Thank you very much, Mr. Chairman.
Ladies and gentlemen, it is a pleasure to be here today.
It's my pleasure to be here today. I appreciate the opportunity to convey our thoughts on Budget 2015.
The Federation of Canadian Municipalities is the national voice of municipal governments across Canada. We represent the elected leaders of 2,000 municipalities who serve more than 90% of Canadians living in big cities, small urban centres, and rural and remote communities. Our goals are simple. We want to strengthen the services that families rely on; keep our communities safe and vibrant; and build the foundations to a stronger, modern economy.
Our cities, our communities, drive Canada's economy. They are the hubs for environmental and social innovation. Time and again we've shown that when a stable, consistent, and long-term framework is in place, investing in our hometowns creates jobs and improves the quality of life of Canadians. We've seen it in fighting the recession and rebuilding our infrastructure through a permanent and indexed gas tax fund and in major cost-shared investments in roads, bridges, transit, and other core infrastructure.
The 2015 federal budget represents a real opportunity to move beyond one-off agreements and provide a sustainable framework for strengthening Canada's hometowns and moving this country forward.
Investing in local infrastructure provides a clear and measurable return on investment while addressing the biggest gaps hindering our economic competitiveness. According to the Conference Board of Canada, improving our roads, bridges, and water systems generates up to $1.20 in real GDP growth for every dollar invested.
FCM will be providing a submission to the committee focused on partnering on infrastructure, but in my limited time today I want to focus on a very specific infrastructure issue, protecting Canadian water.
New federal wastewater regulations will require upgrades to one in four wastewater treatment systems in Canada. Municipal leaders have supported the goal of protecting Canada's water resources and the improvement to the environment that will result. The costs associated with the implementation of the regulations, however, are beyond the reach of municipalities alone.
Based on FCM cost estimates, future capital expenditures of more than $18 billion will be required over the next 20 years as a result of this federal initiative. There will also be additional costs to municipalities for assessments, planning, and ongoing operations. Simply to give the committee members an idea of the challenge, for example, community residents in Mr. Saxton's riding face over $700 million in the next five years alone to upgrade wastewater treatment plants.
To Mr. Brison and Mr. Keddy as well, Nova Scotia municipalities are going to have to invest $218 million in the next five years. To Mr. Rankin and Mr. Cullen, B.C.'s total costs will be about $1.75 billion over the next five years. In Ms. Boutin-Sweet's home province of Quebec, 30 wastewater treatment plants will need to be replaced in the next five years, for a total estimated cost of $1.13 billion.
Obviously, you can see the severity of the issue.
I recognize that these numbers are significant, but I assure you that municipalities are ready to do their fair share, and the solution we are putting forward is responsible and still feasible in a balanced budget scenario.
FCM is recommending that the budget establish a dedicated fund for wastewater treatment projects required due to the new wastewater regulations, and that all orders of government contribute in a cost-shared plan. This partnership would see new federal investments of $300 million annually, and a commitment of 20 years to assist with the capital costs.
I'd like to spend some time with you as well discussing how we can continue working together to make Canada a welcoming and an affordable place to live. Together we can create vibrant and welcoming communities where people want to live and work, start business, build connections, and contribute.