The federal budget tabled by Finance Minister Francois-Philippe Champagne is drawing applause in some circles of Ontario’s construction industry but getting a cooler reception in others.
Organizations that represent the interests of contractors in Ontario’s ICI construction sector, labour and management groups in the residential and civil sectors, and employer associations in the ICI and heavy civil construction fields, are generally supportive while an employer association that advocates on behalf of the progressive labour model has reservations.
Giovanni Cautillo, president of the Ontario General Contractors Association (OGCA), welcomed a new Build Communities Strong Fund which will invest $51 billion over 10 years, followed by $3 billion per year, to revitalize and spur construction of local infrastructure such as hospitals, universities and colleges, roads and bridges, community centres, and water and transit systems. However, he noted having a fund and utilizing such a fund are two different things.
“The OGCA strongly recommends that the federal government table infrastructure projects in a timely manner to ensure that infrastructure acts as a continual driver of the Canadian economy,” he said. “Investment in infrastructure has always had a compounding result on the overall economy and acted very much like a canary in the coal mine as a prime indicator of the state of that economy.”
Cautillo stressed the urgency of the situation.
“In short, the OGCA would ask that the federal government prioritize investment in infrastructure and move quickly to get those projects to industry where they can be actioned and effect the most positive impact to the overall trajectory of our Canadian economy,” he said.
The Residential and Civil Construction Alliance of Ontario (RCCAO) said the budget provides reason for optimism, as it has policy reforms and funding with the potential to boost Canada’s infrastructure.
However, “sustained follow through and reforms that reflect the day-to-day frontline realities of RCCAO members will need to be seen if the measures are to yield improvements for Canada, paired with acting expeditiously to get funding allocated to projects and shovels in the ground,” said association executive director Nadia Todorova.
RCCAO was also pleased to see the budget focus on building for Canada and capital infrastructure investments, including the Build Communities Strong Fund.
“This new fund is a good start and our members will continue to work with all three levels of government to see it implemented and boost our economy and communities,” said Todorova. “For its intended impact to be realized, the federal government must act with a sense of urgency to expeditiously get funding out the door and shovels in the ground on critical infrastructure projects.”
The fund must also continue to be a permanent ongoing element by the Government of Canada in reflection of the significant infrastructure deficit across Ontario and the rest of the country, she said.
Ian Cunningham, president of the Council of Ontario Construction Associations, said the budget was “a solid first step in Canada’s transition away from its traditional economic and security dependence on the United States to a more self-reliant state with diversified trading and defence partners.”
Of particular interest to the construction industry, he said, is the reskilling package for up to 50,000 workers, accelerating access to and extraction of critical minerals, the Build Communities Strong Fund, and an $81-billion investment over five years in defence.
“If I have a criticism, it is not the generational, transformative fiscal blueprint that it was hyped-up to be. It underdelivered on heightened expectations. But all in all, a good first step in this critically important and historic transition that could take decades to arrive at a new stable state.”
Karen Renkema, vice-president, Ontario, for the Progressive Contractors Association of Canada (PCA), said she has concerns as to whether the Major Projects Office (MPO), funded in the budget, will lead to fixes for any of the regulatory hurdles that stand in the way of investment.
PCA also takes issue with language in the Build Communities Strong Fund, as project selection will consider factors such as the use of unionized labour and Community Employment Benefits agreements, whereas the association wants the critical determining factors to be that a venture benefits the community and there’s critical safety reasons for a project.
“If we’re building nation-building projects, and we’re constructing critical infrastructure, all taxpayers should benefit, all taxpayers should be able to work on the projects, and all businesses should be able to compete for the project,” said Renkema.
“If we’re building critical infrastructure, to build our nation wouldn’t you make the decision based on need of the critical infrastructure? Everybody, all taxpayers that are paying for this, should be able to work on it.”
Renkema also said she is worried the MPO does not fix the root of the problem because it seems that regulatory hurdles remain.
“Unless we start fixing the problem holistically and addressing some of these barriers, and some of the duplicative processes that are in place and not just put a Band-Aid on a few, I’m not sure that we’ve actually, in Ontario, won on the question of major projects.”
