The Oakville Chamber of Commerce’s recommendations for infrastructure spending were supported by the Canadian Chamber network at the policy conference and Annual General Meeting (AGM). It was held this past weekend in Fredericton, New Brunswick.
The policy resolution, and the recommended actions contained in the resolution, will become one of a number of key priorities identified by the Canadian Chamber. The infrastructure spending policy will form part of the framework for the advocacy efforts undertaken by the organization at the federal level.
$1 billion invested in infrastructure generates between $1.20 billion and $1.64 billion in real GDP growth
Infrastructure Spending Recommendations:
- Develop an infrastructure strategy that demonstrates how infrastructure dollars will be allocated linking investment in core infrastructure to productivity performance and enhancement, economic growth and job creation;
- Work with the federal government on developing a principled approach to the design of the federal government’s funding commitments;
- Continue to use Alternate Finance Projects (AFP’s) and Private, Public Partnership (P3) models to develop large infrastructure projects, where appropriate and develop strategies to encourage private sector investment in smaller, municipal level projects;
- Recognize the many years of critical capital planning and prioritization work already undertaken by municipal asset management plans and work with the federal government on a flexible approach by not imposing “incrementality” requirements for project eligibility.
Submitted to the Canadian Chamber, the resolution states that over half of Canada’s public infrastructure, valued at $1.1 trillion, is owned by municipalities and according to the Federation of Canadian Municipalities. One third of municipal infrastructure is reported to be in fair, poor or very poor condition.
Infrastructure Investment solves Canadian Problems
“Infrastructure funds need to be allocated effectively and efficiently to the right types of projects. It is vital that investments are made strategically in projects that support the long-term growth of our economy” stated Ken Nevar, Chair of the Board, Oakville Chamber of Commerce.
$1 billion invested in infrastructure creates approximately 16,000 jobs which are supported for one year
Mr. Nevar also notes that “While most of our infrastructure challenges are the responsibility of our local government, both the federal and provincial governments have committed renewed investment to tackle our infrastructure needs. Successful distribution of this funding will be achieved by the co-ordination, communication and collaboration of all levels of government.”
Ontario's Long Term Infrastructure Plan needs Resiliency
According to the Federation of Canadian Municipalities (FCM), every $1 billion invested in infrastructure generates between $1.20 billion and $1.64 billion in real GDP growth; a proven multiplier effect guaranteed to boost the economy.
Similarly, every $1 billion invested in infrastructure creates approximately 16,000 jobs which are supported for one year across multiple sectors.
The resolution prepared by the Oakville Chamber is driven by Chamber member opinion obtained through advocacy surveys which revealed that traffic congestion continues to be an obstacle for success for businesses and that infrastructure priorities need to be transportation related.