Overview
The federal government has tabled draft legislation intended to shorten the time taken to approve large-scale natural resource and infrastructure projects and to revise the rules that permit the labour minister to end critical work stoppages. The proposed changes seek to address lengthy permitting processes and to limit immediate ministerial intervention in major labour disputes.
One-year federal review target
The centerpiece of the bill is a one-year timeframe for federal reviews and final decisions on major projects. Rather than conducting sequential federal permit processes and reviews, the legislation would require overlapping, concurrent federal permitting and assessment activities to accelerate outcomes.
Federal Natural Resources Minister Tim Hodgson said this approach is meant to send a clear message to government agencies that they must raise their level of performance. He stated the civil service will be held accountable to the new one-year standard and said the change is intended to improve the speed and quality of environmental work conducted by federal departments.
The government cautioned that meeting the one-year deadline will not rely solely on the regulatory framework. Project proponents must supply data and required project information in a timely fashion for the target to be realistic. The bill also preserves the legal right of Indigenous groups to be consulted and accommodated for projects on their territories, but Hodgson emphasized those consultations should be completed in a more prompt and effective manner.
Prime Minister Mark Carney has argued that the country must reduce growth obstacles by simplifying a complex federal approval process for infrastructure projects. The government highlighted that protracted permitting timelines have contributed to some energy and resource projects taking a decade or longer to progress from proposal to completion.
The ruling Liberals hold a majority in the elected House of Commons, which creates a pathway for the legislation to become law, although opposition parties could seek amendments and extend debate during the legislative process.
Changes to labour code intervention
Alongside permitting reforms, the draft law would alter an article of the Labour Code that allows the jobs minister to quickly end strikes and lockouts in order to "maintain or secure industrial peace." The provision has previously been used by Ottawa to resolve stoppages in sectors deemed critical, including railways, ports, airlines and postal services, actions that have provoked strong reactions from labour unions.
Under the proposed rules for major disputes, a special mediator would be required to work with the disputing parties for 21 days before ministerial intervention could occur. The minister would need to receive a report from that mediator and an assessment from the federal employment ministry regarding the damage a stoppage might cause before ordering an end to a strike or lockout.
Context and next steps
The government frames the package as an effort to remove bottlenecks that delay infrastructure and resource projects and to recalibrate how the state responds to labour stoppages in sectors critical to the economy. The legislation signals an expectation of greater efficiency across federal departments and an expectation that project sponsors participate actively in timely regulatory processes.
Key points
- Federal reviews and decisions on major projects would be targeted to conclude within one year, using concurrent permit and review processes.
- The bill tightens conditions for ministerial intervention in major labour disputes by requiring a 21-day mediation period and formal reports before the jobs minister may act.
- Sectors most directly affected include energy and natural resources, as well as transportation-related industries such as rail, ports, airlines and postal services.
Risks and uncertainties
- The one-year timeline depends in part on project proponents providing timely and complete information, which could limit the government’s ability to meet the target.
- Opposition parties may seek amendments and prolong debate in the House of Commons, potentially delaying enactment and creating uncertainty for project proponents and sectors planning investments.
- Requiring a 21-day mediation process before ministerial intervention could extend the duration of some disputes, affecting operations in transportation and other critical services.