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House Hansard - 92

44th Parl. 1st Sess.
June 20, 2022 11:00AM
Context: House Hansard - 92 - Jun/20/22
Mr. Taylor Bachrach (Skeena—Bulkley Valley, NDP)
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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Context: House Hansard - 92 - Jun/20/22
Mr. Taylor Bachrach (Skeena—Bulkley Valley, NDP)
  • Jun/20/22 2:47:32 p.m.
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Mr. Speaker, airport delays continue to cause stress for so many travellers. There are not enough airport workers, and the existing ones are overstretched and underpaid. Instead of simply paying airport workers fairly, the current government is offering a bonus for workers who do not take vacation or sick time this summer. Seriously, in the midst of a pandemic, the minister is incentivizing workers to come to work sick. If he wants to get travellers moving again, he needs to scrap this program immediately and start paying workers fairly. Will he?
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