Infrastructure spending is ‘helping’ economy, minister says

The federal government defended Thursday the pace of its infrastructure spending, noting that it had launched 28,000 projects valued at $11.8 billion under its 2016 plans, amid criticism the $187-billion spending program remains hobbled by delays as it enters its third year.

Under its 2017 plans, which includes $81.2 billion in planned spending, only 11 of 24 programs have been launched.

The result is an improvement from a report by the federal government’s budgetary watchdog last month, which found that just $7.2 billion of planned spending in 2016 had been designated toward specific projects, and called on Ottawa to disclose more details around its plan to spend $186.7 billion on infrastructure over the next 12 years, about $92 billion of which was designated under the previous Harper government.

The PBO has levelled sharp criticism against the government in recent months for failing to report detailed information on the program, which has been marred by delays since the outset. The program is one of the centrepieces of the Trudeau Liberals’ plan to take on steep deficits in a bid to spur economic growth.

Infrastructure Minister Amarjeet Sohi said infrastructure spending was “definitely helping” to grow the broader economy, despite widespread delays that led the government to extend the end dates for some projects. In its latest budget, the federal government pushed back billions in spending to future years as investment dollars failed to get out the door. “I’d say that we’re delivering as we thought we would,” he told reporters in Ottawa.

Analysts think the government is unlikely to meet its spending goals, with many predicting investments will be extended beyond the 12-year timeline. The massive infrastructure spending program under the Harper government met similar pitfalls.

Brian DePratto, chief economist at TD Bank in Toronto, commended the government for releasing more details around the infrastructure program, which included the ticket prices of major projects and whether those projects have begun construction. But he said details are still lacking for when projects were expected to be done and their status.