Update June 16: I am hearing ongoing concern about Bill C-5 from environmental and indigenous groups, and so have done another reading. Following are some reflections. In brief, combining the Free Trade and Labour Mobility Act and the Building Canada Act in one bill may be causing some confusion; it would be better to separate them. The Free Trade and Labour Mobility Act has good intentions, but is likely to have limited impact as most the barriers are not federal in nature. The Building Canada Act includes advancing the interests of indigenous peoples, clean energy and meeting Canada's climate change obligations on the list of 5 factors to consider in approving (or removing) National Interest Projects, and factors in consultation with indigenous peoples, provincial and territorial governments that may be adversely impacted by proposed National Interest Projects at the approval stage. My advice to friends in the indigenous and environmental activist communities is to focus on finding and supporting projects that will achieve clean growth and advance the interests of indigenous peoples, and projects proposals that don't.
The Bill enables 2 Acts, the Free Trade and Labour Mobility Act (henceforth Free Trade..), and the Building Canada Act. Critics have, correctly from my perspective, pointed out that this is confusing - I think this is part of the problem, readers are concerned about the Building Canada Act, thinking that sections from the Free Trade... portion apply. Separating the bills would reduce confusion.
The Bill is short (26 pages PDF download including titles etc.), clear, and would accomplish a great deal. This is a good thing.
The intention of the Free Trade and Labour Mobility Act is that if a good, service, or professional qualification meets the requirements of one province or territory, it is deemed to meet the requirements of any province or territory. However, the federal government can only waive duplicate federal requirements. Most barriers are actually provincial, territorial and/or reflect the regional nature of particular professional associations. For example, the College of Physicians and Surgeons of Ontario (CPSO) is responsible for registering physicians who wish to practice in Ontario. Ontario, like other provinces and territories, has been struggling with how to recognize internationally trained physicians - and only recently began to recognize U.S.-trained physicians. Some might consider it optimal if physicians recognized by a body like CPSO in one jurisdiction can practice anywhere in Canada. However, the Free Trade and Labour Mobility Act wouldn't accomplish this.
The 5 factors for consideration of potential national projects include one that focuses on advancing the interests of indigenous peoples and one that emphasizes clean growth and to meeting Canada's objectives with respect to climate change. Following is Section 6 from the Bill (at First Reading) (sections 1 and 4 refer to adding or removing a project from the list of National Interest Projects):
Factors
(6) In deciding whether to make an order under subsection (1) or (4)
in respect of a project, the Governor in Council may consider any
factor that the Governor in Council considers relevant, including the
extent to which the project can
(a) strengthen Canada’s autonomy, resilience and security;
(b) provide economic or other benefits to Canada;
(c) have a high likelihood of successful execution;
(d) advance the interests of Indigenous peoples; and
(e) contribute to clean growth and to meeting Canada’s objectives with respect to climate change.
Consultation with provincial, territorial and indigenous peoples that may be adversely affected is required before a potential National Interest Project is added to, or removed from, the list of approved projects. Here is the relevant section from Bill C-27 (first reading):
(7) Before recommending that an order be made under any of subsections (1), (3) and (4),
the Minister must consult with any other federal minister and any
provincial or territorial government that the Minister considers
appropriate and with Indigenous peoples whose rights recognized and
affirmed by section 35 of the Constitution Act, 1982 may be adversely affected by the carrying out of the project to which the order relates.
In summary, while extended discussion would be optimal for democratic purposes, the Building Canada Act provides for consultation with indigenous peoples, provinces and territories at the project approval stage, and highlights advancing the interests of indigenous peoples, clean growth and meeting climate change initiatives as key factors in deciding on which projects to support. My advice to indigenous peoples and environmental activists is to focus on finding and supporting projects that will meet these goals, and fighting specific proposals that won't.
My original post follows:
There seems to be some confusion between Canada's Bill C-5,
An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, currently in First Reading, and Ontario's recently passed, highly controversial Bill 5,
Protect Ontario by Unleashing our Economy Act, 2025. The purpose of this post is to highlight some major differences. In brief: the federal act flows from key campaign promises by Carney and the liberal government during a necessary election to address a dysfunctional federal government, while the Ontario act was a surprise by Ford and his government after an unnecessary early election. The framework (preamble) of the Building Canada Act portion of Bill C-5 includes a commitment to respect provincial, territorial, and indigenous governments, and commits to environmental protection. Ontario's Bill 5 has been widely criticized as a threat to democracy, granting the Minister a right to exempt "trusted proponents" from any provincial legislation or municipal or local bylaws. Mention of indigenous rights and knowledge (heavily criticized in the legislation process) are minimal, and environmental protection, particularly for species at risk, is lessened. A few specifics follow.From the Preamble to the Building Canada Act:
Whereas
the Government of Canada is committed to working in partnership with
provincial, territorial and Indigenous governments and Indigenous
peoples;
Whereas
the Government of Canada is committed to respecting the rights of
Indigenous peoples recognized and affirmed by section 35 of the Constitution Act, 1982 and the rights set out in the United Nations Declaration on the Rights of Indigenous Peoples;
Whereas the Government of Canada is committed to upholding rigorous standards with respect to environmental protection;
A search for the word "indigenous" in Ontario's Bill 5 retrieves a couple of sections acknowledging that indigenous people may have knowledge to contribute (for example, with respect to species at risk), however most sections with this word deal with what to do with artefacts seized during economic activity.
As for democratic process, here is the brief description in Ontario's Bill 5 of the creation of the Special Economic Zones Act, 2025. In brief, this act gives the Minister the ability to unilaterally exempt "trusted proponents or designated projects" from any provincial legislation, municipal or local board.
SPECIAL ECONOMIC ZONES ACT, 2025
The
Schedule enacts the Special Economic Zones Act, 2025.
The
Lieutenant Governor in Council is authorized to make regulations designating
special economic zones and the Minister is authorized to make regulations
designating trusted proponents and projects.
The
Lieutenant Governor in Council is authorized to make regulations exempting a
trusted proponent or designated project from requirements under an Act,
regulation or other instrument under an Act, including by-laws of a
municipality or local board, as those requirements would apply in a special
economic zone. The Lieutenant Governor in Council is also authorized to make
regulations modifying the application of provisions of an Act, regulation or
other instrument under an Act, including by-laws of a municipality or local
board, as those provisions would apply with respect to a trusted proponent or
designated project in a special economic zone.
Certain
causes of action are extinguished.
