Speeches

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Notes for an address
by the Honourable Lawrence Cannon
Minister of Transport, Infrastructure and Communites

to the Federation of Canadian Municipalities

Montréal, Quebec
June 4, 2006

Check Against Delivery

Dear Friends,

And I do consider that I am among friends today – I would like to thank the Federation of Canadian Municipalities and all the organizers of the 2006 Annual Conference for their kind invitation.

You are all vital and valued partners for my portfolio and for this government.

This is the first time I have had an opportunity to speak to you since assuming my duties but I am delighted to see so many familiar faces in the room.

I would like to thank Mayor Gérald Tremblay for welcoming us to Montreal.

It is always a great pleasure to be back in Montreal, one of North America’s most vibrant and exciting cities.

Two days ago, the Prime Minister spoke to you, reporting on the progress we are making with regard to the government’s priorities and how they will benefit your communities.  He sketched the broad outlines of his vision for Canada as a federation within which governments work together to help Canadians realize their full potential. He told you how he will pursue his plan for change together with all levels of government.

Today I want to speak, in particular, of the new Transport, Infrastructure and Communities portfolio. I want to talk to you about the synergy it creates. I will especially emphasize this in the context of Budget 2006 and the Prime Minister’s vision for change.

But, first of all, I would like to tell you that this is like a homecoming for me.

At the start of my political career, from 1979 to 1985, I was a municipal councillor in the former town of Cap-Rouge, moving from there to provincial politics and serving in Robert Bourassa’s government from 1985 to 1994 as Deputy Speaker and Minister of Communications. As such, Mayor Tremblay and I are former colleagues. I returned to municipal politics in 2001, serving as a councillor for the City of Gatineau until 2005. During this period, I was also Chairman of the Outaouais Urban Transit Corporation and President of the Association du transport urbain du Québec.

That’s what I mean when I say that this is like a homecoming for me.  I would also say that I understand your concerns and have a clear grasp of the situation you are dealing with in carrying out your duties as elected officials and leaders in your communities.

I also understand that no single level of government alone can solve all the problems of our cities and communities.  If we are to accomplish this, we must build a strong and constructive partnership, where every jurisdiction is recognized and respected.

The Canadian Constitution – the very core of our country’s success – provides for a direct link between municipal institutions and provincial governments. The federal government means to respect the letter and the spirit of this provision.

In addition, in his address to the Board of Trade of Metropolitan Montreal on April 20, and right here on Friday.

The Prime Minister clearly explained his concept of open federalism, that is, benefiting from the experience and expertise that the provinces and territories can bring to the national dialogue, respecting areas of provincial jurisdiction, limiting the use of the federal spending power and ensuring co-operation with every level of government.

Thanks to Mr. Harper’s leadership, I believe we have a historic opportunity to define and give life to a new, dynamic, and forward-looking relationship between federal, provincial and municipal partners, and together we can begin to work on restoring fiscal balance within the Canadian federation. And of course, the Federation of Canadian Municipalities and its President Gloria Kovach, play a critical role.

But let us make no mistake. Respecting everyone’s roles and responsibilities does not mean inaction or a lack of dialogue with municipalities. Far from it. Focusing on five priorities does not mean that everything else will be put on hold. Rest assured, this Government is looking to engage with you as partners, to better address the challenges that all orders of government face.

We can allow ourselves to be overwhelmed by challenges or we can be stimulated by them and take action. This government has chosen to act. The theme of your conference this year, “Building Prosperity Together” leads me to think that you have made the same choice.

Budget 2006

Canada's economic success rests on the strength of its communities. The Government of Canada is dedicated to making Canadian communities better places to work, to learn and to grow.

The unprecedented federal support for infrastructure outlined in Budget 2006 will contribute to the economic vitality of communities by helping to ensure, for example, that citizens have access to safe and reliable water systems, that goods can be transferred efficiently to markets, and that traffic congestion is reduced, contributing to an improved environment.

Additional investments to encourage the use of public transit will further help communities improve their quality of life.

The Government is committed to taking actions that will lead to a cleaner, healthier environment. Beginning this year, by making major investments in public transit infrastructure and by providing incentives to encourage its use, concrete actions will be taken that improve the environment and improve the lives of Canadians.

I know that on Friday the Prime Minister highlighted some of the good news for municipalities in Budget 2006, but I think it is worthwhile to look at some of these again. In concrete terms, here is what we are proposing in the budget:

• a new Highways and Border Infrastructure Fund, to which $2.4 billion will be allocated over the next five years;
• an additional $2 billion for renewal of the Canada Strategic Infrastructure Fund to respond to large-scale priorities;
• $2.2 billion over the next five years to renew the Municipal Rural Infrastructure Fund, so as to respond to the needs of smaller municipalities;
• $1.3 billion for public transit, in order to ease traffic congestion in urban areas, reduce carbon dioxide and improve the quality of the air and the quality of life in our cities — $900 million to be paid into a trust fund for public transit infrastructure and $400 million to be provided through agreements with the provinces and territories. I would like to stress that the trust fund money is dependent on the official confirmation of a budget surplus of over $2 billion for fiscal 2005-2006;
• In addition, the Budget backs those investments in public transit with $370 million in tax credits over two years for people who buy monthly passes. No other government has ever done as much to encourage public transit. This measure will reinforce our transit supply and service investments, thereby increasing transit ridership;
• We are also maintaining the 100% rebate on the Goods and Services Tax (GST), to support our cities and communities;
• And we are maintaining the agreements on sharing of the federal excise tax on gasoline.

In total, the measures announced in the Budget represent an unprecedented federal investment in infrastructure, totalling $16.5 billion over the next four years. We are very proud of this commitment, which is an indication of the importance the Prime Minister places on Canada’s cities and communities.

Budget 2006 also provides for:

• Investment of $800 million in the Affordable Housing Trust and $300 million for affordable housing in the territories. And of interest, just a few days ago, on May 31, the Canada Mortgage and Housing Corporation (CMHC) announced seed funding of $4 million this year for the development of affordable housing proposals.
• The security of our cities and communities is also a priority for this government. That is why we plan to invest $95 million to increase security in the public transit and rail systems.

But before you begin the exercise of submitting potential infrastructure projects for my attention, you should know that we still have work to do.

For the Canada Strategic Infrastructure Fund, the new Highways and Border Infrastructure Fund and the Municipal Rural Infrastructure Fund, we have to establish program criteria, decide on a project selection process and identify priority investments. This should be done in collaboration with the provinces and territories and the municipal sector. I will describe our approach shortly.

In planning the programs, we will endeavour to support best practices and ensure accountability and we will not be financing cost overruns.

Transport, Infrastructure and Communities – an integrated portfolio

The measures I have highlighted today represent some of the most important investments the federal government has ever made in the quality of life in our cities and communities, and the competitiveness and sustainability of Canada’s economy.

But we will not stop there, because the challenges we face require much more than money.

They require governments to think the problems through.  We have to think through how we can most effectively coordinate all the tools at our disposal.  This government has begun to do that – we are getting our house in order so that we can engage more effectively with our partners.

My portfolio, Transport, Infrastructure and Communities, really is a point of convergence for some of the most important issues facing Canada today.

In addition to Infrastructure Canada and Transport Canada, I am also accountable to Parliament — that is, to all Canadians — for 16 Crown Corporations, including Canada Post and the Canada Lands Company — with its plan to redevelop Benny Farm here in Montreal, which is proving to be a true success in terms of partnership. These corporations and others in my portfolio provide services that are very close to Canadians. In addition, dozens of shared governance organizations, such as port and airport authorities are also part of the portfolio.

Why does this portfolio matter?  Why is this important to municipalities?

It matters because, as I said, these issues are converging, and bureaucratic walls that existed between them have not contributed to progress.

For the first time in these areas, one federal minister has responsibility for a comprehensive range of tools.

I’m talking about investments, of course, but also about legislation, regulation, policies and programs.  We need to use them all together, in order to maximize the effectiveness of each of them.

The benefits offered by the creation of this portfolio lie not only in the opportunity to gain an integrated understanding of transport, infrastructure and communities issues but, more importantly, in the opportunity to make integrated decisions in support of clear objectives.

I’d like to take this opportunity to share with you my thoughts for making the most of these opportunities.

Our goal is to build on the vitality of our cities and communities, and use our transportation system to make Canada more competitive in the global economy.

To do this, we need to be clear about how the pieces fit together. My approach has three main elements: understanding the world we live in, developing strategies to deal with this, and turning this into action.

First, we need to recognize that our challenges are rooted in the realities of the world around us.  Consider dynamics like globalization, the rise of China and India, and the importance of our partnership with the United States.

Second, how do we respond to these challenges? We have to choose the strategic priorities on which action is required, a federal role is justified, and for which my portfolio is entrusted with practical tools. There are four:

• Economic competitiveness;
• Quality of life;
• The environment; and
• Accountability to Canadians.

These four strategic priorities represent challenges of national scope, and important federal responsibilities. Those responsibilities include legislation, policies and investments that underpin the national transportation system, particularly its efficiency, safety, security and sustainability; the management of our borders; and investments in strategic and community infrastructure.

While each of these are legitimate areas for concrete federal actions, they will also demand strong partnerships with provincial and territorial governments, and our partners in Canada’s municipalities.

They will also require transparency and accountability on the part of all governments, and a renewed emphasis on results.

And finally, the third and most important of three main elements of this portfolio strategy – action.  Over the coming months, I will be advancing practical, specific measures in four inter-related areas:

• Sustainable infrastructure, which I will expand on shortly;
• Transportation Gateways and Trade Corridors, starting with the Asia-Pacific Gateway Initiative to prepare for expanding trade with Asia;
• Transportation security, including public transit; and
• Building strong communities that offer a healthy environment and a good quality of life.

So, those are the broad strokes of our approach – the broad dynamics, the choices, the commitments to act. But let me illustrate in more concrete terms.

Public transit is a good example of the benefits of integration.  We are using a range of federal tools to address this one priority in a comprehensive way.

As outlined earlier, we’ve committed to significant investments in public transit.

We are acting on the demand side to help transit users through the new tax credit for monthly bus passes.

To make sure our transit infrastructure and passengers are safer, we are also investing in public transit security. 

But we are committed to more than just money.

For example, we are using our legislative frameworks – such as a Bill to amend the Canada Transportation Act that is currently before the House.  Among other things, this will enable transit authorities to acquire abandoned urban rail corridors for public transit.

This is integration at work – investment, security, taxation, legislation – and my hope is that it will help you to produce results at the local level and modernize public transit for the long term.

The proposal from the Big City Mayors Caucus for a national transit program is a particularly interesting one.  Clearly its spirit is consistent with this direction we are already acting on - significant investment for a coherent, collaborative approach to transit as a national issue with environmental, quality of life, competitiveness and accountability dimensions.

All of these new actions, as well as the crucial, ongoing work of Transport, Infrastructure and Communities, will be supported by a foundation of national policy and legislative frameworks, efficient and effective government, respect for jurisdiction, accountability for results and real partnerships.

Putting the right tools together under a single minister makes for more efficient, more effective government.  It makes sense.

So this is indeed an opportunity.  An opportunity to do things differently.  To achieve results.

I see this as a very logical portfolio combination, in that these are all interconnected sectors which touch our lives very closely, on a daily basis. It is difficult to separate the development of our cities and communities from the modernization of our transportation networks and infrastructure. It is also difficult to divorce these issues from the improvement of our environment and quality of life.

Our integrated approach will also encourage meaningful collaboration and strong partnerships, while respecting individual areas of jurisdiction.

I hope this approach helps put our commitments in context.  I hope you will agree that putting the pieces together in a coherent fashion, linking investments to priorities and principles, will help produce better decisions.

I will be seeking input on how to implement these actions. And I will be seeking to build meaningful partnerships to move them forward.

The fiscal balance and consultations

Our government is also keenly aware that the fiscal balance has a direct impact on cities, where about 80% of Canadians live.

The Budget provides for discussions to re-establish the fiscal balance. My colleague, Minister Flaherty, will play a key role in the consultations with the provincial and territorial governments on this subject. The budget is clear that the perspectives and priorities of cities and communities must be clearly understood, and municipalities will be partners in this process.

This government has also made a commitment that the Finance Minister will consult the FCM before drawing up any future federal budgets.

For my part I will continue to consult our partners on issues that affect them, as I have been doing in my numerous meetings with the FCM and other municipal leaders. I met your first Vice-President Gord Steeves on Tuesday precisely to talk about our approach to consultations and I will be meeting with some members of the executive committee and Big City Mayors Caucus momentarily.

Obviously, a major part of the discussions on the fiscal balance will focus on federal government support for public infrastructure. In this regard, it is up to me to lead the preparations for a long-term federal infrastructure strategy. This strategy will benefit from your input and will be used in the Government’s work. As you heard from the Prime Minister on Friday, over the next month I will be meeting with the provinces, territores, and municipalities to discuss the federal role in infrastructure. And we will work together as partners while respecting jurisdiction.

I am very much aware of the important work the FCM is currently engaged in while preparing a report on fiscal balance. I look forward to reading the report and seeing how it may assist us in developing our long-term vision. I also want to acknowledge the Big City Mayors Caucus report on the same topic. On a similar note, I understand that the External Advisory Committee on Cities and Communities will present its final report to the Prime Minister in the next few weeks. The Committee is chaired by a former Mayor of Vancouver, Mike Harcourt, who is with us here today.

Vision for the future

In the consultations with the provinces and as the title of Budget 2006, “Focusing on Priorities”, indicates, we have determined “that it will be essential to ensure that the perspectives and priorities of cities and communities are understood”.

All of you, who provide the most direct services for Canadians, are the stewards of the places where people live, work and raise their families. Your vision of things is unquestionably the most clearly defined, because you are closest to the action.

We all want to increase prosperity in our cities and communities. We do not want this to be just a plan, we want it to be a reality. I believe that this reality is entirely possible. It depends in large part on the people who are here, today, in this room. All we have to do is work effectively together and take full responsibility for our respective and clearly defined actions.

Conclusion

Canada has been one of the great political and economic success stories of the 20th century.  Together, we can ensure that Canada remains a model for the world, admired and even envied for its respect for diversity, the rule of law, and for the quality of life it offers its citizens.

By building stronger communities, safer and more prosperous cities, by modernizing and developing our infrastructure and by cleaning up the environment, we are building a better Canada for future generations.

Thank you.