Delays plague ‘inconsistent and incomplete’ $188 billion infrastructure program: auditor general

infrastructure ยฉCan Stock Photo/Prill
ยฉCan Stock Photo/Prill

The federal governmentโ€™s $188-billion infrastructure spending plan continues to lag behind schedule, without adequate public reporting on the massive program, Canadaโ€™s auditor general said March 25.

Auditor General Karen Hogan on Thursday released a report on progress of the Investing in Canada Plan, concluding โ€œfunds were not being spent as quickly as planned,โ€ and โ€œobjectives might not be metโ€ over the 12-year program.

As much as one-fifth of planned spending in the first three years of the IICP, about $9 billion, was delayed, according to the report. In 2019-20, about $3 billion was to later years and 11 government departments failed to spend any money in 2016-17, the report said.

AG Karen Hogan
AG Karen Hogan

The auditor general also found โ€œincomplete and inconsistentโ€ reporting by federal departments, so Infrastructure Canada was โ€œunable to provide meaningful public reporting on the planโ€™s overall progress toward its expected results.โ€

The findings agree with previous reports by the Parliamentary Budget Officer and others, who said the program has failed to meet initial spending targets.

Prime Minister Justin Trudeau first announced plans to increase the infrastructure program during his 2015 election campaign, saying a Liberal government would spend billions on public transit, telecoms, ports, water treatment plants and other critical infrastructure to invigorate Canadaโ€™s economy.

Phase 1 includes $14.4 billion over five years, primarily for stimulus in 2017 and 2018. Another $81.2 billion in Phase 2 spending targets the environment, modernizing the economy, and a more โ€œinclusive societyโ€.

The auditor general report warns that due to delays, โ€œthere is a risk that these objectives might not be met and Canadians might not benefit fully from the investmentโ€ laid out in the IICP.

โ€œWithout ongoing monitoring of these delays and their effects, federal partner organizations might have to spend some of the planned amount after the last year of the plan, compromising some of the results expected byย 2027โ€“28,โ€ the report said.

Inconsistent reporting was also identified, sometimes failing to include targets for spending alongside the actual pace of spending, making it difficult to determine whether departments are meeting their goals.

โ€œWe found that Infrastructure Canadaโ€™s reporting provided only a partial picture of progress toward the Investing in Canada Planโ€™s objectives and expected results,โ€ the report said.

โ€œWith no publicly available interim targets or tracking to measure progress, Infrastructure Canada will not be able to demonstrate whether the program is on track to meet its expected results and objectives before 2028,โ€ the report said.

The report also stated the government did not incorporate the United Nationsโ€™ Sustainable Development Goals into the IICP, โ€œeven though it could play a significant role in helping the government achieveโ€ its emission reductions targets.

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