Client Update: The New Building Canada Fund
In the Federal Budget 2011, the Government of Canada stated that it would develop a new plan to support public infrastructure beyond the expiry of the 2007 Building Canada Plan in 2013-14. The Government has now fleshed out some of the details of this commitment, with the announcement of the New Building Canada Plan on February 13, 2014.
The details now released include: provincial-territorial allocations, eligible project categories, specific allocations for small communities, the role of other entities, public-private partnership (P3) requirements, and cost-sharing criteria.
Provincial-Territorial Allocations
The New Building Canada Plan will operate from 2014 through 2024. The estimated breakdown for Atlantic Canada is as follows, based on 2011 census data:
NS:
$426 million from the New Building Canada Fund
$580 million from the federal Gas Tax Fund
NB:
$394 million from the New Building Canada Fund
$472 million from the federal Gas Tax Fund
NL:
$349 million from the New Building Canada Fund
$325 million from the federal Gas Tax Fund
PEI:
$277 million from the New Building Canada Fund
$163 million from the Federal Gas Tax Fund
In addition to the above amounts, all provinces and territories will also stand to benefit from the following funding pools:
- $4 billion for “projects of national significance”.
- $1.25 billion in additional P3 project funding.
- $10.4 billion in GST rebates to municipalities across the country.
Eligible Project Categories
The New Building Canada Fund has two general components: the National Infrastructure Component, for projects generating the “greatest economic impact”, and the Provincial-Territorial Infrastructure Component focusing on those with strong economic benefits.
National Infrastructure Component
- highways and major roads
- public transit
- rail infrastructure
- local and regional airports
- port infrastructure
- intelligent transportation systems (ITS)
- disaster mitigation infrastructure
Provincial-Territorial Infrastructure Component
- highways and major roads
- public transit
- drinking water
- wastewater
- solid waste management
- green energy
- innovation (post-secondary infrastructure for advanced research & teaching)
- connectivity and broadband
- brownfield redevelopment
- disaster mitigation infrastructure
- local and regional airports
- short-line rail
- short-line shipping
- northern infrastructure (territories only)
Note that the New Building Canada Fund eligible project categories no longer include local roads, culture, tourism, recreation and sport, which are now eligible under the Gas Tax Fund.
Specific Allocations for Small Communities
The Small Communities Fund will provide a $1 billion pool of funding for communities with less than 100,000 residents. It will be part of the Provincial-Territorial Infrastructure Component, with the same eligible categories.
The Role of Other Entities
In addition to provincial, territorial and municipal governments, the New Building Canada Fund will be available to other entities for “economically focused projects that are critical to the support of international trade (including rail infrastructure, port infrastructure and Intelligent Transportation Systems)” and “projects under the innovation category (post-secondary institutions)”. Eligible recipients include band councils, provincial public-sector bodies, private sector entities (both for-and-non-profit), Canada Port Authorities and public or non-profit post-secondary institutions.
Public-Private Partnerships
Any proposed project with a total eligible cost of over $100 million will undergo a “P3 Screen” to determine if it could proceed as a P3 project and generate better value for money. If so, funding will be conditional upon the project being delivered on a P3 basis.
Cost-Sharing Criteria
The general principle is that the maximum federal contribution to a project will be one-third (33.3 per cent) of total eligible costs. However:
- For highway and major road projects, the federal government will contribute 50 per cent.
- For projects with a for-profit private sector recipient, the federal government will contribute 25 per cent.
- For P3 projects, the federal government will contribute 25 per cent.
Stay Tuned
Some details are yet to come. The Federal Minister of Infrastructure, Communities and Intergovernmental Affairs, The Honourable Denis Lebel, will consult with provincial, territorial and municipal governments to “seek input on outstanding parameters” such as the application process for the fund. It is clear, however, that much of the spending will depend on how provinces, territories and municipalities prioritize the projects that are most important to them.
The foregoing is intended for general information only. If you have any questions or require further information on participating in these programs, please visit our business practice group and government relations counsel at www.stewartmckelvey.com.
Archive
IN THIS ISSUE: 10 Things employers need to know about employing temporary foreign workers by Andrea Baldwin, Michelle McCann and Sean Kelly. Landlords’ protection from mechanic’ (builders’) liens by Hugh Cameron and Lara MacDougall. The new Canada not-for-profit Corporations Act by Alanna Waberski, Sarah Almon and Kimberly Bungay. Download…
Read MoreOn January 31, 2014, The Office of the Superintendent of Insurance issued a bulletin in Nova Scotia. For 2014, the Minor Injury Cap for Nova Scotia is $8,213. This is a 1.4 per cent increase…
Read MoreIn the Federal Budget 2011, the Government of Canada stated that it would develop a new plan to support public infrastructure beyond the expiry of the 2007 Building Canada Plan in 2013-14. The Government has…
Read MoreCASL is a new federal law aimed at eliminating unsolicited and malicious electronic communications. Originally introduced in December 2010, the majority of CASL’s provisions will come into force on July 1, 2014. Once in effect,…
Read MoreThe Termination Meeting: A time and a place for everything The decision has been made, but the ship hasn’t yet sailed. Somebody has to deliver the bad news and as difficult as this might be,…
Read MoreClient Update: Consistent Use: The Collection of Union Members’ Personal Information by their Unions
The Public Service Labour Relations Board concluded that an employer was required to provide home contact information about bargaining unit members to the union which represents them because this information is needed by the union…
Read MoreIn preparing for the 2014 proxy season, you should be aware of some regulatory changes that may impact disclosure to and interactions with your shareholders. This update highlights what is new in the 2014 proxy…
Read MoreIn a decision released by the Supreme Court of Canada (“the Court”) on January 31, 2014, the Court clarified the law with respect to the tort of interference with economic relations by unlawful means. Joyce,…
Read MoreAs we move into 2014, we know our region’s employers will want to be aware of new legislation that has passed or could soon pass that may affect them. The following is what has become…
Read MoreWhat’s new? Our employer clients will be familiar with the Labour Standards Act, which sets out the employment standards applicable in Newfoundland and Labrador. Two amendments were made to the legislation this week, both of which…
Read More