Evidence of meeting #33 for Finance in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was investments.
A video is available from Parliament.
Liberal
Carlos Leitão Liberal Marc-Aurèle-Fortin, QC
Yes, I would really appreciate it if that could be made available to us. Thank you very much.
Somewhat related to this is the fact that, in the context of big projects the CPPIB could fully participate in like Canadian utilities.... I can talk about Hydro-Québec because I know it well, but BC Hydro and OPG also have their long-term investment plans. Hydro-Québec, for example, is going to invest massively to expand capacity in the coming 10 to 20 years.
Liberal
The Chair Liberal Karina Gould
My apologies, Mr. Leitão, that concludes your time. We might need more of a follow-up conversation.
Mr. Garon, you have the floor for two and a half minutes.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Thank you, Madam Chair.
I won't pursue my colleague Mr. Leitão's question, but I will still stay within the same line of questions.
Mr. Leduc, you talked about airports. At one time, it struck me that the Caisse de dépôt et placement du Québec was part owner of Heathrow Airport, whereas at Aéroports de Montréal, for example, it's a non-profit business model. There's a kind of long-term lease in place, and every time we want to build a station or a transportation corridor, it's the taxpayer who has to pay, to the tune of billions of dollars.
When our own pension funds want to look for infrastructure investments, which have proven to be very good investments, they are forced to go all over the world. Those who ultimately pay are both the pensioners, in a way; you, since you have investments here and it makes your job more complex; and the taxpayers. Ultimately, it's far from certain that the service provided by the airport is as good as it should be. On top of that, it affects the customers.
How is it that this kind of model is still in place at Aéroports de Montréal, for example, which is missing out on large investments? How do you explain that?
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
I believe these decisions are made by the decision-makers. That's why—
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Why do they make these decisions? Why not change the model? Have you pursued that at all? We need investments.
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
I have not spoken with Aéroports de Montréal specifically, but we've certainly had discussions about the possibility of investing in Canadian airports.
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
We were told that they would look into it.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
You are used to speaking with politicians. When they tell you that they're going to look into something and issue a report, generally, what does that mean?
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
It means exactly that: They will continue to look into the situation.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Ha, ha! Exactly.
I'm going to ask you one last question quickly. Your returns are often compared with your benchmarks. What is your benchmark? Is there a good benchmark for your returns?
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
Yes, absolutely. All of that is detailed in our annual report. It's a bit complicated, but basically, we want to make sure that our strategies are compared to something that is investable. Since we have more than a dozen investment strategies, it's important that they can be directly compared with a specific benchmark.
Liberal
The Chair Liberal Karina Gould
Thank you, Mr. Leduc and Mr. Garon.
Mr. Lefebvre, you have the floor for five minutes.
Conservative
Éric Lefebvre Conservative Richmond—Arthabaska, QC
Thank you, Madam Chair.
Mr. Leduc, I want to say that I really appreciate the discussions we've had with you this morning, as well as your openness.
When my colleague Mr. Leitão was minister of finance, I was a member of the National Assembly and my party's critic for forests and mines. You raised several points that catch my attention. You spoke about efficiency in obtaining approvals. One of the current issues is precisely the time it takes to obtain approvals. I heard about that when I met with people on mining investments.
You spoke about efficient regulation. That's music to my ears. Once, I visited a mine and the people there told me how they had to provide so many files and documents they had to use a wooden pallet to hold them all. I figured they were using a metaphor to illustrate to me how much paperwork was involved. They said that it wasn't a metaphor; they really had sent a pallet full of documents. To be much more efficient, the regulations need to be simplified. I think that's one of the key points.
You also spoke about a one-stop shop. I think that is important, too. We are talking about regulation. Currently, there is an environmental study being done by Quebec and another one by the federal government. Why do the same study twice? We could be more efficient. What you said is very worthwhile.
Now, I want to talk to you about an article in this morning's La Presse about a lithium mine in Shaakichiuwaanaan, in northern Quebec. The project involves critical minerals and batteries. It represents a significant energy transition and a $3‑billion investment. Apparently, the proponent is currently seeking capital for the project.
Earlier, you said that the size of your portfolio gives you access to investments that few can access. Is this the kind of project that would be of interest to you?
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
Probably, although I can't say for sure.
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
Critical minerals is an area we have started looking at a bit more recently.
Conservative
Éric Lefebvre Conservative Richmond—Arthabaska, QC
Timing is everything. I saw the article this morning, and here you are before the committee. I hope you'll at least have the chance to take a look at it. I think it's something that could be very worthwhile.
I would like to give you the two minutes I have left to give us any other important information you would like to provide this morning, if there are any issues that have not been raised, on either side.
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
I just want to reiterate that there are difficulties given the global context and that the time is right for Canada to take advantage of this unique situation, not only concerning the Canada pension plan, but also for global funds, which are becoming increasingly interested in Canada. If I say Canada Inc., what are the unique aspects that will attract investors and make them want to work with us? They are partners that we have all over the world. We compete against them, but they're also partners, and they're becoming increasingly interested in Canada. That's an advantage we need to use.
Conservative
Éric Lefebvre Conservative Richmond—Arthabaska, QC
Again, I like the message you're getting across to us this morning. We haven't talked about it, but we're having tariff issues with the United States. When these types of problems exist, we need to work with our other partners around the world to seize worthwhile and significant opportunities for our country's development.
I'll close by thanking you again, Mr. Leduc, for this morning's good discussions.
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
Thank you.
Liberal
The Chair Liberal Karina Gould
Thank you, Mr. Lefebvre. You were brief, so that gives us a bit more time.
Mr. Turnbull, you have the floor.
Liberal
Ryan Turnbull Liberal Whitby, ON
Thanks. It's great to pick up on this.
I have a few leftover bits and pieces of questions that I want to ask you, but I'd like to start by asking you about venture capital investments.
I know our federal government has numerous co-investment programs and initiatives, and one that I'm particularly fond of is the venture capital catalyst initiative, but there's also a national housing co-investment fund and some other co-investment programs, like the global innovation clusters, etc.
Can you speak specifically to VCCI and how those programs help with venture capital investments?
Senior Managing Director and Chief Public Affairs Officer, Canada Pension Plan Investment Board
My colleague here is more of an expert in that area. We were having a discussion yesterday, and he reminded me that it is an area we're very interested in. We've participated in it, and we are looking at how we can continue to expand our approach. It's a great platform for us to access that space, which would not otherwise be available to us because of the scale challenge.