The Conservative government will unveil a federal budget Jan. 27, and Prime Minister Stephen Harper has said it will include a stimulus plan that could be worth as much as $30 billion.
Tay Township Mayor Scott Warnock said an infrastructure stimulus package sounds like a positive idea, but it depends on the direction in which the government takes it.
“Infrastructure is the buzzword both here and in the United States, but it has to be sustainable infrastructure,” he said. “You can’t just build it and then it’s done.”
Nonetheless, Warnock said the program would stimulate the economy because it would mean getting shovels in the ground right away and creating jobs for people working on those projects. However, he noted there also has to be money put aside so it can be maintained.
A good example, he said, is the municipality’s recent mandated improvements to water and sewer. “(Once it’s done) … now you’ve got to service and maintain it, and there’s no money for it,” he said. “If they are going to go with an infrastructure package, it has to be a sustainable one and it can’t be the only initiative. There has to be much more outside of infrastructure, like money for training, etc., because doing it just as a standalone I don’t think will really help in the long run.”
Tiny Township Mayor Peggy Breckenridge said her municipality would look forward to working with the federal and provincial governments in providing much-needed infrastructure renewal, while at the same time providing an economic stimulus through the creation of jobs and investment.
“This is a good time to work on this because people are out of work, (which means) labour should be available and costs should be reduced,” she said.
Midland Mayor Jim Downer is enthusiastic about the program.
“The package is a wonderful idea. It will create work, jobs, production of equipment for these jobs.… I think it’s a very smart move on (Flaherty’s part).”
Penetanguishene Mayor Anita Dubeau was a little more measured in her praise of the initiative, saying it would be wonderful, but she hopes rules put in place around these initiatives are more easily accessible for municipalities.
Transport Minister John Baird, Ottawa’s point man on the infrastructure file, said targeted spending on roads, bridges and other big-ticket projects could help Canada weather the current economic downturn.
“What we are talking about is strategic investments in things like infrastructure that can create a whole lot of jobs and some hope and opportunity, and allow Canada to come out of this period of economic uncertainty stronger and much earlier than other countries,” he said.
Indeed, Ottawa has already begun discussions with the provinces about the best way to accelerate spending on infrastructure projects, which often take years to plan, according to a senior aide to Harper.
But the aid package will come at a stiff price, with the risk of “substantial” deficits for the first time in a decade.
“As part of that economic recovery plan, we obviously will have to run deficits. They won’t be small, but infrastructure is one-time spending that can be an important shot in the arm,” Baird said.
The four local mayors are already thinking hard about which projects they would like to tackle.
Topping Warnock’s wish list is a major renovation project of the bridge in Waubaushene, the possible development of a community centre, and water and sewer improvements and maintenance.
“We do have a five-year capital plan,” he said, “and there are things we’re putting money away for now, but if we were to receive extra financial contributions from the federal government, it may enable us to move some projects up quicker and give us the flexibility of doing some things that we’ve thought about doing but have not able to put money aside (for).”
For Breckenridge, her list includes road construction and upgrades, improvements to the recreational infrastructure of Balm Beach, water and sewer improvements and maintenance, and high-speed broadband Internet for the entire municipality.
“We have 18 separate water systems to maintain,” she said. “The province has specified new regulations, and we have to make sure our water is safe…. That’s very important.
“We (also) have an awful lot of roads. We’re a large township and we have a lot of bridges.”
Penetanguishene’s wish list features $46 million worth of projects, and Dubeau said any assistance putting a dent in that would be welcome.
“Roads are always No. 1. Our sewer separation is a priority, as well,” she said, adding the biggest project would be the optimization of the town’s sewage treatment plant – expected to cost between $16 million and $20 million.
“Freeing up capacity … has enabled us to put it off for a few years, but, if we got money to help with the project, it is one that would come a little sooner,” she said. “(Currently), it is a little out of reach without the federal and provincial levels of government. We just don’t have that kind of money.”
As for Midland, Downer said the town is in need of water towers, new sewers and improvements to the transit system, as well as help with aging infrastructure on many streets.
“There’s lots of places to spend money, and it’s just getting the feds to come to the table,” he said. “The No. 1 concern is getting people working, and everything else will fall in place.”
– With files from Torstar News Services
