Abolish the Canada Infrastructure Bank, House Committee Tells Government

Construction workers on the site of the Réseau Express Métropolitain (REM), a major public transit project, in Brossard, Quebec, on May 11, 2020. The REM is a major infrastructure project partly funded by the Canada Infrastructure Bank. Paul Chiasson/The Canadian Press

A House of Commons committee studying the work of the Canada Infrastructure Bank (CIB) issued a single recommendation to the government in its report tabled on May 2: abolish it.

To justify the recommendation, the report quotes witnesses that testified over the course of five meetings held by the Standing Committee on Transport, Infrastructure and Communities during the previous Parliament.

“Much of the discussion throughout this study turned on the question of the CIB’s efficiency, with several witnesses expressing concern that projects were not flowing as quickly as expected,” says the report, citing testimony from Mary Van Buren, President of the Canadian Construction Association and others.

“[Van Buren] considered the state of [infrastructure] progress to be ‘pretty dismal right now,’” the report said.

A review of Van Buren’s testimony appears to show she was addressing federally-supported infrastructure projects in general and not necessarily only those linked to the CIB.

The report also quotes University of Waterloo political science professor Heather Whiteside, who said in March 2021 the CIB “hasn’t done much” with a majority of projects still at the MOU (Memorandum of Understanding) stage.

The CIB was officially established in 2017 to fund revenue-generating infrastructure projects with $35 billion in taxpayer funds and to attract private investments. The CIB’s progressive agenda includes a focus on sustainable growth, Indigenous infrastructure, and green projects.

CIB spokesperson Félix Corriveau responded to the report by saying the crown corporation currently has “great momentum.”

Corriveau told The Epoch Times the total capital value of CIB partnerships stands at $20.9 billion across 28 projects, with the CIB’s share amounting to $7.2 billion. The CIB attracted $7.6 billion in private-sector money and $6.1 billion from public partners in these projects.

Yves Giroux, the Parliamentary Budget Officer (PBO), testified before the committee in March 2021 and at the time his office reviewed the CIB which had 13 projects, most of which had no financial commitment.

Of the projects that had contracts signed, the PBO reported that they were exclusively funded by taxpayers, despite the CIB’s goal to attract private investments.

Canadian pension funds are partnering with the CIB, but Giroux told the committee these are not considered private entities based on Statistics Canada’s definition of a government entity.

The Epoch Times sent a request to CIB for a breakdown of the private sector money invested in its projects but didn’t immediately hear back.

In its “Spring Market Update 2022,” the CIB provides the amount it has invested in its various projects but not the amount invested by its partners.

The CIB’s largest investment is $1.28 billion in the Réseau express métropolitain (REM), a new automated light metro network in Montreal and its suburbs. Its partners are the province and Quebec’s pension plan manager, Caisse de dépôt et placement du Québec.

REM’s construction has neared completion in some areas and a section is planned to become operational later this year.

The second largest investment is $665 million to provide broadband internet in Ontario, with the federal department Innovation Canada as a partner.

Parties Weigh In

A May 4 statement from Conservative MP Andrew Scheer’s office commented on the report, saying that it proves the CIB has been an “absolute failure” due to its attracting few private sector investments and not completing projects.

Scheer called it a “complete waste of money” despite having been touted by the Liberals as a “marquee infrastructure project.”

The other major parties previously submitted supplementary opinions to the committee report.

“We believe strongly, the CIB is an important tool in the Government’s toolkit when it comes to generating smart investments in Canadian infrastructure,” says the Liberal Party submission, suggesting it will not heed the committee’s recommendation to abolish the CIB.

“These investments are critical as we build back better; they will create good jobs, grow our economy, create inclusive communities, and tackle climate change.”

The Bloc Québécois wrote, “There are plenty of valid reasons for wanting to close this useless structure.”

The Bloc says infrastructure is overwhelmingly a provincial and municipal issue, and hence “It makes no sense for a government that does not own the infrastructure to come and dictate the conditions under which work may be carried out in this area.”

The NDP supported the report’s recommendation to abolish the crown corporation with a main concern being the revenue-generating mission of the CIB, which it says could go against public interests.

“The selection of projects to attract private investment and the inherently profit-driven operation of completed projects are integral to the bank’s privatization agenda and severely limit its ability to serve the public interest.”