Infrastructure is aging not just in Canada, but around the world There are systemic issues with municipalities that are putting strains on their budget like labor cost Transit projects are heavily subsidized Only $10B was allocated to support exports. Government has talked about selling off airports and ports Liberals are playing games as part of setting up for a new mandate.

1. Infrastructure –
Canada - Analysis
and Commentary
Paul Young CPA, CGA
March 4, 2018

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Summary
▪ Infrastructure is aging not just in Canada, but
around the world
▪ There are systemic issues with municipalities that
are putting strains on their budget like labor cost
▪ Transit projects are heavily subsidized
▪ Only $10B was allocated to support exports.
▪ Government has talked about selling off airports
and ports
▪ Liberals are playing games as part of setting up for
a new mandate.

4. Agenda
▪ Liberals vs CPC – Infrastructure
▪ Blog – Public Transit
▪ Blog – Liberal misinformation Infrastructure
▪ Blog – Rural vs Large Municipalities
▪ Budget 2018-2019

5. Conservative Party of Canada vs Liberal
Party of Canada Conservative Party of Canada Commitment
Liberal Commitment
• Infrastructure flow to cities, municipalities, provinces & territories has been slow - https://www.on-
sitemag.com/features/government-spending-infrastructure-slowly-making-way-pipe/
• Government has sent out the gas tax funds to Cities, but Build Canada funds have been slow out the door
• Government has created infrastructure bank to leverage pension funds for supporting infrastructure.
• 2018-2019 budget has no new moneys for infrastructure

6. LPC and Infrastructure
▪ We all know that MSM treats the Liberals with soft gloves as they do not want to upset PM Selfie.
▪ http://www.ctvnews.ca/politics/liberals-to-delay-billions-in-planned-infrastructure-spending-cp-
1.3654609?cid=sm%3Atrueanthem%3Actvnews%3Apost&utm_campaign=trueAnthem%3A+Trending+Content&utm_content=59f7063304d30133dcb791a8&utm_medium=trueAnt
hem&utm_source=facebook
▪ I have done this presentation to highlight a few myths about infrastructure - https://www.slideshare.net/paulyoungcga/government-policies-and-issues-municipalities-and-cities-canada-
july-2017
▪ CPC increased funding to local governments for infrastructure funding through the creation of Build Canada and Gas Tax Fund. The Liberals keep saying in the CPC did nothing on
infrastructure is a myth - https://www.youtube.com/watch?v=8BZ3RFwPx7o
▪ Construction Association https://www.on-sitemag.com/features/government-spending-infrastructure-slowly-making-way-pipe/
▪ Aecon - https://beta.theglobeandmail.com/news/politics/us-watchdog-warns-aecon-takeover-may-block-firms-access-to-infrastructure-
projects/article36761079/?ref=http://www.theglobeandmail.com&
▪ There are systemic issues with municipalities that need to be address, but have not for over a decade.
▪ Jack Mintz wrote a very good blog on the infrastructure bank - http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/fp-comment/jack-m-mintz-beware-
a-new-infrastructure-bank-canadas-had-enough-of-these-failures-already&pubdate=2017-05-19
▪ Transit projects receive operational grants from cities as part of their budgets. https://www.slideshare.net/paulyoungcga/pension-funds-and-infrastructure-investments-june-2017
▪ CPPIB is concern with projects that meet their investment criteria - http://www.timescolonist.com/canadian-infrastructure-deals-scarce-but-would-be-welcome-cppib-chief-executive-
1.20033106
▪ I cannot believe that Minister Sohi has the gal to say CPC did nothing on infrastructure as that comment is beyond absurd, but a lie - https://www.youtube.com/watch?v=sMx--jYi07I

7. Blog – Public Transit
▪ Public Transit requires subsidies as part of supporting the operations- https://www.ttc.ca/PDF/About_the_TTC/Annual_Reports/TTC_2016AnnualReport_final_AODA.pdf or
https://www.slideshare.net/paulyoungcga/government-policies-transit-canada-february-2018
▪ Pensions funds will not sponsor projects unless there is a return - http://www.cbc.ca/news/opinion/infrastructure-bank-1.4512240 Government will have to back those returns
▪ Riders were unaware that tax credits were eliminated - https://www.thestar.com/news/gta/2017/03/24/killing-the-transit-tax-credit-catches-riders-off-guard-and-could-hurt-the-ttc.html.
The funny thing is ridership is up! http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=4080013&&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=
(Ridership does go up and down as people are holidays and/or work from home.
▪ If the lines are unprofitable then those lines will require more subsidies - https://www.theglobeandmail.com/news/toronto/union-pearson-express-looks-unlikely-to-break-
even/article35483928/
▪ Towns are looking at option to control costs, like Uber - https://www.thestar.com/news/gta/2017/04/03/innisfil-taps-uber-to-fill-public-transit-void.html
▪ Federal government is funding more transit projects - http://www.infrastructure.gc.ca/plan/ptif-fitc-eng.php. More transit options mean ridership will be impacted. Yet the liberals killed
the transit tax credit.
▪ Via Rail also receives subsidies - https://www.viarail.ca/sites/all/files/media/pdfs/About_VIA/our-company/annual-reports/2016/2016_Annual%20Report_EN.pdf
▪ https://www.thestar.com/news/queenspark/2017/05/19/wynne-is-all-aboard-21b-high-speed-rail-project.html - Liberals cannot even make money with existing routes without subsidies,
so how would high speed route make money?
▪ There are already issues with intercity transportation including profitability - https://tvo.org/article/current-affairs/the-next-ontario/how-intercity-bus-service-is-failing-ontarians. Yet, all
levels of governments continue to ignore issues facing rural areas of the country
▪ TTC has lowest subsidy per rider - https://globalnews.ca/news/1670796/how-does-the-ttcs-funding-compare-to-other-transit-agencies/. Who subsidizes transit? Property tax owners as
well as provincial taxpayers.
Bottom line
▪ I am all about solutions, but unless other options need to be look at as part of ensuring lines are profitable as well as less dependent on government:

8. Rural vs Large Municipalities
▪ http://blackburnnews.com/midwestern-ontario/2018/02/05/goderich-mayor-pleased-roma-opportunities/
▪ “The Mayor of Goderich says events like the recent ROMA conference provide mayors and councillors of smaller municipalities with
a unique opportunity to express their concerns to Provincial officials.
▪ Kevin Morrison says one of the things that those Provincial officials need to understand is that everything doesn’t happen in Toronto;
and the issues that are facing rural municipalities are not necessarily the same as those facing politicians in bigger cities.
▪ Wynne does not care about the rural vote as such will not make concessions to rural Ontario
▪ OPP costs continue to be a big problem for municipalities - https://tvo.org/article/current-affairs/the-next-ontario/small-towns-cant-
afford-independent-policing-but-dont-know-where-to-turn
▪ Pension reforms needs to be undertaken for all levels of government. Defined Benefit pension plans are too risky -
http://www.omers.com/pdf/OMERS_AnnualReport_2016.pdf (Omers has a $5.7B pension deficit)
▪ There needs to be a new strategy for rural areas including economic development. More focus on innovation including working with
Universities and Colleges to create start up in areas like farming, power generation, advance manufacturing, etc.
▪ Hydro rates are killing rural Ontario. Wynne excludes municipalities when it comes to power generation -
https://www.thespec.com/news-story/7104518-rural-ontario-hydro-users-hoping-for-deliverance-from-high-bills/
▪ Source - http://blackburnnews.com/midwestern-ontario/2018/02/05/goderich-mayor-pleased-roma-opportunities/

9. 2018-2019 Budget /Infrastructure
▪ Trickling of money to infrastructure projects -
https://ipolitics.ca/2018/03/02/federal-budget-details-slower-expected-trickle-
infrastructure-money/
▪ Provinces and municipal government match the funds from the federal government
▪ “Budget does not cover opioid or other issues” https://fcm.ca/home/media/news-
and-commentary/2018/fcm-statement-on-federal-budget-2018.htm
▪ Government ran on helping the middle class, but yet it eliminated the transit tax
credit - http://www.masstransitmag.com/press_release/12400815/ttc-issues-
reminder-federal-government-change-means-transit-pass-tax-credits-are-limited