February 24, 2004

Speech - ROMA/OGRA Conference
by David Caplan, Minister of Public Infrastructure Renewal

Check Against Delivery

Good morning, ladies and gentlemen.

Let me begin by saying how pleased I am to be here today, and to bring you greetings on behalf of Premier McGuinty.

The ROMA/OGRA conference is always an important event for the government of Ontario, and this year is no exception.

This conference is a place for dialogue. I am very pleased to note the number of my Cabinet colleagues who are attending the conference and spending time with delegates. 

Maintaining successful communities is one of our most important challenges. I am glad to have you as partners in that task.

The McGuinty government was elected by the people of Ontario to bring real positive change to this province. That is our mandate.

An important part of that mandate is to help build and maintain strong, vital communities. And to do that we need to restore the public infrastructure that allows us to deliver the public services Ontarians need and deserve.

The purpose of the new Ministry of Public Infrastructure Renewal is to get on with this job – to provide a broad framework for planning and coordinating the government’s investments in public infrastructure, and for managing the growth of our communities.

In general terms, the ministry will focus on four priorities related to infrastructure renewal:

• First, we have to improve and renew Ontario’s aging public infrastructure.
   
• Second, we must use those improvements to accommodate an expanding economy, and to bring positive change to the public services Ontarians depend on.
   
• Third, we must improve our long-term infrastructure planning.
   
• And finally, we must come up with creative financing solutions to meet our capital investment needs.

Infrastructure planning and investing is a partnership among different levels of government. So we have to cooperate and collaborate to get the job done. 

I was pleased to see that the federal government has now clarified its funding for community and rural infrastructure through the Municipal Rural Infrastructure Fund. Ontario has been allocated almost $298 million for improvements to rural municipal infrastructure, with the emphasis on water and wastewater treatment, municipal energy improvements and public transit.

The projects will be cost-shared, with the federal government contributing one-third of the total, and the province and municipalities contributing the remainder.

We will soon be discussing the best way to implement this program with the federal government, and determining such things as the right balance between investing in growth and renewal. I hope we will have the benefit of your expertise and advice, so that we can get the money flowing quickly.

I am very pleased that my Parliamentary Assistant, Lou Rinaldi, the Member for Northumberland, has special responsibilities to liaise with rural and small municipal governments and townships.

With his strong background in rural municipal politics, Lou will be one of my key advisors on the infrastructure needs of rural and Northern Ontario.

I have asked Lou to focus on identifying infrastructure needs as they relate to drinking and waste water systems, roads and bridges.

Both Lou and I know there are pressing needs in our rural municipalities, and we will need to work with you to address them.

Make no mistake; the challenges are difficultand urgent.

Ontarians demand excellent health care…that means hospitals have to be built and maintained.

Ontarians demand great public education…that means schools have to be built, expanded, upgraded and maintained.

Ontarians demand safe communities that work…that means managing the growth of those communities in lockstep with the infrastructure that will support that growth.

Ontarians demand safe water…that means treatment plants, sewer lines and long term planning.

And there are other challenges. I don’t need to tell this audience much about the rising costs of deferred maintenance. You live with these issues every day you are in office.

In some cases you are delivering drinking water through pipes that have been in the ground almost as long as your town has existed and without much in the kitty for the day when they finally have to be replaced.

I think you would agree with me that no single approach could successfully address all of our infrastructure financing issues. We must consider the full range of options, including

• More strategic, cost-effective approaches to planning and managing growth;
   
• New operating models that link users or beneficiaries to the cost of creating and maintaining the infrastructure;
   
• Increased direct capital investments by governments;
   
• Innovation in the way we finance infrastructure investments; and
   
• Sound asset management practices, so that we get the maximum benefit from our investments.

While we intend to have an open mind about our financing options, we will not be indiscriminate. We will have some fundamental principles to guide our financing and procurement strategies.

This government believes it is important to bring both clarity and transparency to our infrastructure financing and procurement. Issues such as public ownership and control, when and where appropriate for public services, will be important.

Equally important will be assurances of far greater levels of accountability and value for our money than were evident or practiced by the previous government. I want to be honest and non-partisan, when I say that things were not done this way in the past.

As you know, infrastructure investment is closely linked to plans for protecting the environment and overall plans for managing growth.

Within a generation, the population of Ontario may grow to over 16 million, with much of that growth concentrated in Southern Ontario.

The triangle bounded by Niagara Falls, Oshawa and Barrie will be one of the most heavily urbanized areas in North America, on a par with the regions surrounding New York and Los Angeles.

We have to accommodate that growth. But we can’t accommodate it in the ways we have in the past.

In the past, growth has been largely based on the construction of new greenfield residential developments on the boundaries of existing urban areas.

That model served us well. It provided homes for many of our people – quickly, and at a price they could afford. But let’s face it, unrestricted greenfield development comes at a high price.  We see it on our roads everyday – congestion and gridlock – and we also see it in the quality of community life.

We need a new model of development, one that emphasizes redevelopment, that will make better use of existing facilities, that coordinates our infrastructure investments in roads and in public transit. I believe infrastructure planning and development can direct growth, as opposed to continually trying to catch up with it.

Our infrastructure investments must also consider the linkages among transportation, the environment, land use and economic development.

Well-planned, vital communities are increasingly becoming the key components of creating a competitive edge in attracting international investment. This is the essence of managing growth effectively.

When it comes to infrastructure, planning is key. Let’s be realistic. We have to take what Premier McGuinty calls “the long view” when it comes to infrastructure planning. We have to plan for the next two decades, not just the next election cycle.

Even if we had all the money in the world, we could not rebuild and repair all of our infrastructure at one time. But the fact is, our resources are limited.

The fact is, Ontario is facing a 5.6 billion dollar deficit left behind by the previous government. So we’re going to have to set priorities and move at a measured pace, until the province’s finances are restored.

I often compare the current state of Ontario’s infrastructure to a 40-year-old house. The previous owners did not put money aside to invest in improvements.

The furnace needs to be replaced. The windows leak cold air, and heating costs are too high. The former owners put an addition on the house 10 years ago, but didn’t upgrade the electrical system to handle the additional load.

The pipes burst in the winter, and there is expensive water damage. The walkway and driveway are cracked and heaved to the point of being dangerous.

As you pass by this house, it still looks beautiful and quaint. But when you look closely it needs a lot of work. You and I know, we can’t solve every problem at once, and we can’t start every project at once.

First, the new owners need to plan the budget and arrange the financing for the improvements. And since they must continue to live in the house, each project must be done in a way that ensures the building remains livable in the meantime.

Since money is tight, projects must be carefully planned. Maybe the furnace is the first project, because it will help save on heating bills. Maybe the windows are next, and so on.

If this were Ontario’s house, the only other important thing I would tell you is that the previous owners didn’t manage their money very well. After the new owners bought the house, they discovered a surprisingly large lien on it. The new owners want to restore this house and make it the most livable, and the most desirable.

However, before they start the repairs and improvements, the new owners will need to tackle the financial problems. The improvements will need to be modest at first, and based on priorities. And they need to build more rooms, because the family is growing.

That is what our public infrastructure is like, here in our house, the Province of Ontario.

But the McGuinty government is committed to fixing Ontario’s house, and I know you are too. The challenge is significant, but so is the opportunity. We have to bring real, positive change to Ontario.

That’s why I hope to hear from you over the coming months, and I can promise you will be hearing from me. The dialogue we have begun at this conference is just the start.

I’m not promising quick victories or easy solutions.

But I am promising that the McGuinty government is going to work hard to renew the infrastructure that holds this province together.

And I’m confident that at the end of the day, when we look back at the work we’re starting together to improve Ontario’s house – the house that we live in and the communities that we live in – we will be proud.