TRAN Committee Report

Supplementary Report of the Conservative Party of Canada

Introduction

Conservative Members of the Standing Committee on Transport, Infrastructure and Communities would like to thank the number of witnesses who shared their valuable perspectives and insights concerning how to ensure that Canada’s infrastructure and housing is not only adapted and built more resilient to face increasingly frequent weather events, but to also ensure that current infrastructure needs communities face today are addressed.

Conservative Members support the thrust of this report and its recommendations. However, Conservatives believe there are key concerns that needed further emphasis. First, it is important to understand that the infrastructure gap, which continues to widen to the tune of billions is, in large part, the result of the failure of the government to properly design and effectively prioritize and distribute its infrastructure dollars to get needed investment out the door to communities with critical infrastructure gaps. Second, the report did not go far enough in underscoring the importance of affordability as a guiding policy principle at a time when Canadians are arguably facing the worst cost-of-living crisis and housing crisis in its history. It is imperative that governments develop holistic policy solutions that consider not only climate change, but affordability and socio-economic outcomes for Canadians.

Federal Infrastructure Program Review & Redesign

While the Committee’s report describes the barriers that face communities in accessing federal infrastructure programs, Conservatives wish to further emphasize that it is the government’s top-down, ideological filters and bureaucracy that have stalled the building of roads, bridges and critical infrastructure that regions need to mitigate against climate impacts and to grow Canada’s economy. We believe this has been a primary driver behind the infrastructure deficit we have today.

The Federation of Canadian Municipalities (FCM), for example, testified that 14% of all municipal infrastructure is in poor or very poor condition and at least $175 billion is required to upgrade Canada’s aging wastewater, stormwater, transportation and community infrastructure. Mayors of several small municipalities in different parts of the country spoke to the red tape, the complicated application processes, and the lack of flexibility in eligibility criteria for many of the government’s infrastructure programs – all of which have kept communities from getting funding for critical infrastructure.

In addition, if more proactive mitigation investments had been made to address vulnerabilities in the high flood risk areas in British Columbia in advance of the atmospheric river events of November 2021, many impacts would have been prevented – including the loss of life – and saved millions, if not billions in damage. The Committee heard how towns in British Columbia are still reeling from the aftermath of the 2021 flood events and have been prevented from both rebuilding infrastructure due to conditions on program funding, but also prevented from rebuilding dikes and other mitigation infrastructure to a higher standard because of the limitations imposed by the government’s Disaster Mitigation Adaptation Fund. As a result, some areas have no dikes at all – or have only temporary dike structures in place – and are left less protected from flooding today than they were two years ago.

The Conservative Party also wishes to underscore the Committee’s recommendation that a re-evaluation of the climate lens criteria is needed. The Committee heard testimony from the FCM and echoed by BC mayors that these criteria are onerous and often lack common sense. For example, critical infrastructure such as dikes should not be unfairly subjected to these criteria when it is impossible for them to be given credits for reducing carbon emissions. In terms of the application process, Matt Gemmel, Director of Policy and Research with the FCM testified: “It's not really in anyone's interest, other than the consultants', to have municipalities have to spend hundreds of thousands of dollars and many months of planning time to comply with a climate lens that's really over and above what is needed to assess climate risk and vulnerability assessments.”

Housing Affordability

There is an urgent need to prioritize addressing an unprecedented housing affordability crisis while being good stewards of the environment. The Canadian Home Builders' Association (CHBA) as well as Ontario eco-builders, Horizons Group, emphasized to the Committee that affordability needs to be a central priority as we pursue the goal of more resilient, energy-efficient homes.

Specifically, Mr. Kevin Lee, CHBA President, recommended that affordability be added to the National Building Code's core objectives as the government develops new regulations. He also testified that the government needs to do its research upfront before implementing changes to the way homes are built that could drive up costs for consumers, saying, “A lot of the energy needs to go into research and development and innovation focused around affordability.” Mr. Lee also said, "Over-regulation can quickly drive up costs, when our housing crisis can't afford it…".

Conservatives note that the government's proposed changes to the National Building Code under its Emissions Reduction Plan (ERP) have also been criticized by experts as a hit to home affordability. It is incumbent upon this Liberal government to do everything it can to reverse the housing crisis that has doubled mortgage and rent payments for Canadians over the last eight years. If the government makes hastily drafted changes to the building code without factoring in home affordability, Canadians will likely see even higher home prices in the years to come.

Conservatives for that reason would add the following recommendation: That the Government of Canada prioritize both affordable and resilient, energy-efficient buildings and homes by adding affordability as a core objective to the National Building Code. It is essential future changes do not negatively impact home affordability during a housing crisis when most Canadians can no longer afford to purchase a home.

Conclusion

In conclusion, Conservatives believe that communities cannot plan for the future and become more climate-resilient when their basic infrastructure needs and gaps are not addressed. It is not acceptable that a G7 country should have communities without potable water two years after a natural disaster and that indigenous communities are without clean drinking water. The atmospheric river flooding events of 2021, in particular, are a stark example of how the government failed to address known vulnerabilities beforehand, and this points to a broader infrastructure policy failure that needs to be addressed. In addition, Conservatives believe fixing the housing crisis and making homes affordable again for Canadians needs to be at the top of this government’s priorities. The government must avoid increasing housing costs on Canadians at a time when our housing crisis and Canadians can least afford it.