Carney to brief premiers on plan to fast-track major nation-building projects - The Globe and Mail


Canadian Prime Minister Mark Carney plans to introduce legislation to expedite the approval process for major infrastructure projects, aiming to boost the economy and reduce reliance on the United States.
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Open this photo in gallery:Prime Minister Mark Carney plans to introduce legislation to fast-track significant infrastructure projects.Adrian Wyld/The Canadian Press

Prime Minister Mark Carney will present provincial and territorial premiers next week with the broad outlines of legislation that will impose a two-year approval process for major nation-building projects such as ports, critical mineral mines and trade corridors.

The legislation contains measures to fast-track significant infrastructure projects through upfront regulatory approvals, and includes a framework to remove all federal barriers to interprovincial trade, according to a document provided to The Globe and Mail.

The proposed “One Canadian Economy” legislation has already been shared with Indigenous communities and is expected to be a major topic of discussion at Monday’s first ministers meeting in Saskatoon.

For now, approvals for such projects frequently include years of consultations and environmental impact studies. The legislation is likely to face pushback from Indigenous and environmental groups over the weakening of those requirements. It could lead to court challenges, and the NDP and Bloc Québécois have already signalled they’re ready to fight parliamentary battles over new energy projects that add to global emissions.

Mr. Carney’s new government has been pushing to reposition Canada after an election campaign in which tension with the United States was a central issue. On Tuesday, the government promised in a Throne Speech delivered by King Charles III to bring in the largest transformation of the Canadian economy since the Second World War. The speech highlighted the time of global uncertainty, noting that the country’s “relationships with partners are also changing.”

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The new legislation is expected to be tabled soon after the first ministers meeting, and the Prime Minister has said he wants it passed into law by July 1.

The document, prepared by deputy clerk of the Privy Council Christiane Fox and deputy secretary to the cabinet Mollie Johnson, says the legislation is designed to “open up the Canadian economy, reduce our reliance on the United States, and increase domestic productivity and competitiveness.”

In a letter to Indigenous chiefs, the two senior bureaucrats said the proposed bill is part of an effort by the new government to “expand and diversify trade, build trade enabling infrastructure and responsibly develop untapped energy and natural resources.”

The government is obligated to consult First Nations on any proposed legislation that could have an impact on Indigenous communities.

Question period was held in the House of Commons for the first time since Prime Minister Mark Carney was elected. It is also the first time since December there was a question period.

The Canadian Press

An accompanying background document said the goal is to get approval for projects in the national interest within a two-year time frame.

Projects that are considered of high priority will be handled by a new Major Federal Projects Office as a single point of contact for resource companies, provinces and Indigenous communities.

The proposed legislation would allow the Carney cabinet to make regulations to modify federal regulatory requirements for all projects determined to be in the country’s national interest.

Project proponents would still have to provide required information to federal agencies and departments, but instead of dealing with multiple ministers, a designated minister would be assigned. That minister would have the authority to issue a single “conditions document” that would be “deemed to constitute a permit, decision or authorization under all applicable statutes,” according to the background document.

The condition document could allow for “less robust” requirements for nation-building projects than would otherwise be permitted under environmental or other statutes.

In an interview Tuesday with CBC’s Power and Politics, Mr. Carney said he will be asking the first ministers and corporate Canada to provide Ottawa with major infrastructure projects that can get quickly off the ground.

Once the government receives submissions, it will rapidly approve them.

“We are going to name specific projects to which these fast-track approvals apply so that the country can get moving,” Mr. Carney said.

He said national interest projects will include “pipelines that make sense,” clean energy grids, trade corridors, nuclear facilities, critical minerals and carbon-capture facilities.

Some projects will receive federal funding, but others may involve only the provinces or private-sector financing alone, Mr. Carney said. In some cases, it may involve funding by all three partners.

The Throne Speech also committed up to $10-billion so Indigenous communities can participate in the ownership of some of these projects, especially those that pass through their lands.

Chief Keith Corston of Chapleau Cree First Nation expressed dismay that the government sent the legislative proposals on May 23 and gave Indigenous leaders only until Friday to respond.

“It’s same old chum’s game, and I’m not happy with it. We will never reconcile until we all sit down together and start drafting up these policies together,” he said. “They are the drafters of it. They hand it out, given it to you and say, ‘What to you think?’ Well, that’s not a partnership.”

Ontario Premier Doug Ford told The Globe and Mail on Wednesday he’s heard about Ottawa’s plan and he’ll be pushing for large infrastructure projects at the first ministers table.

“I’m also pushing the pipelines, based on one thing: that they use Ontario steel to make the pipes,” he said before entering a cabinet meeting at Queen’s Park.

Open this photo in gallery:Two mining exploration camps in the proposed Ring of Fire development area, approximately 500 km northeast of Thunder Bay, Ont.Reuters

Mr. Ford said the province has presented its top five nation-building projects to Ottawa, with critical mineral mining development in Northern Ontario’s Ring of Fire region the No. 1 priority.

He added that Mr. Carney supports the Ring of Fire development. “It’s not going to be interference that we had from the previous prime minister. We’re going to move forward with it and look forward to working collaboratively with the federal government on this,” he said.

Mr. Ford also defended his government’s proposed Bill 5, which has garnered criticism from environmentalists and First Nations leaders who say it is undemocratic and tramples treaty rights.

It would allow the government to create “special economic zones” where any provincial law – including environmental or labour rules – could be suspended to speed up mining or other development.

The government has said the measures contained in Bill 5 are necessary to accelerate Ontario’s sluggish mining approvals in the Ring of Fire region, especially in the face of the economic challenges of U.S. President Donald Trump’s tariffs.

On Wednesday, Mr. Ford’s government said it would draft regulations to allow Indigenous-led economic zones, but vowed to pass the bill mostly unchanged.

Asked whether Mr. Carney has expressed any concerns to him about Bill 5, Mr. Ford said his government is going to respect treaty rights. “We’re always going to do our duty to consult. We want to make sure that we enhance their lifestyle. We want to make sure that they’re prospering as well,” he said.

He added that he believes 24 months to get a permit is fair. “Then we can compete with the rest of the world.”

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