(Ottawa) The Quebec government is urging the Trudeau government to reverse its “unilateral” decision to bring forward the deadline by two years to use funds from a federal program for infrastructure projects.
The $33.5 billion Investing in Canada Infrastructure Program (ICIP) was originally set to end on March 31, 2025. But Ottawa notified all provinces in its most recent budget, tabled in April, that it was advancing the deadline to March 31, 2023.
This intention was reaffirmed in the economic statement presented by the federal Minister of Finance, Chrystia Freeland, two weeks ago. However, this new schedule does not apply to the territories, which will therefore be entitled to two additional years.
Quebec could lose $2.7 billion that is still in its envelope, or the equivalent of 37% of the amounts promised by the federal government. Because the amounts that have not been used to finance projects after March 31 will remain in Ottawa’s coffers.
Quebec Infrastructure Minister Jonatan Julien took advantage of a federal-provincial meeting of ministers responsible for infrastructure last week in Moncton to urge Intergovernmental Affairs Minister Dominic LeBlanc to back down.
PHOTO FROM TWITTER ACCOUNT @DLEBLANCNB
Dominic LeBlanc (left) and Jonatan Julien (right) in Moncton last week
Quebec planned to use 1.7 billion of this sum to finance transport projects and the other billion for environmental projects.
It is by drawing on the federal funds of the CIIP that Quebec wants in particular to finance the extension of the blue line of the Montreal metro, the construction of the Quebec tramway and the extension of highway 19, between highways 440 in Laval and 640 in Bois-des-Filion.
Quebec is not the only province that risks losing federal funds in this way. British Columbia, which could leave $661 million (17% of its total envelope) on the table, has also asked Minister LeBlanc to give the provinces another deadline, according to information obtained by The Press.
In the case of Ontario, the province is still eligible for $457 million (only about 4% of its total envelope) by March 31, 2023. The province has used the lion’s share ($8.3 billion) Federal funding to improve the Metrolinx transit system, which serves several municipalities in the Greater Toronto and Hamilton Area.
When we signed the agreement initially, we had until 2025 to present our projects. We were at about 66% of the envelope used. So we still had two years to use the rest of the money for other projects. We were correct with the initial schedule. But this summer, the federal government decided to put that in 2023 unilaterally.
A source familiar with the Quebec government file
“There are so many criteria imposed by the federal government that it becomes almost impossible to get the money in such a short period of time, especially for projects in small municipalities. It is for this reason that we want the schedule to be reviewed, ”added this source, who requested anonymity because she was not authorized to discuss this file publicly.
In addition to finding this decision arbitrary, the Legault government deplores that it occurred only a few months before the holding of provincial elections in Quebec. During an election period, a good part of the government machine works in slow motion.
No funding announcement is approved by the government machine during this period, which may continue for a few weeks after polling day.
“The holding of elections is also a factor to be taken into account. We were informed in May or June. It is obvious that we could not rush to announce a list of projects at the last minute before the provincial elections. It’s a bit peculiar, ”added the source.
Minister LeBlanc’s office has been advised that the March 31 deadline is firm. “There are huge infrastructure needs in Quebec. Municipalities are waiting for funding to build infrastructure such as sewers and water treatment plants. It also delays the construction of new housing. We are ready to work with Quebec to accelerate the projects by March 31,” said a government source.
According to our information, Ottawa intends to announce a new version of an infrastructure program in the coming months. But funds not used by March 31 will remain in federal government coffers.