Speaking Notes for the Honourable Lawrence Cannon, P.C., M.P., Minister of Transport, Infrastructure and Communities at the Toronto Board of Trade

December 7, 2007
Toronto, Ontario

Check Against Delivery

Good morning and thank you for that warm welcome.

I am very pleased to have the opportunity to speak to you today about the Conservative government's commitment to infrastructure and Canadian communities, and more specifically what that commitment means for the Greater Toronto Area. I know my colleague Jim Flaherty has done that on several occasions in Toronto -- he is doing a great job as Finance Minister and Ontario is largely benefiting from that as you all know.

As Canadians, as community leaders, as elected officials, we all want the same thing -- to ensure that our communities thrive and prosper and that they provide us with the highest standard of living possible.  And for the Greater Toronto Area, this also means taking care of the gridlock situation by providing transit solutions.

As a municipal councilor and Transit authority head for the city of Gatineau - across the river from Ottawa - I was certainly concerned with the quality of life of my constituents. And today, as the federal Minister of Transport, Infrastructure and Communities, I continue to focus - from a national perspective, on the challenges facing our cities and their infrastructure. 

How are cities, such as Toronto, going to adapt and make the investments needed to deal with increased pressure on existing infrastructure and the growing need to build new infrastructure? How can senior levels of government help meet these needs and respect constitutional responsibilities for cities?

Federal commitment

The solution is collaboration and action across all levels of government and the private sector, and long-term commitment that supports deliberate planning around sure sources of money.

In discussions over the summer and fall with provinces and territories, and the municipal sector, we confirmed there is a need for:

• better collaboration among all levels of government;
• predictable, flexible and long-term funding; and
• straightforward programming that recognizes differing needs of large and small municipalities.

These discussions also confirmed that we needed to move beyond strategy to action across a range of infrastructure.

Now, it is important to highlight the fact that the previous Liberal government left us with a critical and challenging infrastructure gap and it is this Government that took swift and decisive action to speed up a world-class infrastructure program for this country.

On November 6th, the Prime Minister launched the $33-billion Building Canada infrastructure plan. This plan is the most comprehensive of its kind in Canadian history. It provides stable and predictable funding for the longest period of time ever committed to by any federal government over the past 50 years.

That is why I'm somewhat puzzled by the reaction of some of Canada's municipal leaders over the Government of Canada's initiative.

Because in fact, as soon as we took office in 2006, this Government recognized the urgent need to invest in infrastructure.

Living in a baseball city, you'll understand me when I say "we've stepped up to the plate with our Building Canada plan."

As I said before, no other federal government in Canadian history has ever made such a large, long-term investment to modernize infrastructure.

However, no one level of government can fully address the infrastructure issues faced by this country. As I'm fond of saying: "Partnership is a two-way street." That means that we must all - the Government of Canada, provinces, territories and the municipal sector - work together to meet this challenge. I know it's what Canadians expect of their governments.

In other words, we need to move past the rhetoric and the finger-pointing and "get moving!" The federal government is there with its funding. Now is the time for shovels and hard hats. And that, ladies and gentlemen, is a role for municipalities, who own a huge proportion of Canada's public infrastructure.

Building Canada Plan

Through its new plan, the Government of Canada is providing $33 billion over seven years which includes:

• $17.6 billion, or over 50 per cent of the plan, in base funding for municipalities until 2014, including a full Goods and Services Tax rebate, and $11.8 billion through the Gas Tax Fund;
• $25 million per year, over seven years, in base funding to provinces and territories. That's $175 million for each jurisdiction for basic infrastructure needs like bridge safety;
• $8.8 billion for the new Building Canada Fund, which will be applied to strategic projects in large urban centres as well as projects in small communities, with particular attention to those smaller than 100,000 people;
• $2.1 billion for the new Gateways and Border Crossings Fund to improve cross-border trade with the United States;
• $1.25 billion for a new national fund for public-private partnerships; and
• $1 billion for the Asia-Pacific Gateway.

These investments are an important contribution and address the infrastructure needs of municipalities, provinces and territories. This funding will be dedicated to things that matter to Canadians, such as clean water, more efficient public transit, safe roads and green energy.

Overall, our approach highlights the extent of federal involvement and confirms our respect for jurisdiction, as well as our commitment to working collaboratively on the issues raised during our discussions in developing the plan.

Already, we have signed framework agreements under Building Canada with British Columbia and Nova Scotia. Later this afternoon, my Cabinet colleague, Greg Thompson, and Premier Graham will be making another important infrastructure announcement in New Brunswick. I hope the Province of Ontario will move quickly to sign on to this plan so the funding can start flowing and the work can get underway.

Under Building Canada, this province of Ontario stands to receive more than $7.7-billion over seven years, which means that Toronto will also receive funding from the extended Gas Tax. In fact $4.4 billion of that amount will flow directly to Ontario's cities. As well, the City, not only the Province, will be able to submit projects for consideration under the plan.

Current federal investment in the GTA

It's important to note that the federal government has already made significant investments in infrastructure in Toronto and in the GTA.  And I am not talking about promises, I am talking about real projects. Here are a few examples:

• Over the first five years, contributions from the Gas Tax Fund will total $407.2 million. This funding is going towards bus and subway improvements.
• A one-time payment under the Public Transit Fund already has been made in the amount of $98.4 million.

Also, in March of this year,  Prime Minister Stephen Harper  announced FLOW, a transportation action plan for the GTA.  FLOW involves concrete projects designed to reduce traffic congestion, improve the environment and increase economic growth in one of the fastest growing areas in Canada. 

FLOW is close to $1 billion to help support a number of transit projects in the Greater Toronto Area, including:

• up to $95 million for the Brampton AcceleRide;
• up to $83 million for the Mississauga bus rapid transit corridor;
• up to $85 million for York Region's VIVA Phase 2, Stage 1;
• up to $697 million for Toronto-York Subway extension; and
• up to $2.5 million for Durham region transit.

We're working with the proponents as quickly as possible and expect to sign funding agreements with Mississauga, Brampton and Durham early in the new year. And here, I want to be clear. We are ready to reimburse upon receipt of the proponent's invoices, meaning we're open for business. There are no delays or road blocks from the federal government. Only funds, lots of funds - an unprecedented amount of funds.

Our Government also fully supports the restoration and redevelopment of Union Station and we are committed to contribute financially, along with Ontario Ministry of Transportation and the City of Toronto. Historic Union Station is at the heart of Toronto and its redevelopment is essential.

However, given the importance of this station - it's the most heavily used passenger transportation facility in Canada - it's imperative that its governance structure be clarified before we move forward on any project. To that end, we are encouraging the City of Toronto to put in place a dedicated governance entity for the station, as agreed to in the Memorandum of Understanding between the City and the federal government, so that we can negotiate a contribution agreement and move forward with the station's restoration and redevelopment. 

And I would also like to point out that Canada supports, through our $385 million contribution to GO Transit, the construction of a direct rail link between Pearson Airport and Union Station.  The environmental assessment for this project has been bogged down for two years now, with no sign of any progress.  The lack of a fast, frequent connection to downtown from the airport in a world-class city such as Toronto is turning into an embarrassment.  This project needs to be a priority for all levels of government.

I also want to set the record straight over the criticism leveled at the federal government for not flowing any of the $350 million we've committed to the TTC. Our agreement to provide this funding had a condition:  that Toronto, in turn, commit to provide its annual funding to GO Transit to support, amongst other projects, the Air-Rail Link I noted earlier.  Although Mayor Miller had previously agreed to this condition, earlier this year he changed his mind and refused to sign the agreement with such a provision.

GO Transit is every bit as important to the federal government as the TTC.  We are not prepared to sacrifice one at the expense of the other.  Again my wish is to see that project move forward, without delay, in partnership and in the spirit of open federalism.

I would also like to take this opportunity to say how delighted I am to see that our start-up funding of the exciting and innovative, community-based initiative--Smart Commute--has borne fruit.

And we are also pleased that Metrolinx will support these efforts as of January 1, 2008, when Smart Commute joins its organization.  As we move forward, we would welcome an opportunity to find areas in which we can work with Metrolinx on our common objectives in the areas of sustainable transportation and improved economic productivity in this crucial metropolitan region.

Ontario-Québec Continental Gateway and Trade Corridor Initiative

On July 30, I had the pleasure to announce the Ontario-Québec Continental Gateway and Trade Corridor Initiative, which will also be a great benefit to Toronto and all of Ontario in the future.

In moving forward on this initiative, the governments of Canada, Ontario and Québec share a common objective: to ensure that Central Canada has a strategic, integrated and globally competitive transportation system that allows the efficient movements of both international trade and the domestic inputs that make up foreign trade.

We are looking at short, medium and long-term perspectives, and at all measures beyond infrastructure that affect the competitiveness and sustainability of our international trade transportation system.

For example, there are significant opportunities in Ontario, and particularly in the Greater Toronto Region, to attract more international commerce activities.  As such, we will be working with our provincial counterparts to determine the best course of action to take advantage of these opportunities.

A strategy will be developed over a 24-month period. 

Public-private partnerships

Going forward, Ottawa will continue working with provincial and territorial governments to make infrastructure funding a priority. 

However, we realize that governments cannot alone meet all of the infrastructure needs. We recognize that private capital and expertise can help bridge the gaps and make a significant contribution to building infrastructure. And we owe it to Canadians to look at these options of alternative funding and risk sharing.

We have much work to do together to refurbish some of our existing infrastructure and to build new infrastructure.

Canada has made some progress in the use of P3s with the development of some high-profile projects, such as the Canada Line project - a  $2 billion  award-winning P3 project with self-propelled trains in British Columbia - that the federal government has committed $450 million to. This is the largest P3 project of modern times in Canada. Soon the Detroit-Windsor crossing will move to a P3 and strengthen our border capacity here in Ontario.

This government is taking a leadership role in developing P3 opportunities through its $1.25-billion Public-Private Partnerships Fund as part of the Building Canada plan.  This is the first time a federal government has ever put forward such a measure - and it is accessible by cities such as Toronto.

We are also working on the creation of a new P3 office that will facilitate a broader use of P3s in infrastructure projects.

Conclusion

Ladies and gentlemen, with Building Canada, the federal government has taken steps to address the infrastructure challenge and ensure that our cities are prepared for current and future growth, and can compete internationally.

Modern infrastructure is at the centre of Canada's standard of living and contributes greatly to the quality of life that we value.

While there are no easy answers or quick fixes, I think it is clear that broad-based cooperation is the best way to improve infrastructure and to ensure that citizens live in quality communities that together we aspire to build.  Building Canada is about investing in our country's future. It's about a stronger economy, a cleaner environment and more prosperous communities.

Thank you.