Business·Analysis

5 wild ideas for transformative federal spending: Don Pittis

Prime Minister Justin Trudeau promised the first wave of federal infrastructure spending would be "unsexy." Don Pittis abandons his usual caution and economy to offer some wild and pricey suggestions for the later, sexy round of spending.

Enough with the PM's 'unsexy' infrastructure projects — bring on the sexy ones

Prime Minister Justin Trudeau promised 'unsexy' for the first round of infrastructure projects like this crumbling Halifax sewer. (CBC)

Enough with "unsexy." That's what Prime Minister Justin Trudeau promised us for the first round of infrastructure spending.

We all know that handing out cash for roads, transit and sewers may be very worthy and so on, but we can't all be Justins. A lot of us get enough unsexy in our everyday lives. We say, bring on the sexy.

From listening to my daily fix of CBC Radio morning programing I know there are an infinite number of worthy causes needing money. But bold thinking and bold projects make money; they attract bright minds and new industries.

Besides, pouring cash into the outstretched hands of provinces and cities to spend on sewers will just allow them to transfer cash out of their sewer fund and blow it on their own fun projects such as bidding on the next round of regional or international games.

So abandoning cautious and economical thinking, let's skip the prosaic for a few minute and imagine blowing some real money on the sexy phase. Or at least offer few wild ideas to get the ball rolling.

1. Hydrogenville

As we have reported, electricity isn't the only up-and-coming fuel in town. Some of the world's biggest carmakers have poured big money into making hydrogen the alternative fuel of the future.
Battery cars are everywhere and several communities have volunteered to be test beds for robot cars. But with its Hydrogen Research Institute, Trois-Rivieres is perfectly placed to become Canada's Hydrogenville. (Hydrogen Research Institute UQTR)

Many towns have offered to host self-driving cars, and recharging stations are spreading. But experimenting with hydrogen requires an infrastructure leg up to co-ordinate and develop a critical mass of hydrogen outlets, and maybe subsidies for a few government vehicles.

The rest could be left to the private sector. Vancouver would be a worthy place to start because of its history in developing fuel cell tech. But the city is too big for a pilot project.

That's why I nominate Trois-Rivieres, with its Hydrogen Research Institute, as Canada's future Hydrogenville.

2. Edmonton-Calgary hyperloop

There are few countries that suffer as much as Canada from the penalty of distance. We have centres of large population, but they are far apart. Enter the hyperloop.
The feds could ante up for an experimental hyperloop between Edmonton and Calgary linking Alberta's two biggest cities while reducing fuel used in repeated flights back and forth. (Transpod)

Dreamed up by Tesla and SpaceX boss Elon Musk, hyperloop transport doesn't really exist yet. But spending the cash to build a hyperloop between Calgary and Edmonton, maybe ending at one of their airports, would be a great way to drive innovation.

Alberta is already full of people who understand the principles of sealed pipe. The 300 kilometres between the province's main cities is long enough to get up to speed but short enough for a tryout.

3. Robot experimental farm

Canadian farmers are in a bind. They can't afford to hire Canadian field workers at a living wage, but bringing in foreign workers is creating a backlash. The alternative? Create machinery to bring costs down and wages up.

The technology already invented is amazing, with machines learning to harvest everything from lettuce to grapes. Humans are still needed, though, for higher-value, less back-breaking jobs.

But creating or even adopting new technology is difficult for any individual farmer. By spending to establish experimental robot farms growing Canadian crops, the feds might be able to solve some serious problems while propelling Canadian innovation.

4. Automated food-preparation exhibition​

Another area where Canadian businesses insist they have a worker shortage is fast food. Using the competitive Great Exhibition model adopted in the 19th century, a little federal spending could go a long way, setting up and publicizing a venue for operators to show off some combination of robot and human service.
Automated restaurants like this one in China are springing up around the world. An government sponsored exhibition of mechanized food service could put Canada on the map.
Automated restaurants like this one in China are springing up around the world. A government-sponsored exhibition of mechanized food service could put Canada on the map. (Reuters)

Recent evidence shows the best combination is friendly human service and automation behind the scenes, but the venue would not just be a testing ground for food providers. It would also be a chance for customers to experience various levels of automated food preparation and delivery.  

5. The Prize Council

Giving out large prizes — more than $100,000 at a time, according to a 2009 study by the management consultant McKinsey — can be a highly effective way of creating innovation. Not only that, but well managed, high-value prizes actually bring money to the table. 
They won't be Nobel Prizes of the kind won by Dalhousie University alumnus Arthur McDonald in 2015, but prizes are an economical way to direct research into new areas, while creating a culture to celebrate breakthroughs. (Darren Calabrese/Canadian Press)

"Teams competing for the $10 million Ansari X Prize to develop spacecraft capable of entering space and returning safely twice within 10 days, for instance, spent more than $100 million in the pursuit," says the McKinsey study.

There are three important aspects of successful prizes. They must have very focused goals and be offered to a wide population of contestants, and the competitors must be willing to accept some costs. 

Thus The Prize Council to make the conditions, select the prizes, judge the winners and hand out the cash.

Of course, the winning projects will all have to be sexy.

Follow Don on Twitter @don_pittis

​More analysis by Don Pittis​

ABOUT THE AUTHOR

Don Pittis

Business columnist

Based in Toronto, Don Pittis is a business columnist and senior producer for CBC News. Previously, he was a forest firefighter, and a ranger in Canada's High Arctic islands. After moving into journalism, he was principal business reporter for Radio Television Hong Kong before the handover to China. He has produced and reported for the CBC in Saskatchewan and Toronto and the BBC in London.