It would be hard for any Canadian to not notice the conversation around housing construction.
Cities in our province, like every other province in the country, have seen their populations grow while the growth of housing stock has not kept up with demand. The need for housing in Canada has been a major concern over the last few years, with report after report coming out about this challenge.
Like many in Saskatchewan’s heavy construction industry, I am paying attention to this topic because this issue is about more than residential construction. The infrastructure necessary for this housing will be built by our industry because our members build more than roads.
Major projects are underway in Saskatchewan cities to address the underground infrastructure before revitalizing the surface infrastructure. The Saskatchewan Heavy Construction Association (SHCA) is there to support the heavy construction companies working on those projects.
Municipal leaders in our province are describing the strain they are under as they are asked to make decisions around upgrading infrastructure in their communities and securing the necessary funding to complete these projects.
As our cities grow, we are seeing councils having to make decisions about updating aging infrastructure while also looking at expanding that infrastructure to ensure all residents receive the municipal services they require at their homes and businesses. Councils also face conflicting perspectives when it comes to infill construction, with some pushing to build multi-unit developments in existing neighbourhoods where there already is infrastructure, while others resist such changes to their neighbourhoods.
The push for infill housing is led by the federal government, which is offering cities tens of millions of dollars through its $6 billion Canada Housing Infrastructure Fund. Of this, $1 billion is being distributed to cities for urgent infrastructure needs such as improving wastewater, stormwater and solid waste systems.
To many Canadians, that $1 billion sounds like a lot of money, but when you look at Regina as an example, it puts that amount into context. In early July, Mayor Sandra Masters said the city’s infrastructure has been “chronically underfunded” as council considered the Water Network Expansion, a critical project already underway to build a new pump station, plus two additional storage reservoirs that are necessary to supply water to Regina’s growing east end. Masters says Regina has “a billion-dollar infrastructure problem.”
A recent report by the Canadian Urban Institute plainly states that a plan to build homes must also factor in the need for water, wastewater, roads, transit, power-distribution infrastructure and more. In the introduction of A Jump Start: Providing Infrastructure for More Housing, the report makes it clear why we can’t discuss one without the other. “Bluntly speaking, any new housing needs toilets and tap-water,” the report states.
This report says that in fast-growing parts of Canada, the cost of providing a full range of infrastructure likely exceeds $100,000 per home over time. It also says that the cost of infrastructure to serve 5.8 million new homes in Canada over the next decade exceeds anything existing municipal fiscal arrangements could support.
Municipal governments receive less than 10 cents of each tax dollar collected in Canada, the report says, while municipalities own and operate most of the public infrastructure. That is why all three levels of government have a history of sharing the cost of this infrastructure through capital grants or lending programs.
The SHCA maintains excellent relations and access to all levels of government. We are in regular communication with MPs, MLAs, ministers, mayors and councillors to put forward our members’ interests.
We maintain these relationships not just to bring forward concerns. We also offer solutions to elected officials and bureaucrats. Our members have very valuable insights into the projects these governments undertake, and we offer recommendations on how to be more efficient and effective in these projects.
Being an SHCA member is the most effective way for a heavy construction company to be heard by all three levels of government. SHCA members do so without the risk of standing alone as they deliver what can sometimes be difficult messages to deliver. The message coming from industry – as opposed to a single company – can have more impact.
There are some difficult days ahead for these governments who are being asked to deliver more to taxpayers who are not agreeable to paying more. The Canadian Urban Institute recommends four measures to help municipalities pay for this necessary infrastructure. The first is moving from pre-payment to secured payment for infrastructure over its useful life. The second is ensuring all beneficiaries contribute to infrastructure’s cost over time. The third is reducing municipalities’ infrastructure financial risks and limitations by using innovative financial models and private capital. The fourth and final recommendation is to tailor infrastructure financing models to the fiscal risks and realities of Canada’s small, rural and remote municipalities.
Knowing what other organizations are proposing to the government that can potentially impact our industry is also important. This helps the SHCA keep members informed, but it also allows us to find opportunities to build relationships with organizations to present a united front on issues we have in common.
We saw this with the Western Canada Roadbuilders and Heavy Construction Association (WCR&HCA) working with the Canada West Foundation and the Canadian Construction Association to get the Shovel Worthy report in front of and seriously considered by governments. SHCA members are automatically also members of the WCR&HCA and the Canadian Construction Association, who collaborated with the Business Council of Canada and the Canadian Chamber of Commerce to advocate for a nation-building strategy that would invest in Canada’s trade corridors to enable and harness trade-based economic growth.
I look forward to hearing from all SHCA members about the different types of projects you work on in various parts of our province. I want to understand the challenges and successes you are experiencing so we as an association can support your needs and interests because it is likely your company is not alone in its experience. When it comes to municipal infrastructure, I will continue to maintain my connections and keep listening to the conversation out there so I can advocate to the best of my ability on your behalf.
