November 19, 2008

Canadian construction, engineering companies join push for more federal infrastructure spending

VINCE VERSACE

staff writer

Construction and engineering representatives can be counted among those joining the chorus of calls from Canadian premiers for accelerated federal infrastructure spending.

This week Canadian premiers met with Prime Minister Stephen Harper at a first minister’s meeting designed to explore economic stimulus options for the nation in light of a darkening economic outlook.

The first ministers agreed that with the economy slumping, the federal government should speed up spending on infrastructure projects already approved in principle.

The Canadian Construction Association (CCA) has stated before that continued infrastructure investment to promote economic activity is important as Canada moves forward into uncertain economic times.

In fact, accelerating some infrastructure funding was a call the CCA had made once the Tories were re-elected this past October.

“We are supportive and in fact met with Minister (John) Baird, who also expressed his desire to see funds flow more quickly under current federal infrastructure programs,” said CCA president Michael Atkinson.

A recent study conducted by Informetrica Ltd. and released by the Federation of Canadian Municipalities (FCM) strengthens beliefs that infrastructure spending is one of the best “recession-busting” tools available to governments, said Jeff Morrison, president of the Association of Canadian Engineering Companies (ACEC) in a statement.

“Infrastructure spending will not only provide an economic boost and create jobs, but enhanced infrastructure is key to improving quality of life, protecting public safety, increasing economic competitiveness, and reducing our environmental footprint,” he explained.

Quebec Premier Jean Charest said there is no excuse for further delays in about $4 billion in spending that has already been approved.

And the premier said Prime Minister Harper would send a very powerful signal by committing to the construction of a high-speed train line along the Quebec City-Windsor, Ont. corridor.

British Columbia Premier Gordon Campbell said the first minister’s meeting is critical in addressing the impact of the global economic slump on Canada, and in bolstering public confidence that governments have the situation in hand.

“Let’s have an action plan. Let’s commit to those actions and let’s give Canadians a sense of confidence about what we can do together,” he said.

The Informetrica Ltd. study found that $1 billion dollars spent upgrading roads, bridges and water mains would produce more jobs and a greater economic stimulus than a combined $2-billion tax reduction.

FCM stated that in the nearly two years since the Building Canada Fund was created, the federal government has signed individual funding agreements with each province and territory, but few projects have started.

“With quick, co-ordinated action, we can get these dollars into community construction projects next year, creating jobs and cushioning Canadians from the recession while keeping deficits to a minimum,” said Jean Perrault, Mayor of Sherbrooke and FCM president.

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