The document provides an agenda and overview of topics related to infrastructure and business investment in Canada. It discusses recent building permit numbers, fiscal monitoring, the Canada Infrastructure Bank, GDP and construction trends, issues with the Liberal infrastructure plans, transit funding, foreign direct investment, and business investment. Specific projects reviewed include Montreal transit funding from the Infrastructure Bank and 10 projects under active review. Analysis is also provided on the performance and failures of the Liberal infrastructure program.
2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com
3. Agenda
Building Permits – June 2018
Money Flow / Fiscal Management – May 2018
Canada Infrastructure Bank
GDP and Construction
Issues with the Liberal Infrastructure Plans
Transit
Trudeau and the Provinces
FDI – Canada
GDP / Capital Investment
Business Investment
Capital inflow and outflow
VIA Rail and High Speed Rail
4. Building Permits –
April 2019
https://www.forexlive.com/news/!/canada-april-building-permits-
vs-18-expected-20190610
“Total spending in the Liberal infrastructure program reached
$25.6 billion over the last three years, according to a new report
which suggests signs of progress on a signature government
ambition that has been hampered by an inability to get money
out the door.”Source -
https://nationalpost.com/news/canada/liberal-infrastructure-
program-shows-signs-of-progress-but-frustrations-linger-over-
delays
Source - https://www150.statcan.gc.ca/n1/daily-
quotidien/190610/dq190610a-eng.htm
Nationally, the value of non-residential building
permits rose 1.1% from March to $3.4 billion in April,
as higher construction intentions for industrial
buildings were reported in nine provinces. The gain
was largely due to the issuance of a high value
permit for a food processing plant in the CMA of
London.
Meanwhile, the value of permits declined for both
the institutional and commercial components in April.
This followed strong numbers in the previous month,
when multiple high-value permits were issued in
Quebec and British Columbia.
5. Fiscal Monitor / March 2019
Source – Fiscal Monitor - https://www.fin.gc.ca/fiscmon-revfin/2019/2019-01-eng.asp
• CCA raised concerns that money
was not flowing - http://www.cca-
acc.com/press-release/ccas-2018-
budget-reaction/
• Transit Funding -
https://www.cbc.ca/news/canada/ot
tawa/mayor-watson-says-nothing-
on-cancelled-gas-tax-1.5095560
• Ontario scrapping the plan hikes to
gas tax -
https://dailyhive.com/toronto/ford-
scraps-gas-tax-increase-2019
6. Canada Infrastructure Bank
Source - https://ontarioconstructionreport.com/a-new-sustainable-model/
The federal government is looking at partnerships through the Investing In Canada Lens. In the 2016 Fall Economic Statement and Budget
2017, the government gave its long-term vision for its infrastructure plan and committed to invest an additional $81 billion through to 2027-
2028 in public transit; green infrastructure; social infrastructure; trade and transportation infrastructure; and rural and northern communities;
and introduced the Smart Cities Challenge.
Of that money, $33 billion in funding will be delivered through Integrated Bilateral Agreements between the federal government, and each of
the provinces and territories. And of that $33 billion, $9.2 billion will go towards green infrastructure projects.
• Infrastructure bank and China (infrastructure) - https://globalnews.ca/video/5217703/liberals-defend-250m-investment-in-asian-
infrastructure-bank
• “As for sustainable infrastructure, there was already a Canadian Infrastructure Bank but why stop there? More bureaucratic institutions
needed to be set up. Private capital needed to be “crowded in.” Meanwhile “Cleantech” was a “massive cross cutting opportunity.”
Just forget Germany’s disastrous Energiewende, or Ontario’s Green Energy Act, or a thousand other climate policy snafus. What was
needed were more green banks, more green bonds and more green procurement.” -
https://business.financialpost.com/opinion/peter-foster-mark-carney-and-michael-bloombergs-
sustainable-scheme-to-dismantle-canadas-economy
7. Building Permits / GDP - Construction
Source – Stats Canada - https://www150.statcan.gc.ca/n1/daily-quotidien/190610/dq190610a-eng.htm
• Nationally, the value of permits was up $1.2 billion in April, the largest increase since May 2007. Although six provinces reported higher
values, British Columbia accounted for most of the gain. This was due to permits being issued ahead of the development cost increase in
Metro Vancouver in May, the first change in costs in that region since 1997. Meanwhile, Quebec reported the largest decline, down $147
million from March.
• Nationally, the value of non-residential building permits rose 1.1% from March to $3.4 billion in April, as higher construction intentions for
industrial buildings were reported in nine provinces. The gain was largely due to the issuance of a high value permit for a food processing
plant in the CMA of London. Meanwhile, the value of permits declined for both the institutional and commercial components in April. This
followed strong numbers in the previous month, when multiple high-value permits were issued in Quebec and British Columbia.
8. List of Infrastructure Bank loans
Montreal Transit - https://www.theglobeandmail.com/business/article-
canada-infrastructure-bank-loaning-128-billion-to-montreal-electric/
Project Review - https://www.on-sitemag.com/infrastructure/canada-
infrastructure-bank-actively-engaged-in-reviewing-10-projects-for-
investment/1003961052/
The institution, which was designed to finance Canadian infrastructure that may otherwise not be built, has
been allotted $35 billion in federal funds over the next decade to help bridge the gap between public and
private infrastructure.
Pierre Lavallée, the CIB’s president and CEO, disclosed the engagement process for the 10 potential projects
in a keynote address at the annual conference of the Canadian Council for Public-Private Partnerships in
Toronto Nov. 6.
“We’ve jumped into our investment mandate with both feet,” he said, adding that the bank has also held
discussions on 45 other projects, some of which may also move onto the active engagement phase in the
future.
Pierre Lavallee – Site Mag – November 6, 2018
9. Annual Report / Infrastructure Bank
Source - https://cib-bic.ca/wp-content/uploads/2018/10/CIB_2017-18_AR_English.pdf
10. 2015 Election Platform / Infrastructure
Source - https://www.theglobeandmail.com/news/politics/the-decisions-behind-the-scenes-of-the-liberals-infrastructure-
plan/article26375251/ or https://thetyee.ca/Opinion/2017/02/14/Broken-Liberal-Promises/ or
https://torontosun.com/opinion/columnists/gunter-numbers-are-in-and-trudeaus-infrastructure-plan-is-largely-useless
12. Stats Canada
Large Urban Transit – Ridership (Express in
millions) • Transit Ridership was growing each
year since 2015
• All groups of people are benefiting
from the transit cut
*** Transit is heavily subsidized by Government
13. Trudeau and the Provinces
Source - https://nationalpost.com/pmn/news-pmn/canada-news-pmn/provinces-not-co-
operating-to-get-infrastructure-projects-underway-trudeau
16. Business Investment
Source – Fraser Institute - https://www.fraserinstitute.org/studies/capital-investment-in-canada-recent-behaviour-and-implications
18. FDI – 2017
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/180425/dq180425a-eng.pdf
The growth in the value of foreign direct investment in Canada in 2017 was concentrated in the wholesale trade industry, up 8.6% to
$74.7 billion, followed by an 8.0% increase in the finance and insurance industry to $137.0 billion. The stock of investment in oil and gas
extraction dropped 7.4% to $ 162.2 billion, as direct investors from abroad sold some of their assets back to Canadian investors.
Manufacturing declined 0.3%, mainly on a 15.8% reduction in the petroleum and coal products manufacturing industry. Despite
the decrease, manufacturing remained the top industry for foreign direct investment in Canada, with a 21.4% share at the end
of 2017.
Although it remains the largest industry for foreign direct investment in Canada, foreign investment in the manufacturing industry has not
kept pace with overall investment trends over the past decade, with that industry's share down significantly from the 32.7% share it held
in 2008. During the same period, the shares of management of companies and enterprises, finance and insurance and mining and oil and
gas extraction have all increased. In the case of the management of companies and enterprises industry, some of these companies may
also have activities that are tied to other industries such as manufacturing and mining and oil and gas extraction.
19. VIA Rail and High Speed Rail
https://toronto.citynews.ca/2019/06/07/documents-show-federal-push-for-infrastructure-bank-to-back-via-project/
The rail company wants to build a multibillion-dollar new network of dedicated passenger-rail lines in Ontario and Quebec, so its trains
would no longer have to yield to freight trains on borrowed tracks
Facts:
VIA rail already gets a sizable grant from the government - https://media.viarail.ca/en/publications (2017 In 2017 the total grants
(operational and capital funding) were approximately $354M
High speed rail has to be viable - https://www.cbc.ca/news/canada/london/high-speed-rail-1.4915058 - There are other options to fund rail
High speed works in Asia to how the population is distributed – http://www.globaltimes.cn/content/1149608.shtml
High speed rail has been a failure in EU - https://www.ft.com/content/e77dc48e-7894-11e8-8e67-1e1a0846c475 or
https://www.euractiv.com/section/railways/news/eus-high-speed-rail-plan-is-ineffective-unrealistic-say-auditors/
There are financing issues - https://asia.nikkei.com/Business/Business-trends/Catalyst-or-catastrophe-Lessons-from-Asia-s-high-speed-rail-
failures
Summary
The liberals never seem to do proper business cases as such throw money at winning votes and not whether a project is either profitable or
viable without direct government subsidies.
20. FDI - Blog
The reality is your post does not look at all issues with FDI. You cannot post an article unless you are willing to
discuss the details!
Balance of payments have not improve under Trudeau - https://www150.statcan.gc.ca/n1/daily-
quotidien/190228/dq190228a-eng.htm. (Balance of payment show inflow and outflow of capital
Despite the changes to tax rate for M&E there has been no boom for capital investment -
https://www.slideshare.net/paulyoungcga/capital-spending-and-tax-policy-canada
Oil and Gas sector are key area as 1/3 of exports are oil gas. The new C69 will do nothing in terms of getting NR
projects off the ground - https://www.slideshare.net/paulyoungcga/gdp-canada-february-2019
FDI needs to review to exactly where the investments are being made. You cannot just throw up a link without
the context - https://www.fraserinstitute.org/article/look-how-much-foreign-investment-has-fled-canada or
https://www150.statcan.gc.ca/n1/daily-quotidien/180425/dq180425a-eng.htm or
https://www.slideshare.net/paulyoungcga/2019-election-fdi-foreign-direct-investment-canada (Wholesale,
Insurance and Finance, but not goods producing sector
Despite all the clean technology investment there has been flee of investment -
https://business.financialpost.com/commodities/energy/lack-of-canadian-tax-competitiveness-discourages-
even-renewable-energy
Trudeau’s policies have led to huge issues with business competitiveness -
https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-2019
Trudeau’s small business tax reforms have hinder startups - https://www.slideshare.net/paulyoungcga/2019-
election-issues-technology-sector-canada-april-2019
Trudeau’s incoherent oil pipelines have cost the GDP billions - https://www.slideshare.net/paulyoungcga/why-is-
it-hard-to-approve-pipelines-canada-april-2019
Trudeau GDP growth will be 1.2% for 2019 which is far cry from the 3.0% in 2017. Trudeau’s policies are failing to
support economic growth - https://www.slideshare.net/paulyoungcga/gdp-canada-february-2019
Trudeau said Canada should be known for its resourcefulness and not its’ NR. NR accounts for nearly 11% of GDP
- https://www.slideshare.net/paulyoungcga/natural-resources-sector-policy-analysis-canada-january-2019
Other sources - https://www.slideshare.net/paulyoungcga/2019-election-fdi-foreign-direct-investment-canada
21. What’s next
Liberals need to get the money out the door. There has been delays -
http://cutaactu.ca/en/news-media/latest-news/liberals-infrastructure-
program-problems-detailed-internal-documents
Liberals are not getting pension fund takers for transit, roads and bridges -
https://www.thestar.com/news/canada/2018/06/01/quebec-pension-fund-
seeks-higher-returns-by-taking-on-transit-project.html
Liberals are doing little get goods out of the ground and to market. C69
needs to be killed
Canada needs to be more competitive with all its policies, i.e. taxation,
regulatory environment, etc.
https://www.slideshare.net/paulyoungcga/business-competitivesness-
canada-march-2019