Public-private deal sought for infrastructure plan
In time of fiscal restraint, feds hope for cash to match government investment
OTTAWA — The federal government is hoping to use its upcoming budget to introduce a new long-term infrastructure plan for municipalities that draws more private-sector dollars to match billions of dollars in federal investments in city roads, public transit, water systems and other infrastructure.
The office of Transport Minister Denis Lebel said Ot- tawa wants to build on a track record of policies, delivering jobs and economic growth, as it replaces an existing $33-billion seven-year plan expiring in 2014.
Lebel’s spokesman, Mike Winterburn, said the new plan would also “generate better value for taxpayers” by encouraging partnerships with the private sector that also help address long-term sustainability.
“The end result will respect taxpayer’s ability to pay, as governments at all levels face fiscal restraint,” he said.
The Federation of Municipalities has asked the government to make its next plan a 20-year deal, to replace the existing seven-year plan and allow them to adequately plan for long-term needs. But, so far, the government hasn’t confirmed details about its timelines, only pledging a “long-term” initiative.
The federation, which represents about 90 per cent of the country’s population, said it supports public-private partnerships in some cases, but warned that they can sometimes require higher costs up front and don’t always apply to small towns.
Claude Dauphin, the federation’s vice-president and mayor of the Montreal borough of Lachine, said cities have always needed financial help from other governments to maintain infrastructure, since the municipalities must rely mainly on property taxes that give them less than 10 per cent of tax revenues in Canada.
“We own 60 per cent of the infrastructure in Canada, and, at the same time, (maintaining infrastructure) is a matter of quality of life. It’s a matter of public health and public safety,” he said.
“So we need to invest in our infrastructure and we need the other governments to help us. If they want to replace the federal money by private-sector money, at some point we’re going to have a problem because we won’t be able to follow and it won’t work.”
The existing federal infrastructure plan included a $1.25-billion public-private partnership fund that has contributed to 14 different projects in Quebec, Ontario, Saskatchewan, Alberta, British Columbia and Nunavut.
Municipalities have estimated that they need about $123 billion to bring their existing infrastructure up to acceptable levels, and another $115 billion to meet growing demand.