Spending the key to economic recovery

It’s beginning to sound cliché, but accelerating infrastructure spending is the key to getting the world economy back on track.

The 2009 federal budget echoed these sentiments with a package to stimulate economic growth and to help Canada weather the global recession. 

The new budget measures are designed to strengthen the country’s financial system, support Canadian workers, stimulate spending, and promote housing and infrastructure construction.

Large infrastructure projects have been at the centre of B.C’.s development throughout its 150 year history.  

There are many examples of these projects including the Caribou Trail, the Canadian Pacific Railway, the Coquihalla Highway, Expo 86 projects, Delta Port and SkyTrain upgrades. They opened up B.C. to world trade and commerce, as well as stimulated the economy.

Fortunately, Premier Gordon Campbell recognizes the importance of fast-tracking infrastructure construction projects to stimulate the economy and to give B.C. companies a competitive edge.

The Ministry of Transportation and Infrastructure has confirmed that it plans to immediately invest more than $20 million to improve highway infrastructure and other road projects across B.C.

The intent is to pump money back into local communities and to keep hundreds of people working. 

Northwest B.C. has been hit hard by thousands of layoffs in the forestry and mining sectors, so creating jobs in this area is important.

The premier has made a priority of creating opportunities through education, bolstering the region as Canada’s northern cross-country transportation corridor and expanding trade.

He reminded us that such infrastructure projects are good for short and long term employment.

Some of the work will include improving sight lines by removing beetle-killed trees along rights-of-way and major resurfacing work. Routes that will benefit include Highways 16, 35, 37, 118 and numerous roads throughout the region. Northwest B.C. will receive $2.75 million for rehabilitation and expansion projects. Of that money more than $2.25 million has been allocated for the area bordered by the Queen Charlotte Islands, east to Burns Lake and north to Dease Lake. The Vanderhoof and Fort St. James areas will receive almost $500,000. 

Kevin Falcon, the B.C. minister responsible for transportation and infrastructure said that the money will focus on activities to improve the transportation network, hiring local people, equipment and contractors.

“These projects don’t require a lot of lead time – just the money, labour and equipment to make them happen,” he said.

This is great news for B.C.’s road builders. It will generate hundreds of short-term jobs.

Lots of contractors are ready and willing to do the work, whether it is pavement patching, roadside brushing, removal of dangerous trees, gravel crushing and hauling, bridge upgrading, culvert replacements and other drainage improvements.

We applaud the provincial and federal governments for recognizing the importance of investment in transportation infrastructure and encourage them not to forget that it is the key to keeping people working and keeping B.C. companies competitive.

Jack Davidson is president of the B.C. Road Builders and Heavy Construction Association and a member of the Journal of Commerce editorial advisory board.

http://www.journalofcommerce.com/article/id32507