Budget 2001
Strategic Infrastructure

December 10, 2001

Infrastructure spending is an important part of our government’s agenda. Simply put, a good physical infrastructure is essential to our success as a nation.

Our investments in infrastructure not only stimulate job creation and confidence in the short term, but they make our economy more productive and more competitive in the long run.

Budget 2001 builds on our government’s past investments in infrastructure by creating the Strategic Infrastructure Foundation, by allocating funding for affordable housing, by investing in federal infrastructure and by creating a new border infrastructure program.

The Strategic Infrastructure Foundation

Our government recognizes the need for additional support for large strategic infrastructure projects – projects that span a range of areas including highways, urban transportation and sewage treatments, and that are beyond the capacity of existing programs.

Budget 2001 addresses these needs by creating the Strategic Infrastructure Foundation and committing a minimum of $2 billion in federal funds to the initiative – part of which will come from this year’s surplus funds at year-end.

The Foundation will work with provincial and municipal governments, and will provide cost-shared assistance to large infrastructure projects. Special consideration will be given to public-private partnerships.

Affordable Housing

Housing is a basic need of every Canadian. And as a nation, we have a collective responsibility to help meet that need.

Budget 2001 confirms the federal contribution of $680 million over five years to a capital grants program for affordable housing.

We are also announcing that our government has reached an agreement with the provinces and territories. We are looking forward to construction beginning very soon.

Border Infrastructure

With the increasingly high volume and velocity of trade that is characteristic of the Canada-U.S. border, the time has come for both of us, jointly, to make strategic investments to help eliminate bottlenecks in key trade corridors. This was necessary before September 11th, and it has become even more important since.

Budget 2001 provides $600 million over five years for a new border infrastructure program. Under this program, we will seek to partner with the provinces, municipalities and the private sector. We also intend to work with the U.S. tot ensure a coordinated approach towards border infrastructure.

Projects supported by the program could include:

new or improved highway access for border crossings;

processing centres for commercial vehicles to speed up clearance times; and

"soft infrastructure" such as intelligent transportation systems, which facilitate the electronic exchange of information between government agencies and trucks and trains crossing the border.

Critical Government Capital

Budget 2001 builds on previous investments in federal infrastructure by allocating $236 million to address health and safety in the maintenance of veterans hospitals, government laboratories and small craft harbours. This includes $20 million a year for infrastructure repairs to active fishing harbours.