Carney government's ‘nation-building' bill becomes law despite Senate criticism

Hamilton Spectator

21 hours ago

OTTAWA — Prime Minister Mark Carney's controversial legislation to fast-track 'nation-building' development projects received royal assent and became law after the rushed passage of Bill C-5 through the Senate on Thursday.
But the legislative accomplishment — the first government bill to pass in both chambers under the minority Liberal administration elected April 28 — was marred by expressions of outrage from some senators, who criticized the legislation's creation of 'so-called Henry VIII' powers that allow the federal cabinet to override laws and regulations to approve development projects. Some also condemned what they saw as the bill's lack of consultation and requirements to respect Indigenous rights, suggesting the new process could get bogged down in the very opposition and delay that it is designed to avoid.
'Bill C-5 is not reconciliation. It's a betrayal of it,' said Sen. Paul Prosper, a Mi'kmaq lawyer from Nova Scotia, who told the red chamber his office received a deluge of 'racist vitriol' after he spoke about his desire to slow down the legislation that
sped through the House of Commons last week
with the support of opposition Conservatives.
Yet some in that party still had concerns about the legislation. Mary Jane McCallum, a Conservative senator from Manitoba, argued Thursday that the bill gives too much power to the federal cabinet to choose projects, and to decide which laws and regulations are relevant to how they are approved.
'Canada is not a dictatorship, yet the so-called Henry VIII clauses in Bill C-5 bring us dangerously close to the precipice,' she said.
After two days of debate, the Senate voted down several amendments that would have sent the legislation back to the House, and passed it as written without a recorded vote Thursday afternoon. It received Royal Assent from Gov. Gen. Mary Simon a short time later.
Since introducing and pushing to pass the bill before Canada Day, the Carney government has defended the legislation as a necessary framework to boost economic growth and reduce reliance on the United States that has imposed steep tariffs that Ottawa deems illegal and unjustified. Last week, Carney also promised to host summits with Indigenous leaders in July to ensure there is participation on which proposed projects — from pipelines to ports and mines — are chosen for the fast-track process under C-5.
The
legislation
gives the cabinet wide latitude to fast-track a development project based on 'any factor' it deems relevant. Although it's not written in the legislation, the government has pledged to finish the approval of fast-tracked projects so construction can begin within two years, while the special powers the bill creates are set to expire after five years.
On Thursday, Sen. Hassan Yusseff, a former labour leader who advocated for the bill in the upper chamber, echoed the government's rationale that the special process to fast-track major projects — and a separate, less contentious part of the bill to lift federal barriers to trade and labour mobility inside Canada — are necessary because of U.S. President Donald Trump's trade war.
His voice breaking with emotion, Yusseff made the case that the legislation is needed quickly to bolster the Canadian economy and help workers in the industries targeted by Trump's tariffs, from steel and aluminum to the auto sector.
'The men and women who build this country of ours are watching very closely,' Yusseff said.
Throughout the day, senators debated the merits of the bill, with some arguing it forces Indigenous groups and environmentalists to trust the government to respect rights and standards, rather than force the government to do so.
Some senators, however, said the bill's references to Indigenous rights in the Constitution, as well as the government's insistence it won't fast-track projects without provincial buy-in and Indigenous consultation, mean these concerns can't be addressed through amending the legislation.
'There's no bill we can pass that will guarantee the honour of the Crown,' said Alberta Sen. Patti LaBoucane-Benson.
'I don't think there's anything more we can do to the text of the bill to protect Indigenous rights.'
Others, like Ontario Sen. Bernadette Clement, argued Parliament should take more time to improve the legislation and address concerns raised by environmental groups, Indigenous communities, and organizations like the Assembly of First Nations.
'Growing our economy, nation-building — yeah, that's urgent. It requires a timely an efficient response. But it doesn't require the trampling of Indigenous rights and our environmental protections,' Clement said.
Marilou McPhedran, a senator from Manitoba, expressed shock that Conservatives and Liberals in the House voted en masse to surrender 'parliamentary sovereignty' to the cabinet under the bill.
'As we watch the results of the C-5 juggernaut roll out and roll over Canada, please remember this key question: are the constitutionally guaranteed rights to equality, to Aboriginal and treaty rights, the first to go with Bill C-5?' she said.
The House of Commons made several amendments to the bill that some senators welcomed, including new reporting requirements on how projects are selected, and the creation of a parliamentary committee to oversee how the legislation is being used.
The House also added a requirement to publish details of a project at least 30 days before it is named in the 'national interest,' and introduced limits so no projects can be added to the new process while Parliament is prorogued or dissolved.
The legislation also requires the minister responsible for the law — currently Intergovernmental Affairs Minister Dominic LeBlanc — to consult with provinces, territories and Indigenous Peoples whose rights 'may be adversely affected' by a project. The Commons inserted a clause that requires the government to get 'written consent' from a province or territory — but not an Indigenous community — if a project falls within an area of its 'exclusive' jurisdiction.
Sen. Marc Gold, the government representative in the chamber, said the bill is 'fundamentally about trust' that all groups — including the government — will act in the best interests of Canadians during a time of crisis after an election he said gave the Liberal minority government a clear mandate to pursue rapid economic growth.
'C-5 is indeed extraordinary, and indeed it entails unprecedented trust,' Gold said. 'This is not about any partisan interest, but in the interest of our country.'