Posts Tagged ‘infrastructure deficit’

MARTIN’S NEW DEAL FOR CITIES HOLDS LESSONS FOR HARPER GOVERNMENT

Wednesday, May 30th, 2012

This article first appeared in iPolitics under the title, “Infrastructure Minister has opportunity to strengthen federal-municipal relation.”

This Friday, as mayors and councilors from across Canada gather in Saskatoon for the opening of the Federation of Canadian Municipalities’ (FCM) annual conference, some in attendance may note that it marks the 10th anniversary of Paul Martin’s New Deal for cities speech to the same conference, held that year in Hamilton. But it’s not likely.

While not quite up there with Martin Luther King’s “I Have a Dream” speech or other oratory landmarks of the 20th century, Martin’s 2002 cities speech did more than get him fired from the Chrétien cabinet. It inspired hope among municipal politicians and urban advocates that Canada’s cities would finally be on the national agenda. Many even suggested that it ushered in a new era of federal-municipal partnership.

Yet, like much of Martin’s ambitious agenda, the New Deal for cities failed to live up to expectations.

Today, with the Harper government working on a new long-term infrastructure program to replace those set to expire—along with other federal transfers—in March 2014, it’s appropriate to ask what lessons the failure of Martin’s vision has for the current government.

To be fair to Paul Martin’s legacy, it is important to note that the New Deal delivered the gas tax transfer, which today pumps two billion dollars a year into city coffers for much-needed infrastructure repairs. But it took a Conservative government to make it permanent.

When it was introduced in 2005, it was as a five-year program, which did little to address the need for funding certainty required for long-term capital investments and planning. Its relatively short-term  nature reflected a high-degree of skittishness on the part of federal finance (and other) officials at the prospect of longer term transfers.

In hindsight, it shouldn’t have come as a surprise that there was more sizzle than steak to the New Deal. Any significant federal overture to municipalities along the lines hinted at in his speech was likely to raise the hackles of provincial governments and be largely unworkable, both politically and  constitutionally.

His speech, 10 years later, is rife with generalities. Martin was cautious, refusing to get into specific commitments, unwilling to go all in and truly  embrace—to use one of his favourite words—a transformative relationship with municipal governments and risk being called offside—not by his boss but by provincial premiers.

Yet in its day, the speech resonated because it was the first time in many years that a senior federal politician—one who aspired to the top job, no less—reached out to city governments with so much passion and apparent understanding of the issues they faced.

But if he succeeded in seducing his audience with his vision of a new relationship, Paul Martin failed to consummate it. In part, this was because his tenure was cut short by the election of the Harper government in January 2006. More importantly, it was because there was no meaningful policy framework to support it.

And this brings us back to Friday in Saskatoon. This year, it’s federal infrastructure minister Denis Lebel who will deliver the keynote address to the municipal delegates. And while it’s a safe bet it won’t get him fired, his speech will be as important for Canada’s cities as Paul Martin’s.

Lebel is about one third of the way through a process he announced last November to put in place a long-term plan for infrastructure spending in this country. And while a long-term infrastructure deal lacks the excitement of a New Deal, it will likely set the terms and conditions for the federal-municipal
relationship for the next decade and beyond.

With Canada’s cities struggling under the weight of a $120-billion infrastructure deficit, and the expiry of a number of critical federal transfers to cities, including the flagship Building Canada Fund set for March 2014, municipal delegates will hanging on his every word looking for reassurances.

The minister should avoid Paul Martin’s mistakes and the urge to speak in generalities about “the vision thing”.  He should use his remarks to spell out in
detail how the rest of his process will unfold and, most importantly, its policy objective, which should be very simple: eliminating the infrastructure deficit for good–because that has to be the bottom line.

Anything short of a clear commitment to fixing the problem once and for all, will perpetuate the creation of programs that fail to get at the root causes of accelerating infrastructure decay in this country.

The major constant in a 10-year backdrop of shifting federal attitudes toward municipalities has been that policies in this area have largely been dictated by the political circumstances of the day and not on the basis of clear policy considerations and objectives.

The minister now has an opportunity to learn from the mistakes of the past and break that cycle. As political oratory it won’t pack the same wallop as Paul Martin’s speech, but the outcome could be as transformative as the promise of the New Deal was bold.

FEDERAL COMMITMENT JUST THE FIX FOR CRUMBLING INFRASTRUCTURE

Wednesday, December 7th, 2011

The announcement last week by federal infrastructure minister Denis Lebel that the federal government was kick-starting a process to develop a new long term strategy for public infrastructure investments was quickly dismissed by critics as smoke and mirrors.

With the President of the Federation of Canadian Municipalities at his side, the minister announced a three-step, year-long plan designed to take stock of the situation and align federal, provincial and municipal infrastructure efforts into a common strategy by 2014 when the current suite of federal programs expires.

But with Canada’s infrastructure deficit topping the $ 100 billion mark  and compounding daily, many had hoped that the federal government would announce something more definitive than studies and intergovernmental consultations.

It would be tempting to dismiss this as just  an example of Ottawa fiddling while our cities crumble. It certainly wouldn’t be the first time that a
government announced studies and consultations as a way to try and make an issue go away.

This time however, that would be wrong. In fact, last week’s announcement — if followed through – could just be the fix for Canada’s crumbling infrastructure and broken funding system.

Let’s look at the reasons why.

First, no amount of federal foot-dragging or magical thinking is going to make this particular issue go away.

By the time the current programs run their course in a couple of years, Ottawa will have been in the infrastructure funding business for two decades and will have invested over $ 30 billion while leveraging billions more from provincial and municipal governments.

Yet, not only do the problems that spurred the creation of the first infrastructure program in 1993 remain, but they’ve gotten worse with, as the collapse of a Laval overpass a few years ago reminds us, potentially deadly consequences.

In the early1980s, at the start of the cities’ campaign to get federal help for their crumbling infrastructure, the gap stood at about $ 12 billion, by 2007 studies showed the so-called infrastructure deficit had broken through the $100 billion mark. And that’s just for municipal infrastructure.

Add to that the bill for federal and provincial roads, bridges and other assorted structures and it’s easy to understand why no one level of government has claimed ownership of the problem or the solution.

Second, an overhaul of the existing programs is urgently needed.  The current system of short term, ad-hoc programs favours spending on new infrastructure more than repair, and because the focus is often on getting shovels in the ground quickly, it also tends to favour spending on second and even third tier priorities.

The minister’s commitment to taking stock of what worked and what didn’t with the old programs should lead to a basic re-think of how Ottawa delivers infrastructure funding.

Third, mayors and councillors have rightly been pushing for this kind of long term thinking from Ottawa for the last ten years and, without any new funding programs in the pipeline to act as sweeteners it’s not likely they will let the government off the hook without something tangible to bring home.

Fourth, it is in the provinces’ interest to accept the minister’s invitation and come to the table and have a say on how federal infrastructure largesse will be doled out, first to try and secure the largest possible share of federal dollars for provincial infrastructure, and second, in order to finally have a say in what the programs will look like.

Finally, the growing pressure on the Harper government to deal with a number of major infrastructure challenges – the replacement of the Champlain Bridge comes to mind– gives the minister and the government a powerful incentive to try and spread the fiscal and political burden for Canada’s infrastructure building and repair more evenly across all jurisdictions. This should be a major incentive for real progress.

But what of FCM President Berry Vrbanovic’s comment that last week’s announcement amounted to “a promise to put aside band aid solutions and find the cure for the infrastructure deficit once and for all”?  Wishful thinking on his part?

I’m not sure that the infrastructure minister  would  echo those words exactly–we all remember Paul Martin’s promise to fix health care “for a generation”.  But his commitment to engage all levels of government in a collective re-think of how we finance our roads, bridges and water works, is pragmatic, gutsy and long-overdue.  And it may just work.