Canadian Construction Association calls upon the Government for infrastructure stimulus

Letter to ministers calling upon the Government for infrastructure stimulus

Dear Prime Minister and Ministers,

On behalf of the 1.4 million highly-trained and skilled Canadian construction workers, who generate 7.5% of Canada’s GDP, the Canadian Construction Association wants to thank you and the Government of Canada for your efforts to address the needs of our members during the COVID-19 pandemic.

As you know, contractors and tradespeople quickly adapted practices to ensure the health and safety of all workers while continuing to build and maintain vital infrastructure. Due to a robust backlog of projects, our industry has weathered the pandemic storm better than most thus far and has the potential to absorb workers displaced from other harder hit industries.

However, with the hit to the economy, confidence has lowered causing private sector investments to decrease, and shrinking work opportunities for contractors and tradespeople alike, as project tendering dries up or is delayed.

All provinces and territories – with the exception of the Northwest Territories (+3.7%) –  saw their private and public expenditures in non-residential construction and machinery and equipment decrease; and Newfoundland and Labrador (-22.9%) and Alberta (-19.1%) were hit hardest. Nationally, construction employment is down 8.1 per cent from before the pandemic. We are deeply concerned that this trend will accelerate through 2021 without infrastructure stimulus.

In the face of the COVID-19 pandemic, building strong community infrastructure is more important than ever, and we commend the Government for working to address the infrastructure gap and funding the Investing in Canada Plan. However, there continues to be delays and barriers to project approvals. Of some 65,000 projects approved since 2016, only 47,000 have actually started.

The CCA urges the Government to:

• Remove the barriers that exist between the federal government and certain provinces to flow existing infrastructure money;

• Declutter the administration and approval process so that projects that are approved can get started quicker;

• Consider increased investments in infrastructure until the economy is firmly on its way to economic recovery.

To continue to be a bright spot in the recovery, the construction industry needs your help. Together, we can help hundreds of thousands of people get back to work, we can strengthen our communities and build a better Canada.

Mary Van Buren

President

Canadian Construction Association

Background

• Public infrastructure is critical to the quality of life of Canadians and the competitiveness of our country. We rely on power generation, roadways and transit, water management, hospitals and natural resource development to function personally, socially and economically.

• Much of Canada’s infrastructure was built in the 60s and 70s; and is now aging. According to the 2019 Canadian Infrastructure Report, nearly 40 per cent of roads and bridges are in fair, poor or very poor condition. The estimated replacement cost of roads and bridges in fair to very poor condition is $91.1 billion, nationally. And 30 per cent of tracks for public transit require investment in the next decade.

• The Canadian Construction Association (CCA) is concerned that infrastructure funding levels are at the mercy of successive changes in government and mandates. Fluctuations in the delivery of funding to projects cause inefficiencies across the system. Funding must be made steady, reliable and consider long-term infrastructure realities.

CCA message

• Canada’s infrastructure needs significant investment. Research has shown that, on average, every dollar invested in infrastructure generates approximately $1.35 in incremental output. The return on investing in infrastructure is higher than most other major spending programs or from tax cuts.

• CCA believes that the Government of Canada must commit to a 25-year plan for infrastructure spending in Canada. Although it’s Investing in Canada Plan, which commits the federal government to $180 billion in investments in public infrastructure over the next 12 years is encouraging, a longer-term strategy is needed to strengthen Canada’s economic growth.

• The infrastructure deficit and needed investments represent an enormous challenge. However, they also provide an historic opportunity to replace our existing infrastructure and re‑shape our communities in a more sustainable manner. This is why it is imperative to develop a long‑term strategy that spells out the commitments of all levels of government.