OSPE applauds province’s continued investment in infrastructure
April 3, 2007

OSPE has good reason to be pleased with the recent provincial budget. Specifically the announcement of continued funding for infrastructure, with a pledge of $5.9 billion in 2007-08 for transit, highways, hospitals, schools, colleges, universities and rural infrastructure. In addition, $11.5 billion has been earmarked for new and refurbished electricity generation as well as conservation and demand management initiatives.

“We asked the provincial government to honour their infrastructure funding commitments, and they have,” said Daniel J. Young, P.Eng., President and Chair of the Ontario Society of Professional Engineers (OSPE). Since 2005 and recently again during pre-budget consultations, OSPE strongly encouraged the Provincial Government to fulfill its funding commitments through ongoing infrastructure investment. While the government had no new infrastructure financing announcements in the 2007 budget, it has committed to financing all the infrastructure projects pledged in 2005.

“The government has told Ontarians that infrastructure is its top priority. We are at a critical time as our transit, highways, hospitals, schools, sewage and water systems are in desperate need of updating and repair. It is vital for all Ontarians that the government has made this commitment to ensure that the security of these essential services is not compromised,” said Mr. Young.

The investment is good news for the profession as it signals increased opportunity for engineers and the engineering profession to play a role in building and strengthening the province.

OSPE recommends that the government streamline their approval process with various government agencies to ensure that they can act quickly to implement its infrastructure projects and appoint an ombudsman or task force to work with stakeholders to resolve issues or roadblocks that may arise as a result of the increased infrastructure development By fast-tracking the approval process and proactively addressing issues that arise, the government will reduce costs incurred by delays to projects.

• $11.5 billion for new and refurbished electricity generation as well as conservation and demand management initiatives resulting in 11,800 MW of supply projects.
• $4 billion spent by Hydro One between 2007 and 2009 to sustain, expand and reinforce transmission and distribution systems.
• $1 billion from 2007 to 2010 for water and wastewater infrastructure.
• $1.7 billion on transportation infrastructure in the 2007-08 fiscal year.

Additional Budget Highlights:

• Advanced Manufacturing Investment Strategy (AMIS)
• Brownfields
• Electricity Supply Projects
• Qualifications Based Selection
• Research and Innovation
• Transmission and Distribution System Renewal
• Transit and Regional Transportation
• Transportation Infrastructure

Advanced Manufacturing Investment Strategy (AMIS)
To date, $34 million in AMIS loans have been provided to manufacturers in Ontario resulting in almost $350 million in private sector investment and the creation and retention of 2,700 jobs. AMIS will provide $500 million in loans to manufacturers this year in order to meet the same objectives as in years past. Companies that have received funding include Messier-Dowty in Ajax and Procter & Gamble in Brockville.

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Brownfields
One potential setback announced in the budget relates to Brownfields Reform. The government announced that it is committed to passing a package of provincial oversight mechanisms including certification of “Qualified Persons,” which would include engineers. OSPE strongly believes that there are already sufficient and appropriate safeguards in place to assure the public that licensed professional engineers who perform assessment and clean up of contaminated sites for the purpose of so-called Brownfield re-development can be considered ‘qualified persons’ without the need for further certification. OSPE will continue to promote this position to the government.

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Electricity Supply Projects
The Ontario government states that it has upwards of 7,343 MW of electricity supply projects underway. In spite of this, there is an ongoing need to continue producing more supply to meet Ontario’s anticipated needs twenty years from now. Having adequate supply is vital to our economy and our livelihood.

The government has pledged $11.5 billion for new and refurbished electricity generation as well as conservation and demand management initiatives resulting in 11,800 MW of supply projects. Supply projects include 1,102 MW of electricity supply from renewables, 474 MW from conservation and demand management initiatives, 4,267 MW from gas and 1,500 MW from nuclear.

OSPE believes that while it is important to include all of these sources of electricity supply in the province’s “supply mix,” the government needs to proceed aggressively to implement new nuclear sources of generation.

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Qualifications Based Selection
In terms of modernizing government operations, OSPE was disappointed that no mention was made of alternative government procurement options, such as qualifications-based selection, a process adopted by many US states. “We continue to wonder why the provincial government is averse to saving taxpayer dollars,” said Mr. Young, who explained that basing contract awards on qualifications, rather than price, has been demonstrated to result in lower contract administration costs, faster project completion, and more efficient use of resources, specifically higher government productivity and lower operating costs.

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Research and Innovation
The government is committed to expanding Ontario’s foundation in research, innovation and commercialization with investments of $1.7 billion of five years to 2009-10, including $527 million for the Ontario Research Fund. Other investments announced include $15 million for the Ontario Centres of Excellence to promote connections between academia and businesses for environmentally-friendly energy efficiency innovations. This is consistent with OSPE’s efforts to persuade the Ontario and federal governments to increase research and development spending.

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Transmission and Distribution System Renewal
OSPE argued in a submission to the province last year that Hydro One has lost momentum upgrading and improving transmission and distribution infrastructure. Substantial momentum was generated between 1999 and 2005 on these projects and was lost in the intervening years. Included in this year’s budget was an announcement that the government is going to spend more than $4 billion from 2007 to 2009 to sustain, expand and reinforce Hydro One’s transmission and distribution system.

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Transit and Regional Transportation
The 2007 budget included the government’s 2006 budget commitment of funding for Move Ontario, an initiative to enhance transportation infrastructure, including public transit. The government committed $1.2 billion for public transit and municipal roads and bridges.

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Transportation Infrastructure
The government stated in its Budget that community consultations and an environmental assessment are underway to construct a new Windsor-Detroit crossing. Although financials were not provided, the crossing is expected to be completed by 2013.

The government made numerous funding commitments for highways throughout the province including widening the 401 from Tilbury to Windsor.

OSPE appreciates the Government's understanding of the critical need for infrastructure spending. OSPE will continue to advocate the interests of engineers by promoting their extensive expertise and training, along with their duty to protect the public welfare to the government as they work to implement their 2007 budget spending so that Ontario taxpayers receive the best value for their money.
We will continue to post updates on budget initiatives on our website.

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Find out more about the 2007 Ontario Budget at www.ontariobudget.ca.

View our recent Press Release on the 2007 Ontario Budget >>>

View our 2007 pre-budget submission >>>

Find out more about all OSPE budget submissions >>>

Please continue to consult www.ospe.on.ca for ongoing updates on policy decisions that affect Ontario engineers.

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