Finance Committee on Feb. 2nd, 2026

[The Chair, Liberal, Karina Gould]

I call this meeting to order.

Welcome to meeting number 20 of the House of Commons Standing Committee on Finance.

I am delighted to welcome Minister Steve MacKinnon to finance committee. He's accompanied by two officials: Arun Thangaraj, deputy minister, and Vincent Robitaille, associate assistant deputy minister for programs.

Thank you so much for being with us.

Without further ado, Minister MacKinnon, we'll turn the floor over to you.

Thank you.

[Steven MacKinnon, Liberal, Minister of Transport]

Thank you, Madam Chair.

I would also like to thank the committee members for this opportunity to speak to the new high-speed rail network act in Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on November 4, 2025.

Canada is facing extraordinary threats to its economy and Canadians' quality of life. The Prime Minister was very clear when he described this moment in history as a rupture. We need a team Canada approach to protect our economy starting now and to position ourselves for the future within a profoundly different world order.

For Canada to remain competitive through this structural shift in the global economy, we must once again build the ambitious nation-building projects that have shaped our country and delivered prosperity and economic opportunity for generations of Canadians. Like other nation-building projects of our past, such as the St. Lawrence Seaway and the Confederation Bridge, the high-speed rail network will be a testament to the greatness and potential of Canadian innovation, ingenuity and Canadian society.

Our high-speed rail should be understood as the beginning of a transformation. This generational project won't just connect 18 million Canadians in Ontario and Quebec. It will also create over 50,000 jobs, contribute $35 billion to our economy and increase productivity. It will also alleviate congestion on shared tracks, enabling freight to move more efficiently and ensuring that Canadian goods reach markets faster and more reliably.

Following our buy Canada principles, high-speed rail could potentially source several hundred thousand tonnes of Canadian steel, lumber and concrete while employing local businesses and contractors along the route and across the country, including in rural areas and communities between Quebec City and Toronto. Few infrastructure projects in Canadian history have generated an industrial demand of this magnitude. It will deliver enormous benefits to Canadians, who will see the time between our major cities in the corridor cut in half. It will create good-paying jobs for skilled labourers and lucrative contracts for businesses. It will protect our environment by reducing emissions equivalent to removing 100,000 cars off our roads. It will allow Canada to compare ourselves to our G7 peers in having a high-speed rail network deserving of a leading global economy.

However, none of this can be easily realized without the passage of the high-speed rail network act. This act is a result of our engagement with the provinces of Quebec and Ontario. Its measures draw directly from, and align Canada with, the well-established and effective infrastructure legislation in both of those provinces. This includes Ontario's Building Transit Faster Act, 2020, and Quebec's Act respecting expropriation.

This act aligns its measures with the provinces so that we can cut red tape and provide greater clarity and certainty around the regulatory regime while eliminating costly duplicative processes. It helps prevent delays, provides predictable project timelines and increases project efficiency. It will better support consultation and efficient, timely communication with landowners. It will ensure that impact and environmental assessments are conducted for each project segment. It will enshrine the Official Languages Act into the operations of Canada's high-speed rail network.

This legislation also reiterates how a meaningful and respectful relationship between the Crown and indigenous peoples is fundamental to advancing reconciliation and completing this project.

This commitment includes early, significant and ongoing engagement and consultation, while recognizing that indigenous knowledge shared in confidence will be protected.

This being the largest and most complex infrastructure project in a generation, consulting with local communities and a wide range of stakeholders will be essential.

Alto's first round of consultations is already under way in communities along the proposed route, with more than 26,000 people submitting comments via the online portal. The consultation process is ongoing, forming an integral part of the impact assessment process made possible under this legislation.

The bill seeks to minimize impacts on individual landowners, while recognizing the realities of building such an extensive and complex rail network. We will also continue to work productively with our provincial partners throughout development and construction.

In conclusion, I was extremely proud to announce recently that the first segment of the rail network will run between Ottawa and Montreal. If this bill is passed, construction of the segment should begin in just four years.

The high-speed rail network is an investment in Canada's future, connecting communities, creating tens of thousands of jobs and driving enormous economic growth. Our country cannot afford to miss this opportunity.

I am pleased to take your questions.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. MacKinnon.

Pursuant to the order of reference of Wednesday, December 10, 2025, and the motion adopted on Wednesday, December 10, 2025, the committee will consider Bill C-15, an act to implement certain provisions of the budget tabled in Parliament on November 4, 2025.

I'm just reminding colleagues that we're here on the BIA.

I see Mr. Albas is joining us today, and he will be kicking this off with six minutes from the Conservatives.

Mr. Albas.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Thank you, Madam Chair.

It's great to be here.

Minister, it's great to be joining you on this committee today. As the critic for transport for the Conservatives, my motto is have questions, will travel.

Let's start with this. Minister, section 98 of the Canada Transportation Act exists so that the agency can examine whether a proposed rail line is reasonable for the affected communities and landowners.

Why does your bill eliminate this independent review entirely? Wouldn't an expedited CTA review preserve oversight without delaying the project?

[Steven MacKinnon, Liberal, Gatineau, QC]

It would delay the project.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Minister, you said...in just four years. That's just for a small component of it.

Is there any harm, Minister, in restoring even a 90-day expedited CTA review so communities can have a legal avenue to be heard?

[Steven MacKinnon, Liberal, Gatineau, QC]

We believe that this project, as the bill references, is for the general benefit of Canada. That is why we've taken the steps that you see in the bill to make sure of that. Whether it be a major energy project, for example, a major mine or a major piece of infrastructure elsewhere in the country, we've determined that moving quickly on projects that have existed in the public's imagination or the public's consciousness over many years is important. We need to accelerate these things.

This is something we felt strongly enough about that we made it a major part of our platform in the last election. With respect to high-speed rail, this is a project that, while it was announced prior to the last election, we spent a long time debating and figuring out how we could get to a decision to construct this piece of infrastructure in an accelerated time frame.

This is the proposed—

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

No one is talking about eliminating the project or padding on big, bulky consultation processes. A 90-day expedited CTA review would give it independence and give people a trusted body to which they can make those representations.

Now, Minister, under your bill, a landowner can wake up to a right of first refusal or a prohibition on work notice without any warning, instantly freezing their land. Why not include a simple 120-day mandatory notice so that farmers, homeowners and small businesses aren't ambushed by your process or lack of it?

[Steven MacKinnon, Liberal, Gatineau, QC]

Let me first state that common sense will predominate in this process. We will, of course, approach landowners to indicate interest and attempt to negotiate a fair market value for the limited amount of corridor that will be required for the project.

There is obviously every interest on the part of Alto and on the part of the government to have good and effective relationships with people along the route. This is a significant piece of linear infrastructure. It requires a limited corridor, but a continuous one. Once we announce the specific corridor and the specific alignment that have been selected, we will, of course, in all cordiality and in all willingness to negotiate, approach landowners on a “no surprises” basis.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Mr. Minister, quite honestly, it doesn't say that we're going to show common sense in the legislation; it says nothing at all. In fact, what is your government's objection to giving landowners reasonable notice before Ottawa freezes their property?

[Steven MacKinnon, Liberal, Gatineau, QC]

Again, this is a corridor, a very small 60-metre corridor. The measures you're referring to have—

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

With 120 days, just give them the chance so they can plan properly. Right now, the clock is on them, not on you. That's not fair. That's not property rights.

[Steven MacKinnon, Liberal, Gatineau, QC]

A right of first refusal does not preclude someone from negotiating a purchase and sale agreement. In fact, the process for—

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

A freeze on work could cause considerable problems. You said four years, but what if it goes longer than that, Minister?

[Steven MacKinnon, Liberal, Gatineau, QC]

A freeze on work is actually a courtesy to landowners so they don't end up planning significant improvements to a piece of land—

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Minister, put yourself in the shoes of someone who's worked their whole life, they're about to make a sale, and suddenly they get a freeze on what they can do on it; suddenly the value of that property is totally in question. Imagine if you were that person, someone who's near retirement. Isn't that the equivalent of pulling the rug out from under them and their property rights?

[Steven MacKinnon, Liberal, Gatineau, QC]

No. Again, the very common-sense principle will be one of fair market value for this limited amount of land that is required.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

You could freeze someone up four years or longer where they can't do anything.

Minister, your bill also allows for land to be expropriated on a fast track, but it doesn't guarantee compensation based on independent appraisals or even cover a landowner's legal costs. Why not ensure compensation is based on the highest and best-use value, verified by two independent appraisers? Why not allow, again, a fair market value that is actually appraised by experts rather than what you think it is, Minister?

[The Chair, Liberal, Karina Gould]

Give a brief response, please.

[Steven MacKinnon, Liberal, Gatineau, QC]

Again, the first principle of fair market value ought to be established in a very common-sense conversation between Alto and the landowner, where we attempt to establish a negotiated price.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

A large corporation and an individual, it's not fair.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Albas. That concludes the time for this round of questioning.

We're going to continue with Mr. Leitão for six minutes, please.

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Thank you, Madam Chair.

Good afternoon, Minister.

Thank you to the deputy minister and assistant deputy minister for being here.

I think there will be other opportunities to discuss these issues, Minister. In your opening statement, you likened the rail network to great projects of the past, the St. Lawrence Seaway and the Confederation Bridge—at least, in importance. I was intrigued by that comment. Could you elaborate on why you view the rail network in that light?

[Steven MacKinnon, Liberal, Gatineau, QC]

This has been said and observed multiple times, but in general, it is harder and harder to accomplish great things in Canada. We have so many frameworks, municipal, provincial and federal laws, and processes that final decisions about infrastructure investments are never made.

As I said in my opening statement, both the Quebec and Ontario governments have legislation in place to fast-track transit projects. We drew a lot on those measures, so this isn't uncharted territory. We saw, for instance, that the process behind the Réseau express métropolitain worked, resulting in the rapid transit system's running all the way to the island of Laval and other parts of Montreal and providing even further coverage in the future. This major infrastructure project is the result of that process.

We are drawing not only on existing principles in provincial legislation, but also on the desire to accelerate major projects. Because of that, I do think we can compare the high-speed rail network project to the building of the seaway and the Confederation Bridge, times in our history when Canada dared to dream big.

[Carlos Leitão, Liberal, Marc-Aurèle-Fortin, QC]

Thank you, Minister.

In connection with the rapid transit system, yes, Quebec did pass legislation. I am well aware.

In your studies, consultations and conversations with the governments of Quebec and Ontario, especially at a political level, thus far, have you noticed a willingness from both governments to work with the federal government on advancing this project?