Finance Committee on May 30th, 2016

[The Chair, Liberal, Wayne Easter]

Thank you very much.

Are there any questions?

Mr. Grewal.

[Raj Grewal, Liberal, Brampton East, ON]

I asked Minister Morneau this as well, about the P3 screen. Infrastructure is extremely important in the budget, and getting it on the ground and getting projects going is obviously very important. In my short term in government, I've noticed that everything takes a very long time to get done here.

Can you speak to products over $100 million not having to go through this so-called P3 screen? Can you speak to how that's going to help us get money on the ground quicker?

[Greg Smith, Vice-President, Finance, Risk, and Administration and Chief Financial Officer; and Vice-president, Strategy and Organizational Development, PPP Canada Inc.]

Sure. Those were the applicants to the Building Canada fund within Infrastructure Canada programming. I think the removal of that screen allows those projects to be considered more fully and more immediately for funding. Our role was to provide advice to Infrastructure Canada with respect to those projects that could be P3s. What we're seeing is that most of the complex large projects are coming as P3s, and the screen was confirmation of how the procuring jurisdiction wanted to procure that asset.

[The Chair, Liberal, Wayne Easter]

Mr. MacKinnon is next, and then Mr. Caron.

[Steven MacKinnon, Liberal, Gatineau, QC]

Unless I am mistaken, this provision results in PPP Canada Inc. being subject to the Financial Administration Act.

[Heather Sheehy]

My apologies; the translation cut out. Could you repeat your question? I apologize.

[Steven MacKinnon, Liberal, Gatineau, QC]

Does this bring PPP Canada, or its new entity, under the provisions of the Financial Administration Act?

[Heather Sheehy]

It was already under the provisions of the Financial Administration Act.

[Steven MacKinnon, Liberal, Gatineau, QC]

I mean as a crown.

[Heather Sheehy]

This simply transfers it from the Minister of Finance over to the Minister of Infrastructure and Communities.

[Steven MacKinnon, Liberal, Gatineau, QC]

Okay. Just to follow up on my colleague Mr. Grewal's question, in terms of discussions with the Minister of Infrastructure—or the Minister of Finance, for that matter—around infrastructure projects and the role of PPP Canada, even in its new incarnation, how will that evolve?

[Heather Sheehy]

I can start.

This proposed legislation does not change anything with respect to PPP, other than moving it from the Minister of Finance's portfolio over to the Minister of Infrastructure and Communities' portfolio. It does not make any other changes. It maintains the same governance framework that it had, so there are no other changes in this legislation.

[Steven MacKinnon, Liberal, Gatineau, QC]

It does. It has an external board of directors, for example.

[Greg Smith]

We have that now, and it continues to exist. We are a legal corporate entity under the Canada Business Corporations Act, and that continues to exist. We continue to govern ourselves that way. The only change is that the chair of the board reports to a different minister when this legislation passes.

[Steven MacKinnon, Liberal, Gatineau, QC]

Will you be taking part in discussions on an investment bank for infrastructure?

[Greg Smith]

We're open to that. I think there are plans for Minister Sohi to come to speak to our board. We look forward to having those discussions. At this point we're sitting here prepared.

[Steven MacKinnon, Liberal, Gatineau, QC]

Okay.

Those are all my questions.

[The Chair, Liberal, Wayne Easter]

Mr. Caron.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

You say it won't change much, other than responsibility being transferred from one department to another. But there are a number of elements that seem to alter the current status of PPP Canada Inc. Among other things, there is a section that reads as follows: "PPP Canada Inc. may, with the approval of the Governor in Council, sell or otherwise dispose of all or substantially all of its assets." This appears to change the structure and powers of PPP Canada Inc.

What is the rationale behind such a measure? Would it allow for the privatization of public assets? Could PPP Canada Inc. be privatized solely with the authorization of the Governor in Council?

[Heather Sheehy]

Currently, as a subsidiary of CDIC, these types of changes that are in this legislation could be done by order in council. This transfers and preserves that exact same governance structure when it moves over to the Minister of Infrastructure and Communities. It does not propose any changes. It is the exact same framework that shifts over to the Minister of Infrastructure and Communities. There are no proposals for change in this legislation in that regard.

[The Chair, Liberal, Wayne Easter]

Mr. Smith, did you want to add something?

[Greg Smith]

I would add that the P3 Canada Fund that is administered by PPP Canada invests in other levels of governments' procuring of assets. We don't hold any assets that are infrastructure assets. We hold the cash that supports our commitments to those other levels of government procurements that are under way.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

You say that no changes have been made, but a section has nonetheless been added to the act.

If nothing's changed from the current situation, why add a section stating that "PPP Canada Inc. may, with the approval of the Governor in Council, sell or otherwise dispose of all or substantially all of its assets?"

That, to me, seems to be a significant change.

[Heather Sheehy]

The FAA currently already provides this for subsidiaries. In order to have the exact mirroring of the same governance structure it has with the Minister of Finance when it is with the Minister of Infrastructure and Communities, you need to include these clauses in the legislation.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

You didn't have the mirroring before. Is that what you're saying?