CANADA ECONOMICS

CANADIAN INFRASTRUCTURE BANK (CIB)

Department of Finance Canada, April 7, 2017. Minister Morneau in London to Promote Canada's New Investments for Stronger Partnerships

London, United Kingdom – Canada is open to the world—welcoming new ideas, creative ways of thinking and a diversity of cultures. It's a big part of what makes Canada a great place to invest, grow a business and raise a family. Through Budget 2017, the Government of Canada will continue to strengthen Canada's middle class by deepening its engagement with the world and investing in key partnerships such as the special relationship it has with the United Kingdom.

Canada and the United Kingdom have deep historical ties, bounded by people-to-people connections and a strong global partnership.

Finance Minister Bill Morneau today spoke with U.K. investors at Canada House, where he highlighted the longstanding relationship between Canada and the U.K. and why Canada is a great place to invest and do business.

The Minister spoke about how Budget 2017 will further strengthen Canada's place in the world and give people a real chance at success by equipping them with the skills they need for the good, well-paying jobs in the new, innovative global economy.

Quote
"Canada and the United Kingdom enjoy a partnership that is essential to our shared prosperity, and which has long served as a model for the rest of the world. Working together, we can create more opportunities and prosperity for middle class families in both of our countries."

- Bill Morneau, Minister of Finance

Quick Facts

• The United Kingdom is Canada's most important trade partner in Europe and, from a global perspective, ranks fifth after the United States, China, Mexico and Japan. 
• In 2016, total bilateral trade in goods and services reached nearly CDN$40 billion, and over the last five years, the United Kingdom has been Canada's third-largest goods export market.
• The United Kingdom is an important source of direct foreign investment into Canada, ranking fourth among all countries, and Canadian companies invest heavily in the U.K. In 2015, the two-way stock of investment stood at almost CDN$130 billion.

Speech by the Honourable Bill Morneau, P.C., M.P. April 7, 2017. Building Confidence in Our Economic Future

London, United Kingdom - Thank you, Janice (Charette) for that kind introduction. And thanks to those who helped organize this event here at Canada House today: David Marsh from the Official Monetary and Financial Institutions Forum, and Rachel Pine. And thank you to all of you for coming. It's a pleasure to be here.

I'm thrilled to be back in London.

During my last visit here in November, I had the opportunity to speak with students at my alma mater, the London School of Economics, about what makes the Canada-U.K. relationship so special.

Whether through our history, or through trade, our two countries are deeply connected.

But it is our common values and our continued friendship that truly unite us.

For decades we sustained economic growth in our two countries—and indeed around the world—on hope and optimism, the promise that our hard work would lead to a better life and a better world for our kids and grandkids.

That hope is no longer as clear.

We live in a time when many people are worried that the economy only benefits society's luckiest few. Their anxiety is valid.

One of the greatest challenges we face today as leaders is how to inspire the confidence people need to succeed and that economies need to grow.

In Canada we have been working to fix this.

But back when we first formed government in 2015, our plan was met with skepticism by some in the international community.

At my first G20 Summit in Antalya, Turkey, in 2015, the new plan in Canada was looked upon with curiosity by some of the other representatives.

At the time we had just introduced a number of measures, all directed at helping middle-income Canadians—what we call our "middle class."

A new, tax-free and more generous child benefit.

A tax increase for the richest one per cent.

A tax cut for middle-income earners.

And ambitious investments in infrastructure that put our strong fiscal position to work on things like public transit.

Our goal was, and is, simple: use all the tools we have to grow the economy in a way that benefits all Canadians—and give them a clear signal that their government and their economy are working for them.

Less than a year later, at the G20 Summit in China, the idea that the benefits of growth need to be more widely shared was on everyone's lips and top of the agenda.

A few weeks ago, at the G20 Finance Ministers' Meeting in Germany, it was simply accepted as fact.

For our part, Canada will continue doing what hopeful and optimistic countries do: invest in ourselves. And we are inviting the world to also invest in us and to work with us.

We have proven our resilience and our stability through the global financial crisis and the recent downturn in commodity prices, and we are building on these strengths.

We have the lowest total government net-debt-to-GDP (gross domestic product) ratio of all the countries in the G7.

The International Monetary Fund projects that we will be one of the strongest-growing economies in the G7 in economic growth over the coming years.

We have a highly skilled, diverse and cohesive population, including the best availability of skilled labour in the G20.

Our financial system is sound.

And finally, and maybe most importantly, we work well with others.

We know that Canada's future success is tied to its place in the world.

We can't go it alone.

But we also fundamentally believe partnership is essential to building a more inclusive economy.

Since taking office, we have built a strong case for our plan and our vision.

Consumer spending is up, due in part to our introduction of a middle class tax cut and a new enhanced child benefit.

Unemployment has fallen in the time since we took office in late 2015.

Over the past seven months, the economy generated more jobs than in any seven-month period in a decade.

And the pace of economic expansion is forecast to pick up in 2017.

These are good, early signs of a plan that is working.

But we know there's more to do.

This is why we are not just creating the jobs of today, we're getting people ready for the jobs of tomorrow.

We are supporting a culture of lifelong learning and skills training to help workers and their families adapt to the changing demands of our time—and ensure that Canada remains competitive.

Our aim is to make sure that the benefits of a more innovative society are shared equally across genders, generations and geography.

For us to accomplish our goals in Canada, we will continue to build global trading partnerships that create growth for all Canadians.

That means being champions for trade and selling what we do in Canada to the world.

That also means selling the benefits of trade to Canadians and people around the world.

That is the message I bring to international forums, and that is the message I bring when I meet with people like United States Secretary of the Treasury Steven Mnuchin.

And the more time I spend in the United States promoting Canada and promoting our trading relationship, the more I understand how much we agree on this.

Trade needs to bring real benefits to people—people who may be struggling, people who are worried about their children's futures.

Those same people will support trade if they see it creating better jobs and making their lives more affordable.

That is how you restore hope and bring optimism back to people who have lost it.

That is what people expect of their government, and I for one fully intend to make sure that we work hard to deliver.

Thank you. I am happy to take a few questions.

Budget Plan

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Chapter 2—Communities Built for Change

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Delivering Results With the Canada Infrastructure Bank

In its 2016 Fall Economic Statement, the Government announced plans to establish a new Canada Infrastructure Bank, an arm's-length organization that will work with provincial, territorial, municipal, Indigenous and private sector investment partners to transform the way infrastructure is planned, funded and delivered in Canada.

Leveraging the expertise and capital of the private sector, the Canada Infrastructure Bank will provide better results for middle class Canadians. Public dollars will go farther and be used more strategically, maximizing opportunities to create the good, well-paying jobs needed to grow the middle class now, and strengthen Canada's economy over the long term.

The Canada Infrastructure Bank will be responsible for investing at least $35 billion over 11 years, using loans, loan guarantees and equity investments. These investments will be made strategically, with a focus on large, transformative projects such as regional transit plans, transportation networks and electricity grid interconnections.

Accelerated Implementation

To ensure that funds can begin to be invested in a timely manner, the Government will soon propose legislation establishing the Canada Infrastructure Bank.

The Government will begin a process to identify the Bank's Chief Executive Officer and Chairperson of the Board of Directors, with the goal of having the Canada Infrastructure Bank operational in late 2017.

Better Decisions Through Better Data

To help municipalities better track, collect, use and share the data needed to measure the impact of infrastructure investments, the Government of Canada and the Canada Infrastructure Bank will work in partnership with provinces, territories, municipalities and Statistics Canada to undertake an ambitious data initiative on Canadian infrastructure.

The data initiative will help all levels of government by providing intelligence to better direct infrastructure investments, and will support efforts to:

• Provide comparable data and information on issues such as infrastructure demand and usage for jurisdictions across the country.
• Provide a national picture on the state and performance of public infrastructure across asset classes.
• Deliver high-quality data analytics to help inform policy and decision-making, and promote fact-based dialogue between all orders of government.
• Track the impacts of infrastructure investments so that governments can report back to Canadians on what has been achieved.

Further details on the initiative will be announced in the coming months.

Department of Finance. March 22, 2017. Budget 2017 — Building a Strong Middle Class. Remarks by the Honourable Bill Morneau, P.C., M.P.

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Infrastructure

Across the country, we’re building stronger communities.

We’re doing it by creating jobs, shortening commutes, ensuring clean air and water, and improving quality of life for millions of Canadians.

In the last year and a half, 744 public transit projects have been approved and are creating good, well-paying jobs for Canadians.

In Calgary and Ottawa, long-awaited and transformative light rail transit projects are underway.

In Montréal and Vancouver, riders can look forward to a more enjoyable commute thanks to rehabilitation work being done to the metro and SkyTrain systems.

We’re repairing nearly 50,000 social housing units, to make sure families have a safe and secure place to live.

We’ve lifted 18 long-term boil water advisories in First Nations communities, getting us closer to our ultimate goal of ensuring that every child in Canada has access to clean drinking water.

Ten years from now, our cities, towns, and northern and rural communities will be healthier and better connected.

Our air and water will be cleaner.

More Canadian goods will get to international markets.

And modern, efficient public transit systems will get hard-working parents home more quickly at the end of a long day.

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LGCJ.: