November 26, 2007

Canada’s infrastructure deficit just part of the story, says Canadian Construction Association

VINCE VERSACE

STAFF WRITER

Canada’s $123 billion municipal infrastructure deficit is not the final price tag for all its infrastructure needs, says a construction industry official.

“The $123 billion is huge number but that is just part of the story,” says Jeff Morrison, Canadian Construction Association government relations and public affairs director. “That just looks at the rehabilitation of the existing stock. It does not include the price of new infrastructure needed to add capacity and expand systems.”

Danger Ahead: The Coming Collapse of Canada’s Municipal Infrastructure, commissioned by the Federation of Canadian Municipalities (FCM), states that 80 per cent of Canada’s infrastructure is past its service life. The report indicates that the current $123 billion municipal infrastructure deficit could cripple municipalities.

“If we do not act soon as a nation to tackle this deficit, we will see more catastrophic failures in our roads, bridges, water supply and other vital infrastructure. Continued delay is unthinkable,” says Gord Steeves, FCM president.

Acknowledging the infrastructure deficit as a problem and defining the size, scope and jurisdictional characteristics of the deficit, are the first steps to a long-term policy addressing the issue, says Dr. Saeed Mirza, the report’s research team leader.

“Across Canada, municipal infrastructure has reached the breaking point,” says Mirza. “As assets reach the end of their service life, repair and replacement costs skyrocket.”

The growth trend of the municipal infrastructure deficit is alarming, says Morrison. The report indicates that in 1985 the estimated deficit was at $12 million and hit $44 billion by 1995. This accelerated rate of deterioration goes beyond just more data being available now, says Mirza.

“Over the last 10 years municipalities have better idea of what they have and the state it is in,” he said.

The “sub-deficits” of the $123 billion estimate includes $40.2 billion for community, recreational cultural and social infrastructure, $31 billion for waste and wastewater systems, $22.8 billion for transit, $21.7 billion for transportation and $7.7 for solid waste management.

Public support and not just government support is needed to help develop a focused strategy to tackle the aging infrastructure. Getting Canadians to realize aging bridges, roads and water and wastewater systems affects their quality of life is a challenge, believes Morrison.

For the Association of Municipalities of Ontario (AMO), lobbying the federal government to address the infrastructure needs of municipalities is a drum beaten often, says the association’s president.

“This deficit is growing in spades,” says Doug Reycraft, AMO president and Southwest Middlesex mayor. “If it is not considered in a crisis state now, it will be in the near future.”

A national infrastructure policy, developed by all levels of Canadian government, is imperative to tackle Canada’s deteriorating infrastructure, states Mirza.

“All levels of government must be involved; we have a serious issue at hand. There has to be an overall plan,” says Mirza.

Lawrence Cannon, Canada’s transport, infrastructure and communities minister states that FCM is misleading the public in suggesting the federal government has not done enough to address infrastructure needs. Cannon points to the $33 billion, seven-year, Building Canada plan which addresses infrastructure improvements across Canada.

“That is rubbish,” says Mirza in response to Cannon’s claim. “Most of that money is for gateway infrastructure, which is important, and what is left from that is very little for existing infrastructure and its needs.”

Morrison also disagrees with Cannon’s assessment

“We are very supportive of Building Canada but it addresses more provincial and some federal projects,” notes Morrison. “The municipal infrastructure deficit is a big problem which requires a multi-level, multi-government support and approach.”

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