Ottawa’s ‘Action Plan’ leaves legacy of local egos
The Globe and Mail
By Barrie Mckenna
Finance Minister Jim Flaherty likes to brag about Canada’s “world-leading” Economic Action Plan, including the billions pumped into “job-creating” infrastructure.
And he did so forcefully again last week as he ominously warned that the government’s good work would be put at risk if the opposition tosses out the Harper government.
World leaders look at what Canada’s doing and they “want to be Canadian,” Mr. Flaherty insisted.
Really? It’s hard to imagine there’s much Canada envy over the millions Ottawa has thrown at local pet projects over the past two years, including Kitchener-Waterloo’s Oktoberfest ($700,000), an indoor skateboard park and climbing wall in Winnipeg ($3.2-million), a motorized orchestra pit at a concert hall in Rimouski, Que. ($153,000), or repairing a busted hockey rink in Iqaluit ($2.5-million).
No one begrudges Canadians’ right to knock back some Schnapps or play a little hockey. But to throw billions into a hodge-podge of boondoggles and call it world-beating economic policy is a bit of a stretch.
In the days before Parliament got back to business last week, Prime Minister Stephen Harper was in Thunder Bay, Ont., to write a $15-million cheque for something called Prince Arthur’s Landing at Marina Park. He hailed the federal cash as a springboard for “residential business and recreational opportunities” and a “terrific example” of how Ottawa is creating the jobs of the future.
So where’s the federal money going? To install a water main, fill in a small piece of Lake Superior with dirt and put a sewer in so private developers can cash in with a water park, hotel, and condos.
Yes, Ottawa and the provinces invested heavily in much-needed roads, bridges and municipal water systems, helping to counter the effects of the recession. But too much of the stimulus appears to have wound up feeding local egos, and wallets, without leaving an enduring economic mark.
And now we learn that Ottawa spent $50-million on advertising last year to tell Canadians all about all the money they spent.
Over the next couple of months, Canadians will get a different perspective on how the government is spending their money. Auditor-General Sheila Fraser is preparing a major report on whether taxpayers got good value from the Action Plan. And Kevin Page, the Parliamentary Budget Officer, is due to release a progress report sometime this fall on the infrastructure program’s performance. So far, Mr. Page isn’t impressed, complaining in his last update that data inconsistencies made it “impossible” to track the flow of cash and progress on various projects.
If only Mr. Harper and Mr. Flaherty’s rhetoric was matched by action. Beerfests and skateboard parks are not Canada’s bridge to the future.
If Canada wants to be the envy of the world, it desperately needs quality infrastructure and big ideas. That means massive investments in productivity, innovation, exports, education and health care.
The Action Plan is a squandered opportunity. Most of the stimulus money is already spent or committed, including nearly $8-billion on infrastructure.
Now, the Harper government is pushing ahead with promised tax cuts for business as part of the next phase of its two-year economic plan. That could make it tougher for future governments to find the resources to fund infrastructure.
In a report last week, the Toronto-based Institute for Competitiveness and Prosperity lamented the major infrastructure needs that have languished unfunded for years, including choked border crossings in Southern Ontario, West Coast ports, as well as airports. These are the kinds of infrastructure projects that will give Canada a lasting edge in the world because they facilitate trade and create enduring jobs and wealth, according to the report.
Thinking big is exactly what the countries that routinely best Canada in innovation excel at. Look at Finland or Sweden. They aren’t shy about putting large sums into projects that benefit their entire economies – superhighways, universities, hospitals and ports.
Mr. Flaherty insists the government’s orgy of infrastructure spending “will leave a legacy for future generations.”
Unfortunately, the legacy may be a swelling deficit that crowds out spending on the kind of infrastructure the country really needs.
Time for a shot of that subsidized Oktoberfest Schnapps.
