Budget may set table for national trade corridor plan: MHCA
A federal budget clearly focused on the green economy also potentially opened the door for discussions about the trade infrastructure our country needs to strengthen the supply chain and the economy, MHCA President and CEO Chris Lorenc says.
“The budget notes that the past funding programs for trade corridors and gateways are nearing closure and it’s time to look at the next long-term investment plan,” Lorenc said. “We are part of a coalition of five national and regional business organizations calling for the next program to be a comprehensive strategy that sets the table 20 to 30 years out – not just a five to 10 year funding program.”
Finance Minister Chrystia Freeland’s budget highlighted the need to develop a green economy – through tax incentives and investment “supports” – and that amid geopolitical dynamics, Canada can benefit as allies look to source materials key to clean technologies from those sharing similar democratic values.
That spoke to the supply chain, which fell into turmoil during the pandemic and, to a degree, when Russia invaded Ukraine in 2022.
But close on the heels, the budget papers also noted Canada’s trade transportation routes need attention, as well.
“Canada’s trade corridors keep our economy moving,” Budget 2023 says. “From ports, to airports, to railways and highways, they are the backbone of the supply chains that bring goods to our communities and enable our businesses to export their products around the world.”
While the budget contained little by way of investment commitment — $27.2 million in the next five years to establish a supply chain office in Transport Canada – it said the federal government would “collaborate with industry, provinces, territories, and Indigenous Peoples to develop a long-term roadmap for Canada’s transportation infrastructure to better plan and coordinate investments required to support future trade growth.”
Noting the Investing in Canada Infrastructure Program is coming to an end, the budget said Ottawa is reviewing future needs for infrastructure.
“We, of course, feel the time is past due for a significant recapitalization of the trade corridor fund,” Lorenc said. “However, there must first be a strategy so that investment goes to ‘shovel worthy’ trade transportation projects – not those that are simply ‘shovel ready.’”
The strategy needs to define Canada’s national trade corridor system, what we need to upgrade or construct and then, via agreed-upon criteria, set out a 20 to 30-year pipeline of projects that can deliver the highest return on investment, he said.
MHCA, through the Western Canada Roadbuilders & Heavy Construction Association, is working with the Canadian Chamber of Commerce, Business Council of Canada, Canadian Construction Association and Canada West Foundation in the call for a National Plan for Trade Corridor Infrastructure.
Lorenc said it was good to hear the Trudeau government recognizes that trade supports 65% of the national economy, and trade rides on transportation infrastructure. That is a good starting point for discussions on how a next-generation strategy for investment should be framed.
The Coalition promotes the CWF report From Shovel Ready to Shovel Worthy as the basis upon which a long-term, sustained investment strategy can be created.
The federal government has also committed to speeding up the impact assessment of proposed major projects.
“By the end of 2023, the government will outline a concrete plan to improve the efficiency of the impact assessment and permitting processes for major projects, which will include clarifying and reducing timelines, mitigating inefficiencies, and improving engagement and partnerships.”
