More to be expected without major amendments to Bill C-69: C.D. Howe
CALGARY – A new report shows $100 billion in planned spending on resource projects in Canada has evaporated, and a further drop should be expected without substantial amendments to the Liberal government’s planned regulatory overhaul in Bill C-69.
As Senate hearings into the controversial bill continued Thursday, the C.D. Howe Institute released a report detailing how recent declines in planned energy, mining and forestry investment in Canada totalling $100 billion is equivalent to erasing 4.5 per cent from Canada’s gross domestic product.
TransCanada Corp.’s $15-billion Energy East pipeline, CNOOC Ltd.’s Aurora LNG and Petronas Bhd’s $36-billion Pacific NorthWest LNG project are among the major resource projects that have been cancelled in recent years after long and uncertain regulatory processes, contributing to the $100-billion figure.
The declines in planned investment in Canada’s resource sector have continued even as investments in competing jurisdictions have rebounded following a years-long decline in commodity prices, said C.D. Howe Institute associate director of research Grant Bishop, who co-authored the report.
“U.S. and global investment in oil and gas has rebounded while in Canada it has continued to plunge,” Bishop said, adding, “Global planned investment in mining has dropped but it has dropped further in Canada.”