Miller and McCallion applaud Liberals' ambitious blueprint
Sep 19, 2008 04:30 AM
RICHARD BRENNAN
IN TORONTO
BRUCE CAMPION-SMITH
IN OTTAWA
Liberal Leader Stéphane Dion unveiled plans to spend $70 billion over 10 years on Canada's aging infrastructure in a commitment hailed by Toronto Mayor David Miller and other municipal leaders.
"Our cities and communities are facing an infrastructure deficit that is affecting Canadians' quality of life (and) economic prospects, as well as threatening our environment, our water, our sewage system, our energy grid, our roads and bridges," Dion said yesterday.
Surrounded by Liberal candidates from in and around Toronto, Dion said the $70 billion investment will go toward building and upgrading strategic infrastructure, creating an $8 billion national transit strategy, developing a small communities fund, improving border crossings and sports and recreational facilities – all while helping create jobs.
The president of the Federation of Canadian Municipalities, on Parliament Hill yesterday to demand all federal parties make an urban strategy a centrepiece of their election platforms, applauded the plan as "ground-breaking."
"It's good news. It's a good example of the tools we need to turn the tide of the $123 billion infrastructure deficit," said Jean Perrault, mayor of Sherbrooke, Que.
The Liberals would finance the plan by diverting any portion of the budget surplus above $3 billion to infrastructure and creating a special infrastructure bank to make available low-interest loans for infrastructure projects such as regional energy grids or high-speed rail, Dion said. The bank funds would be generated in part by the sale of tax-free green bonds.
The plan also includes almost $25 billion for municipalities over the 10 years through an improved gas tax transfer, added Dion, who arrived at Exhibition Place with other Liberals after taking the GO train from Burlington.
While Prime Minister Stephen Harper attacked the cost of the plan and NDP Leader Jack Layton questioned the Liberals' sincerity, the mayors of Toronto and Mississauga praised the commitment.
"Cities across this country have been demanding attention to our infrastructure, and permanent, sustained funding to build that infrastructure, and I think this announcement is a very significant step," Miller said.
He added that he and Montreal Mayor Gérald Tremblay have called for a national transit strategy with $2 billion a year invested. The Liberals are the first party to commit to a national strategy, he said.
Mississauga Mayor Hazel McCallion, vocal in her demands for a better deal for cities, said Dion's plan is just what she's been asking for.
"And it's not for potholes," said McCallion, taking a swipe at Finance Minister Jim Flaherty's statement that Ottawa isn't in the business of fixing city roads. "It's for transit and sewage treatment and bridges and hospitals and colleges and all sorts of important things."
Brampton Mayor Susan Fennell, however, said the fact the money is linked to a federal surplus of $3 billion or more is a huge problem.
"We need long-term, guaranteed, sustainable new revenues that grow with the economy, not spare change if there's some left over," she said. "We can't plan if one year we'll get funding and the next year maybe we won't. ... If it's important, if municipalities truly are a priority, the money should be guaranteed."
Brian Nicholson, deputy mayor of Oshawa, said any program that boosts funding for cities is a good thing. But he said he's worried some of the money is set aside for loans and not outright grants.
"This is great if you're a big city or a province and you can borrow money," Nicholson told the Star. "But smaller cities wouldn't be able to pay them back."
The Liberals are committed to putting the first $3 billion of a surplus toward the debt. Asked if the plan would fail without a surplus of more than $3 billion, Dion said the proposal is not based entirely on extra money at year's end.
Harper attacked the Liberal spending promises. "The real question is going to be is this going to be paid for by the carbon tax, is this going to be paid by running deficits or is this something they have no intention of actually doing?"
While Layton said he had not yet seen the details of the Liberal plan, he was quick to express doubts.
Layton, who served as president of the Federation of Canadian Municipalities, said it was like "pulling teeth" to get the support of the Liberals for urban initiatives.
Dion said priorities include:
$10 billion for strategic infrastructure, particularly green infrastructure such as water and sewage treatment, and clean energy grids.
At least $8 billion for a national transit strategy that would enable cities to expand transit systems and green their transit fleets.
$3 billion for a dedicated small communities fund.
With files from Tonda MacCharles, Joanna Smith and Jim Byers
WHAT THEY SAID
"Cities across this country have been demanding attention to our infrastructure, and permanent, sustained funding to build that infrastructure and I think this announcement is a very significant step."
Toronto Mayor David Miller on the Liberal Party's promise to commit more than $70 billion to improve Canadian infrastructure
