Calling for Infrastructure Investment

Why infrastructure investment is important

  • Infrastructure grows the economy, strengthens communities and protects the environment.
  • It creates jobs and prosperity.
  • Sustained, predictable infrastructure investment makes good business sense for governments, taxpayers and all Canadians.

Learn more by visiting the Invest Infrastructure section.

Federal Budget 2016 

ACEC is pleased that the Liberal government’s first budget focused on immediate and long term growth of the economy through investments in infrastructure and innovation. The government’s approach to infrastructure investment is a strong indicator that recommendations presented by ACEC and other stakeholders over the past several years and during the pre-budget consultation period were taken under advisement. Highlights include:

  • Over $60 billion in new federal infrastructure investments in two phases ($12 billion in the first phase) in addition to the existing Building Canada Fund;
  • Acceleration of portions of the existing Building Canada Fund;
  • Previously uncommitted money from the previous Building Canada Fund added to the Gas Tax Fund over the next two years;
  • An additional $3.4 billion in investments for federal infrastructure assets; and
  • $2 billion over three years of new money for infrastructure investment in post-secondary institutions.

More infrastructure investment still needed

As welcome as the budget 2016 announcement was, there is still much to do. Since 2006, infrastructure investment in Canada has averaged 3.4% of GDP which is significantly lower than the 6% of GDP seen in the 1950s and 1960s and the 9% of GDP that some of Canada’s major economic competitors, such as China and India, are investing in infrastructure.

ACEC believes that responsible fiscal management and the elimination of the deficit provide governments the opportunity to increasingly improve Canada’s prosperity through further investments in infrastructure.

ACEC recommends that a portion of any surplus be dedicated to infrastructure with a long-term goal that investments by all three levels of government return to historical levels of 6% of GDP. Learn more about supporting data and facts. 

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