OTTAWA: Prime Minister Mark Carney’s government has pledged to complete reviews of large projects within a year and cut down on crippling labour disputes in the transportation sector.
The proposed law represents some of the deepest reforms undertaken yet by Carney towards his goal of stimulating business investment and boosting the Canadian economy, which is suffering under the trade war launched by US President Donald Trump.
But some of the moves are likely to be opposed by unions, environmental advocates and Indigenous groups, which argue Carney is giving in too much to business interests.
The bill must be approved by Parliament first, though Carney’s Liberal Party has a majority in the House of Commons, all but guaranteeing its passage.
The legislation, called the Building Canada Strong Act, aims to ensure that all “federal reviews and decisions are completed within one year” for infrastructure projects, and that there are “clearer, simpler, and more predictable processes for project proponents and Indigenous groups participating in project consultations”, said a government news release.
Dominic LeBlanc, the cabinet minister who oversees major project reviews, said the bill aimed to install “urgency” across the government when it comes to permitting – but insisted the reviews themselves would not be weakened.
“None of this in any way diminishes environmental assessments or obligations to Indigenous rights holders,” he told reporters.
The legislation sets out new timeline requirements for collective bargaining for federally regulated industries, and allows for a special mediator to be appointed for certain entrenched labour conflicts.
The aim is to avoid major work stoppages.
Canada has had a series of strikes or lockouts affecting railways, ports and airlines in recent years that have hobbled the movement of goods and people.
It also aims to clarify when and how the government can order binding arbitration for a work stoppage, including a condition that the labour disruption must have a far-reaching effect on the economy beyond the affected parties.
The bill allows for designating strategic trade corridors and tasking officials with clearing bottlenecks.
A new transportation project office will aim to advance such projects to the construction phase within a year.
Finally, the bill updates Canada’s port governance laws with the aim of reducing administrative burdens, allowing for more digitisation, and opening the way for joint ventures with private investment.
Carney already tried to get projects in Canada built faster, in particular by establishing the Major Projects Office, which helps arrange financing and navigate the regulatory process for selected proposals.
Last week, he also announced a huge expansion to the types of capital expenses that can be written off immediately as a business deduction, adding oil and gas pipelines, oil production equipment, mining property and more to the list.
The policy was unveiled at the inaugural Canada Investment Summit, which attracted many of the world’s largest asset managers to Toronto with the goal of drawing more foreign capital into the country.
Still, the new legislation is Carney’s most sweeping effort to overhaul Canada’s regulatory state and labor laws.
Unions had been on edge as the government consulted on the bill, worried Carney would restrict the ability of workers in federally regulated sectors, which include transportation, banking and telecommunication, to walk off the job.
The past few years have seen a handful of highly disruptive work stoppages, including at the country’s two biggest airlines, Air Canada and WestJet, as well as at major ports and railroads.
Businesses have called on the government to step in earlier to prevent cascading supply chain problems.
But the government has also tested the use of a controversial legal tool known as Section 107 to order binding arbitration and send employees back to work.
There are several ongoing court challenges over this power, with unions arguing it violates their constitutional right to strike. — Bloomberg
