The Oct. 19 victory by the Liberal Party in Canadian national elections could be a boost for infrastructure investments as well as a boon for a potential supplement to the country's national pension plan.
The win that ushered in Justin Trudeau as the country's new prime minister also created a clear Liberal majority in the Canadian Parliament. That will help advance the party's agenda that includes C$10 billion ($7.74 billion) annually for infrastructure work in the country and a willingness to discuss supplementing the C$268.8 billion Canada Pension Plan, Ottawa — the latter an issue that was opposed by the outgoing Conservative government under Stephen Harper.
“There's lots to talk about,” Kathleen Wynne, Ontario premier and Liberal Party member, said the day following the election, citing infrastructure and retirement issues, as well as a December climate change conference in Paris.
Infrastructure will provide a “big opportunity” for pension fund investment under a Liberal government, said Scott McEvoy, partner, securities and capital markets group, at the law firm of Borden Ladner Gervais LLP, Toronto. The Liberal Party “pledged C$10 billion a year in infrastructure funding whether there's a deficit or not. That, I think, marked a big changing point in the election. That resonated in cities where infrastructure is falling apart. Roads and bridges in places like Toronto and Montreal are falling apart.
“The philosophical debate during the election centered around a move to discredit lowering the deficit and cutting spending, which ended up feeding a change among Canadians that the government needs to pump money back into the system and fix the infrastructure that badly needs it.”