Provinces, prime minister at odds over COVID-19 infrastructure plans
OTTAWA — The Liberal government is increasingly at odds with some provinces over its sprawling infrastructure program, with provincial officials saying that a focus on “green” or other specific project types could limit Ottawa’s ability to build projects following the COVID-19 pandemic.
Concerns among some provinces comes as federal Infrastructure Minister Catherine McKenna readies roughly $3 billion in COVID19 infrastructure spending, aimed at pubic health efforts like encouraging outdoor activities or providing sanitation in facilities. Provinces are broadly supportive of the funding, but say the program remains overly rigid, amounting to what one provincial official called a “public relations campaign” by the Trudeau government to prioritize the sort of projects that fit with its wider political message.
Recent differences over the infrastructure program are an intensification of what has been a years-long disagreement between the feds and some provinces over the structuring of Ottawa’s $187-billion spending plans.
Provinces say they would prefer funding for basic projects like roads or waste water treatment centres, for example, while the federal program forces them to apply through specific project streams like public transit, which they say could hamper their ability to build necessary projects following the crisis.
It’s frustrating because the province does not necessarily share the same the priorities as the federal government
The National Post reached out to 11 provincial and territorial infrastructure offices about the federal program, and spoke directly with five officials, who were granted anonymity due to their ongoing discussions with Ottawa. Four provincial and territorial offices responded with written comments about the program.
“The streams have been very prescriptive in what we can do with them,” said one provincial official. “It’s frustrating because the province does not necessarily share the same the priorities as the federal government, especially when it is very ideologically driven like this one.”
Another lamented that Ottawa is considering a short, 18-month window for the COVID-19 infrastructure stream, saying it would provide a “ridiculously short timeline” to complete projects.
Smaller rural communities, the person said, might have little need for public transit funding, but have a major demand for new roadways and sewer systems — a need that is not always recognized under the current program structure.
A third official said funding for COVID-19 infrastructure amounts to a repackaging of existing funds, and does not provide new funding that would help stimulate the economies of cash-strapped provinces.
“They’re just moving pieces around on a chessboard,” the person said.
Ottawa is considering pitching in 80 per cent of the cost of projects for the pandemic response, up from an earlier portion of around 30 per cent. Final details of the COVID-19 package have yet to be released.