Federal government pledges $53.5 billion over next decade for infrastructure

The federal government has pledged $53.5 billion over the next decade for infrastructure across the country, a move that the Insurance Bureau of Canada has commended.

The 2013 budget, delivered Thursday, set out the amount for provincial, territorial and municipal infrastructure over the next 10 years.

The government’s plans for infrastructure include:

• $32.2 billion through a Community Improvement Fund consisting of an indexed Gas Tax Fund and the incremental Goods and Services Tax Rebate for Municipalities to build roads, public transit, recreational facilities and other community infrastructure across Canada
• $14 billion for a new Building Canada Fund to support major economic projects that have a national, regional and local significance
• $1.25 billion for a renewed P3 Canada Fund to continue supporting innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through public-private partnerships
• $6 billion in federal support to provinces, territories and municipalities under current infrastructure programs in 2014–15 and beyond

The government also set out funding for infrastructure projects in First Nations communities, including:

• Approximately $7 billion over 10 years in First Nations infrastructure such as roads, bridges, energy systems and other First Nations infrastructure priorities.
• About $10 billion in investments in federal infrastructure assets, including bridges, fishing harbours, ports, military bases and departmental accommodations across the country

In a statement following the presentation of the budget, IBC said it was pleased with the resources that will go toward infrastructure.

“As severe weather becomes more common in Canada, updated storm and waste water infrastructure is essential for municipalities,” noted Chris White, vice president of federal affairs with IBC.

“Because of the devastating human and economic impacts of severe weather, home, car and business insurers have made climate adaptation a top priority. We’re pleased to see the federal government helping fund this vital challenge,” White added.

IBC, the Federation of Canadian Municipalities and other stakeholders have been pushing for the government to make the country’s aging infrastructure a priority.