Good afternoon.
Thank you, Mr. Chair, co-chairs, and committee members, for inviting me to appear here today.
I'm pleased to speak before the committee on behalf of the council, which is a not-for-profit, non-partisan, member-based organization, with broad representation from across all levels of government in Canada and the private sector. Its mission is to promote smart, innovative, and modern approaches to infrastructure development and service delivery, through public-private partnerships. The council is a proponent of evidence-based public policy, educates stakeholders and the community on the economic and social benefits of public-private partnerships, and facilitates the adoption of international best practices to make sure we continue to be the very best at what we do.
I should emphasize that the council is not a lobby group. Rather it works as a partner with governments, to enable them to achieve the best outcomes and the best value for taxpayers from their respective infrastructure investments.
The council is pleased to speak today in support of Bill C-44, in particular the act to establish the Canada infrastructure bank.
I know committee members are well aware that, irrespective of the size of Canada's infrastructure deficit, which some estimates peg at about $1 trillion, and the fiscal challenges all governments across the country face, continued investment in infrastructure is absolutely critical, because it drives job creation, productivity, economic growth and prosperity, and global competitiveness. That's why the council has supported long-term infrastructure programs by successive governments to tackle the infrastructure deficit in this country. Notable in this regard, of course, is the unprecedented and ambitious federal investment of $186 billion over the next 12 years.
We will be the first to say government cannot do this alone. Governments at every level do not have enough money or expertise to build the world-class infrastructure needed to grow Canada's economy and improve the social well-being of our citizens. That's why the establishment of the Canada infrastructure bank is such an attractive, innovative, and timely initiative.
The bank's mission, as you know, is to deliver revenue-generating infrastructure by attracting private capital investors. The injection of private financing means government is in a position to make better use of public funding for a broader range of infrastructure projects, such as new water systems, social housing, recreational and cultural facilities, and on-reserve infrastructure.
Canada has a strong record of success when partnering with the private sector. Engaging the private sector in the design, construction, financing, maintenance, and even the operation of critical public infrastructure is not a new idea in Canada. We have a long and successful history of public-private partnerships in this country. The Canadian model has delivered high-quality infrastructure, built on time and on budget, and demonstrating exceptional value for taxpayers. This is primarily because of the rigour and discipline the private sector brings to the procurement process.
There are currently 258 P3s across Canada. Those facilities that are already in operation or under construction have a value of more than $122 billion, and include a broad range of projects, like hospitals and long-term health care facilities, roads, bridges, public transit, and water and waste-water treatment facilities. It's important to stress that these projects in every instance remain publicly owned and publicly controlled. This is in no way privatization of government assets.
The Canadian Centre for Economic Analysis has independently estimated that P3s have saved Canadians as much as $27 billion over the 25 years that they have been in play. These projects have been demonstrated to be built 13% faster than those brought to market in the traditional way, which has added a further $11 billion in value to the Canadian economy.
Most importantly, P3s are creating 115,000 jobs and generating $5 billion of additional wages on average every year. This strong track record of success has resulted in the Canadian P3 approach being recognized around the world as best in class.
Over the years, Nanos Research has shown that seven out of 10 Canadians consistently support P3s and recognize that the private sector is better equipped than government to deliver high-quality projects on time and on budget.
The Canadian P3 experience is evidence that there is no shortage of private capital waiting to be invested in Canadian infrastructure and that the private sector is willing and prepared to take on significant risk to support these projects. We have a funding problem in Canada, not a financing problem. We believe, if structured appropriately, the Canada infrastructure bank can leverage public dollars further by transferring revenue risk and reducing overall public expenditures, while ensuring projects are delivered on time and on budget and that they are well maintained over the life cycle of the asset.
When I say “structured properly”, I mean that each project that comes to the infrastructure bank must first and foremost have a strong business case, and the procurement process that follows must be competitive, efficient, transparent, and fair. It must also be recognized that not all governments have the capacity or expertise to successfully procure the large, complex, revenue-generating projects that will be the purview of the bank.
In these instances, we would urge government to establish a project preparation fund that would be available to less-experienced provinces, territories, municipalities, and indigenous communities in order to enable them to acquire the consulting services and advisers necessary to successfully take their projects to market.
The council sees the Canada infrastructure bank as another tool in the tool kit for governments to deliver more high-quality infrastructure for Canadians and greater economic stability for communities across the country. We believe the bank can draw in more private capital and build on the successful Canadian P3 model. We are the first to say that P3s are not a panacea, but when done for the right reasons and on the right projects, they deliver real results for Canadians.
Now that the location of the bank has been decided, the important next steps are to recruit a high-quality and experienced chair, a board of directors, and a CEO, who together will put the flesh on the bones of this new institution. My council is confident that under strong, capable leadership, the Canada infrastructure bank will be well positioned to continue the country down this path of success, and the council is pleased to support the act that is being considered by this committee.
Thank you very much. I'm happy to take any questions.