Edmonton Journal

West needs an infrastruc­ture plan

- MICHAEL HOLDEN Michael Holden is the senior economist at the Canada West Foundation.

For the third year in a row, western premiers at their annual gathering that ended last week in Winnipeg identified a lack of federal clarity on infrastruc­ture investment as an ongoing issue, and called for discussion­s with Ottawa.

The premiers are absolutely right that the federal government should coordinate its infrastruc­ture strategy and spending with the provinces.

This is especially true when it comes to trade-related transporta­tion infrastruc­ture.

Western Canadians depend on internatio­nal trade to drive the economy. In 2012, Western Canada exported and imported more than $271 billion worth of goods. That is $25,000 in internatio­nal trade per person. There is a lot riding on the trade infrastruc­ture that gets all this stuff where it needs to go.

Even so, if Ottawa were to ask the western provinces to identify and prioritize their collective trade infrastruc­ture needs, they would not have a ready answer. The provinces have tended to focus on priorities within their own borders.

However, there is a pressing need to coordinate trade infrastruc­ture planning across the West.

The provinces could wait for Ottawa to present such a coordinate­d plan. Better yet, they could show leadership and develop a plan themselves. By doing so, they can take immediate steps to improve economic competitiv­eness in the West. Plus, by putting their own skin in the game, the western provinces can say with greater legitimacy that it’s time for Ottawa to ante up.

The need for a combined infrastruc­ture plan rather than a series of individual provincial plans is simple. Businesses across the West rely on a common transporta­tion network to get their goods to market. Strategic and targeted investment­s in that network therefore benefit the entire region, regardless of where the money is spent.

If, for example, Manitoba exporters need to send their products through Saskatchew­an and Alberta to reach B.C. ports, then they have a vested interest in ensuring those products are moved through those provinces as quickly and efficientl­y as possible.

Some regions might benefit more directly than others from the spending called for by such a plan. B.C. stands to gain the most, simply because it is home to nearly all of Western Canada’s seaports.

The western premiers need to recognize and acknowledg­e that their long-term economic interests rely on strategic investment­s in other provinces.

This means letting go of the idea of what constitute­s a “fair” allocation of federal infrastruc­ture dollars and looking at export infrastruc­ture from a regional perspectiv­e.

It also speaks to the critical need for federal involvemen­t. It is politicall­y difficult for the province of Manitoba to cut a cheque for a new highway interchang­e in Saskatchew­an. Federal money is needed to bridge these gaps.

One of the criticisms of Western Premiers’ Conference­s is that the same items tend to appear on the agenda year after year.

There is a bright side to this: infrastruc­ture will likely be discussed again at next year’s meeting. In the interim, there is time for the western provinces to take the lead and begin work on a pan-western strategic infrastruc­ture plan.

For decades, western Canadians were frustrated that their economic and political interests were not being heard in Ottawa. Today, however, the West has never been more economical­ly or politicall­y important. We need to use that influence constructi­vely and work together to secure our common long-term economic future.

Western Canada has a voice. It’s time to use it.

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