Highway-infrastructure spending slumps

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This article was published 19/11/2016 (3525 days ago), so information in it may no longer be current.

The Pallister government announced its highway-infrastructure spending Friday, and while this year’s budget might be softer than earlier indications, the industry is happy to get a jump on what to expect.

The province budgeted $502 million in highway spending for the next year. That figure is about $130 million less than the previous NDP government spent on highways in 2015-16, roughly a 20 per cent drop.

Friday’s announcement by the Pallister government also included highway spending of $500 million per year over the next four years.

Chris Lorenc, president of the Manitoba Heavy Construction Association, applauded the commitment by Infrastructure Minister Blaine Pedersen at the association’s annual meeting.

“There will never be enough money to handle the challenges this province or any other province in the country faces, but the commitment to an announced level is fundamental to our ability to expand our capacity and bid competitively,” Lorenc said.

Premier Brian Pallister noted the provincial government’s promise to spend $1 billion on infrastructure next year includes projects other than roads. He said the promise will be fulfilled, despite the announcement Friday spending on highways and bridges will be down from last year.

Pallister argued the PCs’ infrastructure-spending plans will be comparable to the first four years of the last NDP administration. The fifth-year budget (2015-16) was higher because it was a “freak” pre-election year, he added.

“So if you want to do a cross-comparison you would find that this is actually a very significant commitment to infrastructure,” Pallister said.

Pallister told reporters the $502 million represents half of the total $1 billion in spending, yet to be fully announced. “There are a number of other categories of investment… in addition to roads and bridges,” he said.

The new construction projects Pedersen announced include repaving five kilometres of northbound lanes of Highway 75 from St. Jean Baptiste to Morris and a new bridge on westbound Trans-Canada Highway over the Whitemouth River near Hadashville.

Pedersen said the province is also beginning a major study to replace the aging south Perimeter Highway.

“The whole south Perimeter is nearing the end of its structural life,” he said. “This is a major study. We have to look at traffic flows… there are lots of moving pieces. It will take a bit of time to get it done.”

The study will include design for a new highway taking into account access including interchanges and all the safety considerations.

He said a proposed St. Norbert bypass will be included in that study.

“A St. Norbert interchange is connected to the Perimeter, but it is separate,” he said. “Let’s study the Perimeter first to figure out where we need access. That will be part of the study.”

NDP critics are calling out what they claim is a significant step down in highway-infrastructure spending from their last year as the government.

“We invested $628 million in 2015-16 in roads and bridges,” NDP MLA Jim Maloway said. “Today, the province admitted it is cutting that by 20 per cent next year. Rather than admitting it is cutting investments, the government today portrayed this cut as a ‘strong commitment to infrastructure.’ It is nothing of the sort.”

But Chuck Davidson, president of the Manitoba Chambers of Commerce, said, “We are running a billion-dollar deficit, so the government is having to make some decisions in terms of prioritizing. It is not necessarily about spending more money. It’s about spending money wisely.”

Pedersen believes the early release of tenders and a focus on the provincial infrastructure as it relates to trade are important for the economic development of the province.

“This is predictable, stable funding that you can count in, plan on and depend on,” Pedersen told the construction association at its annual meeting Friday.

Lorenc said with new governments in Ottawa and on Broadway and a new approach at city hall mean this is a transition year for infrastructure spending.

“What’s really important is that the level of investment is predictable,” he said. “With the program out early, that gives us the opportunity to organize and prepare for the season, and that is as critical to us as the level of investment.”

martin.cash@freepress.mb.carandy.turner@freepress.mb.ca