The second National Infrastructure Summit in Regina in mid-September is another important step for Canada, its municipalities, and private industry to confront the growing deficit in our infrastructure.

I am honored to be one of the speakers at the conference, and I’ve been asked to give you a preview of my remarks.  They are likely to cause some controversy, because I think we are hugely under-estimating the real infrastructure deficit facing our municipalities across Canada, and therefore, our nation.  I think the problem is much bigger and more serious than many people want to admit.

Part of my presentation at the Regina summit will deal with expanding our definition of the infrastructure deficit.  Traditionally we have thought of it as local roads, bridges, sewers, water systems and the like.  I name that the “physical.”  The 2007 FCM report done by McGill University in Montreal estimated the deficit at that time at $123 billion.  It is certainly higher today.  Some experts believe the figure now is more likely $200 billion.  Some suggest even higher.

However, I suggest in my presentation there are two other major parts to the infrastructure problem that haven’t been included, what I name “technology” and “creative.”

Technology is the electricity grid, the expansion of hi-speed and broadband services to rural and northern communities, providing sufficient data networks for the growing demands of business, and other technology tools that are fundamental to a growing, prosperous economy.

The Conference Board of Canada estimates it will take $300 billion to improve and update our electricity grid across the nation.  Add to that the data and hi-tech needs, and the figure rises again.  And while most of this will be paid for by consumers—households, small business, large corporations—you can’t provide modern economies without these fundamentals.  And the people paying are also the individuals and businesses who pay the taxes.  The pool is the same.

The third element I term creative.  In that I include everything from public libraries to public art, from parks to bike paths, museums and performing arts centres, from urban forests to public spaces and places.  In other words, the things that make our communities livable, sustainable, social, and pleasant, and help to attract families, entrepreneurs, and investors.  To me these are an equally important part of our national infrastructure deficit.

Then, of course, there is the added responsibility of the federal and provincial governments for things like the Trans-Canada Highway, dams, provincial and federal parks, and so on.  These too impact the prosperity of our national economy and of local communities.  If we can’t easily and efficiently transport goods across the nation, then local prosperity is jeopardized.  If suppliers can’t meet the “just in time” demands of manufacturers, then plants can be shut down.  If residents and businesses on our coasts are getting inferior ferry service, then that impacts their quality of life and of doing business.

We know that the property tax base can’t support such spending.  We also know that many communities are having difficulty servicing new developments and subdivisions.  It’s a reality that many municipalities don’t charge development fees, so the cost of servicing new projects and land development falls squarely on the local property tax base.  This potential expense is another part of our infrastructure deficit.

Then you can include the other “MUSH” elements.  Universities and colleges are growing in response to demographic demands at the same time as schools are shutting down in smaller communities, inner-city neighbourhoods, and older suburban areas.  Hospitals and health care facilities are being closed in some communities as magnificent new facilities are built in others.

My guesstimate is that all of a sudden as a nation, when you add up these elements, that we’re approaching the $1 trillion mark as the real infrastructure deficit in Canada.

The old line about “there’s only one taxpayer” is why this is important.  How are we going to fix this deficit?  How will we pay for it?  These are critical issues that aren’t getting debated during elections, in our parliament, and our provincial legislatures.

Should we be calling for a new national lottery with all proceeds used to support infrastructure programs?  Should we be setting up a new charitable program where individuals and companies can donate to an infrastructure fund?  Should we be giving tax credits for community work to upgrade and improve local infrastructure needs?  Is it time for Canada to seriously consider tax-free municipal bonds as a method of helping cities and towns finance capital projects?  Should municipalities be charging a one dollar fee for handling on-line registrations—as event ticket sellers have been doing for years—with the proceeds going to a local infrastructure renewal fund?  Should there be an infrastructure surcharge on the property tax base with proceeds specifically dedicated to local projects?  What other ideas can we discuss?

We need to fundamentally rethink our government systems and structure.  When you look at other countries building brand new cities and investing in infrastructure such as high-speed rail, new airports, developing new financial and business centres and so on, our future economy and the success and prosperity of our municipalities and our nation become more vulnerable.

Not enough people are talking about this issue.  It is growing in size and urgency every month.

Small, timid and hesitant steps are not going to solve this issue.  That’s why the September summit is so important.  It is time to change the conversation, face the larger reality, and start a national dialogue.

*This article was also featured in the August 22, 2012 Edition of the CCA Weekly

By: Gord Hume, President of Hume Communications Inc., former Councillor of the City of London, ON, and author of “Cultural Planning for Creative Communities” and “Taking Back Our Cities”