Toronto, November 26, 2012
The Honourable Jim Flaherty, Minister of Finance, today highlighted the significant contribution public-private partnerships (P3s) are making in modernizing Canada’s infrastructure in an address to the Canadian Council for Public-Private Partnerships.
P3s are an alternative financing method for governments to meet public infrastructure needs. Through long-term P3 contracts, governments can access private sector expertise, technology and capital to build public infrastructure faster and at a lower cost to taxpayers, while supporting economic growth and job creation.
“Governments throughout the world have been increasingly turning towards P3s to deliver much-needed public infrastructure investments,” said Minister Flaherty. “Our Government knows that P3s can save taxpayers money and allow more projects to be built all across Canada. I expect P3s will continue to play a significant role in infrastructure investment, helping to connect and strengthen this great country.”
During the global economic recession, the Harper Government responded with Canada’s Economic Action Plan to provide federal funding to help build much-needed infrastructure.
Under the $33-billion, seven-year Building Canada plan, the Harper Government is providing major support for provincial, territorial and municipal infrastructure in priority areas such as highways, roads, bridges, public transit, water infrastructure and broadband. This includes predictable, long-term funding for municipalities under the Gas Tax Fund and the Goods and Services Tax rebate for municipalities.
In his address, the Minister also noted that the Harper Government is working with provinces, territories, the Federation of Canadian Municipalities and other stakeholders on the development of a long-term plan for public infrastructure that extends beyond the expiry of the Building Canada plan in 2014. The new plan will focus on investments in infrastructure that support long-term economic growth and prosperity, while encouraging greater private sector involvement and increasing the use of P3s. It will be designed to leverage funds from all levels of government and the private sector, and ensure affordability and sustainability over the long term.
“No single level of government can address this country’s infrastructure needs on its own,” said Minister Flaherty. “With over 90 per cent of the public infrastructure in Canada owned at the provincial, territorial and municipal level, we need to continue to work in partnership to modernize our nation’s infrastructure.”
Office of the Minister of Finance
Department of Finance