February 5, 2002

The Government has announced today changes to the 2001 Budget bill that would implement our commitments to invest in Strategic Infrastructure and in development in Africa through new government programs rather than arm’s length foundations.

Like all direct government spending, these new programs will be squarely in the hands of elected public officials, who are fully accountable to Parliament and to Canadians.

The programs will be implemented so as to preserve the integrity of the fiscal framework set out in the 2001 Budget.

By using the Contingency Reserve to pay down the debt, we will generate savings on interest payments that will finance these programs.

Strategic Infrastructure

Budget 2001 commits $2 billion to Strategic Infrastructure such as water, sewage, tourism and transportation infrastructure. This is unchanged.

However, since announcing this initiative, we have heard from the provinces and municipalities about the large-scale infrastructure projects that they will propose. It quickly became apparent that we need an instrument that is flexible and that allows us to work closely with our partners on these major projects.

Our government has come to the conclusion that the control, flexibility and clear accountability to Parliament that are needed are best achieved by establishing a new direct spending program for strategic infrastructure, under the Minister of Infrastructure and Crown Corporations.

African Development

Budget 2001 sets aside $500 million as a contribution to the development of Africa. This is unchanged.

However, in order to preserve our flexibility going into the Kananaskis Summit of the G8 – where assistance for Africa will be a key focus – we have decided to structure this spending as a program.

The assistance will be delivered directly by the Government of Canada and will finance projects and activities set out in the Action Plan for Africa adopted at the Genoa Summit of the G8.