Economy
Taxpayers Federation: Canada’s largest city overpaying for construction $350 million a year

From the Canadian Taxpayers Federation
Author: Jay Goldberg
Favouring unions costs taxpayers dearly
They say less is more, especially when it comes to budgeting. Apparently, Toronto Mayor Olivia Chow never got the memo.
Canada’s largest city keeps overpaying on construction projects, to the tune of $350 million a year. The reason, in many cases, is that only union-affiliated firms need apply.
With modest construction contracting reform, Toronto could save a bundle and see property taxes frozen for 2025.
Over the past two years, Toronto politicians voted to increase property taxes by a whopping 18 per cent. Last year’s increase alone was 9.5 per cent.
Because of these massive property tax increases, many families were pushed to the brink.
Property tax bills for most Torontonians soared by hundreds of dollars over the past two years.
Yet so much of this pain could have been avoided with a little common-sense policymaking.
Would you refuse to even consider quotes from a non-unionized company? Or would you get quotes from everyone and then make your decision?
To nearly everyone on the planet other than Toronto’s zany politicians, the choice is obvious.
But when you’re a Toronto politician spending other people’s money, apparently open competition to find the best deal isn’t a priority.
Right now, Toronto uses a closed-tendering approach to award contracts for some of the city’s most expensive construction projects. That means only a handful of companies associated with a small group of unions can bid on those jobs.
Cardus, a non-partisan thinktank, released a report last year projecting Toronto was poised to award $1.7 billion in construction projects through a closed tendering process in 2023. Because Toronto only allows a small number of unionized construction companies to bid on those jobs, the cost goes up.
In fact, Cardus estimated Toronto taxpayers were set to overpay on construction projects in 2023 to the tune of $350 million due to a lack of competition.
Closed tendering used to be the norm in Ontario. Every city across the province overpaid on construction projects to cater to big unions.
That all changed in 2019, when the Ford government passed legislation allowing municipalities to open up the construction contracting process to real competition.
Sadly, Toronto has thus far chosen not to take advantage of the Ford government’s legislative reforms to save a boatload of cash.
But nearby cities sure have.
Consider the example of Hamilton.
Hamilton was one of the first cities in Ontario to take advantage of the Ford government’s reforms. Cardus estimates Hamilton is saving 21 per cent on its construction projects because the city opened up its contracting process. This single reform did a great deal to improve the city’s bottom line.
Yet Toronto politicians appear stuck in the past. During last year’s mayoral by-election, only two candidates, Councillor Brad Bradford and Anthony Furey, pledged to follow Hamilton in reforming construction contracts.
There has been no indication from Chow, who won that by-election, that this common-sense reform is even on the table.
Last year, Chow and council increased property taxes by 9.5 per cent, the highest property tax hike in Toronto’s history.
Had Chow implemented construction reform and saved the $350 million Cardus pointed to, last year’s property tax increase could have been wiped out entirely.
Think about that. Chow had a choice: save money through competitive bidding or hammer taxpayers with a huge tax hike.
The mayor picked the tax hike.
To break the cycle of massive property tax hikes, it’s high time Toronto looked at construction contract reform.
Taxpayers shouldn’t put up with politicians overpaying on construction contracts to the tune of hundreds of millions of dollars a year, only to see those same politicians turn around and impose record property tax hikes.
This isn’t just a problem restricted to Toronto: taxpayers from British Columbia to Quebec themselves face similar anti-competitive policies at the provincial level.
It’s time for politicians to put taxpayers, not unions, first.
Chow should implement common-sense construction contracting reforms to head off a massive property tax increase in 2025.
Business
Major Projects Office Another Case Of Liberal Political Theatre

From the Frontier Centre for Public Policy
By Lee Harding
Ottawa’s Major Projects Office is a fix for a mess the Liberals created—where approval now hinges on politics, not merit.
They are repeating their same old tricks, dressing up political favouritism as progress instead of cutting barriers for everyone
On Sept. 11, the Prime Minister’s Office announced five projects being examined by its Major Projects Office, all with the potential to be fast-tracked for approval and to get financial help. However, no one should get too excited. This is only a bad effort at fixing what government wrecked.
During the Trudeau years, and since, the Liberals have created a regulatory environment so daunting that companies need a trump card to get anything done. That’s why the Major Projects Office (MPO) exists.
“The MPO will work to fast-track nation-building projects by streamlining regulatory assessment and approvals and helping to structure financing, in close partnership with provinces, territories, Indigenous Peoples and private investors,” explains a government press release.
Canadians must not be fooled. A better solution would be to create a regulatory and tax environment where these projects can meet market demand through private investment. We don’t have that in Canada, which is why money has fled the country and our GDP growth per capita is near zero.
Instead of this less politicized and more even-handed approach, the Liberals have found a way to make their cabinet the only gatekeepers able to usher someone past the impossible process they created. Then, having done so, they can brag about what “they” got done.
The Fraser Institute has called out this system for its potential to incentivize bribes and kickbacks. The Liberals have such a track record of handing out projects and even judicial positions to their friends that such scenarios become easier to believe. Innumerable business groups will be kissing up to the Liberals just to get anything major done.
The government has created the need for more of itself, and it is following up in every way it can. Already, the federal government has set up offices across Canada for people to apply for such projects. Really? Anyone with enough dollars to pursue a major project can fly to Ottawa to make their pitch.
No, this is as much about the show as it is about results—and probably much more. It is all too reminiscent of another big-sounding, mostly ineffective program the Liberal government rolled out in 2017. They announced a $950-million Innovation Superclusters Initiative “designed to help strengthen Canada’s most promising clusters … while positioning Canadian firms for global leadership.”
That program allowed any company in the world to participate, with winners getting matching dollars from taxpayers for their proposals. (But all for the good of Canada, we were told.) More than 50 applications were made for these sweepstakes, which included more than 1,000 businesses and 350 other participants. In Trudeau Liberal fashion, every applicant had to articulate how their proposal would increase female jobs and leadership and encourage diversity in the long term.
The entire process was like one big Dragon’s Den series. The Liberals trotted out a list of contestants full of nice-sounding possibilities, with maximum hype and minimal reality. Late in the process, Minister of Innovation, Science and Industry Navdeep Bains picked the nine finalists himself (all based in cities with a Liberal MP), from which five would be chosen.
The alleged premise was to leverage local and regional commercial clusters, but that soon proved ridiculous. The “Clean, Low-energy, Effective and Remediated Supercluster” purported to power clean growth in mining in Ontario, Quebec and Vancouver. Not to be outdone, the “Mobility Systems and Technologies for the 21st Century Supercluster” included all three of these locations, plus Atlantic Canada. They were only clustered by their tendency to vote Liberal.
Today, the MPO repeats this virtue-signalling, politicking, drawn-out, tax-dollar-spending drama. The Red Chris Mine expansion in northwest British Columbia is one of the proposals under consideration. It would be done in conjunction with the Indigenous Tahltan Nation and is supposed to reduce greenhouse gas emissions by 70 per cent. That’s right up the Liberal alley.
Meanwhile, the project is somehow part of a proposed Northwest Critical Conservation Corridor that would cordon off an area the size of Greece from development. Is this economic growth or economic prohibition? This approach is more like the United Nations’ Agenda 2030 than it is nation-building. And it is more like the World Economic Forum’s “stakeholder capitalism” approach than it is free enterprise.
At least there are two gems among the five proposals. One is to expand capacity at the Port of Montreal, and another is to expand the Canada LNG facility in Kitimat, B.C. Both have a market case and clear economic benefits.
Even here, Canadians must ask themselves, why must the government use a bulldozer to get past the red tape it created? Why not cut the tape for everyone? The Liberals deserve little credit for knocking down a door they barred themselves.
Lee Harding is a research fellow for the Frontier Centre for Public Policy.
Business
“Nation Building,” Liberal Style: We’re Fixing a Sewer, You’re Welcome, Canada

Ottawa held a full-blown press conference to announce they unclogged a pipe in Toronto and called it a generational housing strategy.
You probably didn’t hear much about it unless you were watching Canadian state media but this morning, the Liberal government held a press conference in Toronto. It was billed as a “generational investment” in housing. That’s the phrase they used. In reality, it was a sewer project.
Gregor Robertson, the former mayor of Vancouver and now the federal minister of housing and infrastructure, stood beside Toronto Mayor Olivia Chow and a cluster of Liberal MPs to announce that Ottawa is spending $283 million to upgrade the Black Creek trunk sewer line. That’s a pipe. A very old pipe. And according to Robertson, that investment will “unlock” the construction of up to 63,000 new homes in the Downsview area.
If that sounds suspiciously like taking credit for doing your job, maintaining the basic infrastructure cities rely on, that’s because it is. No one has ever accused the Liberals of missing an opportunity to repackage civic maintenance as a national moral crusade. The sewer line is 65 years old. It overflows during storms. It’s been a known problem for decades. Fixing it is not bold housing policy. It’s plumbing.
But the political optics are irresistible. The Trudeau Liberals, now under the leadership of Mark Carney are desperate for a win on housing. Their record is catastrophic. Home prices have doubled. Rents have soared. Entire generations of Canadians have been priced out of ownership and locked into permanent renter status. And the architects of that disaster are now flying around the country handing out ribbon-cutting ceremonies and calling it reform.
Today’s announcement also included the unveiling of the first project under a brand-new federal housing agency, Build Canada Homes. Never heard of it? That’s because it didn’t exist until a few weeks ago. And who’s running it? None other than Ana Bailão a Liberal operative and former Toronto city councillor who spent years helping make the city unaffordable in the first place. Now she’s being rewarded with a cushy federal appointment, tasked with building modular housing and handing out contracts on public land.
And what exactly is Build Canada Homes building? Today, they’re launching 540 homes. Not 63,000… 540. Factory-built units that will be delivered at some undefined point in the future. That’s the big federal breakthrough. A housing crisis affecting millions of Canadians, and Ottawa’s answer is five hundred and forty modular homes in Downsview.
This is the pattern every time. The government breaks something, calls it a crisis, and then demands credit for fixing a fraction of it with your money. The numbers are staggering. According to the Parliamentary Budget Office, Canada needs 3.1 million more homes by 2030 to restore affordability. That means building over 430,000 units per year. Right now, we’re building maybe half that. The backlog gets worse every year. But today, we’re supposed to celebrate because they’re unclogging a sewer and firing up a couple prefab builds on federal land.
No one in the press asked the obvious question: why aren’t private builders constructing the 300,000 units that Toronto has already zoned and approved? Because they can’t. The financing doesn’t work. The cost of materials is too high. Interest rates have crippled developers. And cities like Toronto still impose hundreds of millions of dollars in fees, development charges, and bureaucratic red tape. That’s the real bottleneck. Not the sewer. And here’s what they definitely won’t say out loud: Canada’s housing disaster is not just about supply. It’s about demand, turbocharged by one of the fastest immigration intakes in the Western world. The Bank of Canada has warned repeatedly that immigration targets, set without any link to housing capacity — have blown demand wide open and put relentless upward pressure on rents and home prices.
Mayor Chow admitted it herself, sort of. She said the city has thousands of units ready to build but no takers. And instead of confronting the root causes, monetary policy, taxes, regulatory insanity, the government announces a pilot project and tells you to be grateful. That’s how disconnected they are from reality. They’ve regulated housing out of reach and now they’re posing for photos on a construction site, pretending to be the solution.
And just in case there was any lingering doubt about how deep this failure runs, Statistics Canada released its latest building permit numbers this morning and the trend is exactly what you’d expect in a country where the government makes building homes all but impossible.
The total value of building permits dropped again in August down $139 million to $11.6 billion. Residential permits alone fell 2.4%, driven by steep declines in Ontario and Alberta, the very provinces with the most acute housing needs. Single-family permits fell off a cliff — down more than 10% year-over-year. That’s not a slowdown. That’s a stall.
Meanwhile, British Columbia and Quebec where government intervention is particularly heavy barely managed to offset the damage. The number of new dwellings authorized actually shrank month over month. And this is happening in the middle of a so-called national housing push.
StatsCan didn’t sugarcoat it. They didn’t blame foreign investors or greedy landlords or some phantom market force. They just showed the raw data: Permits are falling. Housing starts are lagging. Builders are retreating.
So let’s just pause here and appreciate the sheer absurdity of what we witnessed. A parade of officials, flanked by branded podiums and tax-funded media handlers, standing in front of a construction site to announce, with straight faces, that they are upgrading a sewer line. And for this, we are told we are “building Canada strong.” Really? That’s the pitch? Fixing basic municipal plumbing is now a nation-building moment?
No! Let’s be clear, you’re not building Canada strong. You’re doing your job. A sewer upgrade in Toronto is not some heroic act of visionary leadership. It’s literally maintenance. It’s what functioning governments are supposed to do, quietly, competently, without a six-camera press choreography and a round of applause from party MPs.
But in Liberal Carney Canada the bar has been lowered so dramatically that simply clearing a permit backlog and patching old infrastructure is treated like a moon landing. They break the system, congratulate themselves for patching one pipe, and expect gratitude.
If you want praise for fixing aging civic infrastructure, something cities used to handle without a national press event, then that tells us everything. It tells us the Liberal government has become so hollow, so addicted to performance politics, that maintenance is now treated as achievement. That’s how far we’ve fallen in just ten years.
They didn’t rebuild a nation. They didn’t launch a housing renaissance. They unclogged a sewer, and are now demanded a standing ovation. And that, in a single image, is modern Liberal Canada: the total collapse of standards, repackaged as progress and sold back to you at full price.
Canadians don’t need more press conferences. They need homes, dignity, and a government that works without constant applause. And if unclogging a pipe is what passes for leadership now — then God help the country.
Subscribe to The Opposition with Dan Knight .
For the full experience, upgrade your subscription.
-
International2 days ago
Number of young people identifying as ‘transgender’ declines sharply: report
-
Alberta2 days ago
The Technical Pitfalls and Political Perils of “Decarbonized” Oil
-
National1 day ago
Democracy Watch Renews Push for Independent Prosecutor in SNC-Lavalin Case
-
Health2 days ago
Colorado gave over 500 people assisted suicide drugs solely for eating disorders in 2024
-
Alberta2 days ago
Enbridge CEO says ‘there’s a good reason’ for Alberta to champion new oil pipeline
-
Alberta22 hours ago
Click here to help choose Alberta’s new licence plate design
-
Censorship Industrial Complex2 days ago
Canada’s privacy commissioner says he was not consulted on bill to ban dissidents from internet
-
Bruce Dowbiggin2 days ago
Long-Distance Field Goals Have Flipped The Field. Will The NFL Panic?