Thank you, Mr. Chair. It's really a pleasure to be here this morning. We really appreciate the opportunity to present to this committee.
On behalf of some 2,000 members of the Federation of Canadian Municipalities, FCM, I am pleased to present our views on Bill C-60, specifically with regard to division 18 of part 3.
We at FCM believe that there is no surer way to create jobs than by strengthening our economic foundations of tomorrow and investing in municipal infrastructure. When federal, provincial, territorial and local partners all bring money and expertise to the table, no other investment goes as far.
In a world full of economic uncertainty, Canadians want to know that we're taking action to build the conditions for a competitive economy and strong communities. Canadians want to know that all orders of government are working together to make progress on particular priorities: good roads, clean water, and a shorter commute.
The new infrastructure plan announced in budget 2013 is set to renew federal funding, which is expiring in 2014. It will index the gas tax fund to protect its long-term value and provide longer-term funding for cost-shared projects. This is certainly a step in the right direction. By protecting the purchasing power of the gas tax transfer and by extending the program funding for 10 years, this budget advances the principle of long-term, predictable infrastructure funding. FCM is looking forward to getting on with the work to design the new program, to plan it, and to ensure that municipalities do not miss the construction season in 2014 that this government has committed to.
We are particularly pleased with the government's decision to review the effectiveness of its infrastructure plan within the next five years. That will be an opportunity to determine how effective the plan is in addressing its key infrastructure gaps, especially in public transit. It will also be an opportunity to decide what improvements need to be made following the implementation of new federal wastewater regulations.
What the budget did not contain was a definitive road map to erasing infrastructure deficit. FCM would like to work towards a framework for achieving this important goal in the near term. Canada's municipalities own and operate 60% of Canada's core economic infrastructure but collect just 8¢ of every tax dollar paid in Canada. This is one of the reasons why it is essential to ensure new predictable infrastructure investments, such as the indexing of the permanent gas tax fund, which will add $9 billion over 20 years.
I'd just like to give you a clear picture of why we believe investments that are predictable, like the gas tax fund, are so essential to our work and to the country. Investments that are predictable allow companies to hire new workers and plan for new equipment that is needed. They allow business decisions on where to locate or upgrade, based on planned public infrastructure. The gas tax allows for long-term planning with the flexibility for projects to be approved and funding disbursed in the same year. It also allows for the federal government to identify broad investment priorities while municipalities select the projects most needed. In addition, the injection of private investment becomes easier to consider due to the access to a predictable revenue stream. Perhaps most importantly, every region receives its fair share, which means job creation across the country and more balanced economic outcomes.
For Canadian municipalities, challenges will persist and remain a threat to Canada's economy and quality of life. These include the $20 billion price tag for meeting the new federal waste water standards, growing traffic gridlock, and inadequate public transit, as well as the challenge of adapting municipal roads, bridges, and water systems to extreme weather caused by climate change. Meeting these challenges will require further commitment by all orders of government, a framework for cooperation, better infrastructure management through measures such as sustained capacity building, and new partnerships with the private sector where they make sense and where they benefit Canadians.
An essential piece of this collaboration needs to focus on putting an end to off-loading, whether it's the result of legislation shifting unfunded responsibilities onto local governments, or municipalities having to fill the void when another government fails to fulfill its own front-line duties.
We hope that the long-term plan announced in Budget 2013 will provide all levels of government with a practical model of co-operation and that it will help break down the barriers that prevent them from providing taxpayers with the best value.
The infrastructure plan that was announced is an opportunity to expand the partnership in terms of both infrastructure and other challenges. Municipal leaders are ready to do their part.
We are pleased to have this opportunity to talk and look forward to your questions.