The value of building permits issued by Canadian municipalities rose 3.0% to $8.3 billion in July, driven by increases in multi-family and commercial permits. The largest gain was in commercial permits, up 6.7% to $2.0 billion due to high-value permits for office buildings in Vancouver. Six provinces reported declines in industrial permits. The Canada Infrastructure Bank has loaned $1.28 billion to Montreal for electric transit and is reviewing 10 potential projects. It was designed to finance infrastructure not otherwise built and has $35 billion over 10 years for this purpose.

1. 2019 – Infrastructure and
Capital Investment -
Canada
PAUL YOUNG CPA, CGA
SEPTEMBER 10, 2019

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
 Bombardier / Rail

4. Building Permits – July 2019
 “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/190910/dq190910a-eng.htm
The value of building permits issued by
Canadian municipalities rose 3.0% to
$8.3 billion in July, largely due to increases
in multi-family and commercial permits.
Gains were reported in five provinces, with
over one-third of the national increase in
British Columbia. Quebec reported the
largest decrease, down 4.0% to $1.6 billion
due to lower construction intentions in all
components of the non-residential sector.
The largest gain was in commercial
permits, which rose 6.7% to $2.0 billion,
offsetting three consecutive months of
declines. The increase was largely
attributable to high-value permits for office
buildings in the census metropolitan area
of Vancouver.
Six provinces reported declines in the value
of industrial permits, down 6.9% to
$558 million.

5. Liberals vote Pandering
@JustinTrudeau @Bill_Morneau
No Gas Tax funds for June 2019
@PremierScottMoe @RodPhillips01
@emilia_suze @GasPriceWizard
@Swiftie01 @jkenney @BlaineHiggs
@BrianPallister

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/190910/dq190910a-eng.htm
The largest gain was in commercial permits, which rose 6.7% to $2.0 billion, offsetting three consecutive
months of declines. The increase was largely attributable to high-value permits for office buildings in the
census metropolitan area of Vancouver. Six provinces reported declines in the value of industrial permits,
down 6.9% to $558 million.

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

11. Infrastructure /
Liberals - Failures
Source -
https://nationalpost.com/news/poli
tics/years-into-the-liberals-
ambitious-infrastructure-program-
have-the-promised-economic-
benefits-borne-out

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

14. Foreign Direct Investment /
FDI
1. Balance of payments have not improved under Trudeau - https://www150.statcan.gc.ca/n1/daily-
quotidien/190228/dq190228a-eng.htm. (Balance of payment show inflow and outflow of capital
2. 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
3. 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
4. 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
5. 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
6. Trudeau’s policies have led to huge issues with business competitiveness -
https://www.slideshare.net/paulyoungcga/business-competitivesness-canada-march-2019
7. Trudeau’s small business tax reforms have hinder startups -
https://www.slideshare.net/paulyoungcga/2019-election-issues-technology-sector-canada-april-2019
8. 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
9. 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
10. 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

15. GDP by Gross Expenditure / Business Investment

16. Business Investment
Source – Fraser Institute - https://www.fraserinstitute.org/studies/capital-investment-in-canada-recent-behaviour-and-implications

17. Capital
Inflow
and
Outflow
SOURCE – STATS CANADA
HTTPS://WWW150.STATCAN.G
C.CA/N1/DAILY-
QUOTIDIEN/190829/DQ19082
9B-ENG.HTM

18. FDI – 2018
Source -
https://www150.statcan.gc.ca/n1/daily-
quotidien/190424/dq190424a-eng.pdf

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. Bombardier /
Rail
 https://www.cbc.ca/news/canada/thunder-
bay/bombardier-layoffs-thunder-bay-
1.5206009?fbclid=IwAR2FadkWqKg8pjdwP1F
QDUFTYNPbO0T7vN4edk2zVGO7KQTfexD8B5
bOHxM
 Trudeau came to power as such said he would
focus on infrastructure. So, why are transit
system construction so slow? Oops, Trudeau
hates Ford, right?
https://www.therecord.com/news-
story/9288078-trudeau-says-ford-is-
slamming-the-brakes-on-transit-projects/
 Trudeau is great at deflecting his failure,
because he owns the media. The reality is so
call big dig for Trudeau never happen!
https://www.slideshare.net/paulyoungcga/ele
ction-transit-canada-april-2019 or
https://www.slideshare.net/paulyoungcga/201
9-election-construction-and-business-
investment-canada-may-2019

22. Blog #2 – Election 2019
@kenthehr can please provide your calculation link? I like to test out your numbers
1. How come there is no funding of the gas tax from Apr to May?
2. FCM has said there are issues with funding, but you say nothing, why?
@tleehumphrey
https://www.slideshare.net/paulyoungcga/2019-election-infrastructure-and-capital-spending-canada-june-2019

23. 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
 The next government needs to streamline the process to get infrastructure dollars out the
door.