About the Issue

Public infrastructure is the backbone of our economy and quality of life, but after decades of underinvestment, Canada is only just beginning to confront its "infrastructure deficit", a backlog of delayed repairs and construction that hurts every Canadian family and business. For 25 years Canadians have watched the symptoms of the infrastructure deficit grow: rusting bridges, crumbling roads, crowded buses and subways, and thousands of drinking water warnings.

How has this happened? Revenue imbalance. Municipalities own 53% of the country's infrastructure but collect just eight cents of every tax dollar paid in Canada, with the other 92 cents going to federal, provincial and territorial governments.

On their own, municipalities don't have the revenue tools to rebuild infrastructure, especially while they are expected to meet growing needs for policing, housing, the environment and immigrant settlement, including many responsibilities downloaded from other governments.

Our Position

All governments - federal, provincial, territorial and municipal - must work together and with the private sector to make immediate infrastructure repairs to protect public health and safety. They must act now to establish a fully funded, long-term plan to build roads, water systems, community facilities and transportation systems Canada needs to support businesses and families, enrich our quality of life and maintain competitiveness in international markets.

The Latest

Working together over the last few years, federal, provincial, territorial and municipal governments have started making progress:

• Co-funding thousands of stimulus projects that improve infrastructure and guard against the global recession
• Shifting to longer-term funding plans
• Cutting red tape and bureaucracy in federal funding programs

In its June 2011 Budget, the Government of Canada said it would work FCM, provinces territories and other partners, to develop a new long-term infrastructure plan. FCM is working with federal officials and the Minister of Transport, Infrastructure and Communities to begin talks now so the new plan is in place before existing infrastructure programs expire in a few years.

How We Do Our Work

With the support of FCM staff, our standing committee is dedicating time and attention to ensure progress is made in this area.