44th Parl. 1st Sess.
October 26, 2023 10:00AM
- Oct/26/23 12:22:42 p.m.
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Mr. Speaker, we have already established that to impugn the character of colleagues is something that the new rules set out we should not be doing. I would request that the member withdraw her statement that Conservatives want to tear Canada down.
An hon. member: It is factual.
Ms. Leslyn Lewis: It is not factual—
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- Oct/26/23 12:43:41 p.m.
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Mr. Speaker, I will be sharing my time with the member for Sarnia—Lambton.
The Liberal government has created a series of complicated and inefficient infrastructure programs that have regularly failed to deliver results and get money out the door. The Canada Infrastructure Bank, the government's flagship policy, is no exception to this fact. It has been an immense failure.
The Infrastructure Bank has spent millions on overhead, high-priced consultants, CEO payouts, bonuses and corporate welfare while failing to get critical infrastructure built as part of its mandate. It is debatable whether the bank has built even one infrastructure project. In fact, last year, the bank spent twice as much money on salaries and bonuses than it paid in infrastructure. It also spent almost $1 million on consulting and legal fees for an electricity project that never got off the ground.
The mandate of the bank is essentially to attract private sector investment for low-cost loans and to reduce the risk in order to get infrastructure built. However, the government's bank has turned into a form of taxpayer-funded corporate welfare. The bank repeatedly puts taxpayers on the hook for millions of dollars by subsidizing multi-billion dollar corporations, handing them low-cost interest rate loans at a much lower rate than what Canadians can go to the bank and get for themselves.
It is frankly perverse that while Canadians are suffering with almost double-digit interest rates for their mortgages, while Canadians are struggling to put food on the table, while Canadians are rationing their children's baby formula and while Canadians are worried about whether they will be able to heat their homes and fill their gas tanks to go to work, we are being so careless with the taxpayer-funded loans that the bank gives out. While Canadians fear they will not be able to make their mortgage payments, and the average Canadian has these real fears, they are being asked simultaneously to subsidize billion-dollar companies to build projects that are not even successful, are often not needed and could be built better by the private sector.
The bank was given a budget of $35 billion courtesy of taxpayers six years ago. The Liberals promised that taxpayers would see a return on investment of four times from private sector investors. They even anticipated that the investments from municipalities and provinces would yield an 11 times multiplier. However, that was six years ago and that has not happened. Private investment has not even been returned at a 1:1 ratio from the bank.
The Standing Committee on Transport, Infrastructure and Communities determined that the Infrastructure Bank was not fixable. It needed to be abolished. The sole recommendation in its report was that the bank be abolished. The committee's recommendation was based on the testimony given by stakeholders involved in the infrastructure projects across this entire country. Witnesses highlighted that the bank was inefficient, lacked transparency and was unable to secure the private investments it promised it would secure.
We are at a time of 40-year high inflation, when Canadians are struggling with the cost of home heating, groceries, food and daily living expenses. They cannot even afford their mortgage payments anymore because of the government's hefty deficit spending, which has driven up interest rates.
Canadians cannot afford to continue to subsidize the government's bad investment. Canadians can no longer afford to foot the bill for this bank that cannot even deliver one single infrastructure project to Canadians. Conservatives will create a winnable process that gets infrastructure built and develops communities without wasting taxpayer dollars.
The bank's executives each gave themselves bonuses last year, big bonuses, in fact. The Canada Infrastructure Bank paid $7.7 million in bonuses to every single one of its executives for getting zero projects done. They got bonuses for not producing, million-dollar bonuses for not producing. Speaking of efficiency, that is some level of incompetence.
In fiscal year 2021-22, the bank also spent twice as much money on bonuses and salaries as it did on projects. This bank is here to finance executives and elites while Canadians are suffering. It makes no sense. At the same time, infrastructure project spending went down by more than half of the previous year and spending on salaries went up by 35%.
Speaking of interest rates, it is really ironic that it is because of the government's failed economic policies and irresponsible spending that the bank's projects have failed. An example of this is the Lake Erie connector project. The bank actually invested $655 million in a $1.7-billion project to build a water electricity cable that is now dead in the water due to financial volatility and inflation. That $655 million was promised to a multi-billion dollar company, Fortis Inc., for an electricity project that ironically failed due to inflation. That inflation was caused by the Liberal government's overspending and reckless spending. A local press release at the time stated:
“ITC made the decision to suspend the project after determining there is not a viable path to achieve successful negotiations and other requirements within the required project schedule. External conditions – including rising inflation, interest rates, and fluctuations in the U.S.-to-Canadian foreign exchange rate – would prevent the company from coming to a customer agreement that would sufficiently capture both the benefits and the costs of the project,” an ITC spokesperson said in a prepared media statement. “As a result, the company believes suspending the project is in the best interest of stakeholders.”
The project failed due to interest rates.
One and a half years ago, the Liberals were gushing about their new partnership with Fortis, a private company that rakes in billions of dollars in revenue every year, promising tons of low-carbon energy, billions in GDP and hundreds of Canadian jobs. Where are those billions? Where are those projects? They never materialized.
Conservatives warned from the beginning that this was a risky and inappropriate use of taxpayer dollars, and we were ignored. We found out later that the bank wasted almost one million taxpayer dollars on consulting and legal fees for an electricity project that never got off the ground. The Lake Erie connector project demonstrates why this bank is an expensive failure. They are spending millions and they cannot get a single project built. At a time when Canadians are struggling to put food on the table, when almost two million Canadians every month are visiting a food bank, the government keeps wasting taxpayer dollars.
In closing, I just want to highlight that the Fortis project was not transparent. We also witnessed very recently the situation at the Fairmont where the bank was—
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- Oct/26/23 12:55:14 p.m.
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Mr. Speaker, that was quite the dramatic intervention.
The truth of the matter is that the Canada Infrastructure Bank does fund projects, but it does so in a reckless way so that the projects never get to completion. That is what we are talking about. The bank cannot complete a project.
It funded Fortis and then hid the fact that the project actually failed. That project was in my community. It would have affected my community of Haldimand—Norfolk where I reside, the community I represent, and the Liberals hid the fact that this project failed. They provided no updates on their website. They did not even answer to it until we raised a question in this House asking them for transparency. That is the only way we got an answer.
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- Oct/26/23 12:57:33 p.m.
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Mr. Speaker, part of the reason we are seeing companies actually not wanting to invest in Canada is the unpredictablity of our legislative and regulatory framework. When companies invest in this country and the rules are changed midstream, it breeds corporate insecurity. On the question my friend posed, the increases in the cost are due to the Liberal government's failed regulations, its failed intervention and its failed interactions with corporations that would have caused security in investment.
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- Oct/26/23 12:59:09 p.m.
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Mr. Speaker, my colleague has a very good point. We recently found out that the Infrastructure Bank actually funded a $46.5-billion loan to Fairmont hotels where the lowest-priced room is $500 a night and goes up to $1,400 a night. Most Canadians cannot afford to stay there for even one night. They claim the loan is for a retrofit project.
My colleague's question is very viable, because there are many Canadians who would like help with retrofitting their homes, and they cannot apply for low—
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