Mr. Speaker, it is my pleasure to rise today in the House to address the House on Bill C-31, the budget implementation act for economic action plan 2014. Today I will be focusing my remarks on the new Building Canada plan, the largest long-term federal investment in infrastructure in Canadian history.
Our government is taking concrete steps to provide for the future of infrastructure across this country, including in my home province of Ontario, the city of Toronto, and my riding of Don Valley West.
Investing in quality public infrastructure helps build stronger communities. Whether it is in roads, bridges, public transit, or water systems, these investments make life easier, cleaner, and healthier. Targeted, sound infrastructure investment helps position cities across Canada as competitive economic engines where local businesses and industry leaders thrive. This is because it allows for goods to get to market faster, for trade corridors to move smoother, and for workers to get to their jobs more easily. All of this contributes positively to the long-term economic growth and productivity of our country.
For instance, past investments in Ontario have led to projects as diverse as the Regent Park Arts and Cultural Centre in Toronto and the Woodward water treatment plant in Hamilton. These projects have increased economic activity and have led to job creation in the province while also making Ontario a better place to live.
Since 2006, our government has nearly doubled the average annual federal funding for thousands of provincial, territorial, and municipal infrastructure projects across the country.
In Ontario, this translates to $12.3 billion over the last eight years. To put this in perspective, in the 13 years prior, under the Liberal Party, federal funding for infrastructure in Ontario amounted to just $3.4 billion.
These investments have led to real, tangible infrastructure benefits that provide jobs and help improve transportation, commerce, and business across the province. With our new Building Canada plan, we will be continuing our support infrastructure for an even longer period of time.
The plan builds on this government's unprecedented investment in infrastructure and includes over $53 billion in new and existing funding for provincial, territorial, and municipal infrastructure over 10 years. Combined with investments in federal infrastructure and first nations infrastructure, total federal spending for infrastructure will reach $70 billion over the next decade.
Of the $53 billion under the new Building Canada plan, $47 billion consists of new funding for provincial, territorial, and municipal infrastructure starting in 2014-15 through three key funds:
First, the community improvement fund will provide $32.2 billion over 10 years. This fund consists of an indexed federal gas tax fund and the incremental GST rebate for municipalities to build roads, public transit, recreational facilities, and other community infrastructure across the country.
Second, the new Building Canada fund will provide $14 billion over 10 years to support infrastructure projects of national, regional, and local significance.
Third, a renewed P3 Canada fund will provide $1.25 billion over five years to continue supporting innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through public-private partnerships.
Let me speak first on the gas tax fund.
Our government has extended, doubled, indexed, and made permanent the federal gas tax fund. In other words, we took a temporary Liberal program and passed legislation so that it became permanent. We doubled it and then this year we indexed it. That means that the annual allocation will grow over time as the economy grows. In fact, it will grow by $1.8 billion nationally over the next decade. As well, the eligible categories under the federal gas tax fund have been expanded and will now support local priorities like disaster mitigation, culture, tourism, sport, and recreation.
All of this means that Ontario municipalities will receive just over $3.8 billion in flexible and dependable funding between 2014 and 2019 to support building local priorities. This, in turn, will support increased productivity and economic growth for the long term.
The other major component of the plan is the new Building Canada fund. It was launched on March 28 by my colleague, the Minister of Infrastructure, Communities and Intergovernmental Affairs, and is comprised of $4 billion for projects of national significance and $10 billion in dedicated funding for provinces and territories. The national infrastructure component does not have specific allocations for each province and territory. Instead, funding will be selected on the basis of project merit guided by federal priorities.
Under the provincial-territorial infrastructure component, each province and territory will receive a base amount, plus a per capita allocation over the 10 years of the program. For Ontario, this represents almost $175 million in dedicated federal funding under this fund alone to address core infrastructure projects.
Keeping in mind that this is a program of partnerships and support, cost-sharing requirements under the new Building Canada fund would require that other partners such as provinces, territories, municipalities, or the private sector also contribute to the projects. It is important to note that the federal government owns very little infrastructure compared to provinces, territories, and municipalities that own over 95% of public infrastructure in Canada. As such, it is very important for the federal government to be respectful of their authority. At the same time, keeping in mind that three levels of government and the private sector have a role to play in supporting public infrastructure, our government is committed to being there with our fair share.
Federal infrastructure investments through the new Building Canada plan will be focused on projects that contribute to Canada's economic growth and prosperity. We are making the funding available for projects that have a real impact on strengthening our economy, including transit and transportation infrastructure.
The categories under the new plan are generally the same as the original plan, but there has been realignment. For instance, more categories have been added to the gas tax fund, providing even more flexibility for municipalities to use their funding for their specific local infrastructure priorities. The categories under the new Building Canada fund are more focused, supporting core economic infrastructure like transportation infrastructure and disaster mitigation. This realignment of categories means that the gas tax fund provides flexibility for community-oriented infrastructure while the new Building Canada fund is focused on infrastructure projects that enhance Canada's economic growth and prosperity.
When Torontonians speak of infrastructure, they speak of traffic congestion and public transportation. That is why our government has made it a priority to invest in infrastructure that will help alleviate traffic congestion and modernize public transportation. It is vital to the future of Toronto. These investments will not only help create jobs and growth, but will also attract the businesses and private investment necessary to obtain long-term prosperity.
One of those projects is the completion of the Toronto-York Spadina subway extension. Thanks in part to an investment by our government, this subway will link Toronto and York Region and will provide a host of other benefits to the region. Our government has also committed that if the Scarborough subway expansion project is a priority for the city of Toronto and the province of Ontario, then our government will set aside $660 million under Ontario's funding allocation to support the Bloor-Danforth subway line into Scarborough. This extension will further alleviate traffic congestion and help provide Scarborough with high-quality public transit. This commitment is in addition to the $333 million committed to the Metrolinx Sheppard East light rail transit project.
Our government will also provide funding to deliver 78 Toronto Rocket subway cars for the TTC. These Rocket cars are not only more accessible, more comfortable, safer and more reliable, they also carry more people and will help keep Toronto's subway line world class. Together, these investments deliver over $1 billion in federal funding to directly support the transit priorities of Toronto.
No federal government has ever made as strong a commitment to supporting infrastructure. Since 2006, our government has nearly doubled the average annual funding for provincial, territorial, and municipal infrastructure. Now we have the new Building Canada fund, a key component of the Building Canada plan, a plan that provides $53 billion of stable, predictable funding over the next decade for public infrastructure across the country.
With the new Building Canada plan, we are on track to surpass the successes we have achieved to date. We will continue to support infrastructure that encourages job creation and economic growth and that contributes to the quality of life of all Canadians.
