September 30, 2011

Southwestern Ontario construction associations weigh in on provincial election

PATRICIA WILLIAMS

staff writer

As election day looms in the province, construction association executives in southwestern Ontario have several issues top of mind — among them, the need for sustained and orderly investment in infrastructure.

“It would be wonderful to see a more consistent program so that volumes of work are leveled out so that we don’t have these big peaks and valleys,” says Jim Lyons, executive director of the Windsor Construction Association.

Potential bundling of construction projects by Infrastructure Ontario also is a common concern in Grand Valley, London and Windsor.

Association executives in all three centres agree that the federal/provincial stimulus program has been a boon, resulting in construction of a wide range of facilities.

“On a per capita basis, our region has probably benefitted more than any other area of the province,” says Lyons. “The program has helped us get things done that perhaps in my lifetime would not have been accomplished.”

Yet, tackling the infrastructure deficit and building new capacity to foster capital investment remain a priority in construction circles.

In late June, the McGuinty government released its 10-year Building Together plan. The province is dedicating $35 billion over the first three years.

That announcement was hailed as a “significant win” for the province’s construction industry by the Council of Ontario Construction Associations (COCA).

The Progressive Conservatives followed suit, promising to invest more than $35 billion in new infrastructure, much of it in transit and transportation, during their first three years in office.

New Democratic Party Andrea Horwath reportedly has made a similar pledge. Details have not been released.

No matter which party forms the next government, industry leaders would like to see a long-term, sustainable plan put in place coupled with an orderly roll-out of projects to avoid what Grand Valley Construction Association (GVCA) president Martha George calls the “feast or famine” syndrome.

“I think the government would get better pricing (from contractors) as well if that were done.”

In the Kitchener-Waterloo area, George says gridlock for example is an ongoing problem.

“I’d say that we are almost at capacity in terms of our highway infrastructure,” she says. “The population is growing. Our highway network certainly hasn’t kept up. It’s gridlock when you try to drive anywhere in our area.”

A similar situation exists in the Windsor area, says Lyons, citing “band-aid” improvements in the roads sector. Underground infrastructure also needs to be upgraded, he says.

“While we have had quite a few water treatment plants rebuilt, I am sure there is going to be a need for more of that.”

Since 2003, the province itself has invested $62 billion in infrastructure.

“There is no question that the stimulus program has been hugely important in the London area,” says Derek Smith, executive director of the London and District Construction Association.

He pointed out that London-based EllisDon is sitting on almost $1 billion of work in the region “that perhaps wouldn’t have been there under another (provincial) government.”

When it comes to tackling the infrastructure deficit, regional construction association leaders agree with the stance taken by COCA that Queen’s Park must work with the industry as a full partner in order to properly plan and execute the agenda.

The Liberals’ Building Together plan calls for an expanded role for Infrastructure Ontario, which merged earlier this year with the Ontario Realty Corp. One issue that has raised red flags is potential bundling of projects by the Crown corporation.

Concern has been expressed that this approach, already undertaken on a contract involving modernization of Ontario Provincial Police facilities in 16 communities, could have a detrimental impact on small and medium-sized contractors.

“If the Liberals form the next government, we probably won’t see any change in policy,” Smith says. “But if it’s a Conservative government, there might be a sea change.”

Other contentious items include the need for reform of the Construction Lien Act, unfunded liability of the Workplace Safety and Insurance Board and the Ontario College of Trades. The college is set to become fully operational in 2012.

“This is an issue that really has me concerned,” says George of plans for the college. “That has come up a fair bit, in part because of the funding formula. Somebody has to pick up the tab. There is also the question of whether the college will represent just the unionized trades.”

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