‘Threat’ of Bill C-5 is making bill work as intended, Dawn Farrell says

OTTAWA — The head of the federal government’s major projects office says just the “threat” of Ottawa having Bill C-5 at its disposal is enough to spur government departments to move quickly on project permitting.

Dawn Farrell made the remarks last week at a joint parliamentary committee hearing, which is evaluating the government’s performance with Bill C-5 — formally titled the Building Canada Act.

Prime Minister Mark Carney’s government fast-tracked Bill C-5 through the House of Commons last year, with support from the Conservatives, which gave Ottawa the power to designate projects as in the “national interest” in order to skirt certain environmental laws to get those projects approved faster.

At the committee hearing on April 28, Bloc Québécois MP Patrick Bonin pressed Farrell on why Bill C-5 even exists — given that Ottawa has yet to use it — and what the government wouldn’t be able to accomplish without it.

“I can say that the threat of C-5 has everybody working together in, I think, the way C-5 was intended for sure,” Farrell said.

“When I look at the 15 projects that we’re working on today, plus the projects that are coming through the pipeline, we have been able to use this concurrent process with these projects — which was intended in C-5. What was intended in C-5 was a two-year program.”

So far the government hasn’t used C-5 power on any of the projects it has referred to the major projects office, drawing criticism from Conservatives who argue Carney could easily use it to approve a new pipeline, for example.

Asked on Thursday why the government hasn’t yet designated any projects being in the national interest, Carney told reporters it’s because the government respects the law.

“The designation requires consultations in advance of designation,” Carney said.

“We’re moving forward at speed, but we’re doing it in the right way. Consultation with Indigenous partners, with provinces, with all stakeholders.”

Despite supporting the legislation, the Conservatives have argued C-5 is a Band-Aid solution, and an admission on Ottawa’s part that the laws it looks to skirt shouldn’t be there in the first place.

“You’re zeroing in on specific projects as opposed to just removing barriers for a bunch of projects,” Newfoundland Conservative MP Carol Anstey said while questioning Intergovernmental Affairs Minister Dominic LeBlanc at the committee hearing. LeBlanc is also the minister responsible for Bill C-5.

“That would seem to have a more meaningful impact, especially if we’re going to grow the economy at speeds not ever seen.”

LeBlanc said the government is looking at regulatory legislative changes to address the concerns of federal laws getting in the way of rapid project approvals.

“The two-year timeline for designated projects should apply — it’s a maximum — to all projects. It shouldn’t only apply to those designated,” LeBlanc said, pointing to a small-craft harbour dredging project in his riding which he said is taking too long to permit.

“Good news is on its way. We are looking at a series of regulatory and potentially legislative changes, which I hope will answer your very real concern.”

Committee members also raised concerns about how the major projects office has been staffed.

The committee also heard from MPO officials about how many of its staff are on loan from the private sector, including banks, through the government’s interchange program. The long-standing program allows for private sector employees to temporarily bring their expertise to the public service.

Those companies are also topping up their employees’ salaries while they’re on loan to the major projects office, the committee heard.

“The risks of conflict of interest are immense,” said Sen. Claude Carignan, in French.

“Banks participate in financing. You have to act independently and impartially, you have a fiduciary role, you have to make decisions that are worth hundreds of billions of dollars. What went through your mind?”

While MPO staff would not disclose which companies those employees are on loan from, or how much they’re being paid, they assured committee members the employees on loan from the private sector are subject to the same conflict of interest safeguards as all federal employees.

“We have to adhere to all the legislative rules and all the guidelines that apply to any public service, including the Conflict of Interest Act, the values and ethics (guides),” said Louise Baird, the vice president of strategic policy and coordination at the major projects office.

“We adhere to all the Treasury Board guidelines when it comes to our staffing and our employment.”

Baird also said she wasn’t aware of any staff on loan from a private sector company, whose company was also financed or was involved with any projects before the MPO.

This report by The Canadian Press was first published May 7, 2026

Nick Murray, The Canadian Press