In order for Canada to prosper in challenging economic times, the next federal government must have a clear plan when it comes to trade, which includes critical infrastructure investments.
This was the message the Canadian Chamber of Commerce, the Ontario Chamber of Commerce and the Toronto Region Board of Trade wanted to send to all federal parties during a recent announcement in Toronto, where representatives symbolically stood next to the aging Gardiner Expressway.
“We put out a campaign manifesto this year, which said the key issue in economic debate really ought to be about the competitiveness of Canadian business,” says Warren Everson, senior vice-president, policy with the Canadian Chamber of Commerce.
“Competitiveness, no matter what business you’re in, will tend to have four critical components: You need access to markets and infrastructure. You need access to a good, skilled workforce. You need money and you need some kind of technologies these days. Those are the four big quadrants that all the political parties have to tell us something about what they would do. Infrastructure is the first of these.”
According to a release, Canada has made strides with its current trade agenda, which emphasizes the point that policies need to be in place to help businesses access newly opened markets. This also means public assets like airports, ports, roads, marine safety systems and other infrastructure are critical and require funding and strategic policy direction.
“The first step is the ratification of the Canada Europe trade agreement. Then we need to conclude a positive Trans-Pacific Partnership agreement. These trade agreements are essential to Canada and will put us in a positive situation,” explains Perrin Beatty, president and CEO of the Canadian Chamber of Commerce in a statement.
“We therefore have to ensure that our infrastructure is able to handle not only existing trade flows, but also the expected shifts and increases in our trade patterns. That’s not the case right now. We have to be looking to the future of trade, and the next federal government has to take the lead on building a Canada that wins.”
Everson states the response from party leaders on infrastructure has been positive, but it does come down to a clear direction.
“They all have disagreements about what infrastructure means to them,” he states. “We’re waiting to see how they will position themselves on certain issues like the various pipeline projects, which are up for approval and then issues of funding for municipal infrastructure. We’re not highly prescriptive as to exactly what needs to happen where and when.”
Coming on the heels of this event was an announcement by Liberal Leader Justin Trudeau that, if elected, he’ll almost double federal infrastructure investment to nearly $125 billion from $65 billion over 10 years. Trudeau’s announcement would “boost investment” in public transit infrastructure by around $6 billion over the next four years and nearly $20 billion over 10 years. The same funding was set out for social infrastructure, such as seniors facilities and affordable housing, as well as green infrastructure, which includes local water and wastewater facilities, clean energy and the clean-up of contaminated sites.
Both Conservative Leader Stephen Harper and NDP Leader Thomas Mulcair criticized Trudeau’s announcement as it would mean running deficits until 2019.
Trudeau’s announcement is encouraging but does require strategic thinking, Everson says.
“I think it would probably be appropriate for his party to think about where that money comes from. It doesn’t always have to be from ratepayers and taxpayers,” he states, adding sometimes public-private partnerships or private investment can be beneficial.
“Sometimes you can set up a very desirable, virtuous circle where private investors are making stuff happen and profiting from it and we all are.”
He also adds considering the current economic climate, it isn’t a shock that deficits are on the political agenda.
“I think the issue of deficits is going to be much with this campaign, just because commodity markets fell so sharply and Canada’s federal budgets are so dependent on revenues from commodity licensing. I would argue the feds have probably been among the people most harmed by the precipitous decline in oil prices,” Everson adds. “But generally, we find politicians like infrastructure because it tends to be labour intensive, but it’s also enduring. Infrastructure is not a static investment. The more modern and innovative your infrastructure is, the better.”
Harper previously told the Canadian Construction Association (CCA) that under his government trade and infrastructure have been priorities.
He stated the New Building Canada Plan committed a further $53 billion to infrastructure development over the next 10 years and would not only make investments in small communities but also “into the development of infrastructure assets that support our trade competitiveness — things like highways, ports, airports and even in some cases, private infrastructure like rail.”
Mulcair told the CCA the NDP will increase infrastructure transfers of the existing Gas Tax Fund by $1.5 billion to reach a total of $3.7 billion annually for “long-term investments in local infrastructure priorities.” He said they would also invest $1.3 billion annually for public transit.
“Modern infrastructure is essential to promote economic growth, drive productivity, and strengthen Ontario’s competitiveness,” says Allan O’Dette, president and CEO of the Ontario Chamber of Commerce. “And yet, Ontario suffers from a significant infrastructure gap. Closing this gap must be a priority for the next federal government.”
Jan De Silva, president and CEO of the Toronto Region Board of Trade, shares similar views.
“To succeed globally, our large urban centres — including the Toronto region which generates 20 per cent of Canada’s GDP — require investment in trade and transit,” says De Silva. “We are looking to the federal parties to articulate their plans to support the growth and success of our metro regions.”
View the original content and more from this author here: http://ift.tt/1O1zuQw
from critical infrastructure alliance http://ift.tt/1fYIAzq
via IFTTT
No comments:
Post a Comment