Infrastructure agreement unlocks $896M for Sask.
It takes only $896 million to turn political adversaries into “new best friends.”
That’s how the Liberal federal infrastructure minister, Francois philippe Champagne, referred to Sask. Party provincial ministers Warren Kaeding and Gord Wyant on Wednesday.
The three were all smiles and compliments as they signed a massive infrastructure deal that will pump nearly a billion dollars of federal money into infrastructure projects across Saskatchewan.
The money will be spent over the next decade.
Kaeding said he expects to see applications from municipalities by spring, with successful bids announced shortly after.
“We want to make sure that we don’t lose the construction season so that we can get these projects moving forward for the benefit of the people of this province,” said Wyant, who is the minister responsible for Saskbuilds.
Saskatchewan is the last province to sign a bilateral agreement unlocking funding through the $180-billion Investing in Canada plan. Wyant said he’s been holding out for more “flexibility.” He said the new deal goes a long way in that direction.
“Today’s agreement supports Saskatchewan’s ability to ensure funding is directed where it’s needed the most,” he said.
An earlier proposal reserved most of the money for public transit and green infrastructure, which together would eat up about 80 per cent of the pie. Those separate funding streams will remain in place, with $307 million for transit and $416 million for green infrastructure.
But Wyant suggested there are now more opportunities to redirect the money, including through a greater emphasis on rural, remote and northern communities.
“These dollars are going to be used to support projects that are going to improve health and safety in our communities, support economic growth and sustainability, protect our environment and build a higher quality of life for the people right here in Saskatchewan,” said Wyant.
He said the funding will support northern and rural airports, municipal and regional infrastructure and cultural and recreational facilities.
A Saskbuilds spokeswoman later confirmed that the province will be pursuing “additional flexibility now that we have an agreement in place.”
Federal Public Safety Minister and Regina-wascana MP Ralph Goodale said it will become easier to move money among the funding streams after the first three years of the deal.
He said the huge sum of money involved will make it easier to meet everyone’s expectations.
“We’ve got the opportunity to, I think, succeed on all fronts without anyone feeling that they have at the end of the day been shortchanged,” he said.
He called the deal “a quantum leap forward.”
“It’s a whole order of magnitude larger than we’ve ever talked about before,” he said, adding that the broader approach will allow the agreement “to accommodate the vast majority of ideas that come forward.”
But the increased flexibility will likely mean a move away from green infrastructure and public transit, Wyant confirmed. He said big city transit projects will still get funding, but those needs “cannot outweigh ensuring northern, remote and rural communities have reliable ground and air infrastructure.”
He said the amount the federal government wants to direct to public transit is more than cities are likely to use.
Regina Mayor Michael Fougere didn’t seem troubled by the priority shift. He said the transit stream in the new agreement will be sufficient to fund the city’s transit priorities.
“We understand the unique needs of Saskatchewan, but the government of Saskatchewan also understands the unique needs of urban Saskatchewan, and Regina and Saskatoon in particular,” Fougere said.
“I don’t think this is a question of a trade-off between rural and urban.”
He said the city will submit a number of projects for support under the new agreement. He mentioned the Winnipeg Street overpass, the Railyard Renewal Project and a renewal of the Buffalo Pound Water Treatment Plant as likely candidates.
The province got its way on two other key issues: Environmental efficiency standards and eligibility for Crown corporations.
Under the agreement, Crown corporations will not be treated like private corporations. Infrastructure projects will also not be required to meet pan-canadian energy efficiency standards. “This is key, because it ensures the Saskatchewan projects are aligned with provincially identified thresholds to support Prairie Resilience: A Made-in-saskatchewan Climate Change Strategy,” said Wyant, referring to the province’s own climate plan.
The plan has been a direct retort to Ottawa’s carbon tax plan, an issue that merited little attention during the Wednesday love-fest. Wyant confirmed that the province remains implacably opposed.
The construction industry was jubilant over the announcement, and over the shift in priorities to favour traditional projects like roads and water infrastructure.
“The biggest things for our sector, specifically the heavy civil sector within the province of Saskatchewan is the volatility in spending,” said Shantel Lipp, president of the Saskatchewan Heavy Construction Association.
Government is among the largest purchasers of her members’ services.
The new agreement gives them certainty that there will be contracts ahead, said Lipp.