Much of the infrastructure spending unlikely to grow economy: Report

Fraser Institute study shows only 11 cents on the dollar related to transportation and trade.

March 2, 2017   by PLANT STAFF

VANCOUVER — Only 11 cents of every dollar in new federal government infrastructure spending will be spent on highways, bridges, railways and ports, finds a Fraser Institute study.

The Canadian public policy think-tank’s study notes most of the new spending is going to green and socia infrastructure such as new parks, community centres and hockey arenas.

Of the nearly $100 billion in new infrastructure spending announced within the last year, only 10.6% will be spent on projects relating to transportation and trade, which have the potential to strengthen the economy by more efficiently moving people and goods across the country and to international markets.

Provincial governments, too, are only spending a small fraction of infrastructure dollars on projects that can improve the economy.

Of the Ontario government’s $138 billion infrastructure spending over the next 10 years, just 18.8% will be spent on highways.

In Alberta, just 20.6% of the $34.8 billion capital plan is being spent on roads and bridges.

The study also argues Canada’s total infrastructure is currently at the highest level in four decades, noting it’s a myth that governments have neglected spending in this area.

Click here to download the report.

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1 Comment » for Much of the infrastructure spending unlikely to grow economy: Report
  1. A Ballach says:

    Absolutely correct! For some reason our government seems to feel Infrastructure Projects are the answer to renewed growth and long term jobs. THEY ARE NOT! They are construction projects with a beginning and an end. They do not produce long term jobs , lack any innovation and come at great cost to taxpayers.

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