CANADA - The federal government wants to convince Canadian pension funds to invest in the country's infrastructure, in order to capture some of the billions being placed overseas.
He said: "There is nothing wrong with that but if they are investing because there are insufficient opportunities here, I would much rather have Canadian pension plans investing at home."
Flaherty said public-private partnerships, known as P3s, could triple the government's £33bn spending over the next seven years on infrastructure projects such as roads, bridges, water systems, public transit and international gateways.
He said it was in the process of setting up a federal office to facilitate P3s in Canada.
"Substantial investment is required in our country's infrastructure to achieve growth in our productivity and in our standard of living," he said at the conference.
"We know P3s can help provide infrastructure faster and at a lower cost in some cases. Pension fund managers want to invest in infrastructure projects in Canada.
"I was at a series of meetings with people in the pension sector last year who encouraged me, on behalf of government, to move forward with public-private partnership in Canada, particularly with our new federal office to help facilitate the creation of P3s in Canada."
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.