Budget ’21: construction highlights and reaction
The federal government released its long-awaited 2021 budget on April 19. While the focus of the document is undoubtedly on bringing the economy out of the crisis created by the COVID-19 pandemic, it is also clear that Canadians will continue to pay for its effects for a long time to come.
The budget forecasts a deficit of $354 billion. That figure is expected to fall to $154.7 billion in the 2021–22 fiscal year. In addition, the federal government has planned total new spending in excess of $101 billion over the next three years.
Some of the highlights of interest to the construction sector include:
- an additional $2.5 billion for the 10-year housing strategy; 60 percent of that total will be put toward construction of 4,500 new units under the Rapid Housing Initiative,
- $23 million over four years to support Infrastructure Canada in its national infrastructure assessment, the aim of which is to “identify needs and priorities for Canada’s built environment,”
- a reiteration of the permanent public transit fund, worth $14.9 billion over eight years, for the funding of transit projects starting in 2021–22,
- $2.4 billion allocated over three years to developing skills and trades; some of that money is expected to be aimed at providing training in construction,
- an additional $1 billion allocated to the Universal Broadband Fund, which aims to bring high-speed internet infrastructure to underserved communities,
- $35 million over five years to the National Capital Commission to, “support the acquisition and upkeep of federal assets, green infrastructure, and spaces in the National Capital Region,”
- $4.4 million to Transport Canada and Via Rail to, “advance due diligence and de-risk” a high-frequency rail project that could connect Toronto, Ottawa, Montreal and Quebec City, and create dedicated tracks for passenger trains along that corridor,
- $491 million over six years for VIA to make, “infrastructure investments that would support the overall success of the high frequency rail project,” and
- $500 million over two years, starting in 2021–22, to the regional development agencies for community infrastructure via the Canada Community Revitalization Fund.
Stakeholders’ early reaction to the budget is positive, with some saying the spending plans don’t go far enough.
The Residential and Civil Construction Alliance of Ontario (RCCAO), for example, says it is pleased that the federal budget proposes substantial funds for rehabilitation of stormwater systems but is disappointed there is no new money on the table to help municipalities with the cost of state-of-good-repair projects. Earlier this month, the alliance outlined its concerns about the weakened state of Ontario's underground infrastructure.
“When critical stormwater infrastructure is unable to cope, it can cause billions of dollars in property and environmental damage, so we are happy to see the budget will provide $1.4 billion over 12 years through the Disaster Mitigation and Adaptation Fund to rehabilitate those systems,” says RCCAO executive director Nadia Todorova. “However, a Safe Restart Agreement 2.0 or other funding mechanism is also needed to provide municipalities with financial assistance that will help them weather budget shortfalls caused by COVID-19. Without funding, these projects won’t proceed.”
The Residential Construction Council of Ontario (RESCON), meanwhile, says it is pleased with the $470-million investment to establish an apprenticeship service that will help Red Seal-trade apprentices find work opportunities, and provide $5,000 in training subsidies to employers.
“We are pleased that the government is taking steps in this budget to deal with the economic crisis caused by COVID-19 but is also focused on the future by investing in programs to ensure that industries like construction will have the skilled workers they need for the future,” says RESCON president Richard Lyall. “These are difficult times, but we must ensure that we are taking the steps that are necessary to ensure our youth get the training they need.”