STATEMENT BY FCM PRESIDENT ON TOMORROW´S
ECONOMIC AND FISCAL UPDATE

OTTAWA, November 26, 2008 — Statement by Jean Perrault, President of the Federation of Canadian Municipalities (FCM) and Mayor of Sherbrooke, on tomorrow´s Economic and Fiscal Update.

“The Government of Canada has recognized the severity of the global economic crisis and the need for action to protect Canadians from a recession. A key element of its action plan is to quickly accelerate infrastructure investments. 

FCM strongly supports this approach, and is committed to working with the federal government to fix slow-moving infrastructure programs and ensure that investments come online for next year´s construction season in time to offset an economic slowdown.

Due to delays in the rollout of the Building Canada Fund (BCF), the federal government has close to $3 billion in unspent infrastructure money on hand. When matched by provincial, territorial and municipal contributions, these funds would leverage a total investment of $9 billion and create close to 100,000 new jobs across Canada.

Timing is everything when it comes to fighting a recession. The existing BCF program — with its need for extensive, upfront paperwork, lengthy review processes, and long waiting periods — is too slow to get a significant number of new projects started in time for next year´s construction season.

What we need now is to fix this program so that the BCF can be put to use creating the new jobs and economic boost that our country needs in the near term.

Similarly, any new funds invested above and beyond those already set aside in the BCF must be delivered without onerous, upfront application procedures. One model is the federal Gas Tax Fund, which is both highly efficient and accountable.

A top priority is the renewal of the Public Transit Capital Trust, scheduled to expire in 2009. Allowing these funds to expire would pull valuable infrastructure dollars out of the economy at a time when governments are planning the opposite.

Also, by confirming renewed federal funding for affordable housing, the government will generate new construction jobs and benefit families in hard times.

Our recommendations are fiscally responsible and, more than anything, they require prompt action. While tomorrow´s Economic and Fiscal Statement may not provide a detailed road map for fighting a recession — we look forward to clear direction by the government to address these issues.

FCM and the federal government have forged a strong and productive partnership. Now our partnership must continue to protect Canadians during these challenging times.”

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For further information, visit www.fcm.ca/en/infrastructure. To arrange interviews, contact Maurice Gingues: (613) 907-6395 / mgingues@fcm.ca