Mr. Speaker, I am happy to take part in the debate on a motion tabled by the member for Thunder Bay—Rainy River.
On November 6, 2007, the Prime Minister launched the $33 billion building Canada infrastructure plan. This plan is the most comprehensive of its kind in Canadian history. It provides stable and predictable funding for the longest period of time ever committed to by any federal government. No other federal government in Canadian history has ever made such a large, long term investment to modernize infrastructure.
I speak to the plan because of its connection to transit and because of the way we seek to manage it in conjunction with provinces and territories.
Through its new plan, the Government of Canada is providing $33 billion over seven years, which includes: $17.6 billion, or over 50% of the plan, in base funding for municipalities until 2014, including a full GST rebate and $11.8 billion through the gas tax fund; $25 million per year over seven years in base funding to provinces and territories, $175 million for each jurisdiction for basic infrastructure needs like bridge safety; $8.8 billion for the new building Canada fund, which will be applied to strategic projects in large urban centres as well as projects in small communities, with particular attention to those smaller than 100,000 people; $2.1 billion for the new gateway and border crossings fund to improve cross-border trade with the United States; $1.25 billion for a new national fund for public-private partnerships; and $1 billion for the Asia-Pacific gateway
These investments are an important contribution and address the infrastructure needs of municipalities, provinces and territories. This funding will be dedicated to things that matter to Canadians, such as clean water, more efficient public transit, safe roads and green energy.
Building Canada will help support a stronger Canadian economy by investing in infrastructure that contributes to increased trade, efficient movement of goods and people and economic growth that creates jobs. This will include projects such as improvements to the core national highway system, short line railways, short sea shipping, regional and local airports, broadband, and convention centres.
A healthy environment is a clear priority for our government. As such, building Canada will also focus on infrastructure investments that contribute to cleaner air, water and land, including public transit, waste water and solid waste management, brownfield remediation and also green energy, as mentioned before.
To promote the development of strong and prosperous communities of all sizes, building Canada will support investments in public infrastructure that improve the health and safety of families and make communities more liveable. For example, projects that would be eligible for funding include safe drinking water, local roads, bridge rehabilitation and sports and culture.
The Government of Canada is responding to its 2006 consultations with the provinces, territories and the municipal sector. We are doing this by providing more long term and predictable infrastructure funding, as well as more streamlined programs.
Overall, our approach highlights the extent of federal involvement and confirms our respect for jurisdiction, as well as our commitment to working collaboratively on the issues raised during our discussions in developing the plan.
Framework agreements under building Canada have been signed with British Columbia, New Brunswick, Newfoundland and Labrador and Nova Scotia. We are working closely with the other provinces to complete framework agreements with them as well.
The member for Thunder Bay—Rainy River has made a motion asking the Government of Canada to implement a policy to mandate Canadian content levels for public transportation projects.
Our government agrees that this motion should be at least debated in order to understand how it can best support Canadian industries, while at the same time respecting other federal government responsibilities and commitments, such as our commitment to get the best value for taxpayer dollars.
The government understands the importance of supporting the Canadian economy. Earlier this month our government introduced Bill C-41 to allow $1 billion in federal funding to begin flowing to struggling communities through the community development trust. This was recently announced by the Prime Minister.
This support will greatly help single industry towns suffering from major downturns, as well as communities facing chronic high unemployment or layoffs across a range of sectors. Our government also understands that the transportation industry is strong in Canada. Generally, our partners in infrastructure projects tend to be other levels of government. At this time municipal, provincial and territorial governments together are responsible for over 90% of infrastructure spending in Canada. Procurement decisions with respect to infrastructure are ultimately the responsibility of these governments.
After all, these are the orders of government that will let the contracts choose the suppliers and ultimately bear the responsibility for completing the project on time, handling any cost overruns that occur and also managing the infrastructure plan long term. We treat these other levels of government as partners, able to make their own decisions in their own best interests.
Our government is prepared to discuss with our partners how to encourage more Canadian content in these investments, but we will not and cannot force or dictate to provinces, territories and our municipal governments how they should do their procurement.
As I have noted earlier, our key concerns should be getting as much value for the infrastructure dollar as possible. This decision is consistent with the requirements under the Federal Accountability Act that stipulates that federal procurement be conducted with a commitment to fairness, openness and transparency.
The federal budget of 2006 indicated that the federal government will manage infrastructure funding in a manner that will maximize taxpayers' value for money. I think this is a very valid principle that frankly defines our government.
For public transportation projects that receive federal funds under the building Canada fund, the federal government will require that limitations on tendering, such as sole source contracts, be omitted from consideration. Our government has a responsibility to ensure that procurement decisions are consistent with Canada's international trade obligations. What impacts Canadian content levels may have on this is a subject that should be fully discussed.
Mandating Canadian content levels, as has been proposed in the member's motion, would not necessarily get the best value for taxpayers' dollars. By using incentives to encourage people to buy Canadian, there could be some effects we need to fully understand. These could include increased project costs, as the number of potential suppliers diminish; limiting the choice with respect to rolling stock available for infrastructure projects, which is of particular concern to transit projects; and also limitations on available technology.
Additionally, based on federal experience in dealing with municipalities through several generations of infrastructure programming, we believe that domestic procurement requirements dictated by the federal government with respect to infrastructure provisions would be met with resistance by many of our provincial and municipal partners. Our only requirement is that procurement for projects funded with federal dollars is done in a fair, open, transparent and competitive manner.
Let me restate that our government, through its infrastructure program, is investing heavily in a modern economy and economic growth. Canadian workers, engineers, suppliers and manufacturers will all benefit from these investments. We hope that a fulsome discussion will bring about clear solutions in order to support Canadian industries, while also being mindful of the need to obtain the best value for our taxpayers' dollars.
With the building Canada fund, our government is taking steps to address the infrastructure challenge and ensure that our cities and communities are prepared for current and future growth, and can compete internationally.
Modern infrastructure is at the centre of Canada's standard of living and contributes greatly to the quality of life that we value. The building Canada fund is about investing in our country's future. It is about a stronger economy, about a cleaner environment, and about a more prosperous community.