Question Period Note: Construction of the Lac-Mégantic rail bypass

Public Services and Procurement Canada is collaborating and communicating regularly with Transport Canada in order to move quickly on this file while ensuring a fair acquisition process for property owners. The Government of Canada acquired 124 parcels of land from 44 owners for the construction of the Lac-Mégantic railway bypass. These parcels were owned by the municipality of Lac-Mégantic as well as private owners located in Lac-Mégantic, Frontenac and Nantes.

• In consultation with the Minister of Transport at the time and after considering the report from hearing officer Julie Banville, my predecessor approved, on June 6, 2023, the expropriation of the parcels of land needed for the project
  • The number of former owners who have accepted the Public Services and Procurement Canada’s compensation offer presented to them continues to grow. The Government of Canada is actively pursuing discussions with former owners and right holders affected by the expropriation process
  • Legal recourse against the Government of Canada regarding this expropriation is handled diligently in collaboration with Justice Canada

If pressed on property owners:

• Before launching the expropriation process, the Government of Canada entered into direct negotiations with all affected owners and extended the negotiation period on three occasions
• Property owners received offers of compensation for their expropriated property before August 1, 2023
• We granted temporary occupancy permits to accommodate some former owners, who had constraints concerning the August 1st physical possession date of their former property. Public Services and Procurement Canada is continuing discussions with them to identify solutions

Transport Canada mandated Public Services and Procurement Canada to acquire the required properties and manage the technical contracts related to the acquisition process. Accordingly, the department is responsible for surveying and appraising the properties, meeting with the owners to explain the acquisition process, negotiating with them when possible and implementing the expropriation process when negotiations are inconclusive.

• Physical possession of properties took place on August 1, 2023. Any issue raised by a former owner is discussed on a case-by-case basis
  • On October 24, 2023, a Federal Court hearing took place to consider an injunction request seeking to halt the expropriation process
  • On November 27, 2023, the request was dismissed by the Federal Court. Public Services and Procurement Canada and Transport Canada can continue to work in preparation for the construction of the railway. Discussions with the former owners are still on-going in respect to the compensation to which they are entitled
  • As of November 27, 2023, 27 of the 42 former owners who have been expropriated have accepted and signed their compensation offer. This number continues to evolve