Canada’s business community is welcoming the federal government’s latest attempt to accelerate major projects, arguing that the proposed legislation addresses long-standing obstacles that have weighed on the country’s competitiveness.
Bill C-39, introduced in the House of Commons on Monday, would overhaul several aspects of the federal approval process. Among its key measures, the legislation proposes shorter review timelines, the creation of zones designated as being of “national interest” and amendments to the Canada Labour Code aimed at reducing the likelihood of disruptive work stoppages.
“This bill helps address the structural weaknesses that have held back Canadian competitiveness for years,” said Goldy Hyder, president and chief executive of the Business Council of Canada.
Under the proposed legislation, federal reviews would be subject to a one-year timeline. Similar assessments have historically taken five years or more.
Bryan Dethchou, senior director of natural resources, environment and sustainability at the Canadian Chamber of Commerce, said the change would represent significant legislative progress.
With the measure, the government is “breaking critical legislative ground,” Dethchou said.
The federal government took an earlier step toward accelerating infrastructure projects last year when Prime Minister Mark Carney’s government created the Calgary-based major projects office. The office was established to move forward infrastructure considered to be in the national interest, and 27 projects have so far been referred to it for streamlined review.
Dethchou said the chamber supported the creation of the office but remained concerned about the hundreds of other projects facing what he described as a “patchwork” of assessment systems.
“A door is now opening to all of these important projects, by providing industry with a clear, measurable timeline that will guide the assessment, review and approval process going forward,” he said.
“This, in turn, will assure a weary industry that the time to build is now, and there is a path to a decision that will lead to greater investment, jobs creation and, ultimately, strengthening our economic sovereignty.”
The proposed legislation has also drawn support from a coalition representing business groups in British Columbia, Alberta, Saskatchewan and Manitoba. The Western Business Coalition welcomed Bill C-39 alongside other recent federal measures, including an expanded tax deduction for business investments.
The coalition is nevertheless asking Ottawa to go further by reducing regulatory requirements and increasing allocations under the Provincial Nominee Program while staying within existing immigration levels.
“We applaud the prime minister and his government for this progress and urge Parliament to move quickly so businesses have the certainty to invest, build and grow in Canada even during this time of strained trade relationships and unstable geopolitics,” said Adam Legge, president of the Business Council of Alberta.
Laura Jones, president and CEO of the Business Council of British Columbia, said Canada is responding to the demands of the current moment.
“But we need to keep pushing forward. Western Canada has an enormous role to play in turning that ambition into reality by helping Canada become a global energy and natural resources superpower and strengthening our reputation as a reliable partner for the world.”
Jordan Eizenga, a partner on Deloitte Canada’s infrastructure team, described the bill as “massive” and “ambitious.” He said it reflects many of the concerns Deloitte has been hearing from clients interested in investing in Canada.
“They’ve clearly heard a lot from industry that these are big impediments,” Eizenga said of the federal government.
“And we’re at a moment where we need to pull every lever we’ve got to get our economy going.”
Another central proposal would allow Ottawa to establish “regions of national interest” where certain projects could receive pre-approval, provided they meet specified conditions and mitigation measures.
Eizenga said that approach could make sense in areas where several projects are expected to be developed within the same geographic region.
“We don’t need to make people jump through the same hoops as if we’re going into a blank slate of untouched topography,” he said.
Nicole Wang, infrastructure advisory leader at EY Canada, said the proposed legislation sends a “strong signal” that Canada is open for business. At the same time, she stressed that implementation will determine whether the measures deliver meaningful results.
“It’s important that we can show progress so that this isn’t just another announcement,” she said.
“It’s a piece of the puzzle.”
Wang also noted that investors may continue to have concerns about whether efforts to accelerate projects could ultimately “backfire.” Environmental, labour and Indigenous groups have already raised objections to the proposed legislation.
For investors considering projects designed to operate over decades, Wang said the federal government will need to demonstrate that its decisions can withstand court challenges and remain viable through changes in political leadership.
“Investing is something that is going to serve many decades, many generations,” she said.
“It’s front of mind for investors when they think about the environment to invest in.”
