Budget 2009: What Does Water Get?

Upgrades to Quebec water and sewer systems and other “priority” Building Canada Fund projects will be expedited, according to yesterday’s budget release. This comes as a welcome announcement, especially after the latest aging water main catastrophe in Montreal.

Infrastructure topped the list on the budget PR from the Minister of Finance’s office, receiving an additional $12 billion in stimulus funding for projects across the country. This includes funds for short-term, “shovel-ready” projects such as sewer upgrades and is indeed new funding on top of the $33-billion Building Canada Fund.

Other “priority” projects culled from the Building Canada Fund include investments in water treatment projects in the Yukon, and in Aboriginal communities to improve wastewater treatment and provide safe drinking water. Over the next two years, the feds will make another $2 billion in low-cost loans to municipalities to invest in sewers, water lines and other housing-related renewal projects.

But expediting these projects is not just about infrastructure funding, as my colleague at ReNew Canada has pointed out. Aside from obvious job loss in recent months, provinces have seen a decrease in the number of skilled tradesworkers. British Columbia used a “cheeky” campaign last year to recruit Ontario and Quebec workers, flooding Toronto’s Union Station with daffodils to entice workers in sectors such as construction and health care. As leaked, there will be a $1.5-billion training fund for laid off workers. Additionally, the budget calls for $87.5 million over three years to the federal granting councils for research and scholarships.

Minister Flaherty has also promised to reduce the red tape that has historically hindered progress on these projects. From the Budget Plan: “The Government will be introducing changes to the federal regulatory framework through legislative, regulatory and administrative actions to drive efficiencies in assessing environmental and other impacts of infrastructure projects without compromising protection of the environment.”

But (yes, another but) – as the Globe & Mail notes, the budget is calling for provincial and municipal partners to match funds to the tune of $9 billion. If they don’t, there’s a threat that the funding will disappear if projects aren’t underway within two years.

Ironically, this stimulus caveat might place a further strain on our economy. Will provinces and municipalities be able to pony up? Is it enough? What do you think?