Mr. Speaker, we have a problem with municipal infrastructure. Our roads and bridges are crumbling, there is massive traffic gridlock, there are drinking water warnings, and thousands of people are on waiting lists for affordable housing.
Traffic gridlock costs Canadians billions of dollars. They spend almost 32 working days a year, that is more than a month, commuting to and from work because the public transit system is inadequate. The daily commute time in the largest urban centres of Montreal and the greater Toronto area is 75 minutes. That is the worst ranking among 23 global cities. That is a bad sign.
Then there is policing, and I would like members to consider this. Municipalities pay more than 60% of total policing costs, including $600 million worth of downloaded federal policing duties, such as border security and international drug trafficking. In terms of municipal budgets, policing makes up more than 20% of local spending. In some communities, policing costs are rising faster than the costs of health care.
Then there is housing infrastructure. Across Canada, 175,000 families are on social housing waiting lists and more than 40,000 Canadians, including young children, are sleeping in emergency shelters every night, including tonight.
There is a problem in terms of municipal infrastructure. The deficit is in the billions of dollars and there is a shortfall. Why? It is because municipal budgets are really not set up to deal with all of these challenges. Eight cents of each dollar of tax goes to municipalities while the rest of it goes to provincial governments and the federal government. As far as municipalities are concerned, lots of money is being taken out of urban cities and small towns but very little is being put back in. The shortfall is severe. What is happening?
Without a share of the income and the sales tax generated by new growth, communities are being forced to raise property taxes and cut core services. Most often infrastructure repairs are put off. The resulting infrastructure deficit is bad for families, businesses and our economy.
There is a unique opportunity in front of us because the building Canada fund of $1.2 billion per year expires in 2014. The affordable housing and homeless program of $380 million per year expires in 2014. The police officer recruitment fund of $80 million per year expires in 2014. The public transit capital trust of $300 million per year that was set up through the Martin-Layton partnership expired in 2009. With about 40% of all of the infrastructure programs due to expire, there is a unique opportunity in front of the House to renew these commitments to municipalities.
There is also one more area that I did not talk about and that is rural, remote and northern communities. These communities account for more than 50% of Canada's exports, including energy, agriculture and natural resources. On average, however, the rural household income is $10,000 less than other parts of the country.
The costs of adapting the roads, bridges and public buildings, because of the Arctic temperature rising, would more than double the north's estimated $400 million infrastructure deficit. Northern communities too are in a desperate situation.
That is why we must look at the infrastructure funds and it is extremely important to have a legislative framework. Canada needs a national vision. We need to ask ourselves, what will our cities look like in five years time or 25 years time? We must look ahead to a vision of our cities because we know that 80% of Canadians are living in cities. We must set a national vision. That is why we must have a legislative framework.
We also need to include cities at the table when the federal government is talking to provincial and territorial governments, not just passing the buck, “Municipalities are not federal responsibilities”. I heard that yesterday and I heard it a few minutes ago from my Conservative colleagues. I may hear it again in a few minutes when my Conservative colleague stands up, “Let us pass the buck. Municipalities are really not a federal responsibility”.
If the Conservatives say they are not a federal responsibility, they should include them in the discussions with the provincial and territorial governments and ensure they have a seat at the table, but that is not what is happening.
That is why we need to have a legislative framework. We need to set clear targets. We need to ensure there is sustainable, predictable and long-term funding.
It has to be green. Canada has a building code. We cannot just say that it is up to the municipalities to decide on the building code or it is up to the cities to decide how they build. Actually, there is a Canada building code and we must ensure that the infrastructure that is being built meets state of the art building standards.
I was just in some northern communities and I saw a house being put up with very thin boards. This was a northern community. Firefighters are saying that if we build it in a way that is very thin, it is dangerous to firefighters. Other people are saying that if we build it in a way that is not energy sustainable, then we are losing all that heat during the winter and we are burning more and wasting money.
That is why we need to be innovative, have the best technologies, and ensure that any infrastructure that is being built would be built in the greenest way.
We need to ensure that it creates a lot of jobs because every billion dollars being spent on infrastructure creates 11,000 jobs. That is much better in my books than giving corporate tax cuts because corporate tax cuts certainly do not create thousands of jobs.
After all of these positive reasons and all the municipalities saying that they need to have a sustainable long-term plan, why would the Conservatives refuse to do so? Part of it is probably because they are out of touch with reality. They do not want to support a legislative framework because they do not want to be accountable.
Right now there is no clear funding formula on how money is allocated. It is a closed door decision. There is no paper trail in some instances. We saw that $50 million gone to Muskoka. There is no accountability and no criteria.
It is, in fact, a lot easier to just dole out money to friends behind closed doors than saying that there is a legislative framework and there is a funding formula.
Where is the grading system? What percentage of the funding goes to state of good repair? We do not know what percentage goes to new projects. That is not clear at all. It is all about short-term funding arrangements and that is not acceptable.
That is why we need to index the gas tax. We need to increase the gas tax transfer by at least one cent so that we can create jobs now.