Feds could speed up promised infrastructure spending

The sped-up spending would respond to worsening economic conditions


OTTAWA – The Trudeau government is “actively considering” speeding up promised investments in infrastructure in a bid to stimulate Canada’s rapidly deteriorating economy.

Prime Minister Justin Trudeau promised during last fall’s election campaign to pump an additional $60 billion over 10 years into infrastructure projects.

But less than half that money — $17.4 billion — was earmarked to flow during the Liberals’ first mandate.

The platform committed to spending an extra $5 billion for each of the first two years and $3.45 billion in each of the next two years.

However, The Canadian Press has learned the government is now looking at moving up the spending schedule, pushing the money out faster in response to worsening economic conditions.

Commodity prices have continued to slide, the dollar has nosedived and already sluggish economic growth has slowed to a crawl in the three months since Trudeau won election on a platform focused on stimulating the economy and improving the lot of middle class Canadians.

The details of any new infrastructure spending will be unveiled in the federal budget, likely sometime in mid to late March.

The deteriorating situation has already forced the Liberals to rethink their pledge to run up deficits of no more than $10 billion in each of the first three years of their mandate. Trudeau has downgraded that promise to a “goal.”

While they may yet have to scale back some of their other pricey campaign promises, Trudeau and Finance Minister Bill Morneau have doubled down on the infrastructure spending, arguing that the worsening economic picture only reinforces the need to stimulate growth.

“There has just never been a better time to make targeted investments to support economic growth in this country,” Morneau said Tuesday during a pre-budget tour stop in Montreal.

Last week, Bank of Canada governor Stephen Poloz also weighed in, calling infrastructure spending an “important ingredient” in economic growth.

Sources say the Liberals are looking at speeding up infrastructure spending — “actively considering” it, in the words of one insider — but they want to ensure they go beyond the gazebos, park upgrades, public washrooms and beautification projects that were funded in Ontario’s cottage country in advance of the 2010 G8 summit.

The Liberal platform talked about investing in more ambitious projects with long-term benefits: public transit, affordable housing, seniors’ facilities, child care, “climate resilient” infrastructure, flood mitigation and wastewater systems.

Infrastructure Minister Amarjeet Sohi said Wednesday the government is looking at expediting spending on projects already queued to receive federal cash through existing infrastructure funds.

“We have billions of dollars that we have not spent over the last two years that we can expedite this year and next year, as well as going through the budget process to allocate the additional $60 billion.”

Sohi has said funding will flow to shovel-ready projects that cities and provinces identify as priorities.

He said the government is asking cities and provinces to finalize the list of priority projects so they can be quickly reviewed and green-lighted for funding. Those projects, he said, need not be new work, but revamping existing infrastructure.

“If we can do things more quickly in those areas, those are the things that we are also going to be looking at,” he said.

Some critics have already questioned how the Liberals will find enough worthwhile, shovel-ready projects on which to spend the $5 billion promised for infrastructure this year, much less any additional money. Still others have wondered whether the Liberals should loosen their restrictions to spread the new cash equally between transit, “green” project and “social” infrastructure.

Those kind of details will be finalized after consultations with provinces and cities, Sohi said.


Feds could speed up promised infrastructure spending

  1. So basically we have the government subsidizing jobs. Money that we will spend interest on in the future forever. People talk about trickle down benefits but the dollars comes from one place the tax payer. Unless these projects start up new or expand private business jobs that bring money in from third party sources not the government they will achieve nothing but more debt. Yes we dont want bridges falling down etc, but this must be paid for by money we already have for instance the huge tax on gas we pay should cover the roads and bridges. These are just costly make work projects disguised by the overly used work infra structure projects.

    • Seems like a project that prevents a bridge collapse is more than just a make-work effort.

      A $100,000 gazebo – now THAT was a make-work project.

      • you do know this so called gazebo project included a lot of other projects around the Huntsville area right, roads etc. but what did it add to the economy? Nothing, a short term project subsidized by the tax payer, thats my point. And as stated we already have money for bridge and road repair (maintenance) with current monies collect as taxes mainly in the form of gasoline taxes. It adds nothing to our economy unless it spawns private industry to create money and products not paid for by tax dollars.

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