Canada’s infrastructure projects take off while Trump’s plans sputter

[OhioGuy]

Canada’s infrastructure projects take off while Trump’s plans sputter
By Alan Freeman August 7 at 9:51 AM

OTTAWA — In June, Prime Minister Justin Trudeau traveled to Montreal to announce that his government would be investing 1.3 billion Canadian dollars in a new commuter train network for the city, Canada’s second-largest.

It was the usual political event, with Quebec’s provincial premier and Montreal’s mayor in attendance. But sharing the stage with the politicians was Michael Sabia, president of Caisse de Dépôt et Placement du Québec, the province’s giant pension fund manager.

Sabia was there because Caisse de Dépôt, the equivalent of the California Public Employees Retirement System, is spearheading construction of the $6 billion, 42-mile light-rail network and will own 51 percent of the system when it starts operating as planned in 2020. And it expects to make a decent return on the venture.

The decision by one of the country’s biggest pension fund managers to take the lead in developing a transit system from scratch is part of Canada’s effort to tackle its infrastructure problems with a two-pronged approach: increasing direct government spending while encouraging the private sector and state-controlled institutional investors such as Caisse de Dépôt to put cash into projects of the magnitude of the Réseau Electrique Métropolitain, or the Metropolitan Electric Network, as the Montreal system will be known.

[aquablue]

Well Trump is restrained by a congress that is unfriendly to transit and spending on anything other than bridges and highways.

[Doady]

In the 90s, the Chretien government, with future PM paul Martin as finance minister, downloaded many costs onto the provinces to cut taxes and balance the federal budget. But of course that means provinces couldn't balance the budget and in turn downloaded many costs onto municipalities. That is why federal government in Canada now taking a larger and larger role in funding transit, which was traditionally the role of municpalities and provinces. The feds are the only one with the huge surpluses year after year, because Paul Martin just lazily passed the buck to his provincial counterparts. On the surface, this story seems positive, but if you look deeper, there is not much positive in it. The federal government needs to take back its old responsibilities, such as housing.

In 2004, Jack Layton personally blamed Paul Martin for the many deaths of homeless people in Toronto in the 90s. It caused a lot of controversy, but Jack Layton was not wrong.

Trudeau is not much different. Shiny infrastructure projects are something he can put his pretty face to. Public housing, not so much. And that's all that matters, Trudeau is all about image. Very much like Trump.

[lrt's friend]

Originally Posted by Doady

In the 90s, the Chretien government, with future PM paul Martin as finance minister, downloaded many costs onto the provinces to cut taxes and balance the federal budget. But of course that means provinces couldn't balance the budget and in turn downloaded many costs onto municipalities. That is why federal government in Canada now taking a larger and larger role in funding transit, which was traditionally the role of municpalities and provinces. The feds are the only one with the huge surpluses year after year, because Paul Martin just lazily passed the buck to his provincial counterparts. On the surface, this story seems positive, but if you look deeper, there is not much positive in it. The federal government needs to take back its old responsibilities, such as housing.

In 2004, Jack Layton personally blamed Paul Martin for the many deaths of homeless people in Toronto in the 90s. It caused a lot of controversy, but Jack Layton was not wrong.

Trudeau is not much different. Shiny infrastructure projects are something he can put his pretty face to. Public housing, not so much. And that's all that matters,

.

Perhaps its about image, and that is nothing new for politicians, but at least Trudeau is trying to present a good image. Trump's idea of image is about saying anything that keeps his face in the media often resulting in controversy. Not quite the same thing.

[electricron]

Hopefully the construction projects are completed on time and under budget. But it is difficult to have faith with someone who can't remember the first Canadian providence listed alphabetically...

[GreaterMontréal]

Originally Posted by electricron

Hopefully the construction projects are completed on time and under budget. But it is difficult to have faith with someone who can't remember the first Canadian providence listed alphabetically...

La Caisse will be in charge of the project, not the Provincial nor the Federal government.

[mousquet]

Originally Posted by GreaterMontréal

La Caisse will be in charge of the project, not the Provincial nor the Federal government.

Ah? Possibly a counterpart of the institution bearing the same name here, although the 2 systems aren't the same (the Fr is no pension fund), but both seem fine and proven, with comparable missions.

I sense a reliable investment fund.