Is Ottawa Actually Moving Faster?

You may or may not agree with Canada potentially constructing another new oil pipeline, but you should be aware of how the process of building pipelines is changing in Canada because you, as taxpayers, are increasingly being asked to pay for it.
 
Historically, major oil and gas pipelines in Canada were built and financed entirely by the private sector after receiving provincial and federal approvals.
 
All of that changed under former Prime Minister Justin Trudeau. Under Trudeau’s Liberal government, some proposed private-sector pipeline projects were cancelled while new legislation was introduced that critics argued would make future oil and gas infrastructure projects significantly more difficult to develop.
 
The Trans Mountain pipeline expansion provides an important example. What began as a private-sector project ultimately became a taxpayer-funded project after the federal government stepped in and assumed ownership. Unfortunately for taxpayers, governments at all levels are typically not very good at building things. The total cost of the Trans Mountain expansion exceeded $34 billion for a project that had been budgeted at roughly $7.4 billion when the private-sector proponent was planning to build it.
 
When Mark Carney campaigned to become Liberal leader—before succeeding Justin Trudeau as Prime Minister—he was well aware of this problem. In fact, during a campaign stop here in Kelowna, Mr. Carney stated: “Something that my government is going to do is to use all of the powers of the federal government, including the emergency powers of the federal government, to accelerate the major projects that we need in order to build this economy and take on the Americans.”
 
Since coming to power, Prime Minister Carney has introduced legislation that he says is necessary to “fast-track” projects of national importance while also creating a new level of bureaucracy through the Major Projects Office (MPO), which is likewise supposed to accelerate projects deemed to be of national importance.
 
With last week’s announcement of the proposed West Coast Pipeline, which would run from Bruderheim, Alberta, to Delta, British Columbia, Canadians are now seeing how this new process is intended to work. This is also the first major pipeline proposal advanced during Mark Carney’s tenure as Prime Minister.
 
A few facts you should know about this proposal.
 
There are no emergency powers at play here. The Prime Minister did not approve a pipeline. He merely referred the proposal to the Major Projects Office (MPO), which will now “initiate the process” for the pipeline’s potential listing as a national-interest project.
 
In other words, at the moment, it is not a declared project of national interest. The process being initiated by the MPO includes extensive consultations with Indigenous groups, provinces, and territories.
 
There is certainly nothing wrong with consultations, which in many cases are legally required. However, these same types of reviews, conditions, and consultations existed previously and applied to major pipeline projects before Mark Carney became Prime Minister.
 
What has changed is that there is now another layer of federal bureaucracy tasked with deciding whether this project should be listed as one of national importance.
I mention all of this because the Prime Minister is telling Canadians that projects like this one are moving at the “speed and scale this moment demands.”
 
In reality, that does not appear to be the case. At this stage, the process appears largely focused on adding another federal review layer rather than eliminating existing approval requirements.
 
It should also be noted that the cost of building the West Coast Pipeline, which would largely follow the existing Trans Mountain right-of-way, is estimated to be between $35 billion and $44 billion. Taxpayers are expected to shoulder much of that financial exposure despite Canada’s oil and gas sector being a multibillion-dollar private, for-profit industry.
 
Another question Canadians should be asking is how all of this will be paid for. On the same day the West Coast Pipeline proposal was announced, the federal government also announced roughly $20 billion in commitments and funding arrangements under its new agreement with British Columbia for a variety of major infrastructure and economic development projects.
 
Whether these commitments are related or entirely separate, taxpayers are still being asked to assume additional financial obligations while receiving very few details on the total long-term cost. Announcing projects is one thing. Delivering them on time, on budget, and without leaving taxpayers holding the bag is another.
 
While the government talks a good game about “speed and scale” and “meeting the moment,” the fine print suggests that very little is actually changing. Existing consultation and approval processes remain in place, another layer of bureaucracy has been added, and taxpayers are being asked to assume more financial risk.
 
If this is what “fast-tracking” looks like, Canadians may reasonably wonder what has actually changed.
 
My question this week: Do you think this government is moving any faster than previous federal governments when it comes to delivering results for taxpayers?
 
Your feedback helps me do my job. As always, you are welcome to share your thoughts on my Facebook page, by email at Dan.Albas@parl.gc.ca, or by calling toll-free at 1-800-665-8711.