Premiers, mayors press Harper for infrastructure boost

Provincial and territorial leaders are presenting Prime Minister Stephen Harper with a lengthy wish list of new infrastructure projects to stimulate their economies during two days of pre-budget consultations.

The first ministers are raising a variety of pressing issues, but infrastructure was expected to dominate during talks on Thursday and Friday.

The premiers are looking for funding and for ways to streamline the approval process so that projects can get underway faster. In 2007, the Harper government announced money for infrastructure projects under the Building Canada Fund, but nothing was built because projects got bogged down in red tape.

"We want to get those shovels in the ground sooner rather than later," Ontario Premier Dalton McGuinty said before Thursday's afternoon meeting got underway. "We don't want the recession to be over by the time we get infrastructure dollars spent."

Some of the premiers stressed that they are willing to put up money if the federal government does.

"I'm not going to be asking the prime minister for anything we not prepared to do ourselves in the province of Saskatchewan," Premier Brad Wall said as he arrived at Thursday's meeting.

"If we're asking him to accelerate infrastructure, Saskatchewan better be prepared to do it. If we're asking him to increase national infrastructure investments, we better be prepared to do it as a province."

Ottawa needs to match provincial contributions

Others noted that they are already investing a lot of money, and it's time for the federal government to step up.

Quebec Premier Jean Charest said his government is investing $72 billion over 10 years on infrastructure, while the federal government is providing Quebec with $4 billion over seven years.

Manitoba Premier Gary Doer said it's time for the imbalances to stop.

"Now is the time to move on those deficits in infrastructure," he said.

This is the first formal first ministers meeting Harper has held during his three years in office. He has met informally with premiers several times over dinner or lunch — the last time only two months ago to discuss the global economic crisis.  

The first ministers will be briefed by key officials during their two days of talks, including the governor of the Bank of Canada and the federal finance, transport and human resources ministers.

On Thursday night, during a low-budget meal of lasagna, macaroni salad and inexpensive wine, the first ministers met with five aboriginal leaders to discuss the need for improved housing, water services and education in their communities. (The meal, planned with the hard economic times in mind, cost taxpayers $25.95 per official).

Premiers' requests will influence budget: federal official

The premiers' requests will be taken into consideration as the federal government prepares its Jan. 27 budget, a senior government official told reporters Thursday. Although the budget is already 292 pages long (328 pages for the French version), the official said it is not final and 15 per cent of it could be altered.

The official said the premiers meeting will influence the budget and is not simply a public relations exercise.

"We're getting down to the point of making final decisions and crafting the budget," said the official, who provided the details as background information and could not be named.

Satisfying the premiers is a crucial step in ensuring a favourable reaction to the budget, on which the fate of Harper's minority government rests. The opposition Liberals are threatening to defeat the government and pursue a coalition with the NDP and support from the Bloc Québécois if the budget doesn't do enough to stimulate the economy.

Harper has suggested the budget could contain up to $30 billion in stimulus measures over several years.

Charest said it's time the federal government does its fair share when it comes to reviving the economy.

"We have done about as much as we can do in our areas of jurisdiction to support our workers, our industry and [to] make credit accessible to businesses," he said.

And while the federal government looks to weather the economic crisis, it should not do so on the backs of the provinces, Charest added, lashing out at Ottawa's plan to cap equalization payments to have-not provinces.

Projects ready to go: mayors

Thursday's first ministers meetings came as mayors from Canada's 22 biggest cities met in Ottawa for their own talks. They gathered at the request of the federal government, which wants the mayors discuss their needs and priorities.

The Federation of Canadian Municipalities has released a list of more than 1,000 infrastructure projects they said would be "shovel ready" as early as this spring if federal funding is made available.

Those projects, the organization said, would cost the federal government $13.7 billion. Mayors say the cost would be worth it in the long run, considering these infrastructure projects would create 150,000 jobs and stimulate the economy.

"I don’t think anyone is under the illusion that governments can spend their way out of this recession, but as a stimulus, infrastructure is a wise investment," Calgary Mayor Dave Bronconnier said in a news release.

Immediate action sought

Mayors say the best way to channel money their way would be through the federal gasoline tax transfer, and stressed that the federal government needs to get behind them.

"We need action today," Toronto Mayor David Miller said. "We don't need red tape. We don't need funds created that are never spent, like the Building Canada Fund."

Vancouver Mayor Gregor Robertson said municipalities will judge the Jan. 27 federal budget based on its call for swift action.

"The litmus test for the big-city mayors for support for this budget is not only how many dollars moved, but how fast and how fair."

Transport Minister John Baird, who met with the mayors Thursday, has said there will be a big focus on municipal infrastructure, but that the government has other priorities as well.  

Baird said the government will favour projects ready to go immediately and that can't start without a federal infusion. He also said Ottawa prefers projects whose costs are shared by the provinces and municipalities.