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Construction and engineering stakeholders say they generally support a package of major new federal initiatives announced in the Mark Carney government’s Spring Economic Update, including the �鶹��ýӳ�� Strong Fund, the Team �鶹��ýӳ�� Strong skilled trades program, new funding for housing and the Defence Investment Agency.

But they’re hesitant at this early stage to offer unqualified endorsement of the signature �鶹��ýӳ�� Strong Fund, noting the practical impact of the $25-million sovereign wealth fund for major projects will depend on project selection, how it integrates with existing federal financing tools and whether it’s backed by efficient approvals.

“We need bold action in this country,” said John Gamble, the president and CEO of the Association of Consulting Engineering Companies – �鶹��ýӳ�� (ACEC).

The �鶹��ýӳ�� Strong Fund is linked with the federal Major Projects Office, which now boasts a roster of 21 nation-building projects representing over $125 billion in proposed new investment.

Gamble said the launch of the fund sends “a clear message” �鶹��ýӳ�� wishes to become a friendly jurisdiction for major private-sector project investments.

“If this thing works, what you’ll have is a renewable source of seed money to attract investment, both domestically and from overseas, and it’s a strong signal that �鶹��ýӳ�� welcomes investment in resource projects, major transportation projects, all the kinds of things that we want to unlock as a country,” Gamble said.

Devil’s in details

“The devil is in the details,” said Ken Lancastle, CEO of the Mechanical Contractors Association of �鶹��ýӳ�� (MCAC), of the �鶹��ýӳ�� Strong Fund. “We need to have a better understanding of the implications and how that implementation works.

“But certainly, as we’re exploring new ways to build, any innovation that can help those projects move along faster and hit the ground in an effective way, I think, is welcomed by industry.”

Matti Siemiatycki, professor of infrastructure planning at the University of Toronto, suggested caution is advisable.

He asked, “Who’s going to pick the projects to make sure that they are of high economic value and not just purely politically motivated? What’s the governance structure to make sure it’s actually independent and that it then delivers the best results?”

The Economic Update was presented in Parliament by Finance Minister Francois-Philippe Champagne on April 28. The �鶹��ýӳ�� Strong Fund had been introduced by Prime Minister Mark Carney a day earlier.

The stakeholders wholeheartedly endorsed the new Team �鶹��ýӳ�� Strong plan, a $6-billion, five-year pledge to recruit and train 80,000 to 100,000 skilled trades workers.

Key components include paid entry-level job placements leading to apprenticeships and Red Seal certification, wage subsidies for employers, expanded apprenticeship and union/employer training capacity, weekly income supports and grants during training, and a $5,000 completion bonus.

“These are priorities we’ve been hearing consistently from employers and apprentices across the country, and actively advancing alongside our partners,” said France Daviault, CEO of the Canadian Apprenticeship Forum.

Ian Howcroft, CEO of Skills Ontario, added,“ These investments will help strengthen training capacity, reduce barriers for apprentices and inspire more young people to pursue these high-demand careers.”

“Today’s Spring Economic Update is a strong statement of support and respect for �鶹��ýӳ��’s skilled trades workers and the role we play in building our country,” said �鶹��ýӳ��’s Building Trades Unions chair Robert Kucheran.

Timely, welcome

The Progressive Contractors Association of �鶹��ýӳ�� (PCA) called the Team �鶹��ýӳ�� Strong package a “timely and welcome initiative” that represents the right approach to bolster nation-building.

“With �鶹��ýӳ��’s Major Projects Office underway to facilitate growth in infrastructure and capital projects, a commensurate focus must be on ensuring the skilled trades workforce is of the size, skill and productive capability to meet the challenge,” stated PCA CEO Paul de Jong.

The ACEC, MCAC and Canadian Construction Association (CCA) all suggested the next phase in the major projects file will require extensive consultation with the �鶹��ýӳ�� and engineering sector.

“We look forward to continuing to work with government to find solutions, innovate and build a stronger �鶹��ýӳ��, together,” stated a CCA release.

Lancastle commented, “The more engagement we can have as industry stakeholders with government, the better these efforts are going to be.”

The ACEC highlighted several tax measures that Gamble said will both offer incentives for project investment and lower business costs for consulting engineers.

Among them are implementation details for accelerated capital cost allowance rates for low-carbon LNG facilities, a promise to make the Employee Ownership Trust Tax Exemption permanent and a reduction in the base �鶹��ýӳ�� Pension Plan contribution rate from 9.9 per cent to 9.5 per cent effective Jan. 1, 2027.

“Government has recognized a few pain points, and particularly for small firms,” said Gamble.

The Canadian Home Builders’ Association (CHBA) focused on a suite of measures, some new and others previously announced, to promote homebuilding.

The update commits billions to boost housing supply by offering incentives to provinces to reduce taxes and development charges, while pushing for faster agreements to expand these measures nationwide.

There is also support for modular housing, and more than $7 billion in low-cost financing to help move rental projects forward sooner.

“There is quite a bit in this update that continues the path towards a more comprehensive suite of measures required to truly increase housing supply and improve affordability,” said CHBA CEO Kevin Lee.

Siemiatycki pointed out the federal government stated in the update that it’s “assessing opportunities to unlock the full value of airports in support of investments in �鶹��ýӳ��’s long-term growth, including through alternative models of ownership.”

This “asset recycling,” the professor said, would probably include harbours as well. But he noted the entities already operate at arm’s length and are free to pursue alternative ventures.

“What problem is this trying to solve?” Siemiatycki asked.