March 8, 2005

Statement to the Legislature: Concerning Discrepancies in Federal Funding For Infrastructure in Ontario
The Honourable David Caplan, Minister of Public Infrastructure Renewal

Thank you Mr. Speaker.

Mr. Speaker, Ontarians are proud Canadians. We are proud of our role in helping other provinces financially. We are proud of our place at the linchpin of the nation. And we are proud of our country’s role in the world.

But I was not proud of the recent federal budget’s failure to address the $23 billion gap between what Ontario contributes to the federation and what it gets back.

The federal budget was disappointing to me, and to Ontario, because it continues the unfair treatment that short-changes this province’s taxpayers by billions of dollars.

The issue that concerns me, as Minister of Public Infrastructure Renewal, is funding for public infrastructure. Ontario doesn’t get a proper share of federal funding programs designed to help maintain public infrastructure like roads, bridges, public transit and water treatment facilities.

Ottawa has four infrastructure funding programs. Ontario is getting less than its fair share under all four.

• The Canada Strategic Infrastructure Fund provides $4 billion for transit and transportation improvements, urban development and economic expansion. The federal budget allocates Ontario $92 per person from this fund. The rest of Canada, excluding Ontario, gets $146 per person. If Ontario got that much, there would be an extra $670 million available for infrastructure in this province.
• The Border Infrastructure Fund provides $600 million to improve border crossings. The busiest and most important border crossings in Canada are in Ontario, especially Windsor, which handles 11,000 trucks every day. About 75 percent of the value of all goods trucked to the US moves through Ontario border crossings, but these crossings only get 51 percent of the federal funding. If Ontario got 75 per cent of the funding, there would be $145 million more available for border infrastructure investments in Ontario over the life of program.
• The Municipal Rural Infrastructure Fund provides $1 billion to improve infrastructure in smaller municipalities and rural areas. Our rural municipalities desperately need help with roads, sewers and water treatment facilities. Renfrew County, for example, has more than 260 bridges and culverts and must finance major repairs for at least half of them within 10 years. No surprise then that applications from Ontario municipalities for funding under this program are double the money available.

The federal budget allocates $24 per person for rural municipalities in Ontario, compared with $36 per person in all the rest of Canada. If we got $36 per person, there would be an extra $150 million available in Ontario for municipal rural infrastructure over the life of the program.

• Under the Strategic Highways Infrastructure Program Ottawa has earmarked $600 million over five years to rebuild and expand the nation’s highway system. Any help is welcome, but that’s not nearly enough: Ontario will invest $1 billion this year alone for highway rehabilitation and expansion. We have the busiest highways in the country, and keeping our transportation network in good shape is essential to our economy – and to Canada’s. Ontario gets $15 per person under this program; the rest of Canada, excluding Ontario, gets $21 per person. If Ontario received $21 per person, there would be $74 million more available for strategic highway infrastructure in Ontario.

Mr. Speaker, this government has a plan to invest in the drivers of economic growth. Things like a quality public education system, post-secondary education, training and infrastructure.

Strategic investments in these areas now will pay dividends in the future. Investment now will mean more money to contribute to the rest of Canada tomorrow.

Ontarians are proud Canadians. And with help from the federal government, Ontario will be able to continue to assist other provinces, strengthen our federation and ensure Canada’s place in the world.