The Honourable Catherine McKenna, Minister of Infrastructure and Communities November 3, 2020

November 3rd, 2020

The Empire Club of Canada Presents

The Honourable Catherine McKenna, Minister of Infrastructure and Communities-

Chairman: Antoinette Tummillo, President, Board of Directors, Empire Club of Canada

Moderator
Shawn McCarthy, Senior Counsel, Sussex Strategy Group & President, Canadian Committee for World Press Freedom

Distinguished Guest Speakers
The Honourable Catherine McKenna, Minister of Infrastructure, Minister of Infrastructure & Communities
Daniel Levitan, Vice-President, Stakeholder Relations, Hydro One

Introduction
It is a great honour for me to be here at the Empire Club of Canada today, which is arguably the most famous and historically relevant speaker’s podium to have ever existed in Canada. It has offered its podium to such international luminaries as Winston Churchill, Ronald Reagan, Audrey Hepburn, the Dalai Lama, Indira Gandhi, and closer to home, from Pierre Trudeau to Justin Trudeau; literally generations of our great nation's leaders, alongside with those of the world's top international diplomats, heads of state, and business and thought leaders.

It is a real honour and distinct privilege to be invited to speak to the Empire Club of Canada, which has been welcoming international diplomats, leaders in business, and in science, and in politics. When they stand at that podium, they speak not only to the entire country, but they can speak to the entire world.

Welcome Address by Antoinette Tummillo, President, Board of Directors, Empire Club of Canada
Good afternoon, fellow directors, past presidents, members, and guests. Welcome to the 117th season of the Empire Club of Canada. My name is Antoinette Tummillo. I'm the President of the Empire Club of Canada, and your host for today's virtual event, "Resilience and Regeneration: Building Out of a Pandemic and Into a More Inclusive Local Carbon Economy," featuring the Honourable Catherine McKenna, and moderated by Sean McCarthy. I now call this meeting to order.

Now, before we begin, I have a few logistical items to let you know of. If you're finding your internet feed is slow, please see below and click the "Switch Streams" button, and don't hesitate to press the "Request for Help" button if you're experiencing technical difficulties. Our team will be happy to help you.

Now, these events would not be possible without the sponsorships of our various companies. Today's Lead Sponsor is Hydro One. We also have three Supporting Sponsors: NRStor, Residential and Civil Construction Alliance of Ontario, and TC Energy. I also want to thank our Season Sponsors, the Canadian Bankers Association and Waste Connections Canada, and our Event Partner, VVC, and livemeeting.ca, for webcasting today's event.

Now, for today's topic. We've all seen the horrendous impacts COVID-19 can have on our health. But the most devastating global pandemic in a century is more than a health crisis. It has damaged economies, cost jobs, and widened existing social inequalities. It has also illustrated the strength of Canada's communities, the critical importance of resolute government action, and our willingness to help one another build back better. Smart public infrastructure investments create good jobs and help the people and neighbourhoods most in need. They help create sustainable and resilient communities for the low-carbon economy for the 21st century. We'll hear more on this from Minister McKenna momentarily, but first, let me introduce the minister—who probably doesn't need much of an introduction because we all know her very well—but here we go.

In 2015, Minister McKenna was elected as the first female Member of Parliament for Ottawa Centre and was appointed Minister of the Environment and Climate Change. She was re-elected in 2019 and has served as Minister of Infrastructure and Communities since. As Minister of Environment and Climate Change, Minister McKenna helped negotiate the Paris Climate Agreement, and Canada's first Climate Plan with a price on pollution. She also brought in the Impact Assessment Act to protect the environment and build a stronger economy. As Minister of Infrastructure and Communities, she is working with communities to build thousands of projects, create jobs, and build a cleaner, stronger, and more inclusive country.

Now, there's another interesting thing to note about the minister, and that's that she likes to box, and frequently posts videos on social media. So, you may want to go check that out, and see as she helps box our way out of this pandemic. So, over to you, Minister.

The Honourable Catherine McKenna, Minister of Infrastructure and Communities
Well, thank you very much, Antoinette. I don't know how great a boxer I am. I do like boxing; it's a good way to get out frustrations. But as you say, it's maybe a good way to look at how we're going to get out of this. It's going to take some speed, some agility, and a lot of hard work. It's a real honour to address the Empire Club, and I recognize that it's very different doing this virtually. But actually, I think there's a huge opportunity to attract a broader audience. [Remarks in French]. So, I'm speaking to you, here, from Ottawa on the Traditional Unceded Territory of the Algonquin and Anishinaabeg peoples. And actually, if you note behind me, thanks to the Canoe Museum, I've, I have an Algonquin canoe, a birchbark canoe from a hundred years ago. And I think it's just a reminder of the important partnership that we have with Indigenous Peoples. And as we build, we need to be making sure that we're building a more inclusive country for all.

So, today's a big day. It's great to be here on November 3rd—I know you're all thinking about this—it's National Construction Day! So, happy National Construction Day to everyone out there. A huge thanks to the construction workers, and all those in the construction sector who have been working extremely hard, including safely, through the pandemic, to build up our country. There's also something going on, I think, south of the border. So, I appreciate that you're not just spending your time scrolling through Twitter, that you're actually here listening to my remarks. Hopefully, you won't be too distracted.

Well, 2020 has been quite a year, a year like none other, certainly in my lifetime, but I think in anyone's lifetime. I think there's no hyperbole in saying this. We've had the, we have the worst pandemic in a century. Also, the worst global economic downturn since the Great Depression. This year has certainly tested our collective resolve, our community spirit, and it's tested governments—and that's in every country, at every level—to respond quickly to a host of challenges, all in real time. It's tested our health systems, and continues to test us, test them, our educational systems, our social safety net, and also, businesses who are working so hard to adapt and just survive.

But I'm here to talk about our government's plan and vision for infrastructure. It's really the spine, the ribs, the connective tissues, and increasingly, the nervous system, that holds our country and our communities together, and makes the whole thing work. It's also key to getting out of the economic crisis and ensuring our long-term prosperity, and to building a cleaner and more resilient future for all Canadians.

I'm going to make the case why significant, smart investment in Canada's infrastructure will help us keep upright, and healthy, and striding into the future, whatever 2020 and beyond throws at us. We're all adjusting. And that's what we're doing with our $180 billion Investing in Canada Infrastructure Plan. Our government set the Investing in Canada Plan in motion when we took office in 2016. It's a historic 10-year plan for investing in all kinds of infrastructure: sure, roads and bridges, but also renewable energy, affordable housing, public transit, clean drinking water, improving internet access across the country, as well as infrastructure that builds climate resiliency.

Our government is making investments in the critical infrastructure that Canadians need to survive, thrive, and succeed. If you consider that most of our programs require matching funding from other levels of government, including $33 billion delivered in partnerships with provinces and territory, we're talking about half a trillion dollars in government investments to build Canada up. And that's without considering the role of the private sector. I'm going to talk later about the critical role of the Canada Infrastructure Bank in bringing in private sector funding so we can build more infrastructure.

The prime minister asked me to take on this critically important portfolio just over a year ago. I set three overarching priorities: one, to work collaboratively to get projects built quickly, creating jobs and economic growth; two, to ensure the money that we invest is helping us move to a low-carbon future that is cleaner, more resilient, and more prosperous; and three, to build infrastructure: more public transit, high-speed broadband, wastewater, clean energy projects that improve the quality of life for all Canadians from coast to coast to coast. This is building more equitable, inclusive communities, where everyone benefits from better infrastructure.

COVID-19 didn't change those priorities; it just made them more immediate and more urgent. And I'm going to talk about how we need to ensure that every tax dollar does triple-duty. I'll come back to my laser-like focus on outcomes and how we'll get there. But first, I want people to know that our infrastructure plan hasn't paused during the pandemic. When COVID-19 came along, we quickly realized that we needed to adjust our programs to help Canadians deal with the economic and health crisis. We knew investments in public infrastructure were needed to address health risks, create jobs, and build cleaner, more resilient, and more inclusive communities.

So, I worked very hard with my department to accelerate project approvals. Since March 1st, under the largest program led by my department, the Investing in Canada Infrastructure Program, we've approved over 700 projects, representing a federal investment of over 1.2 billion dollars. This represents good jobs across the country, from planning, to design, to construction, to businesses all along the supply chain. We also launched a new COVID-19 Infrastructure Stream within that program, with the federal government paying 80 cents of every dollar, so the provinces and municipalities can build projects faster, creating jobs in a wide range of pandemic-resilient projects, from upgrading schools or long-term care homes with things like HVAC and physical distancing measures, to building new parks, cycling, and walking paths to allow Canadians to access nature. In Ontario alone, this stream represents a billion dollars in federal funding. I'm certainly hoping that provinces move quickly, so that projects can go ahead with what is left of this construction season.

But it's not enough for governments to ensure that dollars are spent on infrastructure; it's about the outcomes that we get on spending those dollars. I'm a woman, I'm a mother. That means, as many of you well know, constantly multitasking and making sure to stretch every dollar. That's the same approach I've taken to our infrastructure investments. Every taxpayer dollar that is spent has to do triple-duty. It has to grow the economy and create jobs; it has to combat climate change, and it has to promote social equality and inclusion.

So, let's talk about economic growth and jobs. We are in the worst recession since the Great Depression. And as Finance Minister Chrystia Freeland said last week at the Toronto Global Forum, getting to a broad, robust, and complete recovery means we're going to have to build our way out of this pandemic. And that means investment, and I quote her, "on a meaningful scale." And don't worry, I've spent the last six months reading books about Roosevelt and the New Deal for inspiration. FDR understood that investments in infrastructure were not only needed to help the economy recover from the Great Depression; they were critical to creating jobs across the US, to getting nation-building projects built, and just inspiring hope for a better future. That is the opportunity of meaningful and targeted investments in infrastructure.

In the Speech from the Throne on September 23rd, we set out our government's direction and goals, including our ambition to create a million jobs, as we recover from the economic shock of the pandemic. Investments in infrastructure are key to that ambition, from public transit, to retrofits, to clean energy, to high-speed broadband across the country. And there's a clear business case. According to the IMF, at times of economic uncertainty, increasing public investment in infrastructure by one percent of GDP boosts growth by 2.7 percent, it boosts private investment by 10 percent, and lifts unemployment by 1.2 percent after only two years. In terms of jobs, investment in traditional infrastructure (clean water plants, storm sewers, wastewater treatment, bridges) generates between two to eight jobs for every million dollars spent, according to the IMF. And when you invest in green infrastructure, such as public transit and more energy-efficient buildings, the job payoff is even bigger, between 5 and 14 jobs for every million dollars spent.

Let's talk about the second outcome we need: climate action. As you know, I previously served as Minister of Environment and Climate Change in the government. Now, at Infrastructure and Communities, I have the opportunity to roll up my sleeves, and help build the future we want: the cleaner future and more resilient future, with provinces and territories, municipalities, Indigenous peoples, businesses, and Canadians. We need to protect people and communities from the worst impacts of a changing climate, we need to increase energy efficiency and help businesses and people save money, we need to improve our energy grids and make them cleaner and more resilient, we need to boost Canadian innovators, and we need to meet our current climate targets, and move Canada to a net-zero future by 2050.

The financial sector got a wake-up call when in January BlackRock wrote to its clients about how they were making sustainability central to how they invest and manage risk. They described their commitment as a conviction that climate risk is investment risk, and that climate-integrated portfolios can produce better long-term risk-adjusted results. And their thinking hasn't changed since the pandemic. As Mark Carney put it, "If you don't have a plan for climate action, you're going to go out of business." The way I look at it, investments in infrastructure either increase or reduce emissions, and they either make our communities more or less resilient to climate change. And I'm sure you know my choice, and the choice of Canadians: cleaner and more resilient.

I also got into electoral politics to make a difference. And frankly, the effects of COVID-19 have only highlighted some of the concerns that made me want to seek public office. The infrastructure deficit our country faces disproportionately impacts vulnerable communities and people. Whether it's inadequate access to public transit, affordable housing, clean drinking water for Indigenous communities, or safe community spaces for all, it's clear that what we invest in and where we invest can have a huge impact on a person's daily life and their opportunity to succeed. The pandemic has only heightened the need for these public services and places, such as inclusive community spaces that deliver childcare, employment services, and health and mental services. The pandemic has also reminded us that public transit is critical to getting essential service workers to their jobs in hospitals, pharmacies, and grocery stores.

We need to keep investing in infrastructure that improves social equality outcomes by targeting underserved communities. I'm thinking of the YMCA Calgary Hub Facility project. In 2018, our government provided six million dollars in funding for this project, supportive transitional housing for 100 women, 90 childcare spaces, as well as a variety of other spaces and services with social benefits to the community. Or the retrofit of Bay Valley High School in the town of Bay Valley, Newfoundland and Labrador: library, gymnasium, family resource center, daycare, and yes, even a bowling alley. And let's talk about the infrastructure deficit in Indigenous communities. It is simply unconscionable that Indigenous Peoples don't have access to safe drinking water, to good housing, to the same services that other Canadians have.

So, let me talk about how I look at getting significant, smart, focused investments, achieving multiple benefits. Let's take investments in public transit. If you live in the GTHA, you all know about traffic congestion. In fact, you live it. I grew up in Hamilton, the Hammer, and it used to take 45 minutes by car to get to Toronto. Some days, now, it can take double that. That's less time for people to spend with their families, less time being productive at work. It's also more air pollution, and the transportation sector accounts for 30% of Canada's total greenhouse gas emissions. There's a clear case for the historic investments we're making in public transportation, including major subway and LRT projects, our commitment to get 5,000 zero-emission school and transit buses in circulation over the next five years, and active transportation, from cycling and walking paths to get people around. Each dollar does triple-duty. If you look at the economy, not only are we talking about jobs and economic benefits; the Canadian Urban Transit Association suggests that the economic benefits of Canada's transit system are $19 billion annually and provide hundreds of jobs. On the flip side, traffic congestion in our cities and a lack of transportation are costing our economy $15 billion in lost productivity. There's a huge opportunity for Canada and the supply chain. When you think about Canada's advantage in zero-emission buses, we have great companies like New Flyer in Winnipeg, GreenPower in Vancouver, Nova Bus in Saint-Eustache, and Lion Electric in Saint-Jérôme, plus we have electric bus charging companies like eCAMION here in Ontario. This is an opportunity for Canada to be a world leader in zero-emission vehicles, and also the supply chain.

In terms of climate change, by improving transit networks in Toronto, Vancouver, Montréal alone, we can reduce emissions of up to 4.2 megatons a year. The transportation sector represents 30 percent of our emissions. If we are going to achieve our climate targets, be net-zero by 2050, we need to be investing in good public transportation. And investing in public transit particularly benefits women, youth, and members of marginalized communities who are more likely to rely on public transit. And if you look at our other priorities, from investments in clean energy, retrofits, affordable housing, childcare, community and rec centers, clean drinking water, broadband, they all bring multiple benefits. Put simply, good infrastructure that supports economic and human development is the key to growing Canada's economy, fighting climate change, and reducing social inequality, ensuring a better quality of life for all.

So, how do we get there? How do we build more? How do we build better, with multiple outcomes? Our government was elected in 2015 with a mandate to address the infrastructure deficit across the country. We're making truly historic investments in infrastructure investments across Canada, and that's not just a talking point. But there's still more to do. So, let me provide you with two numbers: $13.3 billion and a billion. The first number, $13.3 billion, is how much our government has invested in approved public transit projects from November 2015 to December 2019. The other number, a billion dollars, was how much the previous government invested in public transit during the previous four years. Okay, that sounds like partisan point-scoring. But the real point is that, since 1960, more than my entire lifespan, Canada's per capita infrastructure investments have lagged those of similar OECD countries. Canada's current infrastructure deficit is estimated to be between $110 billion and $270 billion. So, we can't pat ourselves on the back for the good of our country, for the jobs now and the growth to come, to build a cleaner and more resilient future, and to ensure a better quality of life for all Canadians, we need to continue investing.

So, how do we get there? Well, direct public investments are one way, and we've stepped up as a government. But there simply isn't enough government money, taxpayer dollars, to meet our infrastructure needs. But the good news is that there are investors, institutional investors, including major Canadian pension funds, looking for safe long-term opportunities. That's why the Canada Infrastructure Bank is critical to expanding Canada's ambition, by bringing in the private sector to partner with the public sector on appropriate projects to get more infrastructure built. I'm very pleased that Michael Sabia joined as Chair of the Board of the Canada Infrastructure Bank, that we now have a new CEO, Aaron Corey, who comes from Infrastructure Ontario, and that the Canada Infrastructure Bank announced a new Growth Plan a month ago. It's another piece of the puzzle. With the Canada Infrastructure Bank's three-year, $10 billion Growth Plan, significant steps towards building back better are being made that will create approximately 60,000 jobs while growing our economy and reducing greenhouse gas emissions. The CIB is committed to leveraging the private sector to get more infrastructure built that benefits Canadians. Projects that will deliver more high-speed broadband investments in renewables and transmission of clean energy, green retrofits for commercial buildings, agricultural investments in areas like irrigation, as well as investments in zero-emission buses and supporting infrastructure. These investments align with our government's priorities. In addition to the direct investments we're already funding, they'll help attract new investments while delivering modern, clean, and resilient infrastructure to Canadians.

So, we have direct government investment in infrastructure, as I said, almost well more than half a trillion dollars, and we have the Canada Infrastructure Bank drawing in private capital to make public dollars go further. But how do we draw it all together? I've thought a lot about this. I'm focused on developing Canada's first-ever National Infrastructure Assessment. It's critical to identifying Canada's long-term infrastructure needs and priorities, linking our investments with policy outcomes, ensuring a plan for recovery that creates jobs and long-term growth, and builds a cleaner, more inclusive future for all Canadians. Assessments of this type are already underway in the UK, Australia, and New Zealand, and have been strongly recommended as best practice by international bodies such as the IMF and the OECD. What the assessment will do—and I know it may sound boring, but it's critically important—it'll take an evidence-based approach to planning for economic recovery and for the future in for infrastructure investments by identifying our needs and priorities, developing Canadian areas of competitive advantage, reducing social inequality, and charting the path towards a net-zero future. But the expert panel in sustainable finance and the advisory council on economic growth to our government emphasize how important such a national inventory and analysis is to better outcomes. I'm making it my mission to see that we get it done, and then we do it right.

If anything good has come out of this pandemic, it's a heightened awareness of what it means to be part of a community, how crucial it is that we count on each other, we look out for each other, protect each other, and see every day the community is what we choose to make of it together. I find myself constantly thinking about how infrastructure investments support and strengthen communities across Canada. It also means helping attract new investments from businesses everywhere. Businesses want to locate and build where they know infrastructure is modern, clean, and resilient. Canada has an excellent opportunity to be the low-carbon economy that global investors beat a path to, if we keep making smart choices right now. And once again, every dollar, every taxpayer dollar we invest should do triple-duty: creating jobs and economic growth, making communities more resilient, especially given the changing climate, and making communities equitable so that every Canadian has a fair shot to succeed. Together, we need to act now to rethink our approach to infrastructure. Our actions and policies will shape this moment in history and what will come after. Thank you.

Antoinette Tummillo
Thank you, Minister. I would like to now introduce our moderator, Sean McCarthy, Senior Counsel at Sussex Strategy Group and President of the Canadian Committee for World Press Freedom. Sean is an independent writer, who focuses on energy and climate change. Before retiring, Sean was a national business correspondent covering global energy for The Globe and Mail. Additionally, his roles at The Globe and Mail included, Parliamentary Bureau Chief, and New York City correspondent, as well as covering international political stories at the United Nations. Prior to Sean's work at The Globe and Mail, he worked for the Toronto Star, Canadian Press, The Alberta Report Magazine, and taught journalism courses at Carleton University. You don't sound like you retired, Sean. I just want to remind everybody on this call that this is an interactive event, so we encourage you to take advantage and send your questions in. There's a question box to the right of your screen. Let us know what's on your mind, and we're going to reserve a little time at the end for you to answer the questions, Minister. Over to you, Sean.

Sean McCarthy, Senior Counsel, Sussex Strategy Group & President, Canadian Committee for World Press Freedom
Thanks, Antoinette. Good afternoon, Minister. It's good to see you again. And as Antoinette mentioned, I spent some time following you around in Ottawa for the first mandate, and reporting on all that work around Paris, and so on. Let's jump right into it. You talked about the importance of private sector money and leveraging the private sector capital to spur clean and inclusive growth in the infrastructure world. It's been 18 months since the expert panel on sustainable finance issued its report urging government action to ensure Canadian capital markets are committed to the principles of sustainable finance. And yet, we've really seen not much action from the federal government on this. Is this a lost opportunity to maximize the impact of private capital, as the government and the Canadian Infrastructure Bank prepare to really ramp up spending on infrastructure?

The Hon. Catherine McKenna
Well, so that's a really great question. It's great to see you, Sean. In your previous role at The Globe and Mail, you were always there to ask tough questions, so it's good to see you're still doing that. Look, private capital has a huge role to play. But we need to, I think what you're saying is, we certainly need it to move towards clean infrastructure. And that's something I think a lot about. Given the need, we need to be leveraging the private sector. There are different ways you do that. I mean, I think that we've sent a signal to the market by putting a price on pollution. That's very important. But, you know, another way would be, potentially, this is what you're alluding to, is climate disclosure. This is something that Mark Carney has been focused on, and there was a task force internationally that worked on that. I think that's really important.

There have been many conversations, as you noted. There was a Sustainable Finance Task Force that reported to myself in my previous job as the Finance Minister, and they said that that was critical because, you know, businesses—well, you know, if you're a company, you need to know, and your shareholders need to know, what risks you're exposed to. And as we move to a cleaner future, we know that if companies aren't thinking about that and the risk of their exposure, there're going to, there're going to be major challenges. So, I mean, I think that there're, you know, there're ways you do that. There's, the government can regulate, you know, businesses and industries can regulate themselves, which is also a huge opportunity, and people can just make rational decisions. I talked about BlackRock. If you think about the trillions of dollars that BlackRock is overseeing, they're having a huge impact because, you know this, they're looking at their portfolio and saying, "Okay, we're going to look at whether companies are assessing risk." Of course, we have a role to play. We're a federation, so security regulators at provincial levels need to be working on this too. But I think this is all part of all the tools that we have in our toolbox. We need to be making sure that we're figuring out how to create the right incentives to move to a cleaner future.

And so, I'll talk about what's in my portfolio, which is the Canada Infrastructure Bank. It's arm's length, but, you know, this is government. We've invested 35 billion dollars in the Infrastructure Bank, and they just came out with a 10-billion-dollar Growth Plan, which they designed on their own, looking at where are there opportunities, and how do we leverage the private sector. Not only did I say there's just not enough government money, but we're leaving money on the table. That institutional investors are investing in projects in other countries, not in Canada. That means we're getting less infrastructure built, as opposed to more. And so, they've laid out their plan. And I think there's a whole range of areas where there are opportunities, they see opportunities for the private sector to come in. These are revenue-generating projects. So, these aren't projects that are suitable for every, you know, every project. But whether it's electric buses or renewable energy, there are pieces that aren't even in their Growth Plan that they're still focused on, and public transit, there're some huge opportunities.

And so, I think that this is part of our approach as a government; it's all hands on deck. You need to have a serious Climate Plan, you need to have a price on pollution, you need to be making investments in infrastructure, you need to be leveraging the private sector, you need to be making sure that businesses understand, and investors understand the risks associated with, you know, their investments. And so, we're going to continue to move forward, you know, and I think we've worked extremely hard on that. Having Canada's first Climate Plan, in the context of the first-ever international agreement where every country has to do their part, was extremely important, but there's still, of course, more work to do.

My focus is, clearly, on the infrastructure piece: how do we build a cleaner future? Which is an economic opportunity, it's a jobs opportunity, it's an innovation opportunity, it's about inclusivity, making sure that all communities benefit. And I think that there's this opportunity for Canada. And in the pandemic, I think that the, you know, it's, it's been extremely challenging. But I think that it brings you some focus. And because we need to be making investments—as the Finance Minister, significant investments—we need to be making sure that as we do that, we're getting the outcomes that we need.

Sean McCarthy
So, does the government then, with every infrastructure project—and that, for that matter, the CIB—make sure that, much as the various committees and task forces have recommended, Kearney among others, that they're done through a climate lens and make sure that they contribute both to resilience and to, you know, meeting, eventually, at a net-zero target? Is that really, do you have to pass?

The Hon. Catherine McKenna
Yeah, that's certainly my focus. You know, when something comes to cabinet, there's a, there's a, you have to look at, there's a Strategic Environment Assessment, and you have to look at climate impacts in our Climate Plan—sorry, in our Infrastructure Plan. Major projects have a climate lens. And I'm introducing looking at climate on all projects because, as I say, it's actually binary. You know, projects either reduce or they increase emissions; they either make communities more or less resilient. And when I talk to mayors across the country, they don't question whether climate change is real. They are worried about flooding that they're seeing; they're worried about fires in their community. They're worried about their infrastructure: will it be able to withstand extreme measures? And they want the opportunities that are going to mean cleaner air and cleaner water and more prosperity. And that's really actually, I mean, places like Summerside, PEI to, you know, Indigenous communities, Inuit communities in the High North, to, you know, Ottawa, where I live.

Sean McCarthy
So, lots has been said around the CIBC Growth Plan and, and, well, specifically around that about, you know, clean energy projects, transmission energy storage. How do you envision—I know it's an arms-length organization, but how do you envision these projects going forward when you need, as you said, to have the provinces, municipalities, and Indigenous governments, and particularly the provinces where not everybody necessarily shares the priorities of the federal government?

The Hon. Catherine McKenna
Well, I have found in this portfolio, Sean, that actually people share the priority of getting infrastructure built. So, the good news is that, I think that provinces and municipalities realize, in particular, given that we're in a, you know, in a recession, we need to be creating jobs; we need to be investing in projects that improve lives. And so, let's take one of the projects, a big project that was just announced by the Canada Infrastructure Bank. It was a major irrigation project with the government of Alberta. This is about looking across the country and where there are opportunities, and Canada is a very diverse country. Each province is very different, and there are different competitive advantages, different opportunities. And so, in Alberta, AgTech, farmers, ranchers, benefiting from better irrigation upgrades is a huge opportunity for them. So, that was a great partnership between the government of Alberta and the Canada Infrastructure Bank, and there were opportunities like this across the country. And I think the bank, you know, their role is really, you know, talking to folks, and figuring out where there's an opportunity where it makes sense for the bank to be playing a role, where you can bring in the private sector. And the benefit is, of course, to Canadians because we can do big things, we can get major projects built by bringing in the private sector, which means that we're, actually, stretching taxpayer dollars. I'll go back to what I said. You know, I'm a mother, and you've got to make sure you stretch your dollars. And the Canada Infrastructure Bank and the private sector is clearly a key part to getting more and better infrastructure built.

Sean McCarthy
Are there areas where if there's not shared priority around the clean growth, shall we say, that you just bypass the provinces and deal directly with municipalities and the private sector and Indigenous communities?

The Hon. Catherine McKenna
Well, look, I mean, my focus is bringing people together, and I think infrastructure is a real opportunity. But I think there are sometimes times where it makes more sense to go directly to municipalities. We work with municipalities through our Disaster Mitigation and Adaptation Program that's been hugely oversubscribed, it's about building resilience in communities. I was just with Minister Hussein, and one of the projects is in a community that's seen huge flooding. And so, working directly with the community to stop this flooding that's flooding people's homes and basements is an opportunity to make it more resilient, to create good jobs. There's also an inclusivity lens on that. So, I think you have to look at what are the opportunities, and your partners are going to be different through different programs. I think that there are some opportunities to work directly with towns and cities who I see are very ambitious on climate change. I asked recently how many municipalities have a Climate Plan? 260. 260 municipalities across the country have recognized that climate change is both a risk and an opportunity, and they're moving forward. And I think we owe it to them, especially where it's very challenging from a fiscal perspective for many, many cities and towns, to help support them. And that's to our advantage, because we've got an ambitious Climate Plan, we want to increase our ambition. We need to be net-zero by 2050, so, we need to be working with them. People may not know this, but it's estimated that municipalities, 40 percent of emissions are within their control. So, the decisions they make about how they build, about what public transit they use, how they deal with waste, really make a difference to Canada's overall ability to reduce our emissions.

Sean McCarthy
Do you consider the protection of natural, and reclamation of natural infrastructure, to be part of your mandate as Infrastructure Minister? And if so, what kind of projects would that entail?

The Hon. Catherine McKenna
That's a really great question. So, I think the problem with the word infrastructure, and I try to always give examples, because infrastructure sounds like kind of a made-up bureaucratic word. And I think that if you think about it, maybe you think roads and bridges. But we have to get way beyond that. That infrastructure is a whole range of other things, from affordable housing, to childcare, to digital infrastructure and broadband. But natural infrastructure plays a huge role. And I saw that in my previous role as Minister of Environment and Climate Change, that often you can use nature. So, whether it's wetlands, I mean, there's a whole range of ways you can use nature to get multiple outcomes. So, it can be a carbon sink; that we know planting trees, you know, there's an ability to absorb carbon, protect against extreme weather and flooding, that if you, you know, have wetlands in areas, as opposed to building buildings and homes, so that can be a natural barrier. And so, that is definitely a huge opportunity.

And I think, also, when you think about it in the pandemic, one of the things I think folks have realized is the importance of getting out to nature. So, Mayor Tory has talked about a Ravine Strategy, about reclaiming the ravines and building pathways there. And if you think about it, I always think about everything, I know I sound like I'm a broken record, but the triple benefits you can get when you build these things, you create immediate jobs and you create economic growth in the long term. You also, in these areas—so I went and visited one of these ravine areas, and all around us are high-rises. So, these are folks that don't have access to a backyard. And so, now they'll have access to nature. That's an inclusivity piece, because, you know, for better health outcomes, mental health, especially in a pandemic, allowing people to be able to get outdoors is incredibly important. And then of course, there's the climate adaptations and resilience angle. So, natural infrastructure, I totally see that part of my portfolio. I also asked when I came in, could active transportation be part of my portfolio? Because I really care about cycling, and people getting around walking. And the good news is that is also I consider that also part of my portfolio.

QUESTION & ANSWER

Sean McCarthy
Very good. So, I want to go to some of the questions that I'm getting from the audience, and from Andy: due to the cash crunch, municipalities have held back on releasing tenders for state of good repair projects—which you probably know what they are, and I don't. Will Ottawa target these important local projects for accelerated funding?

The Hon. Catherine McKenna
So, tat's a really good question. We've certainly seen in the pandemic that municipalities have lost revenues, so that often it's public transit, because fewer people are taking public transit, although it's still incredibly important to get folks around into reopening our economy. And then they've had additional costs. So, we announced our COVID-19 Stream was an example, where the federal government were willing to put 80 cents on every dollar to invest in projects quickly in communities across the country. Now, this is through our program with provinces, so really up to the provinces to prioritize investments in cities and towns. But we advanced the Gas Tax, Gas Tax is a really important way that municipalities can invest in projects across their region. But we are looking at other programs. I do think that working with municipalities, while recognizing that they're a critical partner, but that it may be tough for them to make the investments in infrastructure that we need. That is certainly something that's really important, so we don't want them to stop on capital projects.

I hear from construction companies concerns about, you know, having opportunities, construction slowing down—it's been a pretty resilient sector through the pandemic, but slowing down. So, as I say, we're using all our tools, and certainly hoping that also provinces step up. As I say, the COVID-19 Stream is ready to go. So, certainly hoping that we'll see projects go ahead very quickly this construction season, and really focus on how do we work with cities and towns to get infrastructure that improves lives, but creates jobs and helps us get out of the economic recession we're in.

Sean McCarthy
Good time for two more quick questions if we could, but rapid-fire, here.

The Hon. Catherine McKenna
Rapid-fire. Okay.

Sean McCarthy
So, a couple of questions on rail, GTHA rail projects, and Via high-frequency. Any updates on those? Is this something that's a big priority for the government, or do you need other players at the table? What's the status?

The Hon. Catherine McKenna
Well, so, looking at rail in the corridors, obviously, it is a big priority of our government. We have the Canada Infrastructure Bank there, Via is part of this. So, I think it's really a stay tuned. I think you need to do the due diligence, and make sure, you know, these are major projects, so figuring out the business case. But more broadly, I think that rail is critically important, but also making sure that we're expanding public transit generally. There are some really big projects in the Greater Toronto and Hamilton Area. I'm from Hamilton; and we've seen LRT in Hamilton. There's a lot of local support. LiUNA, very big union, willing to come to the table as well, and I think unions are critically important. Those are really good jobs and looking at different partnerships. So, I think that we have huge opportunities with the Canada Infrastructure Bank, but also our government's commitment to transit. We are, we stepped up, we said we have an infrastructure deficit, and we need better public transit. And we're investing historic amounts of money in public transit, which is good for congestion, it's good for better air quality, it's good for climate, it's good for, you know, the people who rely on public transit, who don't have cars, or have other options, who rely on public transit. So, huge opportunities. There are many different projects that we're working on and trying to get them over the finish line as quickly as possible, while being mindful of taxpayer dollars and the business case.

Sean McCarthy
Very good. And the last one, you know, it's a big day here, it's National Construction Day...

The Hon. Catherine McKenna
Yep.

Sean McCarthy
...but it's also a big day in the United States. There is a historic—I think every election is said to be historic, but I think we can all agree that this is particularly fraught—how would you assess the impact on your job as Infrastructure Minister, and then Canada's infrastructure planning and reality from the two possibilities that emerged from this election, one being a Joe Biden administration, and one being the re-election of Donald Trump?

The Hon. Catherine McKenna
Well, the good news, I'm in politics long enough not to pronounce on the elections in other countries. That's up for Americans to decide. But look, you don't choose your dance partners. And I think that there are huge opportunities with the United States. And look, what—people thought would be very difficult for us to work with the Trump administration.

Sure, there have been challenges, but we were able to renegotiate NAFTA from a climate perspective. We kept on working, in particular with states, cities, and businesses, and we'll just keep on marching forward. You know, there are different perspectives, but I think both President Trump and Vice-President Biden are committed to infrastructure investments. I mean, it's interesting to see that Joe Biden has a two trillion-dollar infrastructure plan focused on jobs and inclusivity, so there are obviously opportunities there—but we'll just work with whomever we have to work with. And we need to be focused on Canada's interests, and that's getting along with the United States, and infrastructure is part of it. When I look at the opportunities just generally—forgetting who ends up winning—I mean, we have a lot of clean power in Canada. Transmission lines north-south, not just east-west, are a huge opportunity. Trade corridors; I'm responsible for the Gordie Howe Bridge. We, you know, we trade between the two countries, and making sure we can facilitate it is incredibly important. Ports, I could go on. But as I say, like, look, you know, what, we're obviously watching closely, and then we will work, like we did, taking a Team Canada approach, with whomever ends up winning in the United States. They are, you know, they are our closest friend. They are an ally. And, you know, I think just like everyone, you know, we're just going to stay tuned. .

Sean McCarthy
Thanks very much.

The Hon. Catherine McKenna
Thank you.

Antoinette Tummillo
Thank you. I would now like to introduce Daniel Levitan, VP Stakeholder Relations at Hydro One, to give the appreciation remarks.

Note of Appreciation by Daniel Levitan, Vice-President, Stakeholder Relations, Hydro One
Thank you very much, Antoinette. Good afternoon, everyone. On behalf of Hydro One, I'd like to thank the Empire Club for providing us with the opportunity to participate in this important discussion today. Minister, thank you so much for spending the time to take this audience through your plans and priorities, as you steward such an important portfolio. Thanks again for the transmission shout-out as well. As one of Canada's largest utilities, with assets spanning Ontario, we're intimately aware of the critical role that investment in sustainable infrastructure will play in creating good-paying jobs, building resilient communities, and ultimately getting our economy back on track post-pandemic. We're happy to see that our own corporate strategy is aligned with your government's plan to invest in regional economic development, promote greater electrification to drive economic recovery efforts, and meet our country's net-zero goals by 2050. Today's discussion will certainly help further inform and refine our approach, as I'm sure it has for many in today's audience. Minister, I'd like to thank you for your tireless work in helping build a cleaner, stronger, and more inclusive Canada, and we look forward to partnering with you and your government in the coming months to help support your efforts to build back better. A sincere thank you, again, for joining us today.

The Hon. Catherine McKenna
Thanks, Daniel. It's great to be here.

Antoinette Tummillo
Thank you. And I just want to add, I can't tell you how happy I am in this part of the world during the pandemic, being a Canadian. Thank you for all that you and your colleagues are doing. Your reference to communities, it's unbelievable how communities have come together to help each other. And your plan, I hope you pull it through—because I'm in real estate, and we need lots of infrastructure in this country. We need it desperately. So, thank you. Thank you, Sean, for doing a great job with your questions. They weren't too tough, I hope, Minister.

The Hon. Catherine McKenna
You know what? I'm used to from Sean.

Antoinette Tummillo
I can imagine.

Sean McCarthy
It's that boxing thing.

Antoinette Tummillo
I didn't talk about your swimming thing either, Minister. I saw your little swimming video in a pool there, on your....

The Hon. Catherine McKenna
You know what? That's my pandemic resilience, that's what I do. I do my swimming, if I can get out—it's a little cold to go open-water swimming right now, but....

Concluding Remarks by Antoinette Tummillo
I was pretty impressed with that. Let me just take a moment to tell you about our upcoming events. On November 5th, we've got a great panel talking about the "Future of Workspace," and on November 13th, we've got Mark Poweska, President and CEO of Hydro One, joining us. In the next couple of days, you'll see some posts getting posted—they're not there right now—Dr. Tedros from the World Health Organization will be coming to speak with us on November 17th, and on November 20th, Blake Hutcheson, President, and CEO of OMERS, will be joining us. We also have our signature event, the Nation Builder of the Year Award, which we are giving to frontline workers. Who's more deserving this year? So, that's on December 10th. I hope you join us for that. We have a lot of VIPs and celebrities lined up for that, and that will be posted in the next few days so you can register for that. All these events are complementary. Thank you all for joining us. I look forward to seeing you at our next live webinar, and again, thank you, Minister. Thank you, Sean. Really appreciate your time today. This meeting is now adjourned. Thank you.

The Hon. Catherine McKenna
Bye-bye. Thank you.