It is well established that sustained investment in public infrastructure brings results—enhanced economic productivity, higher competitiveness, and therefore, better rates of economic growth.

And, it is this economic growth that generates revenue for governments with which to fund Canada’s globally-envied health care, education, and social safety nets.  Hence, our quality of life in this country.

In short, investment in infrastructure is Canada’s economic healthcare program.

In a set of cross-Canada roundtable meetings held this summer, the federal government explored how best to create and implement a Long Term Infrastructure Program (LTIP)that extends beyond the expiry of the Building Canada Plan in 2014.

It would appear that the Harper government’s LTIP focus will be on investments in infrastructure which support long-term economic growth and prosperity, leveraging in the process both private sector partnership opportunities and funding from all levels of government to ensure national affordability and sustainability over the long term.

An Informetrica report on infrastructure and its impacts on productivity found that for every $10 billion invested in local infrastructure, 115,000 new jobs are created and nominal GDP grows by 1.3%.  The study also found that investments funded from growth taxes—specifically sales and income taxes—deliver a bigger boost to a slowing national economy than investments funded from municipal property taxes.  And for $1 invested in municipal infrastructure, roughly 35¢ is returned to the provincial and federal governments in direct financial benefits, mainly through increased sales and income tax revenue.

A 2010 Residential and Civil Construction Alliance of Ontario report underscored the economic importance of infrastructure by concluding that continued under-investment in infrastructure over the next 50 years will slow economic growth, reduce business profitability by up to 20%, and could cost the average Canadian entering the work force today up to $51,000 in reduced wages over the course of a career.

Congestion on Canada’s transportation system—railways, U.S. border crossings, airports, marine facilities and roadways—has devastating consequences on our nation’s trade-dependent economy and our jobs.  These assets must not only be well maintained, but they must be adequate to meet the current and future needs of the economy for Canada to remain internationally competitive.

Unfortunately, according to Statistics Canada, most of the core public infrastructure upon which Canadians depend upon was built in the 1950s and is rapidly approaching the end of its useful service life.  Much of it will need to be rehabilitated or replaced within the next 10-15 years.

At the same time, Canada’s population has not only increased from 16 million to approximately 34 million, it has become more urban, increasing from approximately 70% urban back then to over 80% today.  The problem Canada faces is not only that our infrastructure is old, but in many cases, current daily demands on this infrastructure far exceed its intended design capacity.

The tragedy that occurred in Québec with the bridge collapse (shortly after a similar disaster in Minneapolis), or the bridge closure on Highway #1 east of Portage la Prairie, Manitoba, will become all too common without a concerted effort on the part of Canadian governments at all levels to accelerate and sustain the pace of infrastructure re-investment.

The investments of the past three years—as large as they have been—have made only a small dent in our national infrastructure deficit.  In its recent report card on Canada’s infrastructure, The Federation of Canadian Municipalities (FCM) found municipal infrastructure ranks between “fair” and “very poor.”  Replacing key assets such as drinking-water systems, wastewater and storm water networks, and municipal roads will cost $171.8 billion, nationally.

How Canada renews and invests in its aging infrastructure over the next 10 years will determine our nation’s economic, fiscal, and social health.  Delaying today will place an impossible financial burden on present and future generations, and will without question lower our standard of living.

Canada stands on a precipice.  While the need to return to fiscal balance is important, it must be implemented in such a way as not to neglect important investments in our economic health.  Canadians need to recognize and support the principle that investment in public infrastructure is Canada’s economic health care program.

– By: Chris Lorenc, President, Manitoba Heavy Construction Association (MHCA)

Chris Lorenc

Chris Lorenc has been President of the Manitoba Heavy Construction Association (MHCA) since 1991 and President of the Western Canada Roadbuilders & Heavy Construction Association (WCR&HCA) since 1995.

He is an active member of the national Canadian Construction Association (CCA) and serves on a number of its committees including: Civil Infrastructure Council (CIC); Gold Seal Committee (national management education and certification program) and Industry, Advocacy & Regulatory Affairs Committee.

In addition to being frequently invited to speak on forums and comment on radio and television addressing a broad range of public policy topics, he has authored numerous published public policy opinion editorials. Furthermore, he has an extensive background in developing and writing public policy for governments on topics including government organization, intergovernmental relations, sustained infrastructure investment, and trade and transportation.

Mr. Lorenc served on Winnipeg’s City Council for nine years from 1983 until he retired from public office in 1992. During his tenure he chaired a number of City Council’s Standing Committees, including Public Works and the Environment Committees, specific task forces and was a long standing member of Council’s Executive Policy Committee (EPC).

He graduated from the University of Manitoba with Bachelor of Arts in 1973 and Law degree (LL.B.) in 1976 and then practiced general, corporate and commercial law until 1991.

Married to his wife Maria since 1981, they have three sons Marek (1984), Gregory (1986) and Michael (1988). In his spare time Mr. Lorenc enjoys reading, boating and spending time at the family cottage at Winnipeg Beach, Manitoba.