Why is Doug Ford's government creating a bank to finance public projects?

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Ontario Premier Doug Ford, right, extends his hand to congratulate Peter Bethlenfalvy, Ontario's Minister of Finance after he delivers the 2023 Ontario Economic Outlook and Fiscal Review, at the Legislature in Toronto on Nov. 2, 2023.

Premier Doug Ford’s government is facing questions about why it wants to establish a bank to attract private-sector investment in such projects as long-term care homes, nuclear reactors and student housing.The government of Premier Doug Ford is putting $3 billion toward creating a new Ontario Infrastructure Bank.

"The current system seems to be working pretty well in Ontario, which leads us to the question of, what's the problem this is going to actually solve?" said Lewis in an interview. The government's capital plan envisions spending $185 billion over the next 10 years to build transit, highways, hospitals, schools, long-term care homes and other infrastructure projects.Ontario currently finances all these big construction projects by borrowing money.

The government is also providing the bank with $3 billion in start-up funding, straight from the public purse. CBC News asked Bethlenfalvy if establishing the bank opens the door to big investors profiting off public infrastructure projects. A chart in the Ford government's newly released 2023 Economic Outlook and Fiscal Review depicts other infrastructure banks around the world.

 

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