Tab B: Briefing Notes

Investing in Canada Plan – Status Update

Issue / Question

What are the key results to date for the Investing in Canada Plan?

Suggested Response

  • The Investing in Canada Plan is generating economic growth, creating jobs, and building strong, green, inclusive communities for Canadians to live and work in.
  • Infrastructure Canada has approved thousands of projects across the country, improving access to affordable housing, clean water, highways, community centres, and transit systems for Canadians.
  • Beyond the Investing in Canada Plan, the Government has continued to make new, historic investments in public transit, community buildings, and resilient infrastructure.

Background

  • The Investing in Canada Plan (the Plan) is the federal government's long-term infrastructure plan that was announced in Budgets 2016 and 2017. The Plan is a point-in-time snapshot of government-wide investments in infrastructure and does not include newer infrastructure investments announced in Budgets 2018, 2019, 2021 and 2022.
  • The Plan provides a strategic framework to guide the delivery of $188 billion in federal investments in infrastructure over 12 years and is focused on achieving three key objectives:
    • generating long-term economic growth to build a stronger middle class;
    • improving the resiliency of communities and Canada's transition to a clean growth economy; and
    • enhancing social inclusion and socio-economic outcomes for all Canadians.
  • The Plan comprises $95.6 billion in new funding for infrastructure programs, committed in Budgets 2016 and 2017. Additionally, the Plan delivers $92.2 billion through pre-budget 2016 programs, through funding mechanisms such as the Canada Community-Building Fund (formerly known as the federal Gas Tax Fund) and the New Building Canada Fund.
  • In Budget 2016 (Phase 1), $14.4 billion was made available to accelerate federal investments in the short term by providing funding for the rehabilitation, repair, and modernization of existing public transit, green and social infrastructure, as well as for post-secondary education and broadband access for remote communities. All Budget 2016 programs under the Plan have launched and many have finished.
  • In Budget 2017 (Phase 2), more than $81 billion in new funding was made available to support five priority areas over the next decade: public transit, green, social, trade and transportation, and rural and northern communities' infrastructure. All Budget 2017 programs have been launched.
  • Infrastructure Canada (INFC) is responsible for the overall coordination and annual reporting on results for the more than 90 programs under the Plan. The department delivers Investing in Canada programming along with 21 federal departments and agencies including Indigenous Services Canada, the Canada Mortgage and Housing Corporation, Employment and Social Development Canada, Natural Resources Canada and Transport Canada.

Results to Date

  • As of March 2022, the status of the Plan is as follows:
    • Over $119 billion of the $188 billion has been allocated to more than 77,000 projects and $67 billion has been paid out.
    • 63% of the Plan is committed to approved projects.
    • 50% of the Plan's programs are closed or no longer accepting new applications as project intakes are closed.
    • Funding under the Plan has supported a 15% increase in public sector infrastructure investment since 2015.
    • For the five-year period from 2016 to 2021, public sector infrastructure investments were associated with a $371 billion contribution to gross domestic product.
  • Half-way through, the Plan has delivered important benefits across Canada. Within each investment stream of the Plan, significant results to date include:
    • The Plan has increased the capacity of Canadian municipal public transit systems by improving the capacity of Canadian public transit infrastructure by supporting the development of over 570 kilometers of transit-exclusive transport networks, including dedicated bus lanes and rights-of-way, increasing mobility across Canadian communities. Major public transit projects that will have transformative effects on cities are being supported in Montréal, Ottawa, Toronto, Hamilton, Calgary, Edmonton and Vancouver.
    • Green infrastructure investments are providing charging and alternative fuel stations along Canada's highways and in strategic locations where Canadians live, work, and play to enable greater deployment of these types of vehicles to help decarbonize the transportation sector. For example, the Plan has provided 576 electric vehicle charging stations, 11 natural gas stations installed along key freight corridors, and five hydrogen stations installed in metropolitan centres. In addition, the Plan has supported 96 Clean Energy for Rural and Remote Communities projects that assist Indigenous, rural and remote communities transition away from fossil fuels to clean, renewable and reliable energy.
    • Social infrastructure investments are helping to improve Canadian communities through reduced housing need, increased regulated childcare spaces and early learning programs, and enhanced community, cultural and recreational facilities. The Plan has exceeded targets for new affordable childcare spaces, created 28,900 new community housing units, maintained 156,900 community housing units, and repaired 209,800 community housing units, and built or repaired over 1,200 community, cultural and recreational spaces.
    • Trade and transportation investments build stronger, more resilient, and more efficient trade corridors to access global markets and help Canadian businesses compete, grow and create more jobs. The National Trade Corridors Fund has leveraged $4.2 billion in total investments for 28 marine projects, 24 road projects, 19 rail projects and 18 air projects. 
    • Rural and northern communities: Infrastructure investments grow local economies, improve social inclusiveness and connectivity, and better safeguard the health and environment of rural and northern communities. Funding under this stream has experienced a good uptake across a broad suite of projects including broadband, roads, energy, health and food security. For example, 707 rural and remote communities are now connected to broadband, providing residents the opportunity to innovate and participate in our economy, democracy and way of life.

Where are Plan results reported?

  • The Plan's reporting protocol aims to provide consistent, comprehensive and easy to understand information in a manner that fully respects existing program requirements and departmental roles, responsibilities and accountabilities.
  • While each department reports on the specific implementation of their programs under the Plan, INFC is committed to reporting transparently and openly on the progress and results of the Plan.
  • The Implementation Progress and Funding Update table is updated quarterly and provides an accounting of the full $188 billion Plan. The funding table reports total program allocation and implementation status including the number of projects approved, federal share of approved project value, and reimbursements claimed.
  • Progress on the Plan is reported annually through INFC's Departmental Plan and the Departmental Results Report. The Departmental Plan Supplementary Information Tables - Horizontal initiatives reports on progress towards the Plan's objectives and outcomes, and annual results for each of the programs under the Plan, including legacy programs.
  • INFC also reports on the status of its own programming through the Government of Canada's Open Government Portal and through its Departmental Results Report.

Office of the Auditor General – Audit of the Investing in Canada Plan

Issue / Question

On March 25, 2021, the Auditor General of Canada released a performance audit of the Investing in Canada Plan (the Plan).

Suggested Response

  • In response to the Auditor General's report, Infrastructure Canada worked with its delivery partners to strengthen reporting on the Plan's investments and outcomes.
  • Infrastructure Canada has integrated legacy programs into our reporting framework and has updated the Plan's performance indicators, which will increase transparency and consistency of reporting progress to Canadians on the Plan's objectives.
  • A streamlined public reporting protocol and automation procedures have cut quarterly data update timelines by half, ensuring more up-to-date information is available to Canadians and providing an accounting of the full Plan.

Background

  • The Auditor General's (AG) audit of the Investing in Canada Plan was undertaken in response to a motion adopted by the House of Commons on January 29, 2020:

    Motion of Mr. Berthold (Mégantic—L'Érable), seconded by Mr. Lehoux (Beauce):

    That, given the Parliamentary Budget Officer posted on March 15, 2018, that "Budget 2018 provides an incomplete account of the changes to the government's $186.7 billion infrastructure spending plan" and that the "PBO requested the new plan but it does not exist", the House call on the Auditor General of Canada to immediately conduct an audit of the government's "Investing in Canada Plan", including, but not be limited to, verifying whether the plan lives up to its stated goals and promises; and that the Auditor General of Canada report his findings to the House no later than one year following the adoption of this motion.

  • During its audit, the Office of the Auditor General (OAG) collaborated with Canada Mortgage and Housing Corporation, Indigenous Services Canada and Infrastructure Canada, and selected a number of their respective programs under the Plan to analyze in detail. Together these three departments account for 83% of the Plan's funding commitment.
  • The final OAG report, which was published on March 25, 2021, includes two principal findings and one recommendation:
    • Finding 1: Infrastructure Canada was unable to report complete information on the Investing in Canada Plan.
    • Finding 2: Federal partner organizations did not spend infrastructure funds as quickly as planned.
    • Recommendation: To improve monitoring, tracking and reporting on progress towards the Investing in Canada Plan's objectives, Infrastructure Canada should work with its federal partners in the Plan and with central agencies to determine:
      • how to better measure progress of projects toward the objectives of the Plan;
      • which legacy programs are meant to contribute to the objectives of the Plan and how to report on them; and
      • what information the department needs from federal partners to provide complete and consistent public reporting on the Plan.
  • As part of the tabling of this audit, the AG released a message noting that it is challenging for lead departments to successfully deliver a horizontal initiative, such as the Plan, without clear authorities and power. The AG called for the government to consider how it manages horizontal initiatives, and to improve coordination between federal departments.
  • The Government accepted the AG's recommendation and Infrastructure Canada implemented a Management Action Plan together with departmental partners and central agencies that:
    • Reviewed and updated the outcome statements and performance indicators to better demonstrate progress towards the Plan's objectives. The Departmental Plan Supplementary Information Tables - Horizontal initiatives table for fiscal year 2022-23 reflects these improvements and was published on May 6, 2022.  
    • Integrated legacy programs into the Plan's reporting framework. The Departmental Plan Supplementary Information Tables - Horizontal initiatives table for fiscal year 2022-23 reflects these improvements and demonstrates the contributions of legacy programs towards the objectives and outcomes of the Plan.
    • Implemented a new online reporting protocol to provide complete and consistent information on the Plan's implementation. The Implementation Progress and Funding Update table: 
      • Provides an accounting of the full Plan. 
      • Provides consistent, comprehensive and easy-to-understand information on the Plan. 
      • Provides additional details on legacy programs, increasing transparency. 
      • Project-specific reporting will be provided by departments, consistent with their roles, responsibilities and accountabilities. 
    • Infrastructure Canada has implemented automation procedures to streamline data cleansing, and data quality and assurance processes, enabling data to be updated more quickly. 
  • Pursuant to its mandate, the Standing Committee on Public Accounts (PACP) studied the AG's report. In response, the Committee released a report entitled Report 9, Investing in Canada Plan, of the 2021 Reports of the Auditor General of Canada on June 17, 2021, with two recommendations and a request for a response from the government. The requirement for a government response died upon the dissolution of Parliament in August 2021. However, on February 3, 2022, the PACP Committee re-adopted its report, which was presented to the House of Commons on February 8, 2022.
    • Committee Recommendation 1: That, by 31 January 2022, Infrastructure Canada should provide the House of Commons Standing Committee on Public Accounts with a report outlining its progress on A) the improved assessment and reporting of progress toward the outcomes and objectives of the plan, incorporating data demonstrating the impact of these investments as it becomes available; and B) clarifying and improving reporting on the contributions of legacy programs toward the plan's objectives. 
    • Committee Recommendation 2: That, by January 31, 2022, Infrastructure Canada should provide the Committee with a report outlining its progress on engaging with its delivery partners on data automation for public progress reporting. 
  • A Government Response to the PACP Committee's report was tabled on June 7, 2022.