QUESTION PERIOD — Infrastructure
Canada Infrastructure Bank
February 15, 2023
Leader, my next question concerns the Canada Infrastructure Bank.
The Canada Infrastructure Bank CEO, Mr. Ehren Cory, appeared before the Senate’s National Finance Committee yesterday. Mr. Cory previously worked at McKinsey for 11 years. I’m sure the Trudeau government will tell us that is just a coincidence.
Honourable senators who were here in 2017 will remember that we were told repeatedly by the Trudeau government that for every dollar in federal investment, the Canada Infrastructure Bank would attract $4 to $5 from the private sector. Instead, it has failed to do so, and currently has a 1-to-1 ratio.
Mr. Cory told the committee yesterday:
. . . it will over the long term that we move toward that 4‑to-1 ratio. That’s an objective to move toward . . . That’s over decades.
I’ll repeat that, leader: It will take decades. Will you get rid of the failed and wasteful Canada Infrastructure Bank, and if so, when?
Thank you for your question. Frankly, it’s the position of this government that the Canada Infrastructure Bank is an important and, indeed, innovative approach to help get more infrastructure built. Though it is disappointing that the private sector has not responded to the degree that was initially hoped, it is not the role of the government to direct how private capital and private enterprise direct its funds. I’m sure that you will appreciate that position of principle, Senator Plett.
The fact is, the bank has attracted billions of dollars of private investment and is funding dozens of important projects. I would be happy to provide a full list to senators if they are interested. Please contact my office. I don’t want to take the time from Question Period to list them all.
There are a considerable number of important projects benefiting Canadians across this country, and it’ll continue to do that in the hope that private industry will step up to an even greater degree as partners.
Well, hope springs eternal.
Leader, last April, I asked you why the Canada Infrastructure Bank was paying millions in taxpayer dollars in short- and long-term bonuses to its employees. In fact, it is quite innovative how they found a way to do so, when not a single project had been delivered at that point.
Just to jog your memory, leader, in 2021 alone, the Canada Infrastructure Bank paid out over $5.7 million in short-term incentives to 79 employees. That works out to an average bonus of over $73,000 per employee. Where do we apply?
Leader, could you make inquiries and tell us how much was paid out in bonuses to the Canada Infrastructure Bank employees in 2022?
I’ll certainly make inquiries. Again, I do encourage senators who are truly interested in knowing the important work that’s being done in many sectors, whether in public transit, green infrastructure, broadband, clean power, trade and transportation or with respect to Indigenous communities across the country, please contact my office. I would be happy to give you a full briefing.
My question also concerns the Canada Infrastructure Bank. In fact, it is legislated for a five-year review. Minister LeBlanc is required to bring forward a report to Parliament by the end of June.
According to documents obtained through Access to Information and Privacy and released last week by the Canadian Union of Public Employees, this review began in June 2022 but has had no public engagement and no public information on the process being followed. Yesterday, a senior official from Infrastructure Canada told our National Finance Committee that they have opened some public consultation.
Leader, could you tell us when this consultation began and if it’s still open? Were all Canadians invited to comment or just those groups and individuals chosen by the Trudeau government?
Thank you for the question, senator. I’ll have to make inquiries and report back.
Transparency is one of the many serious problems with the Canada Infrastructure Bank. For example, it was revealed late last year that the $1.7‑billion Lake Erie Connector project had actually been cancelled in July. However, if you check the Canada Infrastructure Bank’s website today, you can still see a press release announcing this project. There have been no answers to legitimate questions surrounding the awarding of Canada Infrastructure Bank contracts to McKinsey, which has extensive ties to this bank from its creation to this day, and now we have what looks like a mostly internal review process. So, leader, why is there so much secrecy surrounding this process? Could you tell us if the contract given to McKinsey by the Canada Infrastructure Bank will be part of the five-year review?
Thank you. I will add that to the questions and inquiries that I will make.
