Evidence of meeting #93 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was project.
A video is available from Parliament.
12:55 p.m.
Assistant Deputy Minister, Canada Infrastructure Bank Transition Office, Office of Infrastructure of Canada
For any other investment, whether it's in whatever structure, if the auditors say you're holding an asset on the other side, then it will be accounted against the $20 billion, basically allowing it to hold assets that match its liability.
12:55 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
My next question relates to electricity grids. You listed them as an example, as have budget documents, as something for which the infrastructure bank may provide funds. However, electricity grids are already able to be financed by private investors. Investment banks and private equity firms regularly buy power plants and transmission lines.
If the purpose of this bank is to draw private money into public infrastructure, why, in this instance, do you appear to be doing precisely the opposite, that is, drawing public money into what is already a private sector enterprise?
12:55 p.m.
Assistant Deputy Minister, Canada Infrastructure Bank Transition Office, Office of Infrastructure of Canada
I have one preface, and then I'd be happy to answer your question.
First, as an official who used to work at Finance Canada in charge of financial institutions and banking, I'm very attuned to any issues about crowding out the private marketplace, and there's a reason that I'm the steward of this project. In many cases, the government is referring to interties, or where parts of the electricity grid do not exist now. It may be in the public interest to co-finance and co-partner with some of our provincial, territorial, and other partners, particularly up north; or to connect provinces where it may be in the public interest to be part of the risk-bearing partnership model, to get a piece of that infrastructure built that otherwise would not have been built.
If any of those could demonstrably have been financed commercially, and there's a case being made, that's something the infrastructure bank likely would not do.
12:55 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
If the commercial actors do not want to finance it, would that not be an indication in itself that it is not a commercially viable project?
12:55 p.m.
Assistant Deputy Minister, Canada Infrastructure Bank Transition Office, Office of Infrastructure of Canada
It always depends. It's a continuum. A lot of projects that have a tariff associated are already revenue-generating; you can associate commercial financing from that tariff. There may be other planning bases where a province or a territory, particularly up north, has a vision where they'd like to expand energy into the north; they'd like to move indigenous communities off diesel; and they want to expand that grid. Whether it's too risky, or the commercial sector would demand too high a return to expand that infrastructure in various parts of Canada, the infrastructure bank would be a tool to come in to help manage that risk to get that project done in the public interest.
12:55 p.m.
Liberal
The Chair Liberal Wayne Easter
We might want broadband in some rural areas, I might suggest.
We will have to cut it there and start where we left off. I was hoping we might finish with the infrastructure bank; obviously we didn't.
We will adjourn, and we have other witnesses at 3:30, so we'll have to get back to you. We will likely finish this session on division 18 on the 29th.
1 p.m.
Assistant Deputy Minister, Canada Infrastructure Bank Transition Office, Office of Infrastructure of Canada
We can make ourselves available, Chair, any time the committee wishes.