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Building Infrastructure to Create Jobs

Highlights

Building Infrastructure

• Close to $2 billion in federal funding has been announced for 54 major infrastructure projects since January 2009 under the Building Canada Fund. Examples include the Evergreen Line in Vancouver, Telus World of Science in Calgary, the Sheppard Rapid Transit Line in Toronto and the Desjardins water treatment facility in Lévis, Quebec.
• $1 billion in federal funding has been approved for 971 projects in smaller communities under 100,000 people since January 2009.
• Regulatory and approval processes for infrastructure projects have been streamlined.
• Federal funding totalling over $2.6 billion is committed from the Infrastructure Stimulus Fund. Funding has been committed to more than 1,500 projects, including a new bridge across the Capilano River in Vancouver, repair of water and sewer mains in Quebec, and a runway extension at Deer Lake Airport in Newfoundland and Labrador.
• Since the launch of Canada's Economic Action Plan, the Government of Canada has transferred $430 million under the Provincial/Territorial Base Fund to construction projects.
• The Government of Canada is contributing up to $71 million from the new Green Infrastructure Fund towards Yukon's Mayo B hydro and Carmacks-Stewart transmission project. The project will enhance Yukon's electricity supply and reduce emissions of greenhouse gases.
• Infrastructure projects are getting underway in Birch Narrows First Nation and Peter Ballantyne First Nation in Saskatchewan, and Pinaymootang First Nation in Manitoba.
• Federal bridge construction projects have started, with work underway on the $212-million Champlain Bridge project in Montréal.

Stimulating Housing Construction

• The Government is implementing a temporary Home Renovation Tax Credit that provides up to $1,350 in tax relief and reduces the cost of renovations for an estimated 4.6 million Canadian families, encouraging investment in Canadian homes.
• The Government is providing first-time home buyers with additional access to their Registered Retirement Savings Plan savings by increasing the Home Buyers' Plan withdrawal limit to $25,000 from $20,000, making it more affordable to purchase a home.
• The Government is assisting first-time home buyers by providing up to $750 in tax relief to help with the purchase of a first home.
• Agreements have been reached with all but one of the provinces and territories to provide over $2 billion for social housing construction, renovation and retrofits across Canada. This will help stimulate construction and provides much-needed social housing units.
• 400 new social housing units will be built in Nova Scotia and 1,000 new housing units for seniors and people with disabilities will be built in British Columbia.
• First Nations are putting forward ready-to-go social housing construction or renovation projects. Construction will begin during the summer.
• $2 billion in low-cost loans is available for municipalities to undertake housing-related infrastructure projects. Canada Mortgage and Housing Corporation is currently undertaking evaluation and approval of applications.

Investing in infrastructure helps create and preserve jobs. For every dollar invested, the economy receives a boost of $1.60, generating new economic activity that puts people to work. For this reason, Canada's Economic Action Plan provides up to $16.5 billion over two years to modernize a broad range of infrastructure including our roads, bridges, public transit, parks and water treatment facilities, and to support home ownership, help stimulate the housing sector and improve housing across Canada. These investments will create jobs across Canada and will contribute to higher productivity and a better quality of life for Canadians as we emerge from the economic downturn.

Table 2.7
Building Infrastructure to Create Jobs

	2008–09	2009–10	2010–11	Total
	(millions of dollars)
Building Infrastructure
Investments in provincial, territorial and municipal Infrastructure
Accelerated payments under the Provincial/Territorial Base     Funding Initiative		495	495	990
Infrastructure Stimulus Fund		2,000	2,000	4,000
Additional funding for community projects		250	250	500
Green Infrastructure Fund		200	200	400
National recreational trails		25		25
Recreational Infrastructure Canada		250	250	500
Investments in First Nations infrastructure		260	255	515
Investments in federal infrastructure projects		462	254	716
Subtotal—Building Infrastructure		3,942	3,704	7,646
Stimulating Housing Construction
Support for home ownership and the housing industry	530	2,840	345	3,715
Investments in social housing for Canadians		1,025	1,050	2,075
Subtotal—Stimulating Housing Construction	530	3,865	1,395	5,790
Total—Building Infrastructure to Create Jobs	530	7,807	5,099	13,436
Total stimulus value	30	9,803	6,649	16,482
With provincial contributions		13,893	10,764	24,657
Notes: Totals may not add due to rounding. The stimulus value reflects projected cash expenditures. The budgetary impact may be somewhat smaller because some of these expenditures relate to construction and renovation costs of federal assets (for which only depreciation is recorded on a budgetary basis) and loans to third parties (where there is a budgetary impact only in the event that there is a risk of loss).

Building Infrastructure

Infrastructure investments stimulate the economy by creating jobs in the construction and manufacturing sectors—the sectors hit hardest by the current recession—and generate considerable spinoff activity in the rest of the economy. Canada needs modern infrastructure to support healthy, sustainable communities and a strong economy. However, much of Canada's infrastructure was built decades ago, and needs upgrading or replacement to maintain the vibrancy of Canadian communities and so that Canada can continue to compete effectively in the global economy.

That is why the Government of Canada in 2007 made an historic infrastructure investment of $33 billion under the Building Canada plan.

Table 2.8
$33-Billion Building Canada Plan: Major Initiatives—2007–2014

Municipal GST rebate ($5.8 billion)	100-per-cent rebate of the GST paid by municipalities providing flexible funding to address their highest priorities.
Gas Tax Fund ($11.8 billion)	Budget 2007 extended the Gas Tax Fund (GTF) from 2010 to 2014 at $2 billion per year. The GTF supports environmentally sustainable municipal infrastructure that contributes to cleaner air, cleaner water and reduced greenhouse gas emissions.
Building Canada Fund ($8.8 billion)	Focuses on projects that deliver economic, environmental and social benefits to all Canadians. The Fund operates through two components: (1) Major Infrastructure Component—targets larger, strategic projects of national and regional significance; and (2) Communities Component—focused on projects in communities with a population of less than 100,000.
Public-Private Partnerships Fund ($1.25 billion)	To support innovative projects that provide an alternative to traditional government infrastructure procurement.
Gateways and Border Crossings Fund ($2.1 billion)	To facilitate the development of strategic trade corridors linking to international gateways.
Asia-Pacific Gateway and Corridor Initiative ($1 billion)	To facilitate the development of the Asia-Pacific gateway and corridor.
Provincial/Territorial Base Funding Initiative($2.275 billion)	$25 million annually to each province and territory over seven years, for a total of $175 million. Supports categories under the Building Canada Fund, as well as non-core National Highway System infrastructure.

To accelerate the achievement of the objectives of the Building Canada plan, and create or preserve more jobs during the economic downturn, Canada's Economic Action Plan allocates close to $12 billion in infrastructure funding over this and the next year. This will ensure that Canada emerges from the economic downturn with a more modern, safer and greener infrastructure.

Federal investments are augmented by contributions from provinces, municipalities and others, such as colleges and universities. Investments are focused on four kinds of infrastructure projects:

• Provincial, Territorial and Municipal Infrastructure: Short-term projects aimed at renewing public infrastructure, including road and sewer upgrades, as well as green infrastructure that contributes to cleaner air, land and water.
• First Nations Infrastructure: Construction and renewal of schools, improved access to safe drinking water, and health care and policing infrastructure in Aboriginal communities.
• Federal Infrastructure: Rail, bridge and highway infrastructure, refurbished harbours for small craft and more efficient border crossings­, all of which can create jobs quickly.
• Knowledge Infrastructure: Modernizing universities and colleges, building world-class research infrastructure, expanding health information systems and improving broadband services in rural Canada. Information on knowledge infrastructure is provided in the section entitled "Creating the Economy of Tomorrow."

Since the launch of Canada's Economic Action Plan, the Government of Canada has taken swift action to accelerate and increase investments in public infrastructure.

Investments in Provincial, Territorial and Municipal Infrastructure Projects

Safe highways, bridges and local roads, and modern public transit and water systems contribute to a higher quality of life for Canadians. This public infrastructure is largely managed by provinces, territories and municipalities across the country. The historic $33-billion Building Canada plan is helping to improve the nation's critical infrastructure. Each billion dollars in infrastructure investment generates $1.6 billion in economic activity and creates almost 10,000 jobs over time, with significant impacts felt almost immediately. Estimates by the Department of Finance and the Federation of Canadian Municipalities suggest that the $12-billion investment in infrastructure will generate between 120,000 and 132,000 jobs. Canada's Economic Action Plan is taking action to speed up spending from the Building Canada plan—initially announced as a long-term seven-year plan—by fast-tracking priority projects and streamlining decisions and approvals for all infrastructure projects.

The Economic Action Plan also builds on these investments by allowing for accelerated access to Provincial/Territorial Base Funding, launching a new Infrastructure Stimulus Fund to support construction-ready projects in all regions, topping up support to the Communities Component of the Building Canada Fund, and introducing a Green Infrastructure Fund. These initiatives are putting shovels in the ground, creating jobs and helping to kick-start the economy. From coast to coast, in every province and territory, agreements are being negotiated and concluded, and regulatory processes are being streamlined to ensure projects are started quickly.

Accelerating Building Canada Fund Projects

The $8.8-billion Building Canada Fund is supporting large and small infrastructure projects across Canada. Expediting priority projects under the Fund will enable Canadians to benefit from a more modern infrastructure sooner, and provides important stimulus to the economy. Since January 2009, significant progress has been made on accelerating large strategic projects of national and regional significance under the Major Infrastructure Component of the Building Canada Fund:

• More than $11.7 million in federal dollars for the Desjardins water treatment facility in Lévis, Quebec.
• $45.2 million in federal funding to support 15 highway projects and local roads across the province of Newfoundland and Labrador.
• $350 million for British Columbia to construct the Evergreen Line—a new 11-kilometre rapid transit line from Burnaby to Coquitlam.
• $40 million in federal funding for Telus World of Science in Calgary.
• $550 million to improve service and reliability of GO Transit in Ontario and build the Sheppard Rapid Transit Line in Toronto.

In total, almost $2 billion in funding under the Major Infrastructure Component of the Building Canada Fund has been committed to 54 projects since January 2009.

Accelerating Approval Processes

The Government's priority is to get federal infrastructure spending out into the economy. In order to accelerate our spending commitments with provinces and territories, the Government has taken steps to speed up project approvals, without compromising the protection of the environment, by making changes to the federal regulatory framework through legislative, regulatory and administrative actions, including:

• Legislative amendments under the Navigable Waters Protection Act, which were introduced as part of Budget 2009, are now fully in force.
• Regulations under the Canadian Environmental Assessment Act have been amended to streamline approvals of infrastructure projects under a broad range of funding initiatives without compromising environmental protection.
• A Proponent's Guide to Fisheries Act Reviews for Federally Funded Infrastructure Projects has been developed along with a streamlined approach for Aboriginal consultations to ensure that in implementing infrastructure projects expeditiously, the federal Crown fulfills its legal obligations with respect to Aboriginal rights.

New Economic Action Plan Initiatives

Accelerating spending under the Building Canada plan is only one thrust of the Economic Action Plan. The Government is also committed to rolling out new infrastructure spending initiatives for provincial, territorial and municipal infrastructure included in Budget 2009 to renew infrastructure and create jobs. These measures will accelerate provincial, territorial and municipal spending on projects that are ready to go, but have been delayed for lack of funding, in large and small communities across the country. The Government also recognizes the importance of infrastructure spending in contributing to a cleaner and safer environment, and so has introduced the Green Infrastructure Fund. Since Budget 2009, these initiatives have been put to work very quickly with more to be put in place in 2009–10.

Accelerated Payments Under the Provincial/Territorial Base Funding Initiative: Significant, predictable funding has been committed by the Government to infrastructure projects that are provincial and territorial priorities. The Government provides $25 million per year, for a total of $175 million over seven years, to each province and territory through the Provincial/Territorial Base Funding Initiative. Canada's Economic Action Plan allows provinces and territories to use funding that otherwise would be available only in the 2011–12, 2012–13 and 2013–14 fiscal years on projects that can be completed by March 31, 2011.

As a result of this acceleration, up to $1 billion in additional federal funding is available over the next two years to kick-start more infrastructure projects across the 13 jurisdictions.

Several provinces and territories are taking steps to accelerate funding:

• Accelerated capital plan submissions have been approved in a number of provinces, including British Columbia, Alberta, Saskatchewan, Manitoba and Quebec. These provinces have either negotiated, or are in the late stages of negotiating, agreements to accelerate all or part of their funds by 2010–11.
• The offer to accelerate all of this funding has been made to all provinces and territories that are finalizing their capital plans.

Since the launch of the Economic Action Plan, the Government of Canada has transferred $430 million under the Provincial/Territorial Base Fund to construction projects.

Infrastructure Stimulus Fund: The Government created the $4-billion Infrastructure Stimulus Fund (ISF) as part of the Economic Action Plan to create jobs and get money now to construction-ready projects that can be completed over the next two years. Provincial, territorial and municipal projects have been announced under the ISF across Canada, including:

• Over 200 projects in British Columbia totalling over $300 million, of which $137 million of federal funding has been committed. Projects include:
  • A $40-million project to construct a modern, three-lane bridge across the Capilano River in North and West Vancouver that will replace the existing two-lane "blue bridge." The new bridge will include priority access lanes to improve public transit.
  • A $28-million project in Prince George to construct a new four-lane bridge on Highway 97 that will replace the existing Stone Creek Bridge.
  • A $10.7-million project in Surrey to construct a cycling and pedestrian overpass and bicycle paths.
• $410 million has been committed for 116 projects across the Prairies. This includes:
  • $92 million in Saskatchewan, including close to $9 million for road and sewer repairs in Saskatoon.
  • $109 million in Manitoba, which will help support three community projects costing $20 million including $3.3 million for a $10 million expansion of the United Way in Winnipeg.
  • $210 million in Alberta, including $15 million for the new home of Canada's Sports Hall of Fame in Calgary.
• Over $900 million in Ontario to support over 1,000 municipal infrastructure projects valued at approximately $2.8 billion such as public transit, cultural facilities, roads, parks and municipal buildings.
• $936 million in federal funding for projects in Quebec, including $350 million for the repair of water and sewer mains.
• In the Maritimes, $132.5 million has been committed to close to 200 projects including:
  • $28 million in federal funding for 26 highway, parks and cultural projects in Nova Scotia, and another $14 million for the City of Halifax and Cape Breton.
  • In P.E.I., 17 projects are being jointly funded, including restoration of Queen Street in Charlottetown and storm sewer upgrades in Summerside.
  • In New Brunswick, the Port of Belledune will see an important $61-million upgrade with $26 million in federal funding.
• In Newfoundland and Labrador, the federal government has committed over $51 million in funding to support 22 provincial and community infrastructure projects, including:
  • $83 million of joint funding to improve the province's water and wastewater infrastructure.
  • $9 million for the Deer Lake Airport to extend its current runway from 6,000 feet to 8,000 feet and to improve the operating conditions for aircraft.
• $7 million for 11 infrastructure projects across the Yukon, including road reconstruction and upgrades, highway upgrades and bridge rehabilitation, of which $3.5 million is federal funding.

Additional Funding for Community Projects: The Building Canada plan initially set aside $1.1 billion over seven years to meet the unique infrastructure needs of small communities. Under the Economic Action Plan, the Government is working in partnership with provinces and communities to approve projects for the entire federal contribution of $1.1 billion. Since January, 670 projects have been approved, with federal and partner contributions totalling $2.3 billion. This includes water, wastewater, local roads and bridges, public transit, green energy, sports, culture and recreational projects that will make a real difference in the everyday lives of Canadians in smaller communities across the country. In provinces where all the funding available is committed to projects, Canada's Economic Action Plan provided an additional amount of up to $500 million to support new projects that could be built in the next two years.

This initiative is progressing at a rapid speed and is creating jobs with 300 projects approved at a value of $900 million to date. For example, Nova Scotia's $14-million allocation under the top-up has been fully committed towards 38 projects; in Manitoba, the top-up of $18 million is fully committed to 22 projects; in Newfoundland and Labrador, commitments totalling $7.4 million have been made to 18 projects; in Alberta, $52 million has been approved for 40 community projects; and in Ontario, $194 million has been approved for 182 projects.

Green Infrastructure Fund: The Government is committed to improving the quality of the environment and creating a more sustainable economy over the longer term. Budget 2009 included a new $1-billion Green Infrastructure Fund to make further progress toward achieving these objectives.

Discussions have taken place with a number of provinces regarding potential projects. The program has been formally launched and Yukon's Mayo B hydro and Carmacks-Stewart transmission project was announced as a first project.

National Recreational Trails: Recreational trails add to the quality of life of Canadians and can help attract tourists to bolster local economies. Budget 2009 provided $25 million to the National Trails Coalition to support up to 400 projects by March 31, 2010 that will create and upgrade trails throughout the country. A contribution agreement with the National Trails Coalition was signed and announced on May 26, 2009 and the coalition has launched a call for proposals. Projects will be starting in the coming weeks.

Community Recreational Facilities: Hockey arenas, soccer fields, tennis courts and swimming pools provide Canadians and their families with the benefits of physical activity and community-based experience. Many of these facilities were built in 1967 to mark Canada's Centennial year and are in need of renewal. Upgrading existing community recreational facilities and constructing new ones will provide much-needed economic stimulus, while providing Canadians in all regions with better facilities in which to play, relax and build community life. This is why the Economic Action Plan provided $500 million over two years to create the Recreational Infrastructure Canada program, announced on May 14, 2009, which will support the construction of new facilities and upgrades to existing ones across the country. Examples of projects supported to date include $1 million for the St. Francis Xavier outdoor track and stadium project in Antigonish, Nova Scotia, for year-round artificial turf, stadium lighting, fencing, seating and a 400-metre track. In addition, $58,000 will be provided to replace the existing sprinkler pool at the Gesner Park in Oromocto, New Brunswick, with a new splash pad and comfort station. Additional projects will be identified through applications currently being solicited by the regional development agencies, and by Indian and Northern Affairs Canada (in the North) and Industry Canada (in Ontario). Projects are expected to begin this construction season.

Public-Private Partnerships: Public-private partnerships (P3s) can help governments build infrastructure projects faster and at a lower cost to taxpayers. The Government has created PPP Canada, a new Crown corporation, to develop public infrastructure through P3s and manage a $1.25-billion fund for public-private infrastructure projects.

The Government has put a strong Board and management in place for PPP Canada. In May 2009, four new directors were appointed to the Board, bringing an in-depth cross-section of private sector executive experience in the engineering, banking, finance and legal fields. These appointments will enable sound governance, and ensure effective strategic guidance and oversight of the Crown corporation.

PPP Canada has already engaged every province and territory on the process and criteria for support to P3 projects and has heard about potential project priorities. The new Board will be considering its corporate and investment strategies and priorities over the coming months.

PPP Canada is also working with Export Development Canada (EDC) in the context of the Extraordinary Financing Framework announced in Canada's Economic Action Plan to scope capital market challenges facing the P3 market. Recent announcements by EDC regarding surety and bonding support and co-lending for trade-enabling projects, to be delivered in partnership with private financial institutions, should help enable P3 infrastructure projects to proceed.

First Nations Infrastructure

To ensure that First Nations communities can deliver education for young students, safe drinking water for all and essential health and policing services, the Government of Canada is providing enhanced support to First Nations communities for critical infrastructure. The Economic Action Plan supports ready-to-go First Nations community infrastructure projects focused on three priority areas: schools, water and wastewater projects, and critical services such as health and police services.

Investments in infrastructure create jobs, and it is estimated that over the next two years the Action Plan investments of $365 million in First Nations water and school infrastructure will create significant employment opportunities in rural and remote communities.

First Nations Schools

The Economic Action Plan is supporting job creation through the construction and renovation of schools on reserves. This will mean new classrooms for students of all ages, and needed facilities such as upgraded libraries and resource centres, science and computer rooms, auditoriums, soccer fields, tracks, landscaping and play facilities.

This is in keeping with the Government's commitment to improve on-reserve student retention and graduation rates. Building and renovating schools on reserves will provide economic stimulus to communities by generating jobs and business opportunities and helps meet existing and future requirements.

New schools and modern facilities are a key element to improving education outcomes on reserve which, in turn, is vital to improving economic opportunities for First Nations children. These improvements to education infrastructure are a valuable investment in the future of First Nations children and will help build more vibrant First Nations communities.

Thirteen school projects have been announced in First Nations communities, with ground breaking expected for two new K-12 schools in Birch Narrows First Nation and Peter Ballantyne First Nation in Saskatchewan by the end of June. These two new school projects are expected to create about 470 jobs.

The thirteen projects will result in new schools and renovations to existing buildings with investments of $200 million.

 

Safe Water Systems

Safe water systems are vitally important to the health of a community. Investments in water and wastewater systems will create jobs and improve access to safe drinking water and contribute to improved health outcomes in order to help build stronger and healthier First Nations communities.

Eighteen water and wastewater projects in First Nations communities have been announced. These projects involve the construction of new sewage lagoons, water supply and treatment plants, a sludge system, a mechanical sewage treatment plant and water distribution systems, with investments of $165 million.

One of these projects has gone to tender, with three more expected to go to tender in June. A ground breaking for a new sewage lagoon in Pinaymootang First Nation in Manitoba is expected by the end of July. This project is expected to create 55 jobs.

 

First Nations Health Services Infrastructure

Safe and effective health facilities which house quality health programs and services are key to ensuring that the health needs of First Nations and Inuit are met. The Economic Action Plan is creating jobs through the construction and renovation of health services infrastructure for First Nations, including health facilities and nurses' residences. All regions will benefit from this investment in infrastructure; in total, approximately 40 new projects and 230 renovation projects will be undertaken, with investments of $135 million. It is anticipated that some projects can begin as early as this summer.

First Nations Policing Infrastructure

To help ensure that First Nations have access to professional, effective, efficient, responsive and culturally sensitive policing services that are accountable to the First Nations communities they serve, the Economic Action Plan is supporting the creation of jobs through the remediation of critical policing infrastructure in First Nations communities. Discussions with provinces and territories are underway to identify cost-shared projects. Governments are working together and with First Nations communities to ensure that funding is provided as quickly as possible.

Funding to Upgrade and Modernize Federal Infrastructure

Canada's Economic Action Plan is making investments to provide benefits to Canadians through better passenger rail services, safer bridges and highways, refurbished harbours for small craft and more efficient border crossings. Much of the planned work is well underway, creating jobs across the country.

An Improved Rail System: VIA Rail is undertaking significant infrastructure and other capital improvements to permit higher train frequencies, enhance on-time performance and reduce trip times. These investments are progressing very quickly.

Trans-Canada Highway: The completion of the twinning of the Trans-Canada Highway within Banff National Park will improve safety and reduce the potential for collisions with wildlife on this busy stretch of highway. The project has two phases:

• The first phase consists of the twinning from Lake Louise Village to the Icefields Parkway interchange, including the redevelopment of the interchange. Site preparation and the tendering process are both underway, and construction is expected to begin in the fall of 2009.
• The second phase continues the twinning to the border with British Columbia. For this phase, soils investigation has been completed, with construction planned for the spring of 2010.

Federal Bridges: Federal bridges support the efficient and safe movement of people and goods across Canada. Canada's Economic Action Plan invests in a number of bridge rehabilitation projects.

The Jacques Cartier and Champlain Bridges Incorporated designed a comprehensive 10-year repair program for the Champlain Bridge in Montréal to ensure that the bridge remains safe. Canada's Economic Action Plan allocated $212 million to this project. All required approvals have been received, the contract was awarded and work started in April. Approximately 30 per cent of the planned work for the 2009–10 construction season is expected to be completed by June 30, 2009.

The Economic Action Plan identified $25 million in 2009–10 and $15 million in 2010–11 to accelerate needed repairs to four federal bridges managed by Public Works and Government Services Canada: the LaSalle Causeway in Kingston, Ontario; the Burlington Lift Bridge in Burlington, Ontario; and the Alexandra and Chaudière bridges in the National Capital Region. Over 70 per cent of the first year's funding is already under contract. For example:

• Public Works and Government Services Canada awarded a contract for work on the Alexandra Bridge. Work started on March 16, 2009, and will be completed in 2011. About 75 people are expected to be working on this project this summer. Economic Action Plan funds have allowed for an accelerated completion date for this project.
• A multi-million-dollar contract will be tendered in July for work on the LaSalle Causeway to be conducted at the end of the navigation season.

Contracts will be awarded later this year for both the Chaudière Bridge and the Burlington Lift Bridge.

Small Craft Harbours: The Economic Action Plan provides $200 million over two years to support the repair and maintenance of Canada's core commercial fishing harbours and an additional $17 million to accelerate the construction of a small craft harbour in Pangnirtung, Nunavut. These investments will help accelerate required repair work and help ensure that the commercial fishing industry has access over the long term to safe and functional harbours. These repairs, maintenance and construction projects are expected to create more than 2,000 direct and indirect jobs.

In 2009–10, $82.3 million will be spent on contracts for repair, maintenance and dredging work at existing harbours, and $7 million will be used to advance the construction of the Pangnirtung harbour, Nunavut's first small craft harbour.

Contracts totalling $27 million have already been awarded and are expected to create about 280 direct and indirect jobs. Work is expected to begin this spring across the country in urban and rural communities.

Federal Buildings: The Economic Action Plan committed significant funds to repair and renovate the federal government's building portfolio. Significant progress has been made in realizing over 1,200 small and large projects planned for across the country. Contracts have been issued for almost 60 per cent of this year's funding and Public Works and Government Services Canada has begun implementation of over 900 projects. Projects address a range of needed repairs to these assets including:

• Interior and exterior work, including electrical upgrades and window replacements.
• Ventilation and air conditioning systems.
• Roof work.

In addition, funding was provided to enhance the accessibility of Crown-owned buildings for persons with disabilities. To date, 60 per cent or $12 million of the first year's funding has been allocated to specific projects across the inventory, of which $5 million has been committed through contracts. Particular emphasis is being placed on Service Canada facilities. Projects include:

• Tactile signage.
• Power door openers.
• Voice identification in elevators.
• Interior and exterior ramps.

Projects related to the repair and enhanced accessibility of buildings will be contracted through Public Works and Government Services Canada's private sector building management service provider, which will in turn contract out to 3,700 small and medium-sized enterprises from coast to coast to coast. These existing contractual arrangements allow the Government to move quickly on projects. Work is also being directly contracted out by Public Works and Government Services Canada, providing additional opportunities for firms to bid for the contracts.

The Economic Action Plan also provided $2 million over the next two years for the development of a comprehensive plan to secure the future of the historic Manège Militaire. A contract has been awarded for public consultation, to seek the input of interested stakeholders regarding the future of the site. These consultations are currently underway and will close on June 15th.

Federal Contaminated Sites: The Government is accelerating work to clean up federal contaminated sites, which is expected to result in up to $245 million in economic activity over the next two years. This work will create jobs and economic activity in communities across Canada over the next two years, while contributing to a cleaner environment and enabling long-term development. Projects have been selected, and work will begin in the 2009 construction season. For example, the Government intends to provide $9.2 million over two years to address contamination on Oshawa harbour marina lands and the west wharf. The cleanup of the Oshawa harbour would stimulate the local economy and create jobs, while ensuring that the harbour continues to be an important part of the community.

Stimulating Housing Construction

In recent years, Canada's housing industry has become a key contributor to economic growth by fuelling demand for jobs in construction and trades, building materials and other goods and services.

To stimulate our construction industry and protect and create jobs, the Government is providing significant support for home ownership and renovations. The Government is also making investments to renew Canada's social housing and improve municipal housing-related infrastructure.

Support for Home Ownership and the Housing Industry

Canada's Economic Action Plan provides powerful incentives for Canadians to invest in owning a home, which for many is the most important investment of their lives. A robust housing industry is also an important source of economic activity in Canada as it creates jobs and promotes demand for building materials and other goods and services.

To support economic growth during these challenging times, the Government has introduced four measures to help Canadians purchase and improve their homes, and these measures are already delivering benefits to Canadians:

• The temporary Home Renovation Tax Credit, which will provide Canadian families with up to $1,350 in tax relief for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. It is estimated that about 4.6 million families in Canada will benefit from this credit. Renovations that will qualify for the credit are already being done, stimulating activity in the construction industry.
• Providing first-time home buyers with greater access to their Registered Retirement Savings Plan savings to purchase or build a home by increasing the Home Buyers' Plan withdrawal limit to $25,000 from $20,000 in respect of withdrawals made after January 27, 2009.
• Providing up to $750 in tax relief to assist first-time home buyers with the costs associated with the purchase of a home. The First-Time Home Buyers' Tax Credit will be available for individuals who acquire a qualifying home after January 27, 2009. This will make it more affordable to purchase a home.
• Providing an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.

The proposed Home Renovation Tax Credit and First-Time Home Buyers' Tax Credit, as well as the new Home Buyers' Plan withdrawal limits, are already being administered by the Canada Revenue Agency and Canadians are already taking advantage of them. Detailed information on eligibility conditions and how to claim these credits is already available on the Canada Revenue Agency's website. The Agency has received more than 700,000 enquiries about the Home Renovation Tax Credit through its website and by telephone.

 

Early indications are that the Home Renovation Tax Credit will help create jobs and economic activity in the housing industry during the current global recession. According to Canada Mortgage and Housing Corporation's Renovation and Home Purchase Survey, which was conducted in March 2009, the portion of Canadians intending to spend more than $1,000 to renovate their homes is 15 per cent higher in 2009 than in 2008. Private surveys suggest that the vast majority of homeowners are aware of this credit—close to 90 per cent according to one recent survey—and that the availability of the credit is an important factor in their decision to renovate. High-profile advertising campaigns undertaken by major building material suppliers and retailers, such as The Home Depot, have also helped increase awareness of the Home Renovation Tax Credit.

The Home Renovation Tax Credit will have an important effect on local economies. Increased activity in the renovation sector will also help small local renovation businesses, which are important contributors to job creation in Canada.

ecoENERGY Program: Canada's Economic Action Plan provided an additional $300 million over two years to expand the existing ecoEnergy Retrofit – Homes program to encourage homeowners to improve the energy efficiency of their homes. Budget 2009 funds have been used to increase the program grant levels by 25 per cent, and will reach as many as 200,000 additional homeowners.

The program is encouraging the development and installation of next generation energy products, as well as fostering improved techniques in home construction and renovation. It is also creating an industry of experienced Energy Advisors to support both federal and provincial programming. In April, the eco-Energy Retrofit program certified 60 new Energy Advisors to conduct pre- and post-retrofit evaluations, bringing the total number to nearly 1,200.

Investments in Social Housing for Canadians

As a result of Canada's Economic Action Plan, significant progress is being made to put shovels in the ground and create jobs in the housing industry by providing support for social housing. The Action Plan is helping low-income Canadians, including those who often have the most difficulty finding suitable and affordable housing. It will mean more units for those in need, such as seniors, persons with disabilities and Aboriginal Canadians. Not only will there be more housing available, but existing social housing units will also benefit as a result of renovations and energy efficiency retrofits.

These social housing measures—amounting to over $2 billion over two years—will create jobs and also increase demand for building materials and other goods. Canada Mortgage and Housing Corporation (CMHC) implemented these measures quickly by working directly with its provincial and territorial counterparts to finalize agreements that allow money to flow. By working through existing programs and agreements, the Government is making sure that the money gets to the builders and developers as fast as possible so that construction can begin. In addition, up to $2 billion is now available in low-cost loans to municipalities for housing-related infrastructure such as sewers, water lines, and neighbourhood regeneration projects. Municipalities across the country have expressed considerable interest in these loans, and applications are already being processed.

 

Renovation and Retrofit of Social Housing: Canada's social housing exists to provide shelter to those that need it most. A large portion of the existing social housing units, however, are aging and require significant repair and upgrading to meet today's energy efficiency and accessibility standards. In order to get the $1 billion in new funding for renovation and retrofits flowing as quickly as possible, for this year agreements have been reached with all but one of the provinces and territories. For the one remaining jurisdiction, an agreement in principle has been reached subject to final approvals. Provinces and territories are matching their share of federal funding and must now sign agreements with project sponsors to access the federal dollars. A large portion of the construction and job creation is expected to begin over the summer, and quarterly reports on progress achieved will be provided by provinces and territories to CMHC.

Taken together with matching funding from provinces and territories, it is expected that this new federal funding will improve the quality and energy efficiency of up to 200,000 social housing units across Canada.

First Nations Housing: While the Government is committed to supporting the development of individual home ownership on reserve, many First Nations continue to face a significant need for affordable housing, including social housing. To improve housing conditions on reserve and stimulate the economy by creating jobs in rural areas of Canada, the Economic Action Plan provided $400 million over two years to build new and renovate existing affordable housing units in First Nations communities. First Nations communities are in the process of finalizing applications to receive funding. Following approval, construction and renovation projects will be ready to be launched this summer.

Housing for Low-Income Seniors and Persons With Disabilities: Seniors and persons with disabilities often have to make ends meet on a fixed income. The construction of new affordable housing units for low-income seniors and persons with disabilities will help those in need and create jobs. CMHC has signed agreements with all but one of the provinces and territories. For the one remaining jurisdiction, an agreement in principle has been reached subject to final approvals. Provinces and territories must now provide matching funding and sign agreements with project sponsors, such as local church organizations and housing co-ops, to allow the federal dollars to begin to flow. Announcements have already been made in some jurisdictions, and construction is expected to begin this summer.

Northern Housing: In recognition of their distinctive needs, arrangements have been reached with each of the governments of Nunavut, the Northwest Territories and the Yukon to provide $200 million in dedicated funding to renovate and construct social housing units in the North and create jobs. Work is expected to start soon.

Helping Municipalities Build Stronger Communities: To address the challenges municipal governments are facing in finding money to follow through with planned, ready–to-go housing-related infrastructure projects, the Government is providing up to $2 billion in low-cost loans to municipalities. Loan applications were posted on CMHC's website in April and applications have already been submitted. The first loan is expected to be approved within the next month with work starting this summer.

Table 2.9
Building Infrastructure to Create Jobs

	2009–10 Stimulus Value (millions of dollars)	Authorities in Place	Funding Committed (millions of dollars)	Funding to Flow/ Benefits Available
Building Infrastructure
Investments in Provincial, Territorial   and Municipal Infrastructure
Accelerating payments under the Provincial/Territorial Base   Funding Initiative	495	Yes	81	April
Infrastructure Stimulus Fund	2,000	Yes	1,120	May
Bonus for Community Projects	250	Yes	115	Summer
Green Infrastructure Fund	200	Yes	7	Fall
National recreational trails	25	Yes	25	June
Recreational Infrastructure Canada	250	Partial	–	Summer
Investments in First Nations   Infrastructure
School construction	95	Yes	95	April
Water and wastewater projects	83	Yes	83	April
Critical community services (health facilities)	68	Yes	68	April/May
Critical community services (police facilities)	15	Yes	–	June/July
Investments in Federal Infrastructure   Projects
An improved rail system	141	Yes	60	Spring
Trans-Canada Highway	20	Yes	9	April
Federal bridges and Champlain Bridge	47	Yes	35	Spring
Small craft harbours	89	Partial	27	Spring
Repair and restoration of federal buildings	158	Yes	105	April
Enhancing accessibility of federal buildings	20	Yes	5	April
Manège Militaire in Québec City	2	Yes	–	Summer
Accelerating action on federal contaminated sites	92	Yes	–	Summer
Border facilities	7	No	–	February 2010
Aviation security	383	Yes	81	Spring
Stimulating Housing Construction
Home Renovation Tax Credit	3,000	Budget 2009	3,000	February
Support for Home Ownership and the   Housing Industry
Increasing withdrawal limits under the   Home Buyers' Plan	15	Yes	15	February
First-Time Home Buyers' Tax Credit	175	Budget 2009	175	February
Enhancing the energy efficiency of our homes	150	Yes	150	April
Investments in Social Housing for   Canadians
Renovation and retrofit of social housing   (shared with provinces and territories)	425	Yes	347	June
Renovation and retrofit of social housing (federal only)	75	Supplementary Estimates (A)	75	June
First Nations housing	200	Yes	200	July/August
Northern housing	100	Yes	100	June
Housing for low-income seniors	200	Yes	153	June
Housing for persons with disabilities	25	Yes	19	June
Loans to municipalities	1,000	Yes	1,000	June
Total	9,803		7,149

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