In a bid to cut the approval timeline for Canada’s upcoming high-speed rail network by half, the Liberal government is simplifying the land expropriation process, which some argue may jeopardize property rights and lead to costly errors. The Budget 2025 Implementation Act, which implements budget proposals, includes amendments to the Expropriation Act and other legislation to facilitate the federal government’s acquisition of land for the new railway.
According to Shane Rayman, a Toronto lawyer specializing in expropriation law, the removal of certain safeguards in the interest of expediency could impact both landowners and the government by exposing them to potential mistakes in a complex process. Transport Canada stated that adjustments to the expropriation process were necessary due to the strict geometric requirements of high-speed rail, limiting the available land for the project.
The proposed high-speed rail line from Quebec City to Toronto, championed by Prime Minister Mark Carney for construction commencement within four years, will include stops in Trois-Rivières, Laval, Montreal, Ottawa, and Peterborough. Transport Canada assured that landowners subject to expropriation would still be treated fairly, receiving compensation based on established principles like market value.
However, the Montreal Economic Institute (MEI) raised concerns that the removal of safeguards could harm farmers and landowners. The MEI warned that critical property protections were being compromised, potentially endangering livelihoods.
Under the proposed changes, the requirement for a hearing when an objection is raised, as mandated by Section 10(1) of the Expropriation Act, would be eliminated. This alteration, currently under second reading in the House, allows the minister to make a decision on objections without a hearing. Rayman emphasized the value of hearings in facilitating a re-examination of purchase decisions, which could lead to planning adjustments and prevent errors.
The amendments also empower the federal government to impose a “prohibition on work” on properties that may be required for the railway, limiting landowners’ ability to carry out improvements for up to four years. Additionally, a “right of first refusal” notice can be filed on land, impacting the owner’s ability to sell the property without government approval. Rayman cautioned that such restrictions could hinder property transactions and development.
The legislative changes aim to expedite the process of acquiring land for the high-speed rail project, but critics argue that safeguards are essential to protect landowners’ rights and ensure fair compensation. Despite these concerns, Via Rail’s subsidiary, Alto, plans to conduct public consultations on the proposed route this winter, with further rounds of consultations scheduled in the coming months to address environmental impacts and community feedback.