Trudeau proposes new relationship, funding for cities

Eyes large pension funds to invest more in urban projects

EDMONTON— Justin Trudeau is proposing a new day in Ottawa’s relations with Canada’s cities, with closer co-operation, new sources of funding for municipalities and a reinstatement of the long-form census to provide mayors with extra decisionmaking tools.

“It’s time for a new arrangement between our municipalities, provinces and our federal government,” the Liberal leader told hundreds of delegates at the Federation of Canadian Municipalities conference.

He said Ottawa has the lion’s share of the country’s financial resources but is short-changing municipalities. “Our communities need greater support. There’s no shortage of great ideas but we’re falling short in giving our cities and towns the infrastructure they need to attract new businesses and new jobs.”

Laying out some of his party’s platform for the Oct.19 election, Trudeau said a Liberal government would expand infrastructure funding by persuading large pension funds to invest more in Canadian — as opposed to offshore — urban construction projects. The party has said this might mean encouraging the Canada Pension Plan to play a greater investment role in these domestic projects.

Another idea under consideration by the Liberals would be the creation of an independent infrastructure bank to help smaller cities borrow more affordably for urban renewal projects. Trudeau told reporters the party will bring out more details closer to the election.

Trudeau also promised more money on a regular, predictable basis to reverse the decline of the country’s stock of affordable housing.

Accusing Prime Minister Stephen Harper’s government of ignoring climate change, he said a Liberal government would work with cities to adjust to the damaging impact of changing weather patterns. Not doing so puts “our citizens, our environment and our economy at risk.”

Trudeau also said if elected the Liberals would immediately restore the long-form census. The data-gathering exercise, which was cancelled by the Harper government, is needed to help governments at all levels develop and access programs on the basis of reliable evidence, he added.

Earlier, Finance Minister Joe Oliver recounted his government’s spending in support of cities, stressing the recent announcement of a public transit fund. The program “will be a permanent source of funding to provinces and municipalities for major public transit projects,” he said. “And let me be clear: Investments from the fund will be there when you need them, when major transit projects are proposed.”

Oliver also criticized the urban policies being rolled out by the federal opposition parties in advance of the Oct. 19 election. If the opposition parties did wind up in a position to spend more to help cities, how would they afford it, Oliver asked. He suggested the choice would be between raising taxes, cutting federal programs or piling on “massive debt” that would “drive us back into huge deficits.”

But Trudeau rejected this, saying the Conservatives have wasted $750 million on “partisan advertising“and devoted billions of dollars to programs such as income-splitting that favour the rich. “The choices that this government has made have left them unable to offer the investments needed by our cities and communities,” he told reporters.

NDP Leader Thomas Mulcair will address the conference on Saturday.