Federal push to spend infrastructure funds spurs worries about too much paperwork

Provincial governments have been warned that they have until this time next year to start assigning billions in infrastructure cash to eligible projects, or else they could lose control over how it can be spent.

The Liberals are finalizing details about the fate of any money left over in the New Building Canada Fund for large, provincial or nationally important projects after next year’s deadline, including following through on a vow to shift unused infrastructure money to the gas tax fund, which allows cities to spend on roads, highways, transit, water and sewer systems without having to apply for federal funding.

Infrastructure Canada’s website says the New Building Canada Fund’s national and regional project stream still has $6.6 billion — out of an original $8.8 billion — in funding that has yet to be allocated. The deadline for provinces and territories to prioritize projects for funding is April 1, 2018.

The push for provinces to spend money left over in the marquee program set up under the previous Conservative government has raised concerns within Infrastructure Canada that officials reviewing funding applications could end up buried in paperwork.

A November briefing note to the department’s deputy minister shows the deadline “created a growing pressure to streamline and accelerate” the review and approval process.

The Canadian Press obtained a copy of the briefing note under the Access to Information Act.