February 28, 2005

Construction Corner

By Richard Lyal

Dumb growth prevails

What is described as a “joyless” economic recovery has been marked by progressively more chronic systemic problems in public infrastructure, whether it be in roads, sewers, public transportation, hydro, education or health care. Getting business done is clearly becoming more measurably difficult and complex. It is becoming readily apparent that this state of affairs can’t continue, notwithstanding our nation’s enormous natural wealth.

Beleaguered taxpayers are lectured by public officials that there is not enough money in the system while simultaneously bearing witness to successive inquiries on gross government mismanagement, excess spending, criminal negligence and an entire absence of accountability. In the region of Canada’s engine of industrial growth, the proverbial taxation cash cow commonly known as the GTA, taxpayers experience daily the debilitating evidence of a lack of infrastructure repair and investment.

Often neglected in the analysis and punditry is the fact that other “world class” cities and jurisdictions seem to cope without having the same magnitude of problems we face. Is it therefore any surprise that our global competitiveness can be measured in the fact there has been little real income growth in the past decade? Or, that it took more time for the City of Toronto to decide not to build a bridge to the Island Airport than if did for China to build a new city!

In a bizarre twist of fate, the building and development industry is all too often blamed for the many problems associated with both sprawl and intensification. Further, government is now somehow going to fix this problem. The reality is actually the opposite. The problem is a product of bad government with no fix in sight.

Adding insult to injury is the fact this entire sad turn of affairs has given birth to a concept with the ungainly moniker of “Smart Growth.” Unfortunately, in spite of the proliferation of this redundant handle, there does not appear to be much in the way of “smart” happening.

Indeed, we would be better off describing the current state of affairs as “Dumb Growth.” At a minimum, it more readily lends itself to a clear definition than the alternative.

dumb growth/a n. A condition marked by the inability of multiple layers of government to co-ordinate long-term planning and programs in the public interest. It is reflected in a frequently demonstrated propensity of politicians to blame other levels of government for their inability to effectively deal with issues. It is marked by knee-jerk and arbitrary decision-making without regard to sound planning and/or policies. It involves apparently endless cycles of consultations which superficially address issues without actually developing practical solutions based on measurable deadlines and budgets.

In the building industry, the problems associated with piecemeal government planning are now painfully evident. The process is becoming less transparent, less predictable, less timely and more expensive for homebuyers and investors. Whether the field is green or brown, the building industry is frequently being shown the proverbial door. Sensible projects are being turned down for reasons based entirely on unsubstantiated fears. As ridiculous as it seems, some governments would now appear to be on the verge of simply shutting down development.

Politicians appear to be more concerned with pandering to core NIMBY constituencies rather than making the hard decisions required. Also, premature announcements are now often made for multi-year yet-to-be-determined programs which don’t materialize, resulting in useless victories of form over substance. For example, progress on the Toronto waterfront redevelopment project can be described as glacial. Even those projects that work are suspect.

Highway 407 should have been a harbinger of public/private partnership as it was completed on time and on budget. Instead, it is now known as the big give away for being disposed of for less than what many considered to be its fair market value.

Sadly, places like Toronto are starting to resemble the U.S. rustbelt cities Canadians once liked to ridicule.

Richard Lyall is president of RESCON (www.rescon.ws)

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