Transport Committee on March 19th, 2013

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

I think it's staying focused on the main concerns of the Canadian population and having tools to help the economy of this country. We've refocused the department, and I thank everybody we work with—Steven and I. We focus on results for the population. All the projects you have spoken about are there to support the economy of this country and to create jobs across the country, in all provinces and territories. That's what I'm very proud of. Project by project, that's one thing, but to see them all together.... In Canada, 915,000 new jobs have been created in this last year. That proves that when we make good choices for infrastructure it has an impact on the economy of our country.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

All ministries work to find savings in the administration of government. Your ministry was one of the most successful at reducing the cost burden it imposed on taxpayers. You're probably first or second among ministers in your ability to deliver these cost savings to taxpayers, and the statistics on safety have actually improved.

Do you believe that your ministry could be a model across the government and for other governments on how to deliver improved services at a lower cost to taxpayers?

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

I'm just one of the guys on this great team at Transport. We have done a good job because we work like a team. Mr. Lévesque has been there for some months, but before my arrival people worked together to find solutions. I really have to thank all the team. We have done it like a team. That's not easy when we have to identify savings in departments. That's not easy for crown corporations. I can't say we're an example. We only have done what was supposed to be done in our department. We have looked at administration savings, and we have done that together.

[A voice]

We have a great parliamentary secretary.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Yes, we have a great parliamentary secretary. That's the answer.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Oh, stop.

[The Chair, Conservative, Larry Miller]

And your time is up, Mr. Poilievre.

It's getting a little mushy here, so we're going to move to Mr. Watson for seven minutes.

[Jeff Watson, Conservative, Essex, ON]

Thank you, Mr. Chair.

I'm not sure what to make of that last round of questioning.

We have plenty of love for you, Mr. Coderre, as I look across the way.

Minister, Minister of State, thank you for appearing here before our committee on the main estimates. You may want to talk a little bit about the Detroit River international crossing. You brought it up in your comments. Looking back at the timetable on this issue—I've been tracking it for quite a while—it's an issue of great importance locally. As the Prime Minister said in Windsor a number of years ago, it's the number one infrastructure priority of the government.

In 2006, we established the gateways and border crossings fund. In 2007, there was a line item in the budget for $400 million as a down payment toward the eligible capital costs for the Windsor-Essex Parkway, now called the Rt. Honourable Herb Gray Parkway. It was in 2009 that we acquired some land in the Brighton Beach area for the Canadian inspection plaza. That was an expenditure of about $34.1 million. In 2011, the parkway construction began. The year 2012 was a real turning point. There was the interlocal agreement between our government and the State of Michigan in June of that year. There was the defeat of Proposal 6 on the U.S. side, which was important. And there was the bridge to strengthen trade act in Bill C-45 last year. So a lot has been happening.

I notice in the estimates there is an increase with respect to land acquisition and the Detroit River international crossing. Do you care to comment on that? I'll have more detailed questions for your officials later on some of the specific numbers—about how many acres and things like that—but in a general sense, can you indicate whether this is for expected purchases on the Canadian side, the U.S. side, or both?

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Monsieur Lévesque.

[Louis Lévesque]

This is for purchases on both sides of the border in order to move ahead in the projects.

[Jeff Watson, Conservative, Essex, ON]

Okay, and then....

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

I want to make sure that we have it on the record today that this is still a very important project for us. We're still in touch with our American partners. I spoke with Secretary LaHood. We will see what happens in the future, but I spoke with him two weeks ago to be sure that we are fixing everything, step by step; the team is working every day. We have already fixed the waiver, and the presidential permits are on their way. For the moment we are keeping the pace.

[Jeff Watson, Conservative, Essex, ON]

Are there any approvals left on the U.S. side?

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

For sure, we have our challenges and they have theirs. The plaza will be a challenge. We've known that since the beginning. Last week discussions were held with Secretary Napolitano about that. She's in touch with our government through different ministers, and we continue to work with her. We expect to have answers soon about many issues on this big project.

[Jeff Watson, Conservative, Essex, ON]

In looking at the main estimates, there is a change in the gateways and border crossings fund relative to the prior year. It's a pretty significant one. Some would say that's a cut. I'm not sure that's an accurate portrayal of it. I believe it's in the neighbourhood of about net $524 million. There's a notation in the estimates that explains that there are some changes in cashflow. You can tell me whether you think my characterization of this is right. There was a notation about waiting for reprofiling authority last year. I think a lot of funds were stacked into the planning window.

Is this a decrease, or can we expect that this will largely be, if not entirely, a reallocation to current and future years that would more appropriately reflect cashflows or expenditures from that particular fund? In other words, is there an absolute reduction here of any number up to the total amount, or are we talking about the fact that we had to make sure it was accounted for last year but now we are going to account better in subsequent years for that same number?

[Louis Lévesque]

I want to repeat the same comment I made previously, which is exactly the latter option you mentioned: it is simply moving money around to meet the cashflow requirements of the partners—

[Jeff Watson, Conservative, Essex, ON]

So the government hasn't gutted the borders and gateways fund by $500 million.

[Louis Lévesque]

No.

[Jeff Watson, Conservative, Essex, ON]

To anybody who may not be familiar with the estimates—the public back home—obviously this is an important fund relative to the continental gateway corridor. Anybody who doesn't understand what the estimates process would look like, and given that specific transaction last year, might be wondering if this is a cut or not.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

Jeff, for the cash management, the difference is $669 million.

[Jeff Watson, Conservative, Essex, ON]

Yes, I was talking about a net number.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

That's for the cash management. That's only for that.

[Jeff Watson, Conservative, Essex, ON]

All right. Under “Transportation Analysis and Innovation”, a budgetary line, I notice there's an increase of a little over 10%. This committee was very involved with this issue, and I think we had a very productive study on innovative technologies relative to transportation. We did a report recently with a number of important recommendations. Can you give us a sense of what the increase is geared toward around innovative technologies?

Secondly, maybe just as an interest to the committee, are they looking at the report we finished? Will some of those recommendations find their way into actual policy for the department?

I'll leave both of those questions with you.

[Denis Lebel, Conservative, Roberval—Lac-Saint-Jean, QC]

We all know that we have to be smarter in transport. We have to use the new tools we have and we have to compare the knowledge worldwide. That's what we are doing.

Do you have something to add, Mr. Lévesque?

[Louis Lévesque]

There's always the tendency, when you look at specific elements, to ask whether there are fundamental funding changes or whether it's activities being moved under different headings. In this case, it's more of the latter; it's not a net increase in funding.