
The federal authorities has created a subsidiary of VIA Rial and appointed Robert Prichard, present chair of Torys LLP and a director of Onex Company, as the primary chair of the subsidiary’s board of administrators.J.P. MOCZULSKI/The Globe and Mail
The federal authorities is creating an arm’s-length subsidiary of VIA Rail to work with personal companions on a deliberate high-frequency rail megaproject that will construct and function devoted passenger traces between Quebec Metropolis and Toronto.
Robert Prichard, present chair of Torys LLP and a director of Onex Company, would be the first chair of the subsidiary’s new board of administrators. Two different board members had been additionally introduced Thursday: Marie-José Nadeau, a director of a number of different corporations, will probably be vice-chair. Former federal deputy minister Rob Fonberg is the third board member.
Mr. Prichard has been described because the “poster boy for company Canada” provided that he sits on a lot of boards. He was talked about within the 2019 federal ethics commissioner’s report into the federal government’s controversial dealing with of the SNC-Lavalin affair, however was not accused of wrongdoing.
The commissioner’s report concluded that Prime Minister Justin Trudeau had breached ethics legal guidelines by placing strain on then-attorney-general Jody Wilson-Raybould to overrule the director of public prosecution’s choice to not invite SNC-Lavalin to enter a deferred prosecution settlement in relation to prison fees the corporate was dealing with.
The report mentioned Mr. Prichard, whereas performing as authorized counsel for SNC-Lavalin, spoke with a number of senior officers, together with then-Treasury Board president Scott Brison and senior political aides within the Prime Minister’s Workplace, in regards to the firm’s need for a deferred prosecution.
Mr. Prichard mentioned in an e-mail Thursday that he’s serving on the brand new board in his private capability. “As a director, I can’t and won’t present authorized recommendation to any celebration coping with HFR,” he mentioned.
Transport Minister Omar Alghabra introduced the board appointments Thursday, calling it a “key milestone” within the undertaking’s growth.
Excessive-frequency rail has been studied by the Liberal authorities for years. It has acquired interim funding to proceed the planning phases, however Ottawa has not made a remaining choice to approve development. The tempo of planning exercise has picked up in current months. On Oct. 31, the federal government introduced the outcomes of its expressions of curiosity course of, saying greater than 50 trade members made submissions.
The following stage is a two-month request for {qualifications} beginning in January, 2023, adopted by a request for proposals in late spring that’s scheduled to final 9 months. A “co-development” part would observe, estimated at 3½ years. Close to the top of that part, the federal authorities would make a remaining funding choice and development would start.
The federal government has not supplied a current price estimate for the undertaking. Mr. Alghabra advised reporters final 12 months that it may price between $6-billion and $12-billion. The minister has mentioned the devoted line from Quebec Metropolis to Toronto might be adopted by a second part that continues to Windsor.
In a November presentation to the Canadian Council for Public-Non-public Partnerships, the undertaking is described by the federal government as a devoted rail line that will be greater than 1,000 kilometres in size, principally electrified and would ultimately goal working speeds of as much as 200 kilometres an hour.
Whereas these speeds are slower than totally high-speed trains, proponents of the undertaking say the road would significantly enhance intercity journey instances as a result of passenger trains would now not be delayed by sharing rail traces with freight.
The creation of an arm’s size entity to supervise the undertaking had been signalled in earlier planning paperwork. The federal government is in search of a consortium of personal companions to construct and function the brand new passenger rail service.
Federal planning paperwork suggest a deal construction wherein the Canadian authorities would supply “draw back safety” within the occasion that revenues are considerably decrease than forecast. The deal would additionally embody upside income to “be certain that Canadians profit financially from a excessive degree of undertaking success.” The paperwork reference the necessity for a “transition technique” associated to VIA’s present work pressure, which the federal government says could be finished “in session with unions and respect collective bargaining.”
That plan is strongly opposed by Unifor, the union representing VIA Rail staff, as successfully privatizing the prevailing publicly owned rail firm.
Unifor nationwide president Lana Payne mentioned there is no such thing as a motive why the undertaking can’t stay inside VIA’s present construction.
“Right now’s announcement is regarding, as we imagine it continues the method of privatizing Canada’s nationwide passenger rail service,” she mentioned in an announcement. “Like many Canadians, we imagine that VIA Rail should stay a public entity.”
Ms. Payne mentioned the Windsor-Quebec Metropolis hall accounts for practically 75 per cent of VIA’s income and 90 per cent of your entire system’s passengers.
“As soon as hall service turns into separated, it would depart VIA Rail with only a few routes in Western and Atlantic Canada,” she mentioned. “The shortage of revenues will solely additional deteriorate service ranges in the remainder of Canada and jeopardize VIA’s future.”
Editor’s notice: A earlier model of this text attributed Unifor nationwide president Lana Payne’s remarks to spokesperson Hamid Osman. This model has been up to date.