Transport, Infrastructure and Communities

Here is a plain prose summary of the committee meeting.

The House of Commons Standing Committee on Transport, Infrastructure and Communities met to study the Canada Infrastructure Bank’s financing of new vessels for BC Ferries. Appearing were the Honourable Chrystia Freeland, Minister of Transport and Internal Trade; the Honourable Gregor Robertson, Minister of Housing and Infrastructure; Nicolas Jimenez, President and CEO of BC Ferries; and Ehren Cory, CEO of the Canada Infrastructure Bank.

Minister Freeland stated she was deeply disappointed by BC Ferries’ procurement decision and that she had sent 71 letters to agencies under her authority instructing them to prioritize Canadian content, particularly steel, aluminum and lumber. She announced she would convene a meeting with provinces, territories, ferry operators, shipyards, labour and the steel and aluminum industry to address ferry procurement challenges. She did not call for the cancellation of the CIB loan, stating she would stay in her lane as Transport Minister and focus on areas under her control.

Minister Robertson explained that the CIB operates at arm’s length from government and that its board, not the minister, makes investment decisions. He said he learned of the CIB loan on June 11 and spoke with the CIB CEO the next morning to understand the details, but confirmed there was no discussion about cancelling the loan. He stated he had not seen the specific terms of the agreement and that the procurement decision was made solely by BC Ferries, not the federal government.

Nicolas Jimenez testified that BC Ferries conducted an open, competitive global procurement process and that no Canadian shipyards submitted a bid, largely because they were at capacity with federal shipbuilding contracts. He said the chosen Chinese proposal offered the best value, and that going with another foreign bid would have cost up to $1.2 billion more, while financing privately would have added up to $650 million in interest. He argued the loan is to BC Ferries, not China, and will be repaid with interest, and that the aging fleet requires urgent replacement to avoid service disruptions.

Ehren Cory stated the CIB’s loan is designed to benefit Canadian ferry users by keeping fares affordable and accelerating the transition to cleaner vessels. He confirmed the CIB had no role in BC Ferries’ procurement decision and that the loan agreement was signed in March 2025, before the new government was in place. He said the CIB has not received any directive from the government regarding Canadian content requirements for its investments, and that the bank’s role is to make loans that get infrastructure built, not to dictate supply chains.

Following the testimony, the committee debated a Conservative motion to order the production of documents from BC Ferries, the CIB, and several federal departments and ministers’ offices. The Liberals proposed an amendment to remove the federal departments and ministers’ offices from the production order. After debate, the committee voted on the amendment, which was defeated, and then voted on the main motion, which was adopted.