Federal government earmarks $3 billion for infrastructure stimulus
The federal government says it will spend more than $3 billion on infrastructure projects as part of its efforts to kick-start the economy during the COVID-19 pandemic.
Infrastructure Minister Catherine McKenna told The Canadian Press that her department has dedicated itself to approving a number of infrastructure projects that have been submitted to the federal government for funding from the provinces and territories. Specific announcements have yet to be made, but McKenna said the thrust of the projects will be aimed at making facilities more pandemic-resistant, which could mean delivering services virtually, increasing spacing among visitors and encouraging more outdoor activities.
In a related move, the Ontario Government announced on May 8 that it had cancelled construction work on the $300-million Halton Consolidated Provincial Courthouse project. Due to be awarded imminently, with construction work set to begin later this year, the project was shelved with a view to transforming the facility to allow it to deliver more services virtually. The decision was met with frustration from a number of groups across the province.
The Hamilton-Brantford Building and Construction Trades Council was among those that called the decision a blow to the region’s ability to bounce back after the damage caused to the region’s economy by not only the pandemic, but also the last-minute cancellation of Hamilton’s $1-billion light rail project.
“If the region is losing almost $1.5 billion in direct public infrastructure investments, there is a real fear that the local economy will fall into further recession in the midst of the COVID-19 crisis,” said council business manager Mark Ellerker. “Losing these two local projects amounts to the region actually losing $4 billion in local investments. These are big losses for the community that is already dealing with the consequences of COVID-19.”
The federal infrastructure minister said her department has approved spending on hundreds of projects already, adding that some have been adapted to respond to needs created by the pandemic.
Funding for the projects will be made available through the $33.5 billion Investing in Canada program. Ten percent of that funding will be dedicated to a special COVID-19 response fund.
Where the federal government would normally carry up to one-third of project costs put forward by municipalities, and half the cost of provincial projects, it will cover up to 80 percent under the COVID-19 program for provinces and municipalities, and 100 percent of the cost for projects in the territories.
McKenna’s aim is to see construction on approved projects begin this summer, and finish by the end of the 2021 construction season.