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The Runaway Costs of Government Construction Projects

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From the C2C Journal

By Gwyn Morgan

Ottawa’s post-pandemic $300 billion spending orgy was coupled with the pompous claim to “Build Back Better”. As it happened, most of that spending was recklessly borrowed – stoking inflation – while Build Back Better was a dud, was discarded in embarrassment and, if recalled at all today, is told as a sick joke. Far too many planned projects now sink into a quicksand of political haggling, regulatory overkill, mission creep, design complexity and, if built at all, bungled execution. Looking at specific examples, Gwyn Morgan presents the lamentable results: far less is actually getting built across Canada, nearly everything takes forever and – worst of all – costs routinely soar to ludicrous levels. Added to that, Morgan notes, are woke-based criteria being imposed by the Trudeau government that are worsening the vicious cycle.

Not so long ago, a $10 million government infrastructure project was regarded as a significant expenditure. Nowadays, $10 million doesn’t come close to funding projects as simple as a firehall or new police station. Here in the Victoria region, a new firehall in the District of Saanich, originally budgeted at $25.6 million, has jumped to nearly $45 million over four years – and construction has barely begun. The facility will support 10 firefighters. In the Langford District, the estimated cost of a new RCMP building is an incomprehensible $82 million – and of course, nothing has actually been done yet, so this price tag will surely soar. Just north of Victoria, the cost of what was to be a simple flyover eliminating a dangerous left turn across the busy Patricia Bay Highway has spiked from its original estimate of $44 million to $77 million.

These cost increases seem big to us here on “Fantasy Island”, but they would amount to a rounding error in mega-city Toronto. The Ontario Line, a 15.6-kilometre light-rail transit line connecting the Science Centre to Ontario Place, was budgeted at $10.9 billion when first announced in 2019. A series of updates have seen the cost balloon to an estimated $19 billion – an increase of more than 70 percent – with the completion date pushed out by four years to 2031. Expect more cost increases to be announced.

These are just a few examples of municipal and provincial cost increases and overruns. The story is similar from coast to coast, with no project type or size in any municipality or province immune to an unsettling syndrome that seems to prevent nearly anything from being planned cost-effectively and then delivered on budget. Obviously, the total for all such projects planned or underway across Canada is immensely higher – surely in the tens of billions of dollars.

Mismanagement syndrome: From simple firehalls to subway sections to straightforward software, governments at all levels have lost control of costs. Replacing a small firehall in Saanich on Vancouver Island (top left and top right) will cost nearly $2,000 per square foot or $4.5 million per firefighter; the pricetag for Toronto’s planned Ontario Line (bottom left) has zoomed from $10.9 billion to $19 billion; and the notorious ArriveCAN (bottom right) consumed $54 million to deliver an $80,000 software tool. (Sources of images: (top left) District of Saanich; (top right) rendering courtesy of hcma, retrieved from naturally:wood; (bottom left) Metrolinx; (bottom right) WestJet/Facebook)

Now for the project mismanagement champion of all. Statistics Canada data show that federal capital infrastructure project expenditures totalled $24.1 billion in the period 2018-2021 (the most recent year for which figures are available). Given that Ottawa bureaucrats are famous for mismanaging virtually every project (think of the notorious ArriveCAN app, whose development blew through $54 million to yield a buggy software tool that private-sector geeks could have cranked out for $80,000), there can be no doubt that a lot of those billions were to pay for overruns resulting from a combination of sloppy design specifications and poor execution.

But now the Trudeau government has added costly “social justice” specifications to federal procurement requirements, including participation by ethnic minorities, disabled persons and diverse genders, plus other elements of woke ideology. These elements were clearly demonstrated in what I’ll call “The Great Helicopter Hangar Saga”. The following is a recollection from sources I know to be completely reliable.

The Canadian Forces’ 443 (Pacific) Maritime Helicopter Squadron’s hangar had been located adjacent to the Victoria Airport for many years. In November 2004, the Department of National Defence (DND) announced the award of a $1.8 billion contract for 28 Sikorsky CH-148 Cyclone helicopters, of which a number were to be based on Vancouver Island. A new hangar was required, which seems reasonable. DND engineers designed a facility that would meet the squadron’s needs at an estimated cost of roughly $18 million. Then they handed the project to Public Works and Government Services Canada. That’s when the project entered an ephemeral space resembling the old sci-fi TV series The Twilight Zone.

Public Works decided the hangar needed to be able to “sustain operations” in the event of a magnitude 8.0 earthquake – an incomprehensible decision for several reasons. First, 8.0 on the Richter Scale is seven times larger than the most severe earthquake ever recorded on Vancouver Island. Second, the severity of earthquake damage at any given location depends on its subsurface. Buildings sitting on soil and gravel suffer much more damage than those built on bedrock because the soft material changes from behaving like a solid to behaving like a thick liquid, amplifying the ground’s shaking. The Pacific Maritime Helicopter Squadron’s hangar was located on solid bedrock. That alone made it highly earthquake-resilient.

But the Public Works technocrats were oblivious to those facts, or didn’t care. Instead, their design demanded steel piles driven into the bedrock at a cost of $8 million. That alone reportedly delayed the project by two years. Cross-bracing of the interior wall openings added more millions. When construction of the actual building finally began, government bureaucrats specified more office space, locker and “administrative security” facilities than what the DND had considered necessary, adding more costs.

Then came the woke-related costs. In determining the contract award, Public Works required First Nations involvement both as subcontractors and in the workforce, extensive gender diversity and complete disabled access. Elevators were ordered equipped with Braille at the control buttons plus voice recognition – along with full wheelchair accessibility. Members of the military joked that all these extras must be for the “blind and disabled pilots”. By the time the new hangar was handed back to the military, the DND’s $18 million project had skyrocketed to a staggering $155 million.

Braille for blind pilots: To base some of the Royal Canadian Air Force’s new CH-148 Cyclone maritime helicopters (above, performing in-flight refuelling with a navy frigate in the North Atlantic) on Vancouver Island, federal Public Works bureaucrats took a reasonable $18 million Department of Defence design and transformed it into a $155 million fiasco reflecting Ottawa’s diversity obsessions and wokist ideology. (Sources of photos: (top) Lockheed Martin, retrieved from Navy Recognition; (bottom) The Lookout)

In July 2019, Phillip Cross wrote an inciteful column for the Financial Post entitled, “Why governments keep screwing up major infrastructure projects”. As Cross put it, “Prominent studies of domestic and international public infrastructure projects found cost overruns averaged between 45 and 86 percent.” Why? In Cross’s view, a big part of the problem is that “public projects suffer from a lack of accountability. Governments evaluate projects not according to the performance-based criteria of the private sector, but by their conformity to rules and processes.”

Cross’s points are well-taken and illustrated by circling back to our Saanich Firehall example. The new facility’s 23,476 square feet will incur a construction cost of over $1,900 per square foot (assuming the new $45 million budget is big enough). That is six to nine times typical construction costs for commercial buildings which, as this report shows, average $200-$300 per square foot. And while a firehall may well be a bit more sophisticated and hence costly to build than, say, a retail strip mall, the Saanich firehall’s costs are also wildly out of proportion to any class of construction, as the fascinating accompanying chart shows. As you can see, it lists a range of $415-$485 per square foot for emergency services buildings. Even technology-heavy, highly customized construction categories like hospitals and data centres come in at no more than $805 and $1,055 per square foot, respectively. Clearly, something is seriously wrong in Saanich and many other locations across Canada.

Outrageous by any standard: The ballooning construction costs of recent public-sector projects are many times higher than 2022 averages for all categories – even in a high-cost market like Vancouver. (Source of graph: Statista)

This evidence of dysfunctional project mismanagement comes at a time when public infrastructure spending is at record levels, dominated by the Justin Trudeau government’s $33 billion 2023-24 infrastructure project budget and sure to be made even more dysfunctional and costly by the Liberals’ surreptitious implementation of woke ideology. When will Canadians awaken and rise up against a government that defies the values of honesty and openness our country was built on?

Gwyn Morgan is a retired business leader who was a director of five global corporations.

Source of main image showing Vancouver’s Broadway Subway project: BC Ministry of Transportation and Infrastructure; retrieved from ReNew Canada.

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Business

Premiers fight to lower gas taxes as Trudeau hikes pump costs

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From the Canadian Taxpayers Federation

By Jay Goldberg 

Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.

You read that right. That’s not the overall fuel bill. That’s just taxes.

Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.

Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.

Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.

Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.

While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.

Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.

In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.

It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.

Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.

When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.

Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”

“Our government will always fight against it,” Ford said.

But there’s some good news for taxpayers: reprieve may be on the horizon.

Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.

With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.

Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.

Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.

Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.

While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.

The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.

That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.

Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.

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Agriculture

Sweeping ‘pandemic prevention’ bill would give Trudeau government ability to regulate meat production

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From LifeSiteNews

By Anthony Murdoch

Bill C-293, ‘An Act respecting pandemic prevention and preparedness,’ gives sweeping powers to the federal government in the event of a crisis, including the ability to regulate meat production.

The Trudeau Liberals’ “pandemic prevention and preparedness” bill is set to become law despite concerns raised by Conservative senators that the sweeping powers it gives government, particularly over agriculture, have many concerned.

Bill C-293, or An Act respecting pandemic prevention and preparedness, is soon to pass its second reading in the Senate, which all but guarantees it will become law. Last Tuesday in the Senate, Conservative senators’ calls for caution on the bill seemed to fall on deaf ears. 

“Being from Saskatchewan I have heard from many farmers who are very concerned about this bill. Now we hear quite a short second reading speech that doesn’t really address some of those major concerns they have about the promotion of alternative proteins and about the phase-out, as Senator Plett was saying, of some of their very livelihoods,” said Conservative Senator Denise Batters during debate of the bill. 

Batters asked one of the bill’s proponents, Senator Marie-Françoise Mégie, how they will “alleviate those concerns for them other than telling them that they can come to committee, perhaps — if the committee invites them — and have their say there so that they don’t have to worry about their livelihoods being threatened?” 

In response, Mégie replied, “We have to invite the right witnesses and those who will speak about their industry, what they are doing and their concerns. Then we can find solutions with them, and we will do a thorough analysis of the issue. This was done intentionally, and I can provide all these details later. If I shared these details now, I would have to propose solutions myself and I do not have those solutions. I purposely did not present them.” 

Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.   

Bill C-293 would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”  

It would also, as reported by LifeSiteNews, allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.”

A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.”  

The bill has been blasted by the Alberta government, who warned that it could “mandate the consumption of vegetable proteins by Canadians” as well as allow the “the federal government to tell Canadians what they can eat.” 

As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The World Economic Forum, a globalist group with links to the Trudeau government, has as part of its Great Reset agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints.  

Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption. 

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