Archived MHCA | March 2019

SUPPLEMENT TO THE WINNIPEG FREE PRESS - SATURDAY, APRIL 6, 2019

YEARS OF SAFETY EXCELLENCE 30

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HIGH COST OF DECAY OUR ECONOMY SUFFERS WHEN ROAD BUDGETS GET SLASHED

YEARS OF SAFETY EXCELLENCE 30

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A SUPPLEMENT TO THE WINNIPEG FREE PRESS

CITY’S BUDGET CULTURE OF DEPENDENCY RELYING ON PROVINCIAL FUNDING, PRIORITIES TAKES TOLL ON CRITICAL STREET REPAIRS

T wo weeks ago, a handi-transit bus bottomed out big time just off Point Drive. It was a sad scene – the bus nose-dived in what might have been a pothole, clearly now a sinkhole. Sadder still was the irony: the van was owned by Vital Transit. For 30 years, the company’s website says, it “has brought safe, reliable, and affordable transportation options to people in Manitoba.” Could there have been a more poignant, maddening metaphor for Winnipeg’s street-repair woes this year? Safe. Reliable. Our transportation choices should all be safe and reliable. But that also depends on our streets being safe and reliable. We know how to do the ‘affordable’ part. Council in 2013 and ‘14 implemented a tax hike, to raise rates 2% every year to increase local and regional street repair budgets annually. The tax hikes funded the strategy to get out of the $3-billion infrastructure investment hole we are in. But that, too, came to a halt in the proverbial pothole this year. Why? The City of Winnipeg, overly dependent on other levels of government for financial help to repair or build infrastructure, learned weeks before it released its 2019 budget the province would not renew a five-year roads funding agreement. That agreement committed to flow $250 million from 2014-18. Further, the city says the province owes it $40 million still from the last year of the five-year deal. The province says it’s all paid up. Winnipeggers know what happened next: City Council chose to whack $40 million from 2019’s streets budget, and a stunning $174 million from planned street work, 2019-24. We argue it is the wrong way to deal with the dilemma. We said find 0.788% out of the total BY CHRIS LORENC

$2.5-billion revenues – reserves, surpluses, external authorities and operations – to restore some of the cut this year. Instead, Mayor Brian Bowman and Council opted to “accept the new reality” and to cancel all planned significant repairs – 53 neighbourhood streets and 11 lanes. Accept this as the new reality? That should be unacceptable to every Winnipegger. It should also be unacceptable that the province walk away from a $40-million liability (unless it factually demonstrates otherwise) and decline to renew a multi- year funding agreement. As columnist Carl DeGurse, in this newspaper, so pointedly stated: “none of the current provincial and municipal politicians campaigned on a promise to make roads worse. Not one said: ‘Vote for me and I’ll eliminate the budget for residential road repair. That will ensure roads in dire need of repair will crumble even more. Can I count on your support?’” Further, DeGurse pointed out, every budget has elasticity – city expenditures overall rose, the city gave generous increases to other programs; the Pallister government cut the PST, taking $300 million out of annual tax revenues. It’s about choices. All Winnipeg MLAs and city councillors should be held to account. “Let’s Make a Deal!” is a dysfunctional and ultimately “disappointing” way to maintaining public infrastructure. There will always be need for cost-shared infrastructure agreements between governments – major, multimillion-dollar projects like the Waverley underpass exceed municipal financing capacity. But an overdependence on the agendas of other levels of government for basic maintenance of streets and roads simply sets the city up for more “new reality” thinking.

This is the monumental frustration: Winnipeg is home to 750,000 people, and more than 54% of Manitoba’s registered voters. That should mean something. As some have said, we should be tired of the “Oliver Twist” scenario playing out every year: Winnipeg cap in hand, on the steps on Broadway. There’s got to be a better way for Manitoba’s biggest city, the heart of its economy, to provide the standard of services expected of a major, modern Canadian metropolis. Crumbling streets hurt economic growth because everything rides on a road, eventually. People to jobs, goods to market. All citizens, whether they cycle, walk or use a walker or a wheelchair, need their lanes, paths, sidewalks and Active Transportation routes working for them. (The AT budget, too, was cut). Handi-vans should not have to be equipped with an off-road drive train and roll bars. Winnipeg and all municipalities need a structural change to the way they raise revenues, and to the way cost-shared funding agreements for major infrastructure projects are scoped. That “new deal” needs to open for municipalities new sources of raising revenues, and to recognize expenses not now reflected in cost-shared agreements, such as the life-cycle maintenance of major projects. Municipalities draw only 8 cents of every tax dollar raised, but they own 80% of public infrastructure. Provincial and federal governments have more “muscle” to raise revenues. Cost-sharing should recognize that fact. And it is NOT an option to not fund critical repairs to neighbourhood streets. Winnipeggers can’t continue to be metaphorical casualties in political wars over how we fix our roads. ❱❱❱

Chris Lorenc is president of the Manitoba Heavy Construction Association

WINNIPEG IS HOME TO 750,000 PEOPLE, AND MORE THAN 54% OF MANITOBA’S REGISTERED

VOTERS. THAT SHOULD MEAN SOMETHING.

INVESTMENT 6

PRINCIPLES FOR INFRASTRUCTURE

The path to sustained, strategic investment that works is paved by the MHCA’s 6 principles for core infrastructure investment programs: 1 A PERMANENT INVESTMENT PLAN -- MUCH LIKE OUR INVESTMENT IN HEALTH CARE AND EDUCATION 2 FOCUS ON ECONOMIC GROWTH, WITHOUT IGNORING EXISTING, KEY ASSETS THAT REQUIRE UPGRADING 3 EMBRACE INNOVATION IN ALL ASPECTS TO STRETCH THE LIFE (AND CUT THE COST) OF OUR INFRASTRUCTURE 4 PARTNER WITH THE PRIVATE SECTOR, THE ENGINE OF INGENUITY. 5 DEDICATED, TRANSPARENT REVENUE STREAMS, TO DISENTANGLE INFRASTRUCTURE INVESTMENT FROM ELECTION CYCLES 6 REGULAR, PUBLIC REVIEW OF FUNDING PROGRAMS, TO OPENLY ACCOUNT FOR EXPENDITURES These are the principles that guide all MHCA advocacy and initiatives.

ROADS MOVE PEOPLE TO JOBS AND GOODS TO MARKET ❱❱❱ NEW TRADE DEALS ARE OPENING GLOBAL MARKETS; MANITOBA MUST SEIZE THESE OPPORTUNITIES ❱❱❱ 53% OF MANITOBA’S ECONOMY COMES FROM TRADE ❱❱❱ $1 INVESTED IN TRANSPORTATION INFRASTRUCTRE RETURNS ABOUT $1.30 TO OUR GDP INVESTING IN OUR HIGHWAYS IS AN ECONOMIC IMPERATIVE ❱❱❱ MANITOBA’S HIGHWAYS NEED $6 BILLION IN REPAIRS “There isn’t an economist or business owner who doesn’t recognize the critical role that good roads and strategic infrastructure investment play in economic growth.”

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A SUPPLEMENT TO THE WINNIPEG FREE PRESS

MANITOBA’S “HOUSE” NEEDS $9 BILLION IN FOUNDATION REPAIRS DON’T LET POLITICAL LEADERS SLIDE THAT PAST YOU

Yvette Milner is president of Merit Contractors Association of Manitoba

BY YVETTE MILNER AND CHRIS LORENC

M any Manitobans – certainly those living in Winnipeg – know the stress and worry that erupt when the foundation of a house starts to crack. Then crumble. The kitchen reno, the vacation, the new big screen TV. All those “wants” dissolve from the forefront of the homeowner’s mind because of the “need” that must be addressed. Foundation repairs can rival the cost of the new kitchen, and empty the vacation fund. But you can’t not fix the crumbling basement. Every homeowner knows that. Ignore the foundation and you undermine the house, typically your biggest asset. Manitoba’s “basement” is crumbling. Our transportation infrastructure – roads, highways, bridges – is falling apart. Right now, to bring our highways and bridges up to good condition, the cost of the work is a whopping $9 billion. But we are not addressing that need. In fact, since 2016, we have cut the budget for highways from $588 million to $350 million in 2018, where it remains for 2019. Manitoba is ignoring the crumbling foundation

the economy. And that’s why we say we need to talk about infrastructure – how we define it, how we fund it, where we decide to focus our investment and how we harness it. This has to become one of the leading issues heading into the next provincial election. Although we recognize the importance of deficit reduction, infrastructure should not be the political ‘vote’ winner, trotted out at election time. The damage inflicted on the economy by severe cuts to infrastructure programs is real – lost growth to GDP – and lasting, because it just kicks the cost of repairs to highways down the road, when those same roads need much more costly reconstruction. Further, it has the trickle-down effect of diminished returns to government coffers through the lost revenues from that economic impairment. To paraphrase Perrin Beatty, President & CEO of the Canadian Chamber of Commerce, there is the infrastructure we want like parks; the iinfrastructure we need like healthcare and education; and the infrastructure that pays for it all, and that’s our core infrastructure: streets, sewer, water

send more of what we make to the world. But we can’t fulfill these deals, achieve that potential, if we can’t keep trade on the road? Manitobans need to be asking their government, specifically their provincial government and the parties that aspire to power, what is the goal? What is the plan to ensure our transportation infrastructure network positions Manitoba to compete, to grow? It’s time for the public – which

pays for it all and all too often pays too much for too little in return because of the ‘politics of infrastructure’ – to weigh in. We will challenge political leaders to share their vision of how their party would enable our economy through strong infrastructure investment strategy and budgets, ensuring our foundation keeps the house standing. Manitobans should, too. Nobody wants our “house” to fall into ruin. ❱❱❱

Chris Lorenc is president of the Manitoba Heavy Construction Association

Building Relationships Through Infrastructure

MANITOBA’S “BASEMENT” IS CRUMBLING. OUR TRANSPORTATION INFRASTRUCTURE – ROADS, HIGHWAYS, BRIDGES – IS FALLING APART.

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and, at that budget level, is adding to the cost of the repair bill we will have to foot, eventually. The house analogy is a good one, illustrating the importance of investment and budgets. Think of it this way: our economy is our “house.” It provides for us. All of our needs are afforded through the incomes earned, and the government revenues derived from taxation, from our economy. Transportation infrastructure supports the economy because the economy rests on the ability to move people to jobs and goods to market efficiently and seamlessly. If you can’t move people and goods, you undermine

distribution and wastewater treatment, highways, bridges, including the most important of that collection, our trade infrastructure. Infrastructure is the great enabler. We build trade gateways and corridors, railway infrastructure, airports, ports both marine and inland, and highways. We link them with manufacturers, producers, farmers, pharmaceuticals, aerospace, fisheries and mines. We connect them into urban centres with their industrial parks. Those links are two-way streets. This collectively is our trade-route infrastructure. Our governments are expanding our trade relationships and deals to

Jim Carr, MP Winnipeg South Centre 204.983.1355

Terry Duguid, MP Winnipeg South 204.984.6787

Dan Vandal, MP Saint-Boniface - Saint-Vital 204.983.3183

Providing more than $1.1 billion in infrastructure funding to Manitoba – we know that infrastructure creates jobs, boosts the economy and builds communities!

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A SUPPLEMENT TO THE WINNIPEG FREE PRESS

Conflict over funding between Mayor Brian Bowman and Premier Brian Pallister has derailed necessary planning on infrastructure investment. JOE BRYKSA / WINNIPEG FREE PRESS

Don Leitch is president of the Business Council of Manitoba.

MANITOBA’S INFRASTRUCTURE MALAISE INVESTORS NEED TO SEE INVESTMENT STRATEGY, NOT SQUABBLING AND FUNDS LEFT ON THE TABLE

BY DON LEITCH

W hat’s happening with our infrastructure? I’m talking about what we spend on highways, road, bridges and transportation. Investments by the Winnipeg Airport Authority, the private sector investments at CentrePort, and the reconstruction of the Churchill rail line are among the few positive activities along with some targeted investments sprinkled about. Sadly, the positives are eclipsed by the negative stories on infrastructure. Most discussion on infrastructure seems to be centred on conflict; between levels of government, federal-provincial or between the province and the City of Winnipeg. A malaise has settled in. Basic infrastructure investments to support daily activities to move people and goods and support business activities are not happening. An infrastructure deficit has existed for years with inadequate investments in new infrastructure and in maintaining existing infrastructure. Dozens of provincial bridges are reaching and surpassing their expected lifespans. Economic growth is impaired. Infrastructure in our cities and towns has deteriorated. Local governments have made efforts but an infrastructure deficit remains. The populations of Winnipeg and several other communities are growing and with that growth, the demand for more housing and infrastructure to support it. The federal government has committed significant funds to provinces and local governments through the national infrastructure program. What is alarming is the reported $1.9 billion in federal funding earmarked for Manitoba and local governments that is not being taken up when we have a crying demand for infrastructure investment. The Manitoba government is admirably steadfast in its efforts to reduce the deficit

and deliver promised tax cuts with a deficit- reduction strategy in place. What is missing is a provincial infrastructure investment strategy, including a plan to utilize federal funds to our advantage. The lack of a strategy restrains our ability to take advantage of those funds and to better position our province for growth and prosperity. Without a common strategy public political squabbles have become the norm that is now beginning to define our province. News travels beyond our borders. Political disagreements and our inability to deliver infrastructure investments are affecting our reputation. Critical infrastructure investments are not happening. We need investors to regard Manitoba as a location for investment and job creation. We have much to offer, but what impression do we leave when investors are doing their homework? They read the newspapers. They see the stories that Manitoba has an infrastructure deficit and is unable to deliver infrastructure programming when funds are available. They may look but they cannot find Manitoba’s infrastructure strategy. Sadly Manitoba does not have a strategic infrastructure plan or vision for the province. An economic strategy is slowly emerging but no infrastructure strategy. The Business Council of Manitoba and others have stressed the importance of having a common strategic vision that provides certainty to the private sector that there will be investments in infrastructure. Regrettably that vision for infrastructure in Manitoba is no closer today that it was last year. Citizens do not want to bother with who is right and who is wrong and who owes what. They want our roads fixed, new roads and bridges where they are needed, and investments in our sewer and water capacity. Public differences of opinion and squabbles put the spotlight on the fact that there is no

investment strategy for infrastructure. We know there is a plan to reduce the deficit. But we do not have a plan for infrastructure investment and how it will facilitate economic growth. In its pre-budget submission to the Minister of Finance, the Business Council once again advocated a comprehensive provincial infrastructure investment strategy including: • Investment in strategic infrastructure that supports and contributes to growth through investments in trade-related infrastructure throughout Manitoba; • Investment in community infrastructure including education to train our future talent; and • Investment in community assets including arts and culture supports Manitobans, adds to our tourism product and contributes to our economy. It is essential businesses understand the long-term vision, and the long- term expenditure plan of the provincial government when it comes to infrastructure. The two must work hand in hand. The private sector working with the provincial government is a good thing. The Business Council committed to participating in developing a long-term strategy for investments based on stable and predictable funding, innovation and incorporation of technology and community sustainability. The end goal is improving Manitoba’s infrastructure and increasing our prosperity. The Council also advocated that the government adopt and commit to multi- year funding for infrastructure. There is permanent funding for healthcare, for education, for public safety. A similar model of multi-year infrastructure funding should exist. With a strategic plan and committed investments perhaps we can grow the economy and avoid the squabbles that now define the state of infrastructure in Manitoba. ❱❱❱

WE NEED INVESTORS TO REGARD MANITOBA AS A LOCATION FOR INVESTMENT AND JOB CREATION… THEY READ THE NEWSPAPERS. THEY SEE THE STORIES THAT MANITOBA HAS AN INFRASTRUCTURE DEFICIT AND IS UNABLE TO DELIVER INFRASTRUCTURE PROGRAMMING WHEN FUNDS ARE AVAILABLE.

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A SUPPLEMENT TO THE WINNIPEG FREE PRESS

INFRASTRUCTURE: NOT JUST MORE INVESTMENT, BUT IN THE RIGHT PLACES

BY RON KOSLOWSKY

S ustained and strategic investment in public infrastructure is essential to our long-term economic growth and is critical to the quality of life enjoyed by Manitobans. So, why do we see reluctance among some governments to maintain a high level of investment in infrastructure? This lack of attention is not seen just in our political offices: Unless a bridge collapses or a train derails, the media don’t pay much attention to infrastructure, either. Let’s face it: Infrastructure bores political reporters. Economic infrastructure is not a term easily understood and is often sidetracked by greatly expanding the definition of infrastructure. Whatever you call it, what we are talking about is the backbone of our market economy and the foundation for social policy investments. It is relatively easy for the average citizen to make a connection between good infrastructure and things like fixed potholes and the building of bridges that shorten the commute to work – things that improve our personal quality of life. However, the connection between good infrastructure and Canada’s long-term economic prosperity, on the other hand, is just not something most people think about. Lawmakers also seem to have difficulty in distinguishing between investments that generate tangible economic returns to society and spending that fuels present consumption. Modernizing the way we evaluate infrastructure would be a step towards a capital budget that separates investments in future growth from consumption spending. The distinction is crucial, even if it eludes many people. As any business knows, when credit is cheap it makes sense to borrow to expand production and use some of the increased revenue it generates to repay your loans. (Conversely, borrowing to consume more than you earn is a fool’s errand that will land you in bankruptcy.) With real interest rates relatively low, it would make sense to borrow now to enlarge the nation’s future productive capacities. A new approach to public infrastructure works, however, cannot rely exclusively on public financing, whether it’s by taxes or borrowing. Closing the nation’s enormous infrastructure investment gap — estimated at about $150 billion a year — also will require creative ways to tap private capital.

It’s already happening on a modest scale. Public-private partnerships (P3s) are beginning to crop up around the country. P3s do more than leverage private dollars; they inject greater market discipline into both the selection and management of new projects. Investing in public infrastructure was seen as a good way to stimulate the economy during the last recession. Now that the worst is over — we hope — governments have to decide if it makes sense to continue investing in infrastructure or if we should put our scarce tax dollars toward other priorities. Complicating matters, this decision takes place against the backdrop of the ongoing fiscal challenges and the high level of debt accumulated over the last number of years, which suggest that belt-tightening should be the order of the day rather than more public spending. But here’s the issue: Despite the stimulus splurge after the recession, we have actually been shortchanging investment in our economic public infrastructure for years. If we continue on this track, productivity gains will not be adequate to maintain our quality of life. There is a strong connection between investing in public infrastructure and long-term gains in economic productivity. Canada’s productivity — how efficiently we produce goods and services — is critical to our current standard of living and quality of life, as well as to our future economic and social prospects. While there have been reasons given for our weak productivity gains in the economy, a part of the solution is investment in public infrastructure and, in particular, infrastructure that supports economic development such as trade, applied research and other productivity improving investments. This, however, comes with a caveat. The investments must be strategic. It’s not just a matter of more infrastructure. To get infrastructure right, we need to be investing in the right infrastructure in the right places and this means focusing on infrastructure that serves economic ends such as transportation systems and core services such as water and sanitation. We cannot take our infrastructure, which facilitates a competitive and trade-friendly environment, for granted. Manitoba needs to be investing in the right infrastructure in the right places. ❱❱❱

Ron Koslowsky is divisional vice-president of Canadian Manufacturers and Exporters

TO GET INFRASTRUCTURE RIGHT, WE NEED TO BE INVESTING IN THE RIGHT INFRASTRUCTURE IN THE RIGHT PLACES AND THIS MEANS FOCUSING ON INFRASTRUCTURE THAT SERVES ECONOMIC ENDS, SUCH AS TRANSPORTATION SYSTEMS AND CORE SERVICES SUCH AS WATER AND SANITATION.

WINNIPEG’S INFRASTRUCTURE NEEDS STRATEGIC, LONG-TERM FUNDING FROM MANITOBA I t has been 15 months since Winnipeg City Council adopted its 2018 capital budget and yet a dispute over $40 million in outstanding provincial roads funding for that year drags on. residential streets the department had been preparing for reconstruction this year. However, the situation does not end at this point. The recently tabled federal budget contains a commitment to double the gas tax funding available to municipalities in 2019. This funding would flow directly from Ottawa to the City of Winnipeg and could mean that just over $40 million may be available this year for roads and other infrastructure projects. BY SCOTT GILLINGHAM

goals), it would seem that financial support of municipalities is primarily a hurdle to be cleared or an expense line to be manipulated. But when the day arrives that the province’s trio of fiscal goals is finally achieved, what comes next? Citizens will wake up the following morning in municipalities that are still struggling under growing infrastructure deficits, with limited options to raise revenues and no long-term plan that provides provincial funding certainty. It is time for a pivot in the relationship between the provincial government and its municipalities. It is time for a strategic, long-term, predictable, growth-oriented funding model to be developed. This would benefit the province, municipalities, industry stakeholders and taxpayers by providing greater fiscal certainty and the opportunity for increased collaboration. And such a model could help the province avoid further disputes with its municipalities, like the one going on with the City of Winnipeg over $40 million. ❱❱❱

The funding shortfall stems from a decision made by the provincial government to not honour the final year of a five-year, $250-million roads commitment to the city. Not only is the ongoing back and forth between the city and province sapping time and resources on both Main Street and Broadway, it appears the public is growing increasingly indifferent to the fight. Notwithstanding the waning public interest, I remain steadfast in my position that the province still owes the City of Winnipeg $40 million. At the time of this writing, the provincial government has not provided the city with a

Due to budget timing and political unrest in Ottawa, it would be premature to presume these federal dollars and to amend the city’s 2019 budget at this time. However, subject to the passing of the federal budget and a review of funding details, council and city administration will work diligently to administer any funds made available. I want these federal funds used to restore the 2019 local street renewal program. In the meantime, the city will continue to press the province to

COUNCIL AND CITY ADMINISTRATION WILL WORK DILIGENTLY TO ADMINISTER ANY (GAS TAX) FUNDS MADE AVAILABLE. I WANT THESE FEDERAL FUNDS USED TO RESTORE THE 2019 LOCAL STREET RENEWAL PROGRAM.

reconciliation that supports its position that the $250-million commitment has been fulfilled completely. As a city councillor elected to serve the residents of Winnipeg, I am reluctant to acquiesce to the province on this matter without evidence to substantiate their claim. At this point however, Winnipeg taxpayers are being forced to cover the province’s outstanding bill. Council faced a difficult choice in how to address the $40-million, provincial roads funding shortfall during the preparation of the City of Winnipeg’s 2019 Budget. Council could have chosen to increase property taxes by 7% or to fill the gap

provide an irrefutable reconciliation to substantiate its claim that it has honoured the $250-million funding commitment. And if unwilling to provide that information, it should pay the $40 million outstanding to the city. The province recently unveiled its 2019 Budget. As part of any budget package, the government tables supplementary documents, which contain the statements and charts that expand upon the thinking of the government and help explain the choices it made when producing the budget being presented. The opening sentence under

Coun. Scott Gillingham (St. James) is Chair of the Finance Committee

- COUN. GILLINGHAM

with long-term debt. Instead, City Council sought a balanced approach that will cover the $40 million by spreading the costs over the 2019 and 2020 budget years. Unfortunately, this results in a substantial reduction to the local street renewal program. And that means all 2019 expenditures in the local streets program will go only to industrial road reconstructions and the thin bituminous overlay (TBO) projects, plus the engineering for the

the heading on ‘Funding of Municipalities’ labels grants to municipalities as a “material expense” for the Province of Manitoba. The descriptor, while factual, is very telling in its placement and should not be glossed over. It appears to signal the way the present provincial government views the City of Winnipeg and all other Manitoba municipalities. To a government sprinting to balance its budget, eliminate the deficit and reduce the PST (all laudable and important

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PHOTO BY DARCY FINLEY

EVERYTHING EVENTUALLY MOVES BY TRUCK – UNLESS THE ROAD CRUMBLES

BY TERRY SHAW

CELEBRATING However, the continued clobbering the trucking industry takes from various levels of government, from reduced infrastructure investment to increased taxes, makes it harder for us to safely, efficiently, and cost-effectively fulfill that vital service network we provide. In recent provincial budgets, this government continues to show that investments in strategic trade infrastructure are not a priority. In a province that already has crumbling roads, highways and other infrastructure, a lack of investment in those areas is backward thinking. This ignores the fact our province is growing, especially Winnipeg, the province’s biggest municipality and economic heart. Foregoing maintenance is questionable but in combination with a disregard for the coming population growth, these decisions are outright regressive. We pride ourselves on being the centre of the content, in the middle of everything. Manitoba is a main north-south trade route, and Winnipeg sits as a hub in Canada’s primary east-west route. Winnipeg IS the crossroads of North America, and as trade routes to the north become more viable, our role is only going to increase in prominence. We will not meet that need without the proper infrastructure. CELEBRATING our rural communities supplied and connected, the transportation network is vital to the success of any region, not only for the movement of goods, but also for ensuring we are all healthy, housed and educated. Without this movement, nothing is possible. That’s why it’s so important that investment in those routes be maintained and even increased, rather than cut. Cutting off investment in infrastructure is cutting off investment in our communities and rural areas. L ook at any map – historical or contemporary – and you will see that the transportation routes are the lifeblood of communities and regions. From broad main arteries that transport significant traffic flow to the small, single-lane routes that keep Those are our trucks moving food, clothing, books and other resources to rural and northern communities. Those are our drivers on the ice roads and gravel roads, ensuring goods reach their final destinations. We have seen the impact a severed rail network has had on life in Churchill; do we want to do that to other northern communities by allowing our highway networks to crumble and wash away like the rail lines did through lack of investment? We ask a lot of the drivers in our industry. They work long hours, sometimes in harsh conditions, and spend a lot of time away from their families. Their workplace is in the public domain, and therefore

they, and we as an industry, rely on the government to ensure that we have efficient, safe working conditions for Manitobans who choose to work in the trucking industry. Our drivers put in the time to ensure that grocery store shelves are stocked, that schools and hospitals are delivered critical equipment and supplies, and that our natural resources make it to market to keep so many of us employed and our economy growing. The trucking industry literally keeps the provincial economy moving. Yet, what does this government give in return? Successive, severe cuts to the highways budget, thereby making it harder for our industry to do its part in ensuring the economy grows. Crumbling roads, flooded highways and deteriorating networks. Highways, roads and streets are vital not only to our economy but to our lifestyles and to our community connections. Our roads need to be reliable – maintained in good condition. But they must also be made ready through increased investment and planning, so our trucking industry can deliver the goods – the resources, commodities, supplies, equipment and merchandise – to ensure our towns and cities get from “here” to “tomorrow”. ❱❱❱ WE HAVE SEEN THE IMPACT A SEVERED RAIL NETWORK HAS HAD ON LIFE IN CHURCHILL; DO WE WANT TO DO THAT TO OTHER NORTHERN COMMUNITIES BY ALLOWING OUR HIGHWAY NETWORKS TO CRUMBLE AND WASH AWAY LIKE THE RAIL LINES DID THROUGH LACK OF INVESTMENT?

CHABOT ROCK SOLID SOLUTIONS Terry Shaw is the executive director of the Manitoba Trucking Association.

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SERVICES • Sand and Gravel • Aggregate Crushing • Excavation and Earthwork • Road Construction • Flood Protection, Riverbank and Shoreline Restoration

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MANITOBA CONSTRUCTION COUNCIL Our mission is to promote and coordinate the development of a diverse, inclusive, well educated workforce in support of careers in a dynamic and evolving construction industry.

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Carol Paul Executive Director, MCSC | T: 204.272.5092 | E: cpaul@mbcsc.com

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A SUPPLEMENT TO THE WINNIPEG FREE PRESS

THE CONFERENCE BOARD OF CANADA’S ANALYSIS OF THE MANITOBA GOVERNMENT’S $1.04-BILLION CORE INFRASTRUCTURE INVESTMENT IN FISCAL 2014-15 SUGGESTS THAT IT HAS HAD THE FOLLOWING IMPACT ON THE ECONOMY: • GDP INCREASED BY $1.31 BILLION • 9,755 JOBS OR PERSON- YEARS OF EMPLOYMENT WERE GENERATED • PERSONAL DISPOSABLE INCOME INCREASED BY A TOTAL OF $523 MILLION • PROVINCIAL EXPORTS WERE BOOSTED BY $699 MILLION Conference Board of Canada, Manitoba Government Infrastructure Investment Spending in Fiscal 2014-15, Briefing, September 2015 EFFECT OF DELAYING ROAD MAINTENANCE EXAMPLE OF ASSET

Sinkholes are a sign street maintenance has been neglected. BORIS MINKEVICH/WINNIPEG FREE PRESS

PROVINCES CUT INFRASTRUCTURE INVESTMENT AS FEDERAL CASH FLOWS IN: PBO MANITOBA DRAMATICALLY REDUCED TOTAL CAPITAL INVESTMENT

T he promise of increased federal cash for critical infrastructure across Canada was supposed to hike investment nationally, but that’s not what happened, according to the Parliamentary Budget Officer. In 2017-18, alone, Manitoba cut its capital expenditures by a whopping $642 million, compared to 2015-16 – despite the fact the federal government’s Investing in Canada Plan flowed $141 million that year to the province, the PBO’s infrastructure update report states. Most provinces saw total capital expenditures rise in 2017-18. Overall, however, across Canada the infrastructure transfers from Ottawa did not produce the boost that the funding injection intended, the PBO infrastructure investment update notes. It appears the provinces yanked their own investment plans, as federal government cash flowed in from Ottawa’s Investing in Canada Plan. The report, published March 13, states, “according to their 2016-17 and 2017-18 budgets, provinces were planning to spend $100.6 billion themselves in capital. Instead, they invested $85.1 billion.” As a result, the Trudeau government’s Investing in Canada Plan had no “incremental” impact on provincial capital investment between 2016 and 2018. “We think federal infrastructure programs ought to enhance total investment in our infrastructure – especially as it relates to transportation assets,” MHCA President Chris Lorenc said. “That is where we can see the maximum economic boost – trade increases, jobs are created and incomes rise. We all benefit.” The PBO analysis tracked expenditures through federal and provincial accounts, which show actual vs. budgeted expenditures. Taking into account a number of factors that have historically altered forecasted

expenditures, it found that “provincial capital spending was $3.8-billion lower than what it would have been in the absence of the IICP.” Municipalities, on the other hand, did boost total investment. The PBO analysis looked at investment in Canada’s five largest cities (which excluded Winnipeg) and found that overall, infrastructure investments rose by about $1 billion. Generally, “municipalities respected the condition of incremental funding to be eligible for federal funds.” There was an economic cost to the provinces’ displacing their own funds with the federal capital transfers. The PBO report calculated what might have happened to the economy had the federal transfers enlarged total provincial expenditures. “Our results indicate that real Gross Domestic Product could have grown between 0.15% to 0.16% in 2016-17, if provincial governments had kept investments levelled with the PBO’s post-IICP benchmark,” the report says. “Employment levels could have also increased in the range of 7,550 to 8,098 over the same period.” There is a fix for this problem. The PBO notes that Infrastructure Canada does not track whether what is intended to be incremental funding actually boosts total investment in infrastructure. Lorenc said that there must be some stick to the carrot. In other words, if provinces do not use the federal funds as incremental to their planned expenditures, there should be a potential for clawback. Increased infrastructure funding is intended as an investment in our communities. And one of the biggest boosts from those investments is to the GDP – investment in transportation infrastructure, for example, boosts GDP by $1.30 for every $1 invested. ❱❱❱

DETERIORATION CURVE (ROADS)

RATING: EXCELLENT

100%

SPENDING $1 ON PRESERVATION HERE...

40% DROP IN QUALITY

GOOD

75% OF LIFE

FAIR

... ELIMINATES OR DELAYS SPENDING $6 TO $10 ON REHABILITATION OR RECONSTRUCTION HERE.

POOR

PROVINCIAL CAPITAL SPENDING IN 2017-18 (MILLIONS)

40% DROP IN QUALITY

VERY POOR

20%

12% OF LIFE

FAILED

NET PROVINCIAL SPENDING

FEDERAL TRANSFERS

AGE

2017-18

CHANGE SINCE

2017-18

CHANGE SINCE

2015-16

Transportation Research Board (TRB), National Research Council, Washington, D.C., TR News, Sept. - Oct. 2003

ALBERTA

$8,544

$2,272

$472

$186

BRITISH COLUMBIA

$6,034

$399

$603

$237

MANITOBA

$982

-$642

$141

$63

NEW BRUNSWICK

$496

-$25

$146

$81

NEWFOUNDLAND AND LABRADOR

$1,361

$339

$129

$50

NOVA SCOTIA

$490

$109

$181

$96

ONTARIO

$14,612

$2,193

$788

$407

PRINCE EDWARD ISLAND

$68

-$4

$45

$27

QUEBEC

$8,958

$1,367

$615

SASKATCHEWAN

$1,277

$27

$193

$113

ALL PROVINCES

$42,822

$6,035

$3,313

$1,265

Parliamentary Budget Officer, Public Accounts of Canada, provincial Public Accounts and Quebec Infrastructure Plan.

8 SATURDAY, APRIL 6, 2019

A SUPPLEMENT TO THE WINNIPEG FREE PRESS

YEARS OF SAFETY EXCELLENCE 30

THROUGH THE AGES Rubber boots and gentlemen’s caps (and shirtless!) no longer cut it as workwear on heavy construction sites. Hard hats, reflective vests and steel-toed boots are mandatory safety protection gear. PHOTO: MANITOBA INFRASTRUCTURE

CELEBRATING 30 YEARS OF CONSTRUCTION SAFETY EXCELLENCE

MHCA’S COR-CERTIFIED COMPANIES CONTINUE TO LEAD THE WAY

BY JACKIE JONES

T he proof of safety leadership and certification for Tara Baschuk is seen every day, on the worksite. There are statistics that can show, in black and white, the value for heavy construction firms to achieve Certificate of Recognition – a gold standard, nationally recognized workplace safety and health leadership program. WCB numbers track the near- annual fall of workplace injury rates and severity of injuries, and this is especially true for the heavy construction industry. But Baschuk, safety coordinator at Bituminex Paving Ltd., sees the ‘qualitative’ in the quantitative benefit of statistic tracking. “When you take into account our company growth in the last 2 years with many of our new employees being in the category of high risk for injuries and accidents, 2018 was our best safety year on record,” Baschuk points out. “It proves that enforcing your safety program does pay off and that employees have officially been ‘sold’ on the safety message,” says Baschuk. This year, MHCA marks 30 years of providing dedicated safety services and programing to the heavy construction industry. The expansion of safety services provided through the MHCA evolved as a result of demands from the industry for the practical tools and resources to protect workers from work-related injury and illness, to reduce compensation costs and, therefore, improve the bottom line, and to ensure a safe industry that can attract workers as a career choice. Bituminex Paving, a Winnipeg-based company owned and operated by Manitobans since 1987, was one of the first companies in the heavy construction industry to obtain nationally recognized COR TM safety program certification, that was implemented in the industry in 2000. The company employs approximately 250 men and women in peak season and is one of Winnipeg’s largest road construction companies.

Bituminex is committed to providing the safest workplace for their employees, clients and the general public. Its belief that employees are the greatest and most valuable asset is the foundation of its unwavering commitment to safety. The key principle that drives its safety process is the expectation that everyone, from the company president to the newly hired employee, shares the responsibility of achieving the highest level of safety performance in their operations. Since 1989, the heavy construction industry has driven the development of safety programing, amassing a wealth of experience that has been used by other industries to tailor workplace safety and health services. The program has evolved from providing advice and training to a comprehensive, nationally recognized certification system designed for heavy construction workplaces. The industry has embraced the COR program as the industry standard. Today, 340 companies are COR certified, covering close to three- quarters of the industry workforce. “Our success is derived from the fact programming has been developed by industry for industry,” says Peter Paulic, branch manager for Brandt Tractor Ltd. and the chairman of the MHCA WORKSAFELY TM committee. “Having a great program helps to ensure our employees go home to their families every day without incident or injuries – healthy and safe,” Paulic says. Baschuk says Bituminex developed a safety process that includes an emphasis on formal training, mentorship programs, pre-job hazard assessments and established safety policies that meet or exceed the nationally recognized COR certification. It has now become part of the job and workers are appreciative and

Jackie Jones is an education and training advisor at MHCA’s WORKSAFELY.

SINCE 1989, THE HEAVY CONSTRUCTION INDUSTRY HAS DRIVEN THE DEVELOPMENT OF SAFETY PROGRAMING, AMASSING A WEALTH OF EXPERIENCE THAT HAS BEEN USED BY OTHER INDUSTRIES TO TAILOR WORKPLACE SAFETY AND HEALTH SERVICES.

SATURDAY, APRIL 6, 2019 9

A SUPPLEMENT TO THE WINNIPEG FREE PRESS

YEARS OF SAFETY EXCELLENCE 30

PHOTO: CITY OF WINNIPEG

High visibility safety wear – neon colours and reflective stripes – has made work crews more visible and safer.

LEHIGH HANSON Canada Region affiliated companies

Inland Aggregates 204-334-6002 Inland Pipe 204-336-5006

Lehigh Cement 204-334-4300

Concrete. Cement. Aggregates. Concrete Pipe. LehighHansonCanada.com

accepting that it is not an option to buy into, it is mandatory and part of each workers daily responsibilities. “There are many benefits to having a successful safety program but I think specifically for us it is definitely our heavy decline in time loss accidents.” Headingley-based Taillieu Construction Ltd. has been COR certified through the WORKSAFELY program since the program’s inception. Marcel Taillieu bought a tractor in 1945 and began clearing bush and moving earth. In 1960, Taillieu Construction Ltd was incorporated and entered the sewer and water business. Today, the company is owned and operated by the family’s third generation, and continues to be recognized as a leader in the industry. “Taillieu Construction has always worked hard to keep up to date with innovations in equipment, materials, and methods in our industry. Likewise, we have always viewed safety as an important component of our company. We are proud to have been one of the first COR certified MHCA members and our ongoing involvement with WORKSAFELY has resulted in constant improvement of our safety program, and the results are reflected in our corporate culture and our bottom line,” says Bob Reidy, company president and former chair of the MHCA WORKSAFELY committee. “From the outset, the MHCA’s safety programming has been about improving both our company’s and our industry’s success.” “We know that the improvements in safety practices that have been put in place by our companies have had a meaningful impact on the safety of workers in our industry and the bottom line,” says Don Hurst, Director of the MHCA’s WORKSAFELY. “As a result of these improvement the industry injury rate has fallen by more than 50%, to just 3.2 injuries per 100 workers in 2017 and the average WCB compensation rate has fallen by 75% to approximately $1.45 per $100 of payroll.” Safety pays. In so many ways. ❱❱❱

Asphalt Paving Concrete Paving Base & Excavation Sewer & Water

Parking Lots

Subdivision Development

Asphalt Supply

www.bituminex.com info@bituminex.com

Phone: (204) 237.6253 Fax: (204) 237.5032

10 SATURDAY, APRIL 6, 2019

A SUPPLEMENT TO THE WINNIPEG FREE PRESS

YEARS OF SAFETY EXCELLENCE 30

BEFORE YOU PUT A SHOVEL

T he smell, sights and sounds of spring get us all thinking about those backyard projects – the deck, the landscaping, maybe an addition to the house – that have been put off too long. But before the shovel goes in the ground, the first stop for all homeowners and contractors should be the website that puts you in touch with those who know what’s hidden below. It’s not just good safety advice, it’s the law. Every year, about $1 billion in damage is done across Canada to underground utilities – buried telephone or gas lines, for example – and homeowners and contractors play a role in this. At clickbeforeyoudigmb.com, anyone who is thinking of digging, no matter how small the job, can request a “locate” for these utilities. If you do not request a locate before digging, you might dig into a buried utility line. You can cause an outage to an essential utility service, and potentially create a life-threatening situation. You can be fined. Even if you have used the service before and you think you know where the lines are, you need to request a locate before every digging project to protect yourself. Remember, it is a free service. If you do incur damage, report it immediately to the appropriate utility owner or contact Click Before You Dig Manitoba at 1-800-940-3447. IN THE GROUND, FIND OUT WHAT’S HIDDEN BELOW – IT’S THE LAW SAFE DIGGING MEANS PAYING ATTENTION TO THE JOB, FOLLOWING THE RULES AND MOST IMPORTANTLY, CONTACTING CLICK BEFORE YOU DIG MANITOBA PRIOR TO ANY EXCAVATION, TO GET UNDERGROUND UTILITIES LOCATED AND MARKED. The Manitoba Common Ground Alliance (MCGA) has designated April as Dig Safe Month, to raise awareness of safe-digging practices across the province safety and to reduce damages to underground infrastructure. “It serves as a reminder to contractors and homeowners that they need to contact utilities before they start digging,” said Jackie Jones, Vice-chair of the MCGA. Safe digging means paying attention to the job, following the rules and most importantly, contacting Click Before You Dig Manitoba prior to any excavation, to get underground utilities located and marked. “Nearly all of the essential services provided to residences and business in Manitoba can be located underground, including electric, gas, water, sewer and communications,” said Jones. “Before digging, even by hand, play it safe and contact Click Before You Dig Manitoba. “Damaging underground utilities can be costly, inconvenient to those whose services are interrupted and potentially harmful to the excavator and public. So, make sure you take a minute to click before you dig.” The Click Before You Dig Manitoba web portal connects contractors and homeowners with their One-Call Centre, which notifies the appropriate utility companies of their intent to dig. Professional locators are sent to the dig site to locate and mark underground lines with flags, spray paint or both. Requests can be made online at www.clickbeforeyoudigmb.com, or by phone at 1.800.940.3447. It is available 24/7 service 365 days a year. Requests should be made a minimum of 3 full business days before the planned excavation. “It really is the only way to ‘Know What’s Below’,” said Chris Van Kats, Chairman of MCGA. Installing a mailbox, putting in a fence, building a deck and laying a patio are all examples of digging projects that need a call to utilities before starting. The depth of utility lines can vary for a number of reasons, including erosion, previous digging projects and uneven surfaces. Utility lines need to be properly marked because of the risk of striking an underground utility line exists even when digging only a few inches. “Damage to vital utility services by excavation equipment results in hundreds of interruptions each year,” said Robert Morrison, Damage Prevention Coordinator for Manitoba Hydro. Though some are minor and fixed quickly, others, require fire and police personnel to evacuate nearby buildings and block roads until it is safe. “It’s essential homeowners and contractors plan their projects safely and know what’s below before a shovel touches the ground,” Morrison stressed. “A few extra minutes reviewing safe excavation guidelines can go a long way in helping reduce damages, ensuring every excavation site is a safe one.” ❱❱❱

KNOW WHAT’S BELOW

WE ALL WIN WHEN BURIED UTILITIES ARE MARKED BEFORE A DIG. HERE’S WHAT YOU CAN DO TO HELP • Call or click to contact the right agency for a “locate” before beginning any outdoor digging project, large or small • If a neighbour is planning a digging project, remind them to contact utilities for locates before they break the ground • If you do incur damage, report it immediately to the appropriate utility owner, or call 1-800-940-3447

Visit ClickBeforeYouDigMB.com or www.DigSafeCanada.ca for more information.

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