The State of Canada's Cities and Communities 2012 - FCM

Chapter 3
Page 12
Federal InFrastructure FundIng support For provIncIal, terrItorIal
and MunIcIpal InFrastructure* (current $B)
10
8
6
4
2
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
source: FInance canada & InFrastructure canada, June 2011
* all puBlIc InFrastructure, IncludIng core puBlIc InFrastructure
The federal-municipal partnership held, and in
Budget 2010 the federal government protected
core federal investments in cities and communities
as it worked to reduce the federal budget
deficit. The budget made the Gas Tax Fund permanent,
investing $2 billion a year in municipal
priorities such as roads, bridges, public transit,
and water treatment.
In Budget 2011, 1 the government made a commitment
to work with municipalities, provinces,
territories and the private sector to develop a
new long-term infrastructure plan. This was confirmed
by Minister of Transport, Infrastructure
and Communities Denis Lebel in November 2011.
“Completing the economic recovery remains our
government’s top priority,” said Lebel. “Our new
plan will help identify Canada’s infrastructure priorities
to meet the needs of Canadians and build
a more prosperous, competitive, and sustainable
economy. Working together with partners, we
will take stock, identify opportunities, and build
the foundation of a new infrastructure plan that
supports economic growth and job creation.”
FCM President Berry Vrbanovic called the announcement
“a promise to put aside band-aid
solutions and find the cure for the infrastructure
deficit once and for all.”
“Today,” added Vrbanovic, “the government
laid out a clear timetable, with firm milestones,
to make sure it is ready to replace the Building
Canada Plan in 2014 with a new generation
of long-term infrastructure investments. This
process is the result of a growing partnership
between federal, municipal, provincial and
territorial governments.”
The 2012 budget tabled on March 29 proposed
an investment of $150 million over two years to
support repairs and improvements to existing,
small public-infrastructure facilities through the
Community Infrastructure Improvement Fund.
The new infrastructure plan will help Canada
end a long decline in its municipal infrastructure,
improve transit and transportation networks, and
fight traffic gridlock. Building upon the partnership
forged in the recession will help governments
work together and align responsibilities with
resources: a synergy urgently needed to meet
growing challenges with constrained resources.
Beyond infrastructure, an expanded federal-
municipal partnership is needed to build a
strong, safe, and sustainable Canada. FCM
has called upon the federal government to
begin by working with cities and communities
to fix Canada’s policing system so that it serves
communities and taxpayers better, and to work
with the private sector to build more rental
housing.
1 In March 2011, the federal government tabled Budget 2011, which was not adopted prior to the dissolution of Parliament on March 26, 2011.
Returned with a majority on May 2, 2011, the new government introduced an updated Budget 2011 on June 6, 2011.