Thursday, May 04, 2006
Infrastructure 5.5 Billion break dance
Infrastructure
Canada needs to remain competitive and productive while sustaining the quality of life of Canadians. The Government recognizes that world-class infrastructure, such as an efficient transportation network and safe and reliable water systems, is key to meeting these objectives. As illustrated by the measures in this budget, the federal government is committed to providing stable and reliable funding to provinces, territories and municipalities to help them meet their infrastructure needs. In doing so, the Government will maximize value for taxpayers' money by supporting infrastructure projects that adhere to best practices, by not funding cost overruns and by requiring fund recipients to be accountable to Canadian taxpayers.
New Highways and Border Infrastructure Fund and Canada's Pacific Gateway Initiative
Canada's core national highway system is a very important national asset. For example, in terms of value, about 63 per cent of Canada-United States trade in goods was moved by truck in 2003. Also, individual Canadians, whether they live in urban or rural areas, depend on major highways for many of their travel needs. Additional investments in highways will result in a more efficient and safer system.
The provinces and territories are responsible for the bulk of Canada's core national highway system. To help the provinces and territories meet system needs, this budget provides a total of $2.4 billion over the next five years for a new Highways and Border Infrastructure Fund. A key objective of the new Fund will be to cost-share with provinces and territories improvements to the core national highway system, including the Trans-Canada Highway.
Canada's trade with the rest of the world flows through "gateways" (e.g. major land border crossings and ports) where transportation networks converge to connect centres of economic activity. To capitalize on this advantage, this budget announces the Government's intention to invest a total of $591 million over the next eight years in Canada's Pacific gateway. While some of the funding will also be directed towards related measures such as maintaining secure and efficient border services, most of it will go towards infrastructure improvements such as bridge and road upgrades and railway grade crossing projects.
In recent years, the $600-million Border Infrastructure Fund has committed funding towards infrastructure improvements at Canada's border crossings with the United States, including Windsor, Sarnia, Fort Erie and St. Stephen. The new Highways and Border Infrastructure Fund will provide funding for future federal investments in infrastructure improvements that support Canada's major gateways, including border crossings with the United States.
Renewal of the Canada Strategic Infrastructure Fund
The Canada Strategic Infrastructure Fund has been making key strategic investments in all regions of Canada in projects such as highways, urban transit, sewage treatment and flood mitigation. These much-needed investments have been made in cooperation with the provinces and territories, municipalities and the private sector. In recognition of its importance, this budget provides an additional $2 billion for the Canada Strategic Infrastructure Fund. This will allow the Government to fund new projects.
Renewal of the Municipal Rural Infrastructure Fund
Through tripartite initiatives such as the Infrastructure Canada Program and, more recently, the Municipal Rural Infrastructure Fund, the Government has helped municipalities in all parts of Canada undertake thousands of infrastructure improvement projects. Many of these projects have consisted of improvements to water and wastewater distribution and treatment infrastructure. To ensure that such assistance is maintained at current levels, this budget provides an additional $2.2 billion over five years to the Municipal Rural Infrastructure Fund. This will allow this fund to support further improvements to municipal infrastructure, such as the Evergreen Commons at the Don Valley Brick Works in Toronto.
Unprecedented Federal Support for Infrastructure
Table 3.9
Canada's New Government Infrastructure Initiatives
2006–07 2007–08 2008–09 2009–10 Total
(millions of dollars)
New funding for infrastructure
initiatives/agreements
Highways and Border
Infrastructure Fund 245 340 480 610 1,675
Canada's Pacific
Gateway Initiative 19 72 92 56 239
Canada Strategic
Infrastructure Fund – 181 429 570 1,180
Municipal Rural
Infrastructure Fund 200 332 450 550 1,532
Public Transit Capital Trust1 300 300 300 – 900
Existing infrastructure agreements2 1,467 1,197 741 470 3,875
Other funding for cities
and communities
Increase to 100% of the
GST/HST rebate 625 650 685 720 2,680
Gas tax revenue funding 600 800 1,000 2,000 4,400
Total contributions 3,456 3,872 4,177 4,976 16,481
1 The precise total amount will be determined and deposited in a third-party trust upon confirmation in the fall of the Government of Canada's final financial outcome for 2005–06. Funding is allocated notionally over three years.
2 Agreements include the Canada Strategic Infrastructure Fund, the Border Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Infrastructure Canada Program.
Budget 2006 confirms the Government's commitment to maintain and significantly expand its level of infrastructure investment. These investments will see federal support for provincial, territorial and municipal infrastructure increasing to new levels, totalling $16.5 billion over the next four years. By 2009–10 the level of federal support for provincial, territorial and municipal infrastructure will reach almost $5 billion. This is nearly eight times the average annual support during the past 10 years, and more than the estimated annual revenue generated by the federal excise tax on gasoline.
In summary, Budget 2006:
* Provides more than $5.5 billion in new federal funding over the next four years for the Highways and Border Infrastructure Fund, Canada's Pacific Gateway Initiative, the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Public Transit Capital Trust.
* Maintains the estimated $3.9 billion in current funding over the next four years under existing infrastructure agreements.
* Maintains the gas tax funding commitment under the New Deal for Cities and Communities. Including the increase to 100 per cent of the rebate of the goods and services tax and the federal portion of the harmonized sales tax that municipalities pay, the federal government will deliver $7.1 billion over the next four years in support under the New Deal for Cities and Communities.
Everything is pretty much up in the air on this 5.5 Billion, exception being the Pacific Gateway. NL's only hope for any of this money is the fact that the TLH is now apart of the National Highway System NHS.
Canada needs to remain competitive and productive while sustaining the quality of life of Canadians. The Government recognizes that world-class infrastructure, such as an efficient transportation network and safe and reliable water systems, is key to meeting these objectives. As illustrated by the measures in this budget, the federal government is committed to providing stable and reliable funding to provinces, territories and municipalities to help them meet their infrastructure needs. In doing so, the Government will maximize value for taxpayers' money by supporting infrastructure projects that adhere to best practices, by not funding cost overruns and by requiring fund recipients to be accountable to Canadian taxpayers.
New Highways and Border Infrastructure Fund and Canada's Pacific Gateway Initiative
Canada's core national highway system is a very important national asset. For example, in terms of value, about 63 per cent of Canada-United States trade in goods was moved by truck in 2003. Also, individual Canadians, whether they live in urban or rural areas, depend on major highways for many of their travel needs. Additional investments in highways will result in a more efficient and safer system.
The provinces and territories are responsible for the bulk of Canada's core national highway system. To help the provinces and territories meet system needs, this budget provides a total of $2.4 billion over the next five years for a new Highways and Border Infrastructure Fund. A key objective of the new Fund will be to cost-share with provinces and territories improvements to the core national highway system, including the Trans-Canada Highway.
Canada's trade with the rest of the world flows through "gateways" (e.g. major land border crossings and ports) where transportation networks converge to connect centres of economic activity. To capitalize on this advantage, this budget announces the Government's intention to invest a total of $591 million over the next eight years in Canada's Pacific gateway. While some of the funding will also be directed towards related measures such as maintaining secure and efficient border services, most of it will go towards infrastructure improvements such as bridge and road upgrades and railway grade crossing projects.
In recent years, the $600-million Border Infrastructure Fund has committed funding towards infrastructure improvements at Canada's border crossings with the United States, including Windsor, Sarnia, Fort Erie and St. Stephen. The new Highways and Border Infrastructure Fund will provide funding for future federal investments in infrastructure improvements that support Canada's major gateways, including border crossings with the United States.
Renewal of the Canada Strategic Infrastructure Fund
The Canada Strategic Infrastructure Fund has been making key strategic investments in all regions of Canada in projects such as highways, urban transit, sewage treatment and flood mitigation. These much-needed investments have been made in cooperation with the provinces and territories, municipalities and the private sector. In recognition of its importance, this budget provides an additional $2 billion for the Canada Strategic Infrastructure Fund. This will allow the Government to fund new projects.
Renewal of the Municipal Rural Infrastructure Fund
Through tripartite initiatives such as the Infrastructure Canada Program and, more recently, the Municipal Rural Infrastructure Fund, the Government has helped municipalities in all parts of Canada undertake thousands of infrastructure improvement projects. Many of these projects have consisted of improvements to water and wastewater distribution and treatment infrastructure. To ensure that such assistance is maintained at current levels, this budget provides an additional $2.2 billion over five years to the Municipal Rural Infrastructure Fund. This will allow this fund to support further improvements to municipal infrastructure, such as the Evergreen Commons at the Don Valley Brick Works in Toronto.
Unprecedented Federal Support for Infrastructure
Table 3.9
Canada's New Government Infrastructure Initiatives
2006–07 2007–08 2008–09 2009–10 Total
(millions of dollars)
New funding for infrastructure
initiatives/agreements
Highways and Border
Infrastructure Fund 245 340 480 610 1,675
Canada's Pacific
Gateway Initiative 19 72 92 56 239
Canada Strategic
Infrastructure Fund – 181 429 570 1,180
Municipal Rural
Infrastructure Fund 200 332 450 550 1,532
Public Transit Capital Trust1 300 300 300 – 900
Existing infrastructure agreements2 1,467 1,197 741 470 3,875
Other funding for cities
and communities
Increase to 100% of the
GST/HST rebate 625 650 685 720 2,680
Gas tax revenue funding 600 800 1,000 2,000 4,400
Total contributions 3,456 3,872 4,177 4,976 16,481
1 The precise total amount will be determined and deposited in a third-party trust upon confirmation in the fall of the Government of Canada's final financial outcome for 2005–06. Funding is allocated notionally over three years.
2 Agreements include the Canada Strategic Infrastructure Fund, the Border Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Infrastructure Canada Program.
Budget 2006 confirms the Government's commitment to maintain and significantly expand its level of infrastructure investment. These investments will see federal support for provincial, territorial and municipal infrastructure increasing to new levels, totalling $16.5 billion over the next four years. By 2009–10 the level of federal support for provincial, territorial and municipal infrastructure will reach almost $5 billion. This is nearly eight times the average annual support during the past 10 years, and more than the estimated annual revenue generated by the federal excise tax on gasoline.
In summary, Budget 2006:
* Provides more than $5.5 billion in new federal funding over the next four years for the Highways and Border Infrastructure Fund, Canada's Pacific Gateway Initiative, the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Public Transit Capital Trust.
* Maintains the estimated $3.9 billion in current funding over the next four years under existing infrastructure agreements.
* Maintains the gas tax funding commitment under the New Deal for Cities and Communities. Including the increase to 100 per cent of the rebate of the goods and services tax and the federal portion of the harmonized sales tax that municipalities pay, the federal government will deliver $7.1 billion over the next four years in support under the New Deal for Cities and Communities.
Everything is pretty much up in the air on this 5.5 Billion, exception being the Pacific Gateway. NL's only hope for any of this money is the fact that the TLH is now apart of the National Highway System NHS.
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