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BMO Financial Group

November 17, 2014 14:55 ET

Ontario to Benefit From Infrastructure Investments: BMO

TORONTO, ONTARIO--(Marketwired - Nov. 17, 2014) - BMO Economics today noted the benefits of making investments in infrastructure, on the occasion of the release of the Government of Ontario's Fall Economic Statement.

"There's little question that Ontario can benefit from targeted infrastructure investments, especially at current low interest rates," said Robert Kavcic, Senior Economist, BMO Capital Markets. "Such investments will need to be managed in the context of historically-high levels of debt.

"Transit and transportation infrastructure in the Greater Toronto Area is one example that would help improve productivity in a city that accounts for almost 20 per cent of Canadian GDP," noted Mr. Kavcic.

The Province said in the Fall Economic Statement that it is investing more than $130 billion in public infrastructure over the next 10 years, which it says will create over 110,000 jobs on average each year. These investments include nearly $29 billion in dedicated funding for public transit, highways and other critical infrastructure. The Province has also committed $1 billion in transportation infrastructure to support development of the Ring of Fire - a region that includes the largest deposit of chromite - a key ingredient of stainless steel - ever discovered in North America, as well as nickel and other minerals.

"Infrastructure is critical to ensuring a healthy and vibrant economy, and it lies squarely at the heart of government responsibility," said Hon. Brian Tobin, vice chair, BMO Capital Markets. "Infrastructure investment requires cooperation and funding between the public - federal, provincial and municipal - and private sectors. Across Canada, vital infrastructure is in urgent need of revitalization. Partnerships between the public and private sectors are a proven path for reducing the infrastructure deficit."

Mr. Tobin concluded that, "Ontario is one of the world's leading jurisdictions for alternative financing. Infrastructure Ontario and its partners have a strong track record of delivering infrastructure projects, within budget and in a timely manner."

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had more than $586 billion in total assets and approximately 47,000 employees at July 31, 2014.

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