Mr. Speaker, I will be splitting my time with the member for Burnaby—New Westminster.
I am very pleased to speak to this motion today. I believe that the issue of municipal infrastructure is a fundamentally important issue. When I speak with the members of the board of trade, the mayor of my city or business people around our town, they all agree that the number one concern is our crumbling infrastructure, in all places but certainly in the town that I come from, Toronto.
We have seen study after study and report after report detailing the enormous and growing infrastructure deficit in our country. The Conference Board, the board of trade, as I mentioned, the Canadian Council of Professional Engineers, the Federation of Canadian Municipalities and the big city mayors--in short, everyone in this country--agree that we have a massive infrastructure deficit. It is a hindrance to business. It is a danger to our environment. It is creating huge personal problems in terms of inconvenience, by lengthening travel times for people and through disruption and costs related to water pipes breaking because they are old and ought to be replaced. There are huge problems.
Everyone agrees that we need to address this problem, yet there seems to have been a paralysis in the previous government and now there are problems with the current government in addressing this issue. Therefore, I want to not only address the issue but discuss how we should address it.
I want to reinforce what the Federation of Canadian Municipalities is saying, which is that the deficit in infrastructure has now reached $123 billion. It categorizes “sub-deficits”, that is, certain parts of our infrastructure that are particularly deficient. Water and waste water systems have a $31 billion deficit. Transportation has a $21.7 billion deficit. Transit has a $22.8 billion deficit. Solid waste management has a $7.7 billion deficit. Community, recreational, cultural and social infrastructure has a $40.2 billion deficit.
We know that this deficit will only grow exponentially and that all governments and parties need to work together in order to come to grips with it and deal with the ongoing challenge to our quality of life.
However, the expectation that municipalities alone can deal with infrastructure deficits by increasing property taxes is clearly ludicrous. It is simply not sustainable, nor it is possible for them to do so.
Let us take a look at the gas tax, which is specifically referenced in this motion. The federal gas tax is 10¢ a litre. It generates over $4 billion a year. Even half that tax, $2 billion, would be a substantial investment in our municipalities. That is certainly what we have been proposing: that this tax, on a permanent basis, be made available to municipalities to deal with their infrastructure deficit.
The previous government made some promises about municipalities getting up to 5¢ a litre in future years, which would be $2 billion, but of course that was never fully realized. What was realized, of course, were the massive corporate tax cuts, the largest we had seen. They were certainly escalated. We have seen that continue with the current government in the previous budget, and then the mini-budget the government brought in certainly fast tracked corporate tax cuts.
I would submit that what needs to be fast tracked is the funding for infrastructure. We have seen our communities stagnating. I hear complaints constantly about the amount of taxes people pay and the deterioration of their cities. This is an urgent issue that ought to be addressed.
The building Canada fund that was announced last year is a flawed program. All it does is repackage already designated federal dollars into a scheme that is designed to profit certain interests from the infrastructure crisis in municipal services and ultimately lead to their privatization.
Municipalities need support to repair and replace their aging infrastructure and what they are facing in fact are threats that if they do not agree to public-private partnerships, they will not get the funding that they need.
Therefore, we see the rising funds put into the building Canada infrastructure program which includes a mandatory P3 review for any project of more than $50 million of federal funds. These reviews can be skewed to make the public sector look inefficient and in fact the head of Partnerships BC, responsible for privatization, said himself that:
--public sector comparators won’t do you much good because I can make the public sector comparator as bad as I want to in order to make the private sector look good.
I think that often these privatizations are a false economy. We certainly saw this with the upgrading of the London subway system and the failure of a public-private partnership there. There were cost overruns of over £2 billion, or over $4 billion.
While the proponents of privatization argue that P3s take away risk from government, clearly it is government and the public sector that is still on the hook for any cost overruns. The risk just reverts back to the public sector at a cost much higher than if they had just undertaken the work themselves.
I want to say a few words more about transit because we are talking about gas tax and I believe that transit infrastructure is fundamentally important for our communities. As I said earlier, it is important clearly for our environment and our businesses. It is important to the quality of life for people in large centres to be able to get to and from their homes, to work, and to other places where they have to travel to in a timely fashion.
If we look at what happens if we replace cars with a bus, a regular TTC vehicle, one bus during rush hour can replace 45 private vehicles, which is very significant. If we put in an additional six car subway train, that replaces 900 vehicles. We are talking about an incredible bonus, incredible assistance, to unclogging our streets, unclogging our air, and simplifying the lives of people in the community.
We ought to have the finest transit systems in the world. We are a vast country. We specialize in transportation. It is what we do to keep our communities connected, yet we have let our transit systems lag further and further behind.
I believe we ought to be making significant investments in all infrastructure, but transit is very near and dear to my heart. I know that when the NDP was able to take $5 billion earmarked for corporate tax cuts in the previous government's budget and invest some of that money in transit, it not only put new hybrid energy efficient buses on the streets of Toronto but what it did was order those buses from a plant in Mississauga and kept workers building those buses.
It was a big order for a Canadian plant. Not only was it good for the environment it kept people employed, and the people and the company paid taxes. It was good for the economy. It stimulated our economy. It was a win-win-win situation. This investment in infrastructure was done properly, not privatizing our infrastructure but investing our public dollars for the good of all Canadians That is what we ought to be doing
While I support the motion, I want to move that this motion be amended by adding the following: “And with the provision of an additional dedicated component for public transportation”.