Speaking Notes for the Honourable Lawrence Cannon, P.C., M.P., Minister of Transport, Infrastructure and Communities at the Federation of Canadian Municipalities’ Sustainable Communities Conference and Trade Show 2008

February 14, 2008
Ottawa, Ontario

Check Against Delivery

Dear friends,

When I came into office, I met with FCM and mayors from across Canada. I heard about the need for more long term, predictable and flexible funding for infrastructure. We’ve come a long way since then.

Perhaps not quite as far as many of you would have liked. But certainly further than any government at least since the second World War.

Building Canada

In our second budget last year we announced a seven-year $33-billion Building Canada plan. This unprecedented commitment will allow us to work together to restore infrastructure in this country. I’m talking about supporting a growing economy, cleaning up the environment and building stronger communities.

I realize communities face different challenges. After all, I faced these same challenges when I was a city councilor, not too long ago.

While big cities must compete to attract investments and a skilled workforce, smaller communities must offer the same type of infrastructure as bigger municipalities if they want to ensure their future growth and prosperity.

Our plan provides long-term, predictable funding to provinces, territories and yes, to municipalities. In fact, more than half of the funding – $17.6 billion to be exact – is going to municipalities through the 100 per cent GST rebate and the Gas Tax Fund to modernize Canada’s infrastructure. Building Canada will, with other levels of government and funding partners, generate at least $50 billion in new investment.

But we must also be mindful that all governments need to act responsibly in managing their budgets. Indeed, we must always remember that partnership is a two-way street. Together, we might not be able to move earth like Archimedes wanted to, but we can certainly leverage an impressive – unprecedented, number of projects, big and small, all across the country.

We have already achieved real results for Canadians.

These results have taken the form of storm water improvements, new water treatment plants, roads being repaired, green buses in big cities, revitalized congress centres, national art galleries and renovated museums.

And we are just beginning. These are the results of Building Canada.

And let’s remember that I represent the Canadian Government and you, the municipal government. But there is only one level of taxpayers.

Canadians don’t expect us to discuss funding indefinitely; they expect their elected representatives to provide the infrastructure this country needs. The funds are there and available.

To date, we’ve signed infrastructure agreements under the Building Canada plan with British Columbia, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Nunavut. And we are working with the other provinces and territories to sign their framework agreements as soon as possible.

I’d like to urge you to send a clear message to your provincial and territorial governments to sign these agreements so funds can start flowing and work can begin on projects.

Moving towards the budget, we already know Canada’s economic fundamentals are strong. Unemployment is at its lowest level in more than three decades. Federal taxes are headed to their lowest in more than four decades. Debt levels are falling. Inflation and interest rates remain low. The income of Canadian households has been increasing strongly.

But we cannot be complacent about the continued growth of our economy. Recent volatility in financial markets, mostly emanating from the United States, may be with us for some time to come. Good jobs are threatened in some of our traditional industries.

Our Government is aware of these challenges. But in a period of economic uncertainty, what Canadians need most is leadership from their elected people – at all levels.

When you asked us to extend the Gas Tax Fund, in Budget 2007, we extended it to 2014, providing municipalities with long-term, predictable funding like no other Government has before in Canada.

Our government also brought the Gas Tax Fund to its highest level ever, to $2 billion a year nationally.

Which is why I am urging you today to be ambitious and innovative – but also reasonable and realistic. With new opportunities also come new responsibilities, and new resources call for new choices.

We have already shown a real willingness to listen to you.

Gas Tax will increase to $2 billion by 2010 from $800 million in 2007-2008, and will continue at that level for another four years until 2014. By 2014, we will have provided close to $12 billion in Gas Tax funding to communities right across Canada.

Green Municipal Fund

We have also provided $550 million to the Green Municipal fund and together with the FCM, we have invested in more than 650 community projects across the country.

So far, this fund has invested more than $380 million in your municipalities and communities. That’s a significant achievement for which we can all be proud.

EcoMOBILITY

In addition to the initiatives I just outlined, the Government of Canada is putting forward other programs to encourage sustainability.

Last year for example, I was pleased to announce the $10-million ecomobility program as part of the Government’s ecoaction Initiatives, which will reduce emissions from urban passenger transportation by helping municipalities encourage residents to use less polluting forms of transportation, such as public transit, carpooling, cycling, and walking.

Today, I am pleased to announce Transport Canada has launched a request for proposals for transportation demand management projects under the ecoMOBILITY program. A total of $4 million is now available.

Transit

Our government has also taken action by delivering the largest and longest-term financial commitment to transit ever made by a federal government.

The Government of Canada’s funding for transit has greatly increased since we came into office, reaching more than $1 billion per year. And even more funding is available through the $33-billion Building Canada Infrastructure Plan.

The Canadian Urban Transit Association hosted a national transit forum yesterday in which I participated. It will provide an important platform for greater cooperation among governments and stakeholders, and aim to improve transit for Canadians.

Conclusion

These examples demonstrate very clearly that we are building a stronger, safer and better Canada.

Thank you .