February 22, 2005

The Combined Ontario Good Roads Association (OGRA) Rural Ontario Municipal Association (ROMA) Conference
by David Caplan, Minister of Public Infrastructure Renewal

The Combined
Ontario Good Roads Association (OGRA)
Rural Ontario Municipal Association (ROMA)
Conference

Check against delivery

Good morning, ladies and gentlemen.

It’s a pleasure to be here again at OGRA ROMA to meet with so many representatives of Ontario’s fine communities.

Since our last meeting, our government has made considerable strides towards improving Ontario’s public infrastructure, and has made extensive plans to continue this momentum for the upcoming year.  It’s impossible to overstate the importance of infrastructure.

In part, infrastructure can be the roads and bridges that physically connect us.  But when you talk about the delivery of public services such as education, affordable housing and health, it’s the glue that binds our collective values.

It’s also an important magnet for economic growththe kind that builds strong, healthy and liveable communities.

This government knows the critical importance of Ontario’s schools, hospitals, roads and bridges, transit systems, water and wastewater treatment, affordable housing and more. 

We are fully committed to ensuring they’re built and renewed to the standards Ontarians expect and deserve.

And to offering first-class delivery of public services to every corner of this province.

Our government wants what you want.

We want all communities – rural and urbansmall and large – to enjoy safe, clean water; sustainable, affordable utilities; the best education and health care facilities; high levels of business investment and job creation.

Sound, well-planned, strategically timed public infrastructure can lead the way.

Last year at this conference, I listed my Ministry’s four priorities in attaining this critical goal.

First, to improve and renew Ontario’s aging public infrastructure.

Second, to use these improvements to expand economy, and bring positive change to the public services Ontarians depend on.

Third, to plan infrastructure on a long-term basis, the first time this has been done in Ontario.

And, finally, to come up with creative financing solutions to meet our capital investment needs.

The progress we’ve made in just one year in all of these areas is truly exciting.

We are putting in place the real, positive change our government promised.  Change that will ensure a strong, healthy and prosperous Ontario – now, and for generations to come.

Let’s first consider the big picture.

Ontario has a large and complex system of infrastructure worth more than $250 billion.

This system supports communities everywhere – including rural areas with their unique culture, rich heritage and important agricultural and resource sectors.

For example, of Ontario’s 152,000 kilometres of municipal roads, 70,000 kilometres are found in rural and northern Ontario.

But inattention and insufficient investment by previous governments have caused the slow decline of this system, which is now in serious need of maintenance and repairprovince wide.

This fiscal year, the McGuinty government is investing $3.3 billion in Ontario’s public infrastructure.  That’s a 17 per cent increase from the previous year’s budget.

But the challenge is much more than simply investing to meet immediate needs.

For the first time, an Ontario government is building a strategic, visionary plan that is mindful of where each investment can bring the best results now and in the future.

This is a fundamental and necessary change in focus.

For Ontario is growing.

Over the next three decades, our population is expected to grow by four million people.

We welcome this growth, but we’ve reached a point where we can no longer allow it to occur uncheckedand unplanned.

In urban Ontario, an immutable truth has emerged.  If we are to maintain and improve the quality of life for this generation and future generations, we must curb sprawl and reduce gridlock.  We must also preserve our agricultural and environmentally sensitive lands, and protect our air and water.

In rural Ontario, we face equally important challenges.

Our government considers it a priority to enhance infrastructure and growth planning in rural and northern Ontario to help your communities in three ways:

• First, to attract and retain people and investment;
• Second, to diversify your economies and create good jobs;
• And third, to generate opportunities for youth to make great lives for themselves at home.

Our government took a major step in this direction last fall when I introduced the proposed Places to Grow Act.

If passed, this legislation would allow the government to designate specific regions across Ontario for the purpose of developing long-range growth plans. 

Each would be drafted in conjunction with municipalities and with significant public input.

The plans would focus on where and how growth should occur, looking 30 years and more into the future.  And they would address the infrastructure required to support that growth.

They would protect the environment and preserve agricultural lands and other natural resources.

Last week, I released a draft growth plan for the Greater Golden Horseshoe.  This paper will work hand-in-hand with the proposed Greenbelt legislation.  While one speaks to greening, the other speaks to growing.

The most remarkable aspect of this plan is not just that the government is promoting long-term planning, for the first time, but that we are asking all Ontarians to plan together.  This is our future – our children’s future.  We are asking you to think about the type of communities you want to live in 10 years from now20 years from now30 years from now.

We are starting with a growth plan for the Greater Golden Horseshoe (GGH), because it’s the economic engine of Ontario and Canada and one of the fastest growing regions in North America.  Vast rural areas separate the cities within this region and they make a significant contribution to its cultural history and attractiveness.

Certain issues in the GGH have reached crisis points due to previous inaction.  Sprawl is bulldozing our agricultural lands and changing the landscape of rural communities.  We’re literally paving paradise.

It is estimated that gridlock costs the GTA $2 billion annually in lost labour and opportunity.  The annual loss to the Ontario economy due to border slowdowns is an estimated $5-billion.  We must tackle this situation first. 

If the proposed Places to Grow Act is passed, it will confer authority on the government to draft growth plans for regions across Ontario focussing on the priorities we have set together.

They create economic development opportunities that complement the agricultural industry.  But at the same time, these rural areas within the Greater Golden Horseshoe face unique challengesand the draft growth plan addresses them.

The role of the growth plan is to provide broad-level policies applicable throughout the region, along with specific targets – like intensification in the cities – for implementation. But we realize that one size doesn’t fit all, so when it comes to rural areas, we propose developing sub-area strategies jointly with the municipalities.

The result: strategies that are custom-tailored to meet the unique needs of a sub-area.

We must also coordinate these proposed strategies with other government initiatives, such as source water protection and the transportation strategy currently being developed.

And, of course, we consider it a priority that the rural lands are not simply paved over, but are retained for the enjoyment of future generations. 

In November, my colleague, Municipal Affairs and Housing Minister Gerretsen, released Ontario’s Rural Plan – which was based on extensive consultation with municipalities, individuals, business and community organizations.

This visionary plan identifies the tools needed to make sure rural Ontario thrivesand sets out ways to achieve measurable results. 

Minister Gerretsen has already delivered the first overall progress report.

Let me update you more specifically on how we’re meeting your infrastructure needs.

There are several key initiatives that link together and stand together for a stronger Ontario.

One my ministry’s key initiatives is the development of a long-term infrastructure plan that will prioritize capital investments in key areas such as health, water, education and transportation.

It sounds like common sense, but it’s the first time such a plan has ever been designed in Ontario. 

It will set out near- and medium-term infrastructure priorities and timelines.

And it will guide development of a 10-year public infrastructure strategy, targeted for release later this year.

Key to the successful implementation of both the plan and strategy is the framework designed specifically for infrastructure planning, financing and procurement, called Building a Better Tomorrow.

The framework covers every significant infrastructure project that may be proposed by municipalities, public sector agencies or government ministries in the future.  These include hospitals, schools, transit, highways, water and wastewater systems, and bridges.

It will ensure we invest smarter and more strategically – while preserving appropriate public ownership.  In a nutshell, the framework sets out guidelines for implementing our roadmap for strategic infrastructure renewal.

It is based on five guiding principles that preserve public interest.  Government and stakeholders must evaluate options for all public infrastructure proposals in accordance with these principles.

• Public interest is paramount;
• Value for money must be demonstrable;
• Appropriate public control or ownership must be preserved – particularly when it comes to water, health and education projects;
• Accountability must be maintained;
• And all processes must be fair, transparent and efficient.

The framework will bring governments, municipalities, public sector partners and the private sector together to achieve some important goals – not least of which is greater infrastructure investment.  It aims to foster more use of full-cost recovery and explore more non-traditional revenue and funding sources.

It will ensure financing approaches that are consistent with amortization of capital costs.  And it will foster innovative private sector involvement.

Financing is, of course, a major issue. 

It’s estimated we need to spend $100 billion for essential infrastructure improvements across the province. And, certainly, no single approach can successfully respond to all needs.

So our government has been actively pursuing innovative financing solutions.

One route we’ve taken is the establishment of the Ontario Strategic Infrastructure Financing Authority, or OSIFA.

OSIFA offers municipalities low cost, long-term loans to help build and renew critical public infrastructure.

So far, OSIFA’s municipal loan program is assisting approximately 170 of Ontario’s 445 municipalities with up to $2.1 billion in low-cost and longer-term loans.

We’ve also joined with our federal partners in several infrastructure programs, in order to share costs and maximize benefits.

One program of particular interest to our rural communities is the $900 million Canada-Ontario Municipal Rural Infrastructure Fund, or COMRIF.  As you know, we formally launched COMRIF last November with our federal partners and AMO.  AMO was an active partner in the design and development of COMRIF and will continue to play a critical role in program delivery.

Through COMRIF, and together with our municipal partners, we will invest in projects to ensure:

• Safe drinking water;
• Environmentally responsible sewage and waste disposal;
• And upgraded local roads and bridges.

At the close of the first round on January 10th, 350 applications had been received. 

These applications are currently being evaluated based on a competitive, merit-based process that looks at value for money, health, safety and how the project advances our commitment to build strong, liveable communities. 

We hope to be in a position to announce successful proposals this spring, followed later in the year with a second round of applications.

Safe, decent, affordable housing is another area in which we’ve joined forces with our federal partners.  This government is committed to supporting stronger communities by investing in such basic human needs.

Under the Canada-Ontario Affordable Housing Program, we aim to create up to 20,000 new affordable housing units in Ontario.  And not just in urban areas.

For example, in October, the governments of Canada and Ontario allocated $1 million each under this program to create new affordable housing for lower income people who were victims of the devastating Peterborough flood, last July. 

A month earlier, we celebrated the official opening of Armitage Gardens in Newmarket, whose $8.4 million cost included $1.56 million from this program.  The facility provides 58 apartments for low-income residents in York Region.

And just last week, this government doubled its funding – from $2,000 to $4,000 per unit – for certain approved projects being built under the program.  The funding will target projects in the early stages of development that may be facing increases in construction costs or other financial challenges. 

Across Ontario, we’re working with both our federal and municipal partners to increase the number of affordable housing units.  One particular focus is on appropriate housing for people with mental illness, victims of domestic violence and the working poor.

With our partners, Ontario has successfully allocated more than $70 million to create more than 3,400 new affordable housing units, since October, 2003.  And there are more to come.

Negotiations with Ottawa on redesigning the Canada-Ontario Affordable Housing Program are progressing well.  We look forward to a successful conclusion and announcing the redesigned program.

Our government has consulted broadly and extensively on redesigning the Canada-Ontario Affordable Housing Program.  We invited more than 150 stakeholders to attend nine regional sessions to hear their views on how to improve this program.

As you can see, we’re making significant advances in significant ways. 

Another of our government’s initiatives is delivering on our promise to protect drinking water from source to tap.

One of my ministry’s most important responsibilities is laying the groundwork for the proper long-term management and financing of Ontario’s water and wastewater infrastructure.

Updating these systems is a real priority. After all, some water pipes in this province have been in the ground for more than a century!  And because our pipes are out of sight, it is very easy to put them out of mind…as long as nothing goes wrong.

So we need to be sure – Ontarians need to be sure – that our water resources are protected and our water is safe now and for future generations.

Last summer, our government established an independent panel of experts to consult widely and advise us on how to best make the investments we need to improve this vital infrastructure And the best, most economical way to deliver water and wastewater services.

Under the Sustainable Water and Sewage Systems Act, municipalities will be required to move towards recovering their full costs of providing water.

But rest assured, our government recognizes that full-cost recovery in the short term presents very real problems for smaller communities, many of which would be faced with implementing simply unmanageable cost increases.

We won’t let this happen.

We are already taking steps to help municipalities make the necessary investments right now without having to quickly raise water rates.

And the work of the Water Panel will be instrumental in helping us fashion our long-term water and wastewater infrastructure investment and financing strategy. The Panel has consulted with many key stakeholders and I expect to receive their report this spring.

Ladies and gentlemen, this time last year, I said that Premier McGuinty established the Ministry of Public Infrastructure Renewal to get on with the job of rebuilding Ontario’s public infrastructure – to get results and to strengthen Ontario’s communities so that Ontarians may enjoy a quality of life that is second to none.

The Premier recognized that the business-as-usual approach was not sustainable.  The time had come to plan and coordinate government investment in public infrastructure – and to strategically manage the growth of our communities.

It’s a mammoth task. And there’s no doubt that we still have a long way to go.

But this government is thoroughly committed to getting the job donemaking real, positive change.

We know that the future we offer our children and their children depends on how effectively we plan today.

We know that sound infrastructure plays a fundamental role in a strong, successful and growing Ontario. We also know that no single level of government can deliver all that’s required.

It takes tough choices, good will and solid cooperation.

This government is making those choices.  We look forward to continuing to work closely with all of you, our municipal partners.

Because together, we are stronger.  Together we are wiser.

And together, we will ensure Ontarians enjoy strong communities, a healthy environment and a vibrant economy.

Now, and for decades to come.

Thank you.