what many would ultimately argue was neglect.
It also speaks to the number of projects, when we look at expanding Canada's economy and our communities and providing a better quality of life, whether in urban centres or rural centres. In other words, it is those new projects. When one thinks of infrastructure, not only is it redoing or rebuilding, it is also the new projects that are there.
There is no shortage of either. That is one of the reasons why, under this administration, we have seen historic amounts of money allocated in every budget this government has provided in the past six years. We have seen record numbers of projects in every region of our country. We have seen allocations going from Ottawa directly through to our municipalities, in the form of gas tax-type transfers.
Driving on some roads in Winnipeg North, I think about this. We see the pits that are dug in order to replace a road. I think of a street like McGregor, for example, or Salter or Selkirk. Those are huge cost factors. Much of the money provided comes from Ottawa to make those projects possible.
When I think of the city of Winnipeg, I think of the Chief Peguis Extension and how critically important that is to the city of Winnipeg, to the province and ultimately, I would argue, to our country. When we think of our international airport and CentrePort, and the hundreds of millions of dollars being invested and the future of thousands of jobs in that area alone, one gets a sense of just how important Chief Peguis Extension is.
That same principle, I am sure, could be argued in every one of my colleagues' constituencies. There is no shortage of ideas out there, or shortage of needs for infrastructure dollars. That is why, as a national government, not only are we providing those badly needed financial resources in historic amounts, but we are also working with municipalities and provinces and, in many ways, allowing them to establish the priorities. They are much more into the community, and they are establishing where those priority needs really are. We would like to be able to contribute wherever we can, whether directly or indirectly.
That is not enough. That is one of the reasons why we brought forward the Canada Infrastructure Bank as a Crown corporation: As a Crown corporation, there is no doubt that many projects would be able to attract additional financial resources, which will hopefully see more projects approved.
Recognizing that there is so much need out there, this government is committed to doing what it can to find financial resources so that we can start building our communities and our economy.
By doing that, we are supporting Canadians in a very real and tangible way, whether as a society in our growth or in our economic development. We are improving the quality of life for all Canadians in all regions.
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Madam Speaker, today we are debating Bill C-245, introduced by my NDP colleague. To begin with, this bill deserves to be debated at the very least.
Bill C‑245 amends the Canada Infrastructure Bank Act. Before explaining why we might want to amend that piece of legislation, we should perhaps start by understanding what the Canada Infrastructure Bank is and where it came from.
The Canada Infrastructure Bank was created in 2016 through legislation introduced by former finance minister Bill Morneau. The idea was to get money from the private sector to finance infrastructure that would normally be public infrastructure.
Former finance minister Morneau came from the high finance world of Bay Street. It is no coincidence that the head office of the Canada Infrastructure Bank is in Toronto, as is the head office of the family-owned and highly profitable Morneau Shepell.
The government had some interesting discussions with all kinds of groups, superwealthy people and global figures in high finance, telling them that it could put lots of public money at their disposal, so they could complete more infrastructure projects and earn more profits. They found that interesting.
When the government saw how happy they were, it thought it had done a great job and could earn plenty of money by making lots of investments. It had some delusions of grandeur. The government thought the whole world was going to come and invest here, that all of our beautiful infrastructure would be privatized with public money, thereby filling its coffers. It was ready to brag about all the investments this would generate. That was basically the idea.
The government then handed out $35 billion for these folks to invest in all kinds of projects. It hoped to get four to five times the amount invested from the private sector, so a $35-billion investment would have generated $175 billion in private investment.
It was a dismal failure. Here we are in 2022, still waiting for that influx of cash from the private sector. Meanwhile, federal infrastructure continues to disintegrate. In the regions, there are ports where boats can no longer be moored, reservoirs that no longer hold water, military bases with dilapidated buildings and crooked, rusty fences. That is the state of federal infrastructure in this country.
Instead of investing where money was needed, the government decided to give money to the private sector, which would then go find great projects. That whole idea, giving the private sector money to go find great projects, never really materialized.
What actually happened was that public organizations took the money from the Canada Infrastructure Bank to invest in projects. In Quebec, we saw things like the Caisse de dépôt et placement investing in the REM light rail project and other projects at the Montreal airport or the Port of Montreal.
There were also projects with cities and public transit agencies to fund buses. Some regions got funding for Internet access, and even irrigation networks in Alberta got money. All those projects seem to make sense.
Why create the Canada Infrastructure Bank to fund projects that essentially could have been carried out and funded in other ways? It is because, originally, the Canada Infrastructure Bank was supposed to fund the private sector. There is something a bit schizophrenic there. What is actually happening is not what was supposed to happen.
At the end of the day, I would say I am a bit pleased about this, but not too much. I think that the Conservatives, on the other side of the House, are very frustrated and disappointed because they would have preferred the former PPP Canada Crown corporation that was kind of the predecessor to the Canada Infrastructure Bank. PPP Canada did not have the fancy title, but it had the same objectives, namely to privatize the country's infrastructure. The Canada Infrastructure Bank goes even further: instead of privatizing only federal infrastructure, it aims to privatize all infrastructure.
The Canada Infrastructure Bank targets all infrastructure, municipal and provincial, no matter where it is. We cannot forget that. What it means is that instead of funding projects that are in the public interest, the bank funds projects that have the potential to make money for the private sector. The public interest is no longer the priority. The idea of an infrastructure project that should serve the public good is being distorted.
This bank seriously lacks transparency. It is a nice Crown corporation, and when it starts a project, poof, all is settled. It is as though it becomes a federal project, bypassing all provincial, municipal or environmental laws. It does what it wants, how it wants, and when it wants. The private sector loves that too.
There is clearly a lack of transparency. What is worse, this organization is not subject to the Access to Information Act. We have no idea what goes on there. Information about executive compensation is secret. No one knows who gets paid how much. Basically, we only know that people are well paid.
Not that long ago, the Parliamentary Budget Officer spoke about this at committee. He stated that even his enquiries went unanswered. It is not just MPs or the public that do not get any answers from the bank. Even the Parliamentary Budget Officer cannot get an answer. He should have access to any information he needs, but that is not the case.
The excuse the bank gave him for not providing any information was that it was confidential commercial information. However, the Parliamentary Budget Officer is authorized to receive confidential information. The bank is refusing to disclose confidential information to an organization that is authorized to receive it. That is quite something. Given that the PBO has this authorization, if he were to receive the information, he would go through it and not publish anything that should not be disclosed. He would use his judgment to avoid compromising the security of this information. He would maintain its confidentiality, but it seems that the bank sees things differently. Clearly, the government agrees with the bank, because it has never forced the bank in any way to provide the requested information.
That brings me to the NDP's bill. I hope I have enough time to unpack that. The goal of the NDP's bill is to eliminate the private sector from the Canada Infrastructure Bank's mission. That could work. The bill would also have the bank receive unsolicited proposals. That means it could get slightly out-of-the-box proposals from people who think their project is a good idea, which the bank would then have to assess the merits of. That could work too. The bill states that priority should be given to northern projects, projects put forward by indigenous nations, infrastructure projects aimed at mitigating or adapting to climate change, and projects that are not harmful to the environment. Those are all good things. We see no problem there. The bill states that the membership of the board must include three people representing the interests of the Inuit, first nations and the Métis, respectively.
Another interesting aspect is the requirement to annually submit a report to the minister on the bank's activities and investments to give an account of what is happening there. At the moment, we do not know. It is a state secret, apparently. We do not know what goes on at the bank at all, except when it makes a public announcement. The report would also be tabled in Parliament once a year.
We do not see much in the bill that really concerns us, that really makes us want to tear our hair out. On the contrary, it could make this monster a little less awful. That is part of the problem, though. That is what the NDP does not understand. The Canada Infrastructure Bank is basically a huge federal intrusion into provincial jurisdictions. Some 98% of public infrastructure is provincial or municipal infrastructure, and the bank is sticking its nose into that, instead of just transferring money or cutting taxes. No, the federal government just has to stick its nose into everything. That is the fundamental problem with this bank.
This is a centralizing government that is always trying to impose its vision, to wade in where it is not wanted and mix things up even further, add stakeholders and complicate matters.
Every dollar in that bank is one dollar too many, and we will continue to fight against it.
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