Archived MHCA | Nov 2018

SUPPLEMENT TO THE WINNIPEG FREE PRESS - THURSDAY, NOVEMBER 15, 2018

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THE ROAD TO A STRONG ECONOMY - WHAT MANITOBA IS MISSING

CELEBRATING 30 YEARS OF WORKSAFELY ™ , IN 2019

SUPPORTING MANITOBA ’ S HEAVY CONSTRUCTION INDUSTRY .

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HIGHWAYS BUDGET CUTS PUT OUR ECONOMY ON ROUGH ROAD MANITOBA’S ECONOMIC GROWTH POTENTIAL HAS BEEN STUNTED SINCE 2016 BY SHORT-SIGHTED FISCAL POLICY. HERE’S THE ECONOMIC CASE THE MHCA PUT BEFORE PREMIER PALLISTER IN SEPTEMBER, IN A REQUEST TO RESTORE THE HIGHWAYS CAPITAL BUDGET.

T he MHCA supports the government’s focus on growing the economy, investing smartly in strategic infrastructure as part of that strategy, and reducing the deficit. It is well-documented that investment in strategic infrastructure provides amongst the highest return on investment (ROI) of public sector dollars, facilitating sustained economic growth, investment, jobs and generating new revenues to government, which assist achieving a fiscal balance objective. While the degree of the ROI varies, dependent on the type of infrastructure, the value of strategic infrastructure investment return to the GDP is unchallenged. Finance Canada - Report to Canadians (2011) states every $1 invested in strategic infrastructure returns $1.60 to the GDP. A Conference Board of Canada analysis (2014) of the GDP impact of $1.05 billion infrastructure investment showed a return to Manitoba of $1.36 billion, the largest effects via personal/disposable income, cascading impact on retail sales and the corresponding direct and indirect taxation revenues. Other such reports arrive at similar conclusions. The point is the ROI of public-sector dollars is real. The extent of that return can be refined via an update of the Conference Board of Canada’s Manitoba analysis. The larger effect of infrastructure investment is in its impact on trade, which accounts for 53% of

Manitoba’s GDP. That fact illustrates why eight Manitoba business and stakeholder groups joined MHCA in publicly calling for strategic, sustained investment in Manitoba’s transportation infrastructure system. Trade is at the heart of our GDP; transportation infrastructure are the arteries that keep the goods and commodities flowing. In all discussions since 2016 with MI ministers on the Highways Capital program, MHCA has consistently advocated for strategic, sustainable investment — not spending — in transportation infrastructure. The context? The government inherited a ~$6-billion transportation system (highways, roads, bridges & structures) investment deficit. At Budget 2018’s $350 million, the Highways Capital program does not reflect a sound capital- asset management plan. That level will add $50-75 million annually to the ~$6-billion investment deficit, facilitating its exponential growth. Further, it impairs sound fiscal investment in an asset that underpins Manitoba’s economy. The MHCA respectfully urges the government, heading into Budget 2019, to: • Solicit, in partnership with the business community, from Canada West Foundation (or similar institution) an estimate of ROI from trade- transportation investment strategy, and the lost value of delaying this strategy (compound effect on

Manitoba’s infrastructure investment deficit) • Restore MI capital program to a minimum $500 million, annually, 2019-24 • Accelerate MI’s service-delivery review and transition in-house service delivery to the competitive market • Release the report on the transportation system infrastructure investment deficit (understood to be ~$6 billion), with annual and five-year rolling budgets to support a capital-asset management strategy. Manitoba faces challenges to achieve sustainable levels of investment in infrastructure. Governments ignored for decades sound advice from the private sector, compounding the infrastructure deficit’s growth. The government inherited this but has opportunity, with the public’s trust, to address it. The MHCA strongly recommends the government appoint a panel to review existing funding structures to strike a new funding model. Its considerations could include: • Dedicating a portion of the PST, all revenues from road-related fuel taxes and fees to the Highways Capital and the Maintenance & Preservation programs, as base funding. • Given a ~$6-billion transportation system investment deficit, identifying and allocating a minimum maintenance and preservation budget to stem its exponential growth. (Consider policy that lays out a reasonable multi-year target to resolve the deficit, to get to sustainable annual funding levels).

• Identifying a minimum annual capital program tied to best economic return on investment objectives — trade-enabling infrastructure — harnessing in the process federal-match funding and appropriate P3 opportunities. • Merge trade and infrastructure into one ministry - Trade & Infrastructure - to maximize ROI and ensure that trade-enabling investment is a pillar supporting growth in Manitoba’s regional, national and global trade profile. • Adopting the six guiding principles for strategic infrastructure investment, embraced publicly by Manitoba in November 2016, namely: a permanent program; focused on greatest economic ROI; embraces innovation; harnesses partnerships with the private sector; funded by dedicated revenue streams; and annually reviewed for adjustment and assurance of discipline to purpose. • Taking advantage of the Winnipeg Metropolitan Region strategic transportation plan (and others like it) that would support provincial investment priorities in the strategic trade network that promotes economic growth. • The delivery of programs contemplated above through a new, stand-alone utility, with contractual funding and delivery objectives set by government as a matter of public policy. The above is offered to advance government objectives of growing the economy and restoring fiscal balance. ❱❱❱

Earth Max Construction Inc. Phone: 204-344-5760 Fax: 204-480-1683 info@earthmax.ca www.earthmax.ca Stony Mountain, MB

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MANITOBA’S ECONOMY ON NOTICE PALLISTER GOVERNMENT’S ECONOMIC REPORT CARD SHOWS OBVIOUS ROOM FOR IMPROVEMENT

Chris Lorenc is president of the Manitoba Heavy Construction Association.

Yvette Milner is president of Merit Contractors.

BY CHRIS LORENC AND YVETTE MILNER

W e all like a good deal. We’re Manitobans. Money in the pocket. When it comes to putting out a couple of bucks to make a couple more bucks, who wouldn’t go for a guaranteed return? We’re Manitobans. Public investment in core infrastructure (streets, highways, bridges & structures, sewer & water, land drainage) is about as close a guaranteed return on the dollar as you can get. But it’s not all delayed reward: there is instant gratification in smoother roads, and fewer traffic jams, too. Who would leave that kind of opportunity for return on investment (ROI) on the table? As for the future ROI, strong investment in roads and highways is the gift that keeps on giving: It boosts our GDP for many years – it increases trade, and trade in Manitoba is 53% of our GDP. Who wouldn’t grab that kind of opportunity? This is the kind of investment governments can and should use, in the interests of the provincial economy, and all Manitobans. We deserve and need better roads. Now. And we need to look after our economy — our kids’ employment prospects — by investing in the GDP returns that keep on giving. This is Public Investment 101; pretty much text book stuff, on the shelf. The text is backstopped by a hefty bibliography supporting the business case. Again – who wouldn’t seize that opportunity?

Apparently, not the Pallister government. Far from being Manitoba’s economic saviour, this government is restraining immediate growth and putting our potential for growth at risk. It has no multi-year plan for investment in core infrastructure. It has slashed the very budget that supports return on investment, that helps fill the treasury with tax revenues that carry social program budgets. In 2015-16, $628 million was invested in our highways. The Pallister government cut the budget every year and for 2018-19, it budgeted a mere $350 million for highways. Municipalities are hurting too – the municipal roads and bridges program was all but eliminated, cut from $14 million to $2 million. The ride’s getting bumpier, yes. But where the pain really hits the road is on our economy because if we can’t get trade on the road, 53% of our GDP is impaired, employment takes a hit, and incomes don’t rise. Our standard of living doesn’t get the solid lift it should. How do we know these things? Economic analyses have documented infrastructure’s predictable, high-value ROI. The primer for Manitoba was written in 2014 by the Conference Board of Canada. The Conference Board analysis said Manitoba’s plan, at the time, to invest $1.02 billion annually in core infrastructure – roads, highways, bridges and water structures — would boost real GDP by $6.3 billion

(2%) over 2014-2018, create 59,000 person-years of employment and boost average incomes by $1,100. In 2015, the Board checked its numbers. It reviewed the $1.04 billion invested in core infrastructure in 2014, and found every $1 of that investment boosted GDP by about $1.30. The largest impact was on personal incomes and retail sales. The spin-offs were seen in tax revenues (people earn and spend) to governments. The ROI? We get to invest in health and education. Cut deficits. Decide on where taxes might be adjusted.

pound. The bridge or overpass you drive on (or under) doesn’t spectacularly, tragically “fail.” It means things that must work, actually do work. We don’t think about that, until something fails. And speaking of failing, here’s a mid-term report card: The Pallister government cut or under-expended the highways budget by 55% since 2016. It cut funding to municipal water and sewer this year by 27%. It slashed funding for municipal highways and bridges by 84%.

WE CALL CORE INFRASTRUCTURE AN ECONOMIC INVESTMENT. REALLY, IT’S AN INVESTMENT IN PEOPLE. IN MANITOBANS.

Our province and our economy get on solid footing. Setting aside the financial and fiscal benefits of sustained, strategic investment, let’s talk about how well-maintained core infrastructure gets personal. It means your car doesn’t get swallowed by a sinkhole. It means your water flows when you turn the tap; your sewage gets flushed and, equally important, treated. It means your house and your community won’t get swamped when the snows melt and rains

We call core infrastructure an economic investment. Really, it’s an investment in people. In Manitobans. We know “there are no guarantees in life.” But when experience and evidence repeatedly bear out that the ROI of core infrastructure is like money in the (treasury) bank, why wouldn’t you invest? It’s Public Investment 101. The Pallister government apparently doesn’t get it, and it’s hurting our economy. ❱❱❱

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GETTING TRADE ON THE ROAD IN MANITOBA

BY DON LEITCH

T his is a time of much economic uncertainty. That’s no secret to anyone. The rising price of goods and job-security anxiety are the wingmen of economic uncertainty. That’s how global-trade disputes hit home in a personal way. We’re all still trying to figure out what the new NAFTA – USMCA – really means, and doesn’t mean, for Canada’s trade prospects. We’re trying to figure out how we’ll diversify, something we have talked about for decades. What is certain is we have to look for, develop and seize opportunities. The new, revised Trans-Pacific Partnership being ratified now by its signatories holds immense potential for Manitoba. It is one of the largest free trade agreements in the world. Canada will get greater access to Japan, Australia, Chile, Mexico, New Zealand, and in developing Asian markets, including Malaysia, Singapore and Vietnam. Manitoba has shown that with the right foundation and planning, it can compete in global trade. Trade supports 53% of our provincial economy — that’s some $37 billion worth of ‘business.’ But to compete, we have to get the foundation right. As President of the Business Council of Manitoba, I am concerned about our ability to capitalize on those and other emerging trade opportunities, and about the implications of that for our economy. There are four critical things companies look for when locating or looking to expand — people, power, water and transportation. We have talented people and have shown we can trade, recruit and attract more. Although we are facing increases to our hydro

rates, due to the past decade of development our rates remain very competitive, and will continue so. And we have an abundance of water. We need to ensure a sustainable, reliable supply. That means well-maintained water and sewer infrastructure. That requires long-term planning and investments — we have to take the opportunity presented by the large federal commitment for infrastructure and sign cost-shared project agreements. Green infrastructure is a priority for them. And, what of transportation? This is where the rubber hits the road, or hits the ditch. Everything rides on a road. Our goods may eventually move by rail, water or air, but getting them from the point of production to the customer will always rely on roads. Good roads pave the way for strong trade. Prosperity. The strongest case for public investment, for high-value return to the economy has been proven, time and again, to be our investment in core infrastructure. There is an immediate lift to the economy, from the surge in employment and the local sourcing of materials. But there also is a long-term return, from the impact on the GDP, most noticeably from increased productivity and trade. That’s why there isn’t an economist, investment advisor or business owner who doesn’t recognize the critical role that good roads and strategic infrastructure investment play in economic growth and moving goods, services and people. We at the Business Council are keenly aware of Manitoba’s debt and deficit position. We strongly advocate for prudent fiscal management. But economic stewardship is not just about controlling costs and cutting the deficit. Strong fiscal policy has economic growth as its complementary goal. Reduced expenditures across government

affect many sectors, some immediate, some longer term. Reducing investments in infrastructure of all types, including long-term cuts to the highways budget, hurts economies. The City of Winnipeg developed a large infrastructure deficit. Reduced investments have an impact on the people commuting to jobs and on the shipment of goods they produce to markets. The Business Council has also advocated for a comprehensive, provincial infrastructure- investment strategy. There is no multi-year plan to guide sustained investment in our strategic, trade-transportation assets, our highways and our regional roads. These are the arteries that keep our economic heart pumping. In my circles, you don’t do business without a multi-year plan. You don’t scope a budget without knowing where you should be five years forward, and how you get there. Simply put, that’s the “infrastructure” plan of any business hoping to stay in business. The Business Council has endorsed and supported the call by nine leading Manitoba business groups for the provincial government to make sustained, strategic investment in infrastructure a real, immediate priority. We need to plan now to ensure Manitoba capitalizes on the trade potential at our doorstep. Trade uncertainty will continue as we try to diversify. But we must diversify. In Manitoba we can do that. We have shown we can compete and succeed. But we need government to play its role: alongside prudent fiscal management, it must develop and successfully implement its growth strategy, and commit to sustained, innovative investments in infrastructure. We need to get the building blocks right, lay them down. Pave the road. It leads to economic growth and prosperity. ❱❱❱

Don Leitch is president of the Business Council of Manitoba. He will be addressing the Annual General Meeting of the Manitoba Heavy Construction Association on November 16.

TRADE, HIGHWAYS AND INVESTMENT – THEY’RE INTIMATELY CONNECTED WHAT MANITOBA CAN LEARN FROM KANSAS ON INVESTING IN HIGHWAYS, TRADE ROUTES

BY CARLO DADE

T he link between investment in trade-enabling infrastructure and trade is, as the term implies, self- evident. Also self-evident is the link to wider economic growth and prosperity that comes from expanding trade, or what in a province like Manitoba where trade accounts for over half of GDP, could more simply be called ‘earning money.’ Trade infrastructure enables money to be earned to pay for those things the province needs and wants. Research shows a positive impact from investing in trade-enabling infrastructure. A 2012 study published by the San Francisco Federal Reserve Bank found $1 in federal highway grants was equated with at least an increase double the amount to a state’s GDP. In Manitoba, the Conference Board of Canada forecasted similar investment would spin-off $1.16 to the GDP for every $1 expended. If one is concerned about spending on education and health care, then the first priority for the public and government is to do what is necessary to ensure, or better, increase, the money on the table for these programs. Done correctly, investments in trade-enabling infrastructure can also be education-enabling, and health-enabling. This, at least, is the theory. In Manitoba, this theory was put to the test in 2013 with a decision to invest the equivalent of one percentage point PST increase in what was defined as core infrastructure, which included trade-related infrastructure and also flood mitigation projects for a total investment of $5.1 billion over five years. The Conference Board estimated that this would raise provincial GDP during this time period by two percent, or $6.3 billion. After the first year of the planned program, the Conference Board tested its estimates and found the $1.04 billion invested in core infrastructure in 2014 actually increased GDP by $1.31 billion. So, about $1.30 return for each $1 invested. While only two of the five years were rolled out as planned, that is enough time to crunch the numbers to see if this actually worked, and if it

did produce positive impacts what if anything could be improved. Conversely, if the projected outcomes fell short then what went wrong and needs to be changed. This is a priority. But while waiting for the numbers to come in, a cautionary tale of what happens when infrastructure investment faces extreme cuts is in order. This warning came, from of all places, Winnipeg this summer during the annual U.S. Council of State governments mid-west meeting held in town. From 2011 to 2017 Kansas moved close to US$2 billion from its highway fund to cover budget shortfalls caused by its now-infamous experiment to effectively cut its corporate tax to zero. The state cut a dozen highway expansion

for states and local governments, the recently enacted Tax Cuts and Jobs Act (TCJA) will lower investment in our nation’s infrastructure. This runs counter to President Trump’s repeated desire to tackle the major problems associated with America’s crumbling infrastructure through increased investment. The impact may be large and immediate enough to swamp the short-term impact of any infrastructure package Congress can put together in the immediate future.” That says a lot. It also tells us what we need to do in response. If the Americans are going to try to become more competitive by cutting taxes and we do not want to match them in a race to the bottom, then we are going to have to assure that there is a return on the revenues our governments

Carlo Dade is director of the Centre for Trade and Investment Policy at the Canada West Foundation. He is co-author of “Building on Advantage: Improving Canada’s Trade Infrastructure,” part of a multi-year research project on Western Canadian trade infrastructure, and lead author of the background paper for the 2014 New West Partnership Premiers’ Infrastructure Summit.

IF ONE IS CONCERNED ABOUT SPENDING ON EDUCATION AND HEALTH CARE, THEN THE FIRST PRIORITY FOR THE PUBLIC AND GOVERNMENT IS TO DO WHAT IS NECESSARY TO ENSURE, OR BETTER, INCREASE, THE MONEY ON THE TABLE FOR THESE PROGRAMS. DONE CORRECTLY, INVESTMENTS IN TRADE-ENABLING INFRASTRUCTURE CAN ALSO BE EDUCATION-ENABLING, AND HEALTH-ENABLING.

projects and was essentially reduced to funding highway maintenance. All in a state that, like Manitoba, is reliant on moving products from rural areas and a few urban centres to markets outside the state. Kansas came to this summer’s meeting in Winnipeg in dire straits. What was supposed to be a genial breakfast roundtable to exchange ideas on state infrastructure devolved into a crisis intervention and brainstorming by Canadian and American lawmakers on how to help Kansas dig out. That is the cautionary tale. But there is also a tale of opportunity in this. The Trump administration is looking to inadvertently repeat part of the Kansas experiment by also retarding infrastructure spending. As the Brookings Institution noted in a 2017 examination of the President’s tax-cut plan on infrastructure: “By increasing the cost to finance infrastructure

take in and spend, to assure that it makes us more competitive. If the Americans are going to dig a hole for themselves on infrastructure, we need to dig a different sort of hole; one that is shovels in the ground to build advantage, investing money to make ourselves more competitive where the Americans will not. Given the other hurdles that the Americans have placed and will continue to place before us, this is imperative. Especially as we in Canada have opportunities in new, multi- country trade agreements that open Asia and Europe to our firms while the Americans do not. This advantage over the Americans will not last forever; we must act now to capitalize on the opportunity at hand. But first, Manitoba needs to know the results of the 2013 experiment to learn, to improve targeting and the return on investment, and guarantee money invested in difficult times does what is needed. ❱❱❱

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THE “OTHER” ECONOMIC CASE FOR STRONG, MULTI-YEAR CORE INFRASTRUCTURE INVESTMENT ASIDE FROM BOOSTING GDP, INVESTING IN ROAD MAINTENANCE NOW AVOIDS COSTLY RECONSTRUCTION LATER

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

T here are a few truisms about economic forecasting. The first one is that those who are tempted to rely on economic forecasts many years into the future should invest in crystal balls. They are about as reliable. Reputable economists temper forecasts, add cautionary notes to factor in unknowns and rely on standard indicators — and rough confidence margins — to forecast for the near future. That’s how we know, with confidence, that strategic investment in core infrastructure is a pretty good bet as a way to prime the economic pump. Depending on what kinds of infrastructure public funds are invested in, the return to the GDP can be anywhere from $1.16 to $1.60 for every $1 invested. That’s a pretty good ROI — return on investment.

roads (municipal) and highways (provincial) will continue to decay. Already, we know that the infrastructure investment deficit — the difference between what is and what must be budgeted to bring our roads to good condition — sits at about $6 billion, now. The plans to budget $1 billion+ per year in core infrastructure would have made some headway on that infrastructure investment gap. Now, especially as it relates to the highways budget, we are simply digging the hole deeper, every year. The problem is compounded by the fact that those highways and roads in good condition slip to fair, and those in fair shape fall into the “poor” category. Research on road life and deterioration shows that if repairs aren’t made when they’re in “fair” condition, roads fall very quickly to “poor” and then to “very poor” shape.

It’s also why we have a good idea, in Manitoba, of the potential for economic growth that this province had in the five-year plan set out in 2013 for investment in core infrastructure — roads, streets, highways, sewer & water, bridges and water-control structures.

That’s a hazard. It’s a drag on productivity (people getting to work, supplies getting to manufacturers, goods getting to market). It’s also setting up taxpayers for a whopper of a bill. The study published by the Transportation Research Board (TRB), National Research Council in 2003 estimated that every $1 spent on roads when wear and tear begin to appear, called preservation, saves $5 to $9 that will be spent on rehabilitation or reconstruction, once the road slips to worse condition. What you should take from this is that the Pallister government’s decision to cut investment in core infrastructure — budgets for highways, and for

RESEARCH ON ROAD LIFE AND DETERIORATION SHOWS THAT IF REPAIRS AREN’T MADE WHEN THEY’RE IN “FAIR” CONDITION, ROADS FALL VERY QUICKLY TO “POOR” AND THEN TO “VERY POOR” SHAPE.

The former NDP government set out a $5.5-billion investment plan, 2014-2018, or an average of $1.1 billion a year. The Conference Board of Canada forecasted the GDP would rise $1.16 for every $1 invested, during the construction phase. Given the knock-on effect of the total investment’s full impact (ie. on productivity and increased trade), the Conference Board said, “the $5.4-billion investment will boost Manitoba’s real GDP by an average of $1.25 billion a year from 2014 to 2018.”

municipal sewer & water, roads and bridges have all been slashed — since 2016 means taxpayers will be shelling out much bigger dollars in future years because all of these assets will deteriorate. That estimated $6-billion infrastructure gap will widen, perhaps dramatically. Take away? Manitoba has lost some solid opportunity to boost its economy, push its trade profile nationally and internationally. And it has dug itself deeper into the infrastructure-investment deficit hole. The province has effectively left money on the table. How is this going to make Manitoba “the most improved jurisdiction” in Canada? ❱❱❱

A follow-up study in 2015, measuring the impact of the $1.04 billion invested in core infrastructure in 2014, found that, indeed, Manitoba’s GDP rose by $1.31 billion. The five-year strategy, however, halted after just two years, when the government changed in 2016. That means Manitoba will not get the benefit of the economic boost that would have flowed. More’s the pity. But there are other consequences of the decision made by the provincial government to cancel robust and predictable multi-year investment plans. For the taxpayer and the traveller, it means that Manitoba

INFRASTRUCTURE INVESTMENT IS OUR ECONOMIC HEATH-CARE PROGRAM

BY CHUCK DAVIDSON

I n today’s globally competitive business environment it is imperative that governments at all levels strive to create a climate that attracts new business and allows existing business to reach full potential, if we really want to grow our economy. The Manitoba Chambers of Commerce, along with a number of other leading business organizations, believes that there are seven key public policy pillars the province must address if the government is truly committed to growing the Manitoba economy. Those pillars include: Creating a competitive tax framework; creating an accessible venture capital fund; commitment to an expanded global-trade profile; creating an Aboriginal engagement strategy; attracting, educating, training and retaining a skilled workforce; addressing the fiscal framework with municipalities; and, finally, investing in Manitoba’s core infrastructure. The reality is that while the provincial government has made progress on some of these pillars, there is much more work needed if we want to unleash the full potential of the Manitoba economy. For instance, despite past efforts to add dollars to both the provincial and municipal capital budgets, the infrastructure deficit in Manitoba continues to grow. Infrastructure development is an important economic engine for the province and ensuring it

is done with a strategic, sustained, disciplined and transparent approach is critical. A common ground, principle-based Manitoba solution would include sustained investment for core infrastructure, which includes trade and transportation assets. This is required to support growth and prosperity throughout Manitoba. A well-funded and maintained, seamless multi- modal transportation system in Manitoba ensures the ability to attract new areas of economic growth, and sustain and/or enhance existing nodes of economic activity. Without core municipal infrastructure, including a transportation plan, each of which is strategically and permanently funded, we place our economic stability and therefore our social well- being at risk. Infrastructure is not of passing interest or unimportant to our collective progress. It enables and supports our economy, and therefore our quality of life. Investment in infrastructure, including a focus on trade-enabling transportation systems, on a permanent basis is our economic and social health- care program. The Manitoba Chambers of Commerce currently has a policy calling on the Government of Manitoba, in partnership with municipal governments and the private sector, to establish a core municipal infrastructure plan that:

• Is permanent yet flexible, not unlike our ‘permanent’ investment in health care, education, recreation, public safety and the like. • Invests in a sustained and strategic manner in assets which enable and create new opportunities for economic growth, without ignoring maintaining or rehabilitating key assets that already enable economic activity. • Embraces innovation, from composite fibers, fiber optics, remote-sensing systems and new grades of asphalt and concrete products, to awarding projects based upon innovation and service- life costing. • Seeks partnerships with the private sector, which is the engine of innovation, growth, jobs, prosperity, taxes and revenues to government. • Mandates, through legislation, that any new revenue streams — preferably growth-based — be dedicated to these purposes in a clear, transparent, transitional and accountable manner. • Legislates periodic, transparent public reviews enabling experience-based improvements and adjustments for the future. With a commitment to investing in core infrastructure, the Manitoba Chambers of Commerce believes the results will be sustainable economic growth leading to greater prosperity for business and communities in Manitoba. ❱❱❱

Chuck Davidson is president & CEO of the Manitoba Chambers of Commerce

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Reconstruction work underway in the McPhillips Street underpass this summer. PHIL HOSSACK / WINNIPEG FREE PRESS

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WELCOME TO COUNCIL; HERE’S WHY INFRASTRUCTURE IS TAXPAYERS’ NO. 1 PRIORITY

E very new city councillor gets a crash course in civic governance, from the how’s and why’s of city hall, to the ethical code for public office holders. But, a newbie’s education starts long before the name plate goes up on the door. It began at the constituents’ doorsteps, on the campaign. That’s where taxpayers, face to face, outline their concerns, and repeatedly Winnipeg’s streets top the list. Portage and Main got a lot of attention during the election campaign, but it’s not the prime infrastructure concern of taxpayers. And, like Portage and Main, infrastructure is more complicated than what appears on the surface. Fixing those potholes, a metaphor for crumbling infrastructure, demands a deeper look at what ails our roads, back lanes, sewer and water network and bridges — our core infrastructure. Settle in, councillors: here’s a core infrastructure primer to ensure As with the Portage and Main debate, solutions are not superficial. Patching potholes, or making a quick fix of a broken sewer pipe, just puts off the real work. All of our infrastructure assets have a “best-before” date. Ensuring the full life-cycle is taken up is why good, timely repairs are central to the local and regional street renewal program. A life- cycle approach makes sure people and business move safely and efficiently on our streets — that’s our economy in motion, daily. The economic imperative is why property owners pay 2% increases to their municipal taxes each year, raising $11 million in revenues specifically to boost the city’s contributions to the Local & Regional Street Renewal budget line, annually. #2 PLANNING IS CRITICAL, FINANCIALLY AND LOGISTICALLY: We must plant to invest, otherwise it’s like throwing money at a problem. What’s the problem? Beyond potholed roads — again, the ‘deeper’ issue — is the fact that Winnipeg has not been so good at asset management. Past years of inadequate maintenance in our streets, roads and sewer and water pipes meant things began to crumble. We’re playing an expensive game of catch-up now. The infrastructure investment deficit — the gap between what is and what must be budgeted to bring our core infrastructure to good condition — is $3.8 billion, over the next decade. Like any investment, we need a strategy to look after our infrastructure. The strategy is in the way we forecast sufficient budgets to meet the need (see above: deficit) and ensure we get the biggest return for our dollar. Then, the city needs to award contracts you’re ready for the budget debates just weeks away. #1 THERE’S MORE THAN MEETS THE EYE:

to construction companies early enough to make the most of a short season — that’s called ‘procurement’ and it depends on planning projects ahead, internally, so they can be pulled off the shelf when council approves annual budgets, or the program runs a surplus. #3 KEEP YOUR EYE ON THE BALL: Back to the 2% dedicated annual tax hike for local and regional streets. The city set, in 2013 and 2014, a special levy for streets because Winnipeg’s infrastructure was crumbling, and there was no good plan to address it. Council approved the tax hit, predicated on a strategy outlined at the time to resolve the infrastructure gap by 2022. As noted by the recent 2018 State of the Infrastructure Report, we have a lot of work to do yet. The city streets, in particular, got a C+ grade for condition. City councils in the past didn’t always stick to the plan. Despite revenue increases of $10 million+ from the dedicated tax, there were years when there was no increase to the local and regional streets program. Now we’re hearing that Winnipeg’s done enough, that increases to date have been sufficient and other priorities, such as community centres and recreation facilities, should move ahead of streets. We have been here before. When city council feels current investment is ‘good enough,’ the infrastructure gap widens. Deficit becomes a huge hole. The original policy plan said sustainability required an investment of $80 million annually by 2022 for local streets, and $60 million for regional roads. This year, the city invested $60 million and $56 million, respectively. And while the recent federal government commit of $100 million over the next five years for regional roads is progress, it has an expiry date. How will Winnipeg hit its 2022 targets for the total program? What is the plan for the following five or 20 years? #4 KEEP THE PROMISE Any aspiring councillor knows that taxpayers’ No. 1 concern is our streets. Each of Winnipeg’s councillors, in a questionnaire returned to the Manitoba Heavy Construction Association prior to Oct. 24, said infrastructure is among their priorities, too. Some said it wasn’t No. 1; we respect that. But, if city council decides current infrastructure budgets are good enough, we will quickly dig ourselves into a deep, dark hole. More like a sinkhole, than a pothole. We have a plan — backed by $11 million in new city revenue dedicated for local and regional streets. Stay with the plan, keep the promise. Ensure council approves $11 million more from the city’s own-source contributions for streets, every year. ❱❱❱

“The Manitoba Construction Sector Council (MCSC) has a portable office trailer that houses a Sandvik and an Epiroc Blast Hole Drilling Simulator . These simulators may be shipped anywhere across western Canada where training is required. MCSC has a blast hole drilling course developed by industry for industry that was developed in partnership with Austin Powder, Hugh Munro Construction and Epiroc. We have a certified Indigenous blaster/driller to deliver training on site. MCSC wants to train 35 Indigenous drillers by June 2020. We will seek federal funding to support delivery of the drilling program with company partners. For more information please contact: Carol Paul Executive Director, MCSC T: 204.272.5092 E: cpaul@mbcsc.com

THURSDAY, NOVEMBER 15, 2018 7

A SUPPLEMENT TO THE WINNIPEG FREE PRESS

Celebrating 75 GROUNDBREAKING years in 2018

THE GOLD STANDARD IN CONSTRUCTION MANAGEMENT

L. Chabot Enterprises vice- president Nicole Chabot is among the more than 8,000 construction professionals to earn Gold Seal Certification since the program was established in 1991.

W hen Nicole Chabot tells you she has the Gold Seal of approval, she’s not messing around. The vice-president of L. Chabot Enterprises is one of a growing number of managers, owners and executives to obtain Gold Seal Certification, a nationally recognized program in construction management. Delivered in partnership with the Manitoba Heavy Construction Association (MHCA), the program is designed for project managers, superintendents, estimators, construction safety coordinators and owners of projects in general contracting, electrical contracting, mechanical contracting, specialty trades and road building and heavy construction.

Working in the family business since 1994, Chabot developed the company’s safety program about six years later to earn COR™ certification. As others had done before her, she wanted to increase her knowledge, education and training so getting the Gold Seal Certification was the next logical step. “I felt it was a good fit for me. My father is also a Gold Seal professional. I feel it presents a high standard in terms of commitment and wanting to truly be a part of your industry,” she says. Gold Seal Certification can be undertaken by an individual at a company but not by the company itself. Anybody looking to become certified has to have experience in the industry, complete the educational component, have their

skills and abilities endorsed by their employer and pass an exam. Chabot says completing the program has made her a better manager, particularly when it comes to safety, and the company benefits as a result. “It makes you better than you were. It forces you to take education and training and have involvement in your industry that you wouldn’t otherwise,” she says. Safety has changed “by leaps and bounds” over the last 20 years thanks in large part to the buy-in from employees, she says. “It was a real uphill battle at one point. You were working with a lot of guys in their 50s and 60s who said, ‘We’ve always done it this way, why

would we have to change?’ People understand better now, there is better compliance and there has been tremendous education in the industry, like at MHCA. (Safety) isn’t being imposed on you, you’re part of it for the betterment of everyone.” Chabot doesn’t think that getting a Gold Seal Certification will result in any new business coming her way. It does, however, show that an organization supports programs that further the skills and abilities of its people. “It demonstrates commitment on the individual’s part but also that the employer values the education and training of their employees and supports them getting Gold Seal-certified.” ❱❱❱

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8 THURSDAY, NOVEMBER 15, 2018

A SUPPLEMENT TO THE WINNIPEG FREE PRESS

Celebrating 75 GROUNDBREAKING years in 2018

30 YEARS OF WORKSAFELY™ IN 2019, MHCA MARKS THREE DECADES OF KEEPING WORKERS SAFE AND HEALTHY

BY PAT ST. GERMAIN

H eavy construction is hazardous by nature. The workplace is outdoors, on rough ground and often adjacent to moving traffic, overhead electrical wires and underground utilities. Add to that the inherent dangers of working on or close to heavy machinery, drilling and blasting operations and it’s easy to understand why the Manitoba Heavy Construction Association saw the need to create an industry-specific safety program back in 1989. Brandt Tractor branch manager Peter Paulic, who has worked in the heavy construction industry for 28 years and currently serves as MHCA’s WORKSAFELY™ committee chair, has witnessed the evolution of MHCA’s safety services almost from Day 1. “We’re one of the most progressive and proactive associations out there. So, it’s been a real treat for me to see the growth and what’s happened, and I truly believe in what they do and how they do it,” Paulic says. “The positives that came out of the safety program — it’s second to none.” Before moving to Winnipeg a year ago, Paulic had logged 27 years with Thompson- based Smook Contractors Ltd. Under the leadership of former owner Ted Smook, the company was one of the first in northern Manitoba to get onboard with the MHCA

safety program, which was rebranded as WORKSAFELY in 2010. Paulic recalls that 70 per cent of staff members involved in the initial safety discussion had suffered an injury of one kind or another — damaged knees, hips and at least one eye injury, all common afflictions before safe-work procedures and training came into play under MHCA’s guidance. “It was amazing, the change in the culture, and it didn’t take very long to make that change. And, it’s just the right thing to do, knowing that people are going home at the end of the day safely,” he says. “If there was an incident, the employees out in the field knew what to do, and that only happens if the training was correct.” Nelson River Construction president and CEO Gord Lee says his company was ahead of the safety curve, even back in the mid 1970s. “We had what we thought was a pretty solid safety program — self-made, self-driven, self- monitored, in trying to instill into the people the importance of not only looking out for the safety of your own health but those around you,” he says. “And the industry itself jumped in with both feet to make it an official part of its service to its members to help them build safety programs and improve performance in general around the world of safety.”

A former MHCA board chair, Lee sat on the association’s safety committee in the early years, when it was a challenge to convince some workers, particularly old-timers, that there was a good reason to change their ways. “There were guys in the industry who had worked for 20 years and never got hurt, but not because of safe practices — in many cases they were just lucky,” he says. “Just getting people to wear a hard hat years ago was a big deal. It always falls off, it’s too hot, it just gets in the way — there was a host of arguments. Then you get them to wear a hard hat, you get them to wear a safety vest, you get them to wear hearing protection and gloves and long-sleeve shirts where you need to. “Now it’s a deeply rooted way of life in the industry as a whole.” Since 2000, when WORKSAFELY began administering the nationally recognized COR™ (Certificate of Recognition) safety program, 340 companies employing 75 per cent of Manitoba’s heavy construction workforce have become COR-certified. COR certification is required to bid on provincial government construction contracts worth more than $100,000 in Manitoba and it is recognized as equivalent to SAFE Work Manitoba’s SAFE Work Certified program, which means companies certified for a full year receive a 15 per cent rebate on

WCB premiums. Lee says safety programs have brought other unexpected benefits. When daily hazard assessments became routine, worker engagement improved, since people were better informed about the work they were expected to perform and understood the company’s goals for each day. “They were improving their skills as a business and they were improving their productivity because all of a sudden, we have this new requirement to communicate regularly with your people. So, safety was adopted and communication became more regular and improved business in general.” Lee adds the focus on safety has also helped to attract skilled workers to the industry. “It has highlighted the world of heavy construction as not only a place to make a great career, but it’s a place where you can make a great career and not be concerned about the environment in which you work as being overly hazardous,” he says. “People know that they can come here, earn a good dollar, and do it in a manner that is safe and reflective of (the fact that) the best practices in the world are right here in good old Manitoba. “I think it’s come a long way — in a good way. It’s helped our industry become a career of choice for many.” ❱❱❱

THURSDAY, NOVEMBER 15, 2018 9

A SUPPLEMENT TO THE WINNIPEG FREE PRESS

Celebrating 75 GROUNDBREAKING years in 2018

We are a diversified company, based in

Portage la Prairie, offering heavy construction services. • Excavation • Road Building • Sewer and Water • Lagoon Construction

A HISTORY OF SAFETY AT THE MANITOBA HEAVY CONSTRUCTION ASSOCIATION

• Bridgework • Demolition

1989

FIRST SAFETY ADVISOR HIRED by the MHCA

Providing High Quality, Professional Services - Safely and Efficiently

1990

MHCA designed a SAFETY- AND-HEALTH TRAINING PROGRAM to reduce injuries among workers.

1997

MHCA developed a separate environmental safety program. Through the two programs, MHCA offered comprehensive safety and environmental accreditation to any company willing to go through the process. The accreditation was recognized throughout Canada. In 2000, MHCA amalgamated the two programs under one banner, called the SAFETY HEALTH ENVIRONMENTAL PROGRAM (SHEP).

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2000

COR™ (Certificate of Recognition) program established by the Canadian Federation of Construction Safety Associations and MHCA begins delivery of the nationally recognized COR Safety Program in the Manitoba Heavy Construction Industry. BY 2001, 40 COMPANIES HAD ACHIEVED COR CERTIFICATION WCB introduced a 5% DISCOUNT ON PREMIUMS for COR-certified companies MHCA’s safety program was rebranded as WORKSAFELY™ WORKSAFELY introduced the E-COR DIGITAL SAFETY APPLICATION for company safety program documentation and management MHCA WORKSAFELY and other members of the Canadian Federation of Construction Safety Associations ENDORSE THE NATIONAL CONSTRUCTION SAFETY OFFICER (NCSO) DESIGNATION

2004

MHCA LED THE ESTABLISHMENT OF SAFE ROADS MANITOBA, a

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community initiative to educate and encourage motorists to engage in respectful and safe driving practices to protect the safety of those who work on or adjacent to our roadways. MHCA introduced ROAD BUILDERS SAFETY TRAINING SYSTEM on-line training

2007

2008

2010

MHCA delivers WINTER ROAD SAFETY TRAINING on behalf of the provincial government

2012

Building a Better Winnipeg

Our people and solutions make an impact everywhere you look

We pride ourselves in building better cities and better communities, from the buildings in which we live and work, to the roads and bridges that connect our cities and towns. We provide construction solutions that respond to the needs of our customers and the people living in the communities we help create.

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2014

FULL-TIME SAFETY ADVISOR HIRED IN NORTHERN MANITOBA AND BRANDON/ WESTMAN REGION. WORKSAFELY became the only IBSP to have full-time safety advisors located in northern Manitoba COR BECAME MANDATORY for government construction projects exceeding $100,000 WCB INTRODUCED 15% REBATE FOR COR-CERTIFIED COMPANIES and other

Asphalt Paving Concrete Paving Base & Excavation Sewer & Water

Parking Lots

Subdivision Development

2018

340 COMPANIES ARE COR- CERTIFIED, covering approximately

Asphalt Supply

industries (replacing former 5% discount)

75% of the workforce

INJURY RATE PER/100 WORKERS

www.bituminex.com info@bituminex.com

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

2000: 7.5 2011: 5.06 2012: 4.56 2013: 4.53

2014: 4.49 2015: 4.71 2016: 3.70

Note: WCB does not have stats going back further than 2000 2017: 3.60

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