Canada's Economic Action Plan 2013: The New Building Canada Plan

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Economic Action Plan 2013 is the next chapter in the Governments long-term plan to strengthen the Canadian economy in an uncertain world, and create jobs and growth, while keeping taxes low for families and businesses and balancing the budget by 2015.

Federal Investments in Job-Creating Infrastructure

Economic Action Plan 2013 delivers a new Building Canada plan to build roads, bridges, subways, commuter rail and other public infrastructure in cooperation with provinces, territories and municipalities. The new Building Canada plan includes over $53 billion in new and existing funding for provincial, territorial and municipal infrastructure. In addition, over the next 10 years, the Government will make significant investments in First Nations infrastructure and in federal infrastructure assets. Overall, the new Building Canada plan, combined with other federal infrastructure investments, will result in the largest and longest federal investment in job-creating infrastructure in Canadian history.

A New Building Canada Plan

Following on the success of the 2007 Building Canada plan, Economic Action Plan 2013 introduces a new 10-year funding commitment to provincial, territorial and municipal infrastructure, starting in 201415, through three key funds:

• Community Improvement Fund$32.2 billion consisting of an indexed Gas Tax Fund and the incremental Goods and Services Tax (GST) Rebate for Municipalities to build roads, public transit, recreational facilities and other community infrastructure across Canada.
• New Building Canada Fund$14 billion in support of major economic infrastructure projects that have a national, regional and local significance.
• Renewed P3 Canada Fund$1.25 billion to continue supporting innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through public-private partnerships.

In addition, about $6 billion in federal support will be provided to provinces, territories and municipalities under current infrastructure programs in 201415 and beyond. This brings total federal investments in provincial, territorial and municipal infrastructure to approximately $53.5 billion from 201415 to 202324.

Community Improvement Fund

This initiative provides stable, predictable funding for Canadian municipalities of $32.2 billion over 10 years consisting of an indexed Gas Tax Fund and the incremental GST Rebate for Municipalities. This funding will support community infrastructure projects such as roads, public transit and recreational facilities. Funding starts at approximately $2.9 billion in 201415 and increases to over $3.6 billion in 202324. The new Community Improvement Fund will provide municipalities with greater flexibility to allocate federal support toward a broader range of infrastructure priorities.

Building Canada Fund

Economic Action Plan 2013 provides $14 billion over 10 years to support infrastructure projects of national, regional and local significance. The new Building Canada Fund will have two components:

• A $4-billion National Infrastructure Fund that will support investments in projects of national significance, such as highways, public transit, and gateway and trade corridor-related infrastructure.
• A $10-billion Provincial-Territorial Infrastructure Fund that will support projects of national, regional and local significance in communities across the country in a broader range of categories including highways, public transit, drinking water, wastewater, connectivity and broadband, and innovation.

P3 Canada Fund

Public-private partnerships (P3s) can improve the delivery of public infrastructure for Canadians, provide better value for money, and reduce risk for Canadian taxpayers. Under P3 arrangements, governments continue to own the infrastructure assets while the private sector plays a larger role in the design, construction, operation and maintenance of public infrastructure.

Building on progress achieved, Economic Action Plan 2013 provides $1.25 billion over five years on a cash basis to renew the P3 Canada Fund.

Support for First Nations Infrastructure

Under the new Building Canada plan, the Government will provide $155 million over 10 years to support investments in First Nations infrastructure projects on reserve such as roads, bridges, energy systems as well as other First Nations infrastructure priorities, in addition to funding for First Nations infrastructure that will be provided from the Gas Tax Fund component of the Community Improvement Fund. This is in addition to funding under existing programming of approximately $7 billion over the next 10 years that will be invested in building, operating and maintaining infrastructure on reserve.

Investments in Federal Infrastructure

In addition to the new Building Canada plan, the federal government will invest over $10 billion on a cash basis on federal infrastructure assets. This includes:

• Up to $124.9 million to build a bridge-causeway between Nuns' Island and the Island of Montreal, as part of the New Bridge for the St. Lawrence that will replace the Champlain bridge.
• $25 million over three years to advance the Windsor-Detroit International Crossing project.
• $248 million over five years to strengthen Canadas meteorological services, which includes new investments in federal infrastructure.
• $19 million in 201314 for improvements to highways and associated bridges that pass through Canadas national parks.
• $54.7 million in 201314 to support VIA Rails operations and $58.2 million over five years to maintain passenger rail services for remote communities.
• Investments in other federal infrastructure assets, including bridges, small craft harbours, ports, military bases and departmental accommodations across the country.