Auditor general backs Higgs in federal dispute over infrastructure spending

A campaign by New Brunswick Premier Blaine Higgs to rework the province's $673.2 million infrastructure agreement with Ottawa to allow for more meat and potatoes spending to fix decaying structures has gotten little federal support so far, but the effort has merit according to New Brunswick's auditor general 

"The Premier's position very much aligns with what we've been saying in a number of our reports when it comes to maintaining our infrastructure," said Kim MacPherson in an interview Thursday

"We have a lot of infrastructure for a very small population base that needs to be maintained and we have a lot of aging infrastructure, so I would agree that we need to get a handle on looking after the assets that we have." 

Higgs has been sparring with the federal government over his desire to change the terms of a 10 year infrastructure deal signed between Ottawa and the government of former premier Brian Gallant in 2018.  

The agreement involves $673.2 million of federal money that can be used to help finance qualifying provincial or municipal infrastructure projects but Higgs has been complaining the categories are too narrow and some money is directed where it is 'not needed'. 

Diversion of funds necessary, says Higgs

According to the terms of the deal, about three quarters of the federal  funds -- $512.3 million --  are to be used to help build new public transit networks and other green infrastructure projects including clean energy and wastewater treatment facilities. The remainder are for various local community, rural and indigenous projects.

Higgs wants to divert large portions of funding into more mundane but foundational needs, like fixing dilapidated assets the province already owns. 

"The request we've made to the federal government is to have more flexibility in projects the funds can actually be used for," Higgs said during a news conference Wednesday.  

"We are looking at areas where we can maintain current infrastructure or to upgrade current infrastructure and that could apply to hospitals or schools or roads or bridges." 

"I am trying to defer future expenses that are coming, that we know of, because of the condition of some of our assets and the more that I can do them now with this funding, rather than do something else that's not needed, it's going to help us recover quicker."

Decaying bridges, nursing homes and more

For years MacPherson has been warning about decaying infrastructure in New Brunswick and the need for the province to invest adequately in repairing and maintaining it.

In 2013, her department found that 293 bridges in the province, 11 per cent, were in poor condition and in need of  "significant maintenance work".  

In 2016 she reported provincial nursing homes required $285 million in repairs and maintenance work and later this year she is scheduled to report on the condition of provincial public schools.

"We've had a lot of reports on capital assets where we have deferred maintenance issues," said MacPherson  

"I have said in past reports, only buy and build new assets if you're taking others out of service and there's a business need for this new asset."   

Higgs has said only about 10 per cent of the federal infrastructure money is discretionary and the rest is proving difficult to move around. He said while it is easy to get money approved to buy electric buses under the program, the province's needs are more basic than that.

'Best value'

He claims repairing old assets will create as many jobs as building or acquiring new ones. He also argues provincial and federal revenues in the future have been made uncertain by the COVID-19 pandemic and it is a mistake to create new assets not knowing if New Brunswick will have the money required to maintain them.

"I'm trying to get the best value I can going forward because whatever I spend today is something somebody's got to deal with tomorrow," said Higgs  "I don't want to have a New Brunswick that is in trouble a year from now." 

But so far the Trudeau government has not been inclined to change the arrangement.

In a statement, the press secretary to federal Infrastructure Minister Catherine McKenna said green infrastructure funding includes money that can be spent to upgrade existing assets.  

Chantalle Aubertin claimed money can be used to make schools and hospitals "more resilient" and existing streets and sidewalks can be retrofitted to make room for "new pathways and bike lanes that will help Canadians physical distance while staying active and healthy."

"We also continue to move forward with provinces on long-term projects, from better public transit to high-speed broadband to wastewater and clean energy," said Aubertin.