Federal Budget Provides Significant Funding for Municipal Infrastructure

Statement by Jean Perrault, President of the Federation of Canadian Municipalities (FCM) and Mayor of Sherbrooke, on the Federal Budget:

"Today the federal government took concrete action to create new jobs, fight the recession and invest in a safer, greener, more competitive Canada.

FCM strongly supports the federal government's commitment to invest significant new dollars in infrastructure projects that will put Canadians to work in 2009 and 2010.

We are pleased by the federal budget's allocation of $4 billion to upgrade existing infrastructure. These dollars will help cities and communities begin to address the country's growing backlog in road, sewer, bridge and public transit repairs.

And new funding for recreational infrastructure will help jumpstart municipal projects to build and repair local hockey rinks, swimming pools and community centres.

The federal budget states that infrastructure programs "will be structured to flow funding and get shovels in the ground quickly." This is critical. This plan must be implemented quickly to counter the economic downturn.

In this downturn, new funding must be delivered through flexible programs that make job creation and value for money their top priorities. Strict cost-sharing requirements would be a roadblock to getting work started on many worthwhile projects, particularly now that municipalities have approved their 2009 capital budgets.

It is important that today's budget leads to increased flexibility in this area. Federal, provincial and territorial governments must continue to work with municipalities to ensure that cash-strapped cities and communities can access funds to create new jobs quickly. Municipalities, who are going to invest $15 billion in infrastructure this year, will continue doing their part.

In addition to its significant new infrastructure investments, the federal budget's new funding for affordable housing will put Canadian labour and building materials to work providing adequate housing for low-income families. New money for broadband Internet service and economic development will strengthen rural and northern communities.

Today's federal budget will help build more sustainable rural communities, and more livable urban regions. Quality infrastructure will help Canada compete for talent and investment in the global economy.

During the past three months, the federal government has engaged municipalities, provinces and territories in a new dialogue about how we can work together to put the economy back on track and deliver long-term value to Canadians. Municipalities look forward to continuing this collaboration.