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Have We Lost the Ability to Build Infrastructure?

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6 hours ago

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The Audit

 

The Empire Statue Building was, for its time, monumental. The New York landmark may not be such a big deal these days, but its construction history in often invoked as a sign that we’ve lost the capacity to do big stuff.

After all, the iconic skyscraper’s builders brought the project to completion $19 million under budget, 12 days ahead of schedule, and in just over a year.

At the height of the depression.

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By contrast, California’s High-Speed Rail project – designed to ultimately link San Diego with Sacramento – was authorized in 2008. Construction on Phase 1 didn’t being until 2015. As of now, $11.2 billion has been spent without a single train having left a single station. The total budget was originally in the $33-40 billion range, although it’s now anticipated to run past $128 billion. And no one’s expecting project completion any time in the next decade.

Closer to home, we can compare the original 7.4 kilometer Yonge Line of Toronto’s subway system (fully-functional by 1954 after just five years’ work) with its grandson, the Eglinton Crosstown LRT. The Eglinton line was announced in 2007, work began in 2011 and, 13 years later, completion is still nowhere in sight. Since I live just a few blocks from what might one day become an LRT station, I’ll be sure to let you know if anything changes.

In the grand scheme of things, North America might not even have it so bad. Lately, everyone (and by “everyone” I mean everyone besides my wife, children, or even a single person I have ever met) has been buzzing about a 17,000-word article called “Foundations: Why Britain Has Stagnated”. I strongly encourage you to read the whole thing have ChatGPT summarize it for you.

The main takeaway from Foundations is that the UK’s excessive regulations, high energy and labour costs, bureaucratic delays, and outdated tax incentives led to an application process requiring 360,000 pages and nearly £300 million for the Lower Thames Crossing project before any work was even approved!

The rot that lies behind Britain’s paralysis has been building since the 1990’s, through both Conservative and Labour governments.

But things might not be so bad here at home. For one thing, we probably don’t have a regulatory bureaucracy that’s quite so extreme as Britain’s. I’m aware of nothing in Canada that’s analogous to the UK’s “nutrient neutrality” requirements.

And while our energy costs are certainly not cheap, they’re a whole lot better here than in the UK. Commercial electricity, for instance, costs an average of USD 0.117 per kWh in Canada, far below the USD 0.485 per kWh they’re paying in the UK. And the cost of natural gas for home heating in Canada (USD 0.038 per kWh) isn’t even close to what they shell out across the pond (USD 0.092 per kWh).

Which might at least partially explain why, despite all the delays, cost overruns, and unexpected service failures involved, some major infrastructure projects have reached a (broadly) happy conclusion.

For every expensive failure (like the Eglinton Crosstown LRT or the Ottawa Confederation Line), there have also been successes (like Confederation Bridge and Vancouver’s Canada Line). Things are far from perfect, but it’s not all doom and gloom either.

The Foundations article ends on a positive note:

We believe that Britain can enjoy such a renewal once more. To do so, it need simply remove the barriers that stop the private sector from doing what it already wants to do: build homes, bridges, tunnels, roads, trams, railways, nuclear power plants, grid connections, prisons, aqueducts, reservoirs, and more.

Removing barriers. Or even better, resisting the erection of new barriers before they’re in place. We can always hope.

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As Ottawa meddles with pension funds, Albertans should consider provincial pension plan

Published on October 19, 2024

By

From the Frontier Centre for Public Policy

By Marco Navarro-Genie 

Who Should Control Canada’s Pension Wealth?

Ottawa wants to compel large pools of Canadian money to be invested in Canada, instead of allowing investment funds to find the best return for Canadian investors.

Last week, another scandalous and potentially corrupt string of federal activities popped up.

This one has deep implications for pension plans in Canada, including the debate about an Alberta Pension Plan. Mark Carney’s double game of politics and profit enhances the drive to patriate Alberta’s pension wealth.

At issue is a report in the media saying that Brookfield may be looking to raise a $50 billion fund with contributions from Canada’s pension funds and an additional $10 billion from the federal government.

This report has drawn significant attention for several reasons. Toronto-based Brookfield is one of the world’s largest alternative investment management companies, claiming about one trillion in assets under management. Their portfolio spans real estate, renewable energy, infrastructure, and private equity, making them a significant player in domestic and international markets. The magnitude of Brookfield’s investments places them at the forefront of global financial movements, giving considerable weight to any fund they propose to establish.

The second reason is that Finance Minister Chrystia Freeland and Prime Minister Justin Trudeau have voiced their ambitions to boost home-grown investments. One of the government’s strategies includes tapping into Stephen Poloz, the former Governor of the Bank of Canada. Poloz succeeded Mark Carney as the head of the bank. The Liberal government has tasked Poloz with leading a working group to identify “incentives” that would “encourage” institutional investors to keep their capital in Canada.

Moreover, Finance Minister Freeland has suggested implementing new regulations to ensure that more of Canada’s substantial pension fund reserves, which amount to an impressive $1.8 trillion, are allocated toward Canadian ventures. This comes when a staggering 73% of Canadian pension funds are invested abroad.

On its face, a plan to invest more Canadian wealth in Canada might sound reasonable. However, the plan avoids the crucial question of why money experts prefer investing outside Canada. Considering that question, one must consider the Trudeau government’s economic record.

Put differently, Ottawa is looking for ways to compel large pools of Canadian money to be invested in Canada instead of allowing investment funds to find the best return for Canadian investors. Those large cash pools typically belong to hard-working Canadians, such as teachers’ pensions. They would be forced to earn less for their pension money.

Forcing such large sums to remain in Canada would mask the continuous slump in productivity in the Canadian economy.

Given current economic policies and layers of taxation that do not exist elsewhere (such as the unpopular carbon taxes), Canadian companies are less competitive. Forcing pools of money to stay in Canada rather than seeking the best return for their clients offers an artificial boost that makes Ottawa policies seem less harmful.

It is, therefore, a politically motivated move. That level of government intervention historically always results in disastrous consequences. Politics directing traffic for the movement of capital rarely achieves good outcomes. The real issue is sagging productivity.

But that is only half the problem. The other significant issue is ethics.

Prime Minister Trudeau has recently named Mark Carney as his special economic advisor. Carney is the Chair of Asset Management and Head of Transition Investing at Brookfield.  The Brookfield website shows Carney is responsible for “developing products for investors.”  Carney is also the most mentioned name among people likely to succeed Justin Trudeau as leader of the Liberal Party of Canada.

In short, the man who closely advises the government of Canada on how to compel gargantuan pools of money to be invested in Canada conveniently oversees the development of the “product” for the private Toronto firm, through which that money would be forced to be invested in Canada. Furthermore, the same firm reportedly seeks (read lobbying) from the federal government an infusion of $10 billion for the new fund.

As a Liberal and a potential party leader, given Justin Trudeau’s fortunes, Mark Carney could become prime minister in the immediate future. This means that Carney would benefit from creating new rules forcing investment money to stay in the country in two ways: As a leading man at Brookfield, Carney and the firm stand to make tens of millions from the policy. Second, as a carbon tax enthusiast, once squarely in political office, Carney would benefit from masking the ill, underproductive effects of the radical green agenda and carbon taxes he supports.

When Alberta progressives oppose the desire of many Albertans to patriate Alberta pension funds to the province, they cite concerns that the province might use the funds for political purposes, undermining the maximum return. This is not an outlandish concern, in some respects, given the history of the Alberta Heritage Fund.

However, it is not an exclusive danger inherent to the Alberta government. It does not warrant the presupposition that the federal government is a better steward of Alberta’s pension wealth, as demonstrated by the developments above. All things being equal, and unless human nature is outlawed by federal statute, the risks are the same.

But if something goes wrong with Albertans’ pension wealth, would they rather deal with people in Alberta than people in Ottawa, half a continent away Raising Alberta voices in Ottawa when Ottawa has been bent on doing the opposite of what is good for Albertans has never produced good results or reversed the nefarious effects on Albertans.

Ottawa politicians will do what is best for Laurentians every single time. The history of the Dominion, from the national policy to Crow rates and the National Energy Policy to Carbon Taxes, shows Ottawa policies always favour vote-rich Laurentia first and foremost.

Mark Carney’s product development for Brookfield shows, at worst, that Alberta’s pension wealth is just as much as risk with federal policies driven by political motivations. This one would be doubly bad because it is meant to serve and benefit Carney and his Bay Street friends as much as it is designed to help his future colleagues in Ottawa. And on both counts, Carney would benefit as a financier and politician.

Albertans should take their money and run.

Marco Navarro-Genie is Vice President Research with the Frontier Centre for Public Policy. He is co-author, with Barry Cooper, of COVID-19: The Politics of a Pandemic Moral Panic (2020).

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Trudeau’s Latest Scandal: Billions in Indigenous Procurement Fraud Exposed in Explosive OGGO Committee 145

Published on October 19, 2024

By

Crystal Semaganis, the leader of the Ghost Warrior Society
The Opposition with Dan Knight
Dan Knight

As Trudeau Dodges Accountability on Foreign Interference, His Government’s Systemic Corruption in Indigenous Procurement is Revealed—Witness: “Billions Stolen by Fake Indigenous Businesses”

This week, Justin Trudeau was grilled during the Hogue Inquiry on foreign interference—a spectacle where, despite all his smoke and bluster, no one was named as traitors. Classic Trudeau: all talk, no action. But while the Prime Minister was busy dodging accountability on the global stage, a new scandal was brewing right under our noses. It’s not just foreign interference, WE Charity, SNC-Lavalin, his Green Slush Fund, or ArriveCAN. Oh no, it’s much worse.

For someone who loves to virtue-signal about reconciliation, Trudeau’s record on actually helping Indigenous communities is crumbling. Yesterday’s Meeting No. 145 of the Standing Committee on Government Operations and Estimates (OGGO) tore apart the Liberal façade of caring about Indigenous rights. The truth? Fraud, corruption, and negligence are running rampant within Trudeau’s government, and it’s Indigenous people who are paying the price.

Witnesses from the Ghost Warrior Society and PLATO Testing exposed just how deep the rot goes. Crystal Semaganis, the leader of the Ghost Warrior Society, and Denis Carignan, president of PLATO Testing, laid out in chilling detail how fake Indigenous businesses are stealing billions of dollars meant for real Indigenous communities, all while Trudeau’s government sits back and lets it happen.

So, while Trudeau might want you to think he’s the champion of reconciliation, this committee revealed the real story: Trudeau’s corruption is systemic, and it’s Indigenous people who are being exploited. It’s time we dive into the committee and expose this latest chapter in the Trudeau scandal saga. Buckle up.

Trudeau’s Newest Scandal- Indigenous Procurement

The OGGO committee hearing on Indigenous procurement was supposed to be a moment of reckoning—a chance for the Trudeau government to finally come clean about the rampant fraud within its own ranks. Instead, what we witnessed was a masterclass in Liberal deflection, corruption, and the complete and total betrayal of the Indigenous communities Justin Trudeau pretends to care about.

This wasn’t just another day in Ottawa where Liberals paid lip service to reconciliation. Oh no, this committee meeting exposed the stunning hypocrisy at the heart of the Trudeau government. What the Liberals don’t want you to know is that billions of dollars—yes, billions—have been stolen by fake Indigenous businesses, all under the nose of the Trudeau government. And guess what? They’ve done nothing to stop it.

The star witness, Crystal Semaganis, leader of the Ghost Warrior Society, laid it out for everyone to see. These fraudulent actors—companies and individuals pretending to be Indigenous—have exploited a broken system where no one verifies Indigenous identity. According to Semaganis, billions of dollars in contracts meant to uplift Indigenous communities have been stolen by what she called “corporations posing as Indigenous Nations (CPIN).”

She even gave specific examples: one company alone has raked in $163 million since 1994 by pretending to be Indigenous. That’s right—$163 million. And how did this happen? Because the Trudeau government relies on an honor system for verifying Indigenous identity. You heard that right: an honor system. And because there’s no centralized system to authenticate claims, anyone can say they’re Indigenous, grab a few million in contracts, and laugh all the way to the bank.

Let’s be clear about what’s happening here: real Indigenous people are being robbed by these fraudsters, and the government is standing by, doing nothing. No oversight. No accountability. No legal consequences.

Larry Brock and Garnett Genuis: The Conservatives Fight Back

Thankfully, the Conservative MPs on this committee didn’t let Trudeau’s government get away with this fraud without a fight. Larry Brock (MP for Brantford—Brant) and Garnett Genuis (MP for Sherwood Park—Fort Saskatchewan) came out swinging, and they weren’t about to let the Liberals dodge accountability.

Brock, in particular, delivered a fiery takedown of the Liberal corruption machine. He pointed out that this kind of fraud doesn’t happen in a vacuum. No, this is part of a pattern of corruption that starts at the top—with Justin Trudeau himself. From WE Charity to SNC-Lavalin and now this Indigenous procurement scandal, it’s clear the Trudeau Liberals have made an art form out of covering up fraud and protecting their political cronies.

Brock wasn’t just making vague accusations—he linked it all together. He reminded the committee that, just like with ArriveCAN and WE Charity, the Liberals’ first instinct is always to protect their own. They obstruct, delay, and stall investigations until the truth is buried so deep that Canadians move on. But Brock wasn’t going to let this scandal go the same way. He grilled the witnesses, demanding answers on how these fake Indigenous entities could steal billions while the Trudeau government sat on its hands.

Garnett Genuis: “This government has a pattern of shutting down committees and avoiding accountability whenever it gets uncomfortable. They don’t want the truth, they want the scandal buried!”

Garnett Genuis, meanwhile, delivered the knockout punch. He didn’t mince words when he accused the Trudeau government of deliberately choosing not to act. Genuis pointed out that this fraud has been happening for years, and yet the government has refused to implement any kind of legal framework to stop it. Why? Because they benefit from the status quo. The fake Indigenous businesses walking away with billions in contracts? Many of them have deep connections within the Liberal Party. It’s not just negligence—it’s complicity.

The Liberal Stall: A Pattern of Dodging Accountability

But what did the Liberal MPs do in response to these explosive revelations? Did they express outrage? Did they vow to put an end to this fraud? Of course not. Instead, they did what Liberals always do when caught in a scandal: stall and deflect.

Sameer Zuberi, Jenica Atwin, and Majid Jowhari spent their time filibustering, offering vague platitudes about “improving the process” and “working together” to help Indigenous communities. Zuberi, the MP for Pierrefonds—Dollard, tried to steer the conversation toward how the government could improve future Indigenous business opportunities, conveniently sidestepping the massive fraud happening right now under his government’s watch.

Atwin, MP for Fredericton, delivered a particularly pathetic performance, rambling about reconciliation without once addressing the real issue of billions being stolen. And Majid Jowhari MP for Richmond Hill? Well, he focused on processes and frameworks, pretending the fraud revelations weren’t even the central issue.

These Liberals weren’t interested in getting to the bottom of this scandal. They were only interested in running out the clock, hoping the committee would end before anyone could connect the dots between this fraud and Trudeau’s corruption.

Final Thoughts

Let’s stop pretending that Justin Trudeau and his Liberals are going to do anything about this. They won’t. They’ve been caught red-handed, allowing billions to be stolen from Indigenous communities by fraudulent actors, and their only response has been to stall, deflect, and cover up. That’s their playbook. But we can’t let them get away with it.

It’s time for the opposition to step up—to do what this government refuses to do. The Conservatives, like Larry Brock and Garnett Genuis, need to pull the rug off this scandal and shine a light on the rot that’s taken hold of Indigenous procurement. We can’t let this cancer of corruption continue to fester under the surface while Trudeau and his cronies pat themselves on the back for their so-called reconciliation.

This isn’t just about fraud—it’s about honor and patriotism. We owe it to the Indigenous communities of this country to fight for them when their government won’t. We owe it to every hardworking taxpayer who sees their dollars funneled into fraudulent schemes, enriching those who know how to game the system. This is a battle for the soul of Canada, and it’s a battle that the opposition must take head-on.

If we believe in truth, if we believe in justice, then we can’t stop until every fake Indigenous business, every fraudulent actor, and every Liberal enabler is exposed. The cancer must be cut out. Canada deserves better. Our Indigenous people deserve better. And it’s time to hold this government to account, once and for all.

The opposition has a duty to tear down the curtain and show Canadians what’s really going on behind Trudeau’s façade of virtue-signaling. This isn’t just about politics—it’s about the future of our country, and the integrity of our government.

It’s time to act. Pull the rug off, expose the cancer, and take our country back.

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