Thank you, Mr. Chair.
I would like to thank the chair and this committee for the opportunity to speak today on how the federal and municipal governments can work together to help Canadians at this time.
FCM has been the national voice of municipal governments since 1901, and during those 108 years we have represented the interests of Canada's municipal governments to the federal government. I'm here today to continue
continue the tradition, while respecting provincial jurisdiction. The Federation has always worked in a manner that showed respect for areas of provincial and territorial jurisdiction.
FCM believes that Canada's quality of life and economic growth depend on healthy cities and communities.
To attract new talent and investment, improve productivity, and protect our environment, Canada must have strong, secure foundations at the local level.
One area where federal, provincial, territorial governments have worked together to strengthen those foundations is in infrastructure investments. Federal infrastructure programs have helped us provide safer roads and bridges, clean drinking water, modern sewage treatment, and improved public transit.
While a municipal infrastructure deficit remains a long-term challenge, that's not what we came here to talk about today. We are here because Canada is caught in a growing recession, caused by a global economic crisis. That recession is felt in cities and communities right across this country.
The recent federal budget provided powerful new tools for creating jobs and fighting the recession. Now we must put those tools to work. The budget committed new funding for infrastructure rehabilitation, recreation facilities, green investments, affordable housing and broadband Internet service. With a fast, flexible action plan, these commitments will produce tens of thousands of new jobs this year alone. They will also leave Canada better equipped to meet the social, economic, and environmental challenges of the future.
To prepare new projects for this year, municipal councils, project managers and contractors will all need to work progressively over the coming weeks and months. Before we can get started, municipalities need to know how much federal money they can access; how much they need to find in new matching funds; what projects are eligible; and when new funds will start to flow.
We know that Minister Baird and his officials are working hard to answer these questions. We also know that finding the answers will take some time. But the start of the construction season is little more than a month away, and there's no time to waste.
The FCM is ready to sit down with the federal government to develop and implement a plan that will transform budget promises into new jobs.
As a first step, FCM recommends that the following five principles guide federal action.
First of all, let money flow quickly to create jobs now. A significant number of new infrastructure projects must get under way during the 2009 construction season to create jobs in time to offset the recession. This must be the overriding policy objective of new infrastructure spending.
Second, there must be dedicated funding for municipal infrastructure. Municipalities own more than half of Canada's infrastructure and virtually all water, sewer, and public transit systems. To create jobs and improve local assets, we need to know that the federal government is going to invest significant new funds in municipal infrastructure.
Third, adopt a simple, predictable, and fast-moving application process. The sooner funding decisions are known, the sooner construction can proceed. The federal government must adopt an accountability model that allows upfront approvals to be made quickly in accordance with simple guidelines, while using follow-up reporting tools to ensure projects deliver value for taxpayers.
Fourth, work through cost-sharing challenges. By the time the federal budget is approved, thousands of municipalities across Canada will have finalized their 2009 capital budgets. Reopening those budgets to find matching funds will take time and in some cases simply won't be possible. The government can help by being flexible. Cost sharing must not become the sole determining factor in federal funding decisions.
Fifth, put new federal loans to good use. We applaud the federal government for helping communities that do not have the funds to meet cost-sharing provisions. Now we must ensure that these funds deliver on their promises. The federal government must sit down with FCM as soon as possible to develop a workable program that gets new money into the economy quickly.
The federal budget says infrastructure programs “will be structured to flow funding and get shovels in the ground quickly”. These five principles will make it possible to meet that objective.
In closing, let me reiterate that Budget 2009 makes important investments in cities and communities, and gives the country powerful tools for fighting the recession. It must be implemented fully, fairly and efficiently if it is to counter the recession and deliver long-term value for Canadians.