I think there's nothing wrong with the federal level of government saying what types of priorities and definitions of success they'd like to see at the federal level, but in the conversation between the federal government, the provinces, and the cities, I do believe the cities should probably have the most powerful voice.
Again, I would point out that establishing criteria, such as shovel ready or P3s are required, is having a significant effect on the flexibility of the types of projects that municipalities can move forward on.