Madam Speaker, I would first like to inform you that I will be sharing my time with the member for Moncton—Riverview—Dieppe.
It is an honour to stand in the House today to speak about the important work our government is doing to support our municipalities' infrastructure investments for the 21st century.
In budget 2016, we launched the first phase of the plan, which is designed to achieve three major objectives: encouraging long-term economic growth, building inclusive communities, and supporting a low carbon emission green economy.
The initial phase focused on repairing and modernizing existing infrastructure. It also provided for financing the design and planning stages of new large-scale projects.
That first phase has been successful. Through Infrastructure Canada's two funds, the $2 billion clean water and waste water fund, and the $3.4 billion public transit infrastructure fund, the Government of Canada has supported 1,760 projects across the country. Over 70% of these projects are currently under way.
When we first took office, we made a commitment to Canadians and Canadian municipalities to be transparent and to make strategic evidence-based investments in infrastructure. We knew the best way to do this was in partnership with provinces, territories, municipalities, indigenous peoples, and key stakeholders, so we met with them. We talked to them, and we continue to talk to all our partners and stakeholders. We know the best way to be successful is to ensure that the work we are doing and the plans we are putting forward are based on the needs and expectations of the people it is meant to serve.
As the Prime Minister said in the House on Tuesday, we ensure we talk to people, like the Federation of Canadian Municipalities, the big cities mayors' caucus, and to engineering and construction industry members. Last week, I spoke to a group of mayors from the UMQ, who put forward their views on our project, and they were very positive about it. With their valuable input and contributions, we were able to develop our long-term infrastructure plan, which we call “investing in Canada”, through which we will invest over $180 billion over 12 years.
Our plan focuses on five key areas: public transit, green infrastructure, social infrastructure, trade and transportation, and rural and northern communities. It also features two new initiatives: the smart cities challenge, which I spoke to the mayor and guests about yesterday in Toronto; and the Canada infrastructure bank.
When we were developing the Canada infrastructure bank, we also met with groups like the Canadian Council for Public-Private Partnerships, the World Bank, and the International Monetary Fund. We knew the importance of having the experts at the table from the very beginning. That is also why I would like to commend the House of Commons and Senate committees that are looking into the bank very carefully. The bank is being reviewed by four distinct committees. I would like to thank those members for their time and hard work on the matter.
The Canada infrastructure bank is a new tool for communities across Canada to take advantage of in order to build strong and stronger communities.
We are proposing the Canada infrastructure bank because we believe that the federal government has an opportunity to make a place for itself among the many private sector investments in infrastructure and to form partnerships with some of the largest institutional investors in the world.
If Parliament approves it, that is exactly what the Canada infrastructure bank will do. It will invest up to $35 billion in new infrastructure focusing on growth everywhere in Canada.
Fifteen billion of those dollars will come from the investing in Canada plan. That $15 billion represents approximately 8% of the total funds we have committed to infrastructure under our long-term plan, which I referred to earlier, of over $180 billion.
We will make an additional $20 billion in capital available to the Canada infrastructure bank to enable it to hold assets in the form of equity or debt.
The bank will be the federal government’s contact point with the private sector and will hire experts from the private sector so that the government can maximize the investments made with private capital.
The bank’s funds are in addition to the funding for infrastructure that we have committed to doubling. Most importantly, they represent a new way of helping our financing partners meet their urgent infrastructure needs. We will free up public funds to build more public infrastructure using private capital to build these new projects.
We expect that the bank will attract private sector capital that would otherwise not have been invested in public infrastructure. That will have a multiplier effect on our transformational infrastructure capacities. Once the bank has been created as an autonomous crown corporation, it will provide a new tool that the provincial, territorial, municipal, and indigenous partners will be able to use to build the infrastructure that Canadians need.
It will also be responsible for negotiating complex transactions and finding innovative financing solutions for transformational infrastructure projects everywhere in Canada. It is therefore essential that we find and attract talented and experienced managers who will ensure that the bank fulfils its mandate. My colleague, the Minister of Infrastructure and Communities, has initiated the search for senior management, namely the chairperson, the board of directors, and the chief executive officer of the autonomous crown corporation. The objective is to ensure that the bank is operational by the end of 2017.
This process is open and merit-based, and it will enable us to find the experts and professionals who are needed for managing the bank. The selection process is designed to attract diverse and highly qualified personnel.
At this point, I would like to address some of the allegations made in the House, in particular by the member for South Surrey—White Rock. The suggestion has been made, and it was not simply made by her, that the bank would take away from current projects that have been announced or are under way. That is patently false. The member can rest assured that the projects in her riding, totalling $72.5 million, half of which is federally funded, will go through.
Another issue that was raised was the ownership of the gas tax fund. It bears reminding the House that the gas tax fund was created by the last Liberal minister of finance, now the current Minister of Public Safety, to truly balance the budget. The gas tax fund is a Liberal initiative that creates sustained funding to municipalities through regular funding from the government.
As I mentioned at the beginning of my speech, I met with the UMQ. We do not share entirely the same opinion on how much money gets funded by the federal government. We are entering into a difficult, earnest, and open negotiation phase with Quebec, and municipalities will participate in the advocacy. It was very eager to hear what our plans were.
Wherever I go in Quebec to make announcements, the mayors of the cities, and especially the councillors, who work as hard as we do, if not harder, are delighted to be getting infrastructure. There has been a crying need for decades, because of capital underfunding, and that has consequences.
If approved by Parliament, the bank will be an important new tool for our provincial, territorial, municipal, and indigenous communities to build more infrastructure, while freeing up public funding for public projects.
The Government of Canada has been open and transparent regarding all phases of the bank's development. We will continue to work openly with our partners to ensure our investing in Canada's infrastructure plan continues to meet the needs of communities across Canada.