The problem with politicians' pet projects
Governments of all political stripes in Canada are making the most of the economic crisis triggered by U.S. President Donald Trump's whiplash-inducing tariff decisions.
From the Ontario PCs to the BC NDP, the economic disruption has provided cover for governments to push their pet projects to the front of the line so that they build, baby, build.
Ontario Premier Doug Ford wants to construct the world's longest traffic tunnel under Highway 401 and is calling on Ottawa to scrap a federal law that assesses the environmental impact of major projects so that he can meet his long-held ambition to develop mines in the 'Ring of Fire.'
B.C. Premier David Eby has already passed contentious legislation this spring to eliminate environment assessments for a string of energy projects and to fast-track approvals for critical mineral mines. He now wants Ottawa to help pay for a transmission line to connect those potential projects – and while Ottawa has its wallet open, he'd also like some substantial cash for a replacement of the aging Massey tunnel that presents a choke point on Highway 99.
And the federal Liberals are talking about a fast track for nation-building projects.
All of this, naturally, in the name of unlocking Canada's economic potential.
New Democrats, Liberals, and Conservatives all seem to have ended up at the same place: Those sitting around a cabinet table ought to decide which projects get built in a hurry, and which ones will have to wade through the existing regulatory mire.
Andrew Coyne: The premiers as nation-builders? Colour me skeptical
Campbell Clark: Should Canada build a pipeline to the West or the East?
Prime Minister Mark Carney's One Canadian Economy bill, introduced Friday, proposes to create an office to streamline approvals for 'nation-building' projects such as ports, critical mineral mines and trade corridors. Projects that get on the list will be prioritized – leaving behind those that don't win favour.
His criteria are vague enough to allow elected officials to play favourites.
Nation-building projects are those that strengthen Canada's autonomy, resilience and security, and offer 'undeniable benefits to Canada.' Projects with Indigenous backing and clean growth potential will get a boost up the ladder.
Mr. Carney invited the premiers to submit their preferred projects for consideration, making for a very jolly meeting of the First Ministers on June 2 because as it happened, the leaders all had arrived with their own parochial definitions of the national interest.
Manitoba Premier Wab Kinew wants infrastructure funding for the Port of Churchill. Nova Scotia Premier Tim Houston wants Ottawa's backing to develop offshore wind energy. Alberta Premier Danielle Smith has revived her province's push for a new bitumen pipeline to the Pacific.
The premise for this activity is that Canada's current regulatory framework is broken, that environmental assessments take too long, and that cabinets need special powers to ensure that projects are built in a timely way.
Editorial: Ottawa should look to B.C.'s fast-track blueprint for big projects
Editorial: Free the market for renewable energy in Alberta
What if, instead of politicians advancing their political pet projects, they instead tackled the underlying problem?
The private sector will necessarily power much of this nation-building. There is much alignment with Ottawa's ambitions, but some subtle differences. The Business Council of Canada has called for efforts to fast-track strategic infrastructure in response to the economic challenges now facing the nation as its major trading partner redraws the playing field.
But the council isn't asking premiers to pick winners. It sees essential infrastructure projects as those that support energy and trade but also research and development infrastructure such as industrial labs.
Business is asking governments to harmonize regulations across levels of government and eliminate bureaucratic bottlenecks that delay strategic investments.
There is duplication; get rid of it. Environmental assessments can be managed more efficiently; reform the system. And the Crown can find ways to better execute the constitutional duty to consult and accommodate First Nations.
Canada's productivity decline has many causes, but one of the most obvious is the penchant of governments to subsidize favoured industries rather than undertake the less glamorous work of tearing down barriers to private sector investment. A regulatory fast lane for pet projects is just a new spin on that tired and failed approach.
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