Hopeful news emerged on Friday with a draft list of
32 potential major infrastructure
projects slated to be fast-tracked by federal authorities under the Building Canada Act. Though by no means approved, the projects are the first indication of how the Mark Carney Liberals intend to fulfil campaign pledges made in May.
Only a week earlier, Prime Minister Mark Carney
the opening of the Major Projects Office, whose job it will be to “serve as a single point of contact to get nation-building projects built faster” by streamlining regulatory approvals and co-ordinating financing. This is not to be confused with the previously existing federal
Major Projects Management Office
“whose role is to provide overarching project management and accountability for major resource projects.”
Canadians of all political stripes should hope the endeavour is successful. Large infrastructure projects, notably in the economically critical resource sector, have for too long been weighed down by red tape and mired in
which functionally cancelled or critically delayed
and harmed Canadian prosperity. The process got so bad that in 2018 the Trans Mountain pipeline expansion (TMX) had to be
purchased mid-construction by the federal government
because regulatory and legal uncertainty made continued private investment impossible.
Dawn Farrell, former CEO of Trans Mountain Corporation, has been tapped by Carney to lead the new Major Projects Office. While Trans Mountain has not become a byword for budgetary restraint and management, it should be acknowledged that TMX was the first major infrastructure project to find its way to completion under new political, environmental and legal frameworks. While some may criticize Farrell’s appointment on the grounds that TMX was significantly over budget, there is little reason to think she brings anything but a desire to finally execute on the large projects governments have long only talked about and everyone should wish her well.
However, Canadians should also view this Carney plan with the clear eyes of over a decade of disappointment. They should also consider the context of a prime minister who has promised much but not actually built or delivered anything yet. Can this change? Yes. Will it? Hold your breath at your own risk.
While the Major Projects Office sounds good, it is impossible to ignore what the government is trying to paper over. Namely, that Canada’s regulatory process has gotten so bad that fixing it isn’t even really an option, and thus another layer of bureaucracy with special powers to bypass existing rules had to be
to get anything done. That this opens the process up to political abuse and cronyism
. This is anything but the true free market at work and treading uncomfortably close to a centrally planned economy where governments pick and choose winners and losers: something they are generally terrible at.
And therein lies the critical issue. It should not be up to governments to determine what projects are viable or not. It must be up to the businesses themselves within a clear regulatory framework. Government should not be — in the parlance of the day — making the
for anything. Businesses should.
In B.C. we have seen the muddying of these waters already. Premier David Eby, who has belatedly realized a functioning economy might be something he should consider attending to, passed Bill 15, the
,
in May.
According to a statement by the premier’s office,
the bill was aimed at
“speeding up approvals for priority provincial infrastructure projects, such as schools and hospitals.” Further, that act could also “help speed up approvals for other projects designated as provincially significant.”
The word “designated” does a lot of heavy lifting in that sentence and the “other projects” will likely be the
the government decides it likes for reasons unspecified. Once again, the free market turfed for political whim.
Carney is set on showing Canadians that things are changing and projects mothballed in the past will now move forward. In the announcement of the Major Projects Office, his news release states, “For too long, the construction of major infrastructure has been stalled by arduous, inefficient approval processes, leaving enormous investments on the table.” One can’t help but notice they failed to add who has been in government during that “too long” period of time.
Canadians should want to see their country succeed and the Major Projects Office together with the 32 potential projects revealed Friday are potentially hugely significant steps towards prosperity. This remains, however, a “show me” story and Mark Carney and the Liberals will excuse us for not raising the Mission Accomplished banner just yet.
National Post
Adam Pankratz is a lecturer at the University of British Columbia’s Sauder School of Business.