Canadian Construction Association

Canadian Construction Association

March 19, 2007 18:08 ET

Canadian Construction Association Welcomes New Federal Funding for Infrastructure; Disappointed in Lack of Priorities

OTTAWA, ONTARIO--(CCNMatthews - March 19, 2007) - The Canadian Construction Association today stated its support for Finance Minister Jim Flaherty's focus and spending on new infrastructure in the 2007 federal Budget, but expressed its disappointment that previously announced programs such as the Highway and Border Infrastructure Fund from Budget 2006 were being shelved. The Minister presented the government's Budget in the House of Commons this afternoon.

The Budget contained the following announcements of interest to the construction industry:

- The Gas Tax Fund, which provides a share of federal gas tax revenues to municipalities to pay for municipal infrastructure, has been extended to 2013-14 from its previous expiry date of 2010. From 2010 to 2013-14, it will provide 5 cents, or $2 billion a year to municipalities.

- A new "Building Canada Fund" is created, which will provide $8.8 billion over seven years to fund core infrastructure projects such as highways, cultural or recreational facilities, or water / sewer projects.

- A new national fund for gateways and border crossings is announced with investments of $2.1 billion over 7 years.

- Starting in 2007-08, each province and territory will receive $25 million a year for 7 years for infrastructure projects.

- An additional $1.25 billion is set aside for public-private partnership projects, whereby the federal government will fund 25% of eligible PPP projects.

In addition, the Budget announced that the capital cost allowance for non-residential buildings will be increased from 4 to 6%, and that temporary foreign workers will be able to apply for permanent residency from inside of Canada.

"Whereas CCA is very pleased with the focus on infrastructure, we question why the federal government would roll up the Highway and Border Infrastructure Fund announced in Budget 2006, especially given that the Prime Minister committed to a stand-alone highway program during the last election campaign", stated Raymond Brunet, Chairman of the Canadian Construction Association. "However, with the extension of gas tax funding, the creation of the Building Canada Fund, and the other infrastructure programs announced today, we are confident that Canadians will see noticeable improvements in the state of their physical infrastructure".

"This Budget will help to address Canada's infrastructure debt", stated Michael Atkinson, President of CCA. "However, there is a concern that with the cancellation of the Highway and Border Infrastructure Fund, the Federal Government has not seen fit to establish Canada's National Highway System as a clear priority. The federal government has a very important and necessary role to play in setting national priorities in our on-going effort to modernize Canada's key, strategic, public infrastructure. It must ensure through the eligibility criteria to be established that federally-funded infrastructure projects ultimately benefit all Canadians and are open to all Canadians."

A summary of the Budget measures impacting the Canadian construction industry will be posted on the CCA website -

Contact Information

  • Canadian Construction Association
    Jeff Morrison
    Director of Government Relations and Public Affairs
    613-236-9455 (office)
    613-291-9377 (cell)