Thoughts and Opinions On Today's Important Issues

Wednesday, March 26, 2008

Dwight's Budget



Obviously, the financial war is still going on between the Feds and the Province over the amount that the Federal Government will pay for the DRIC Project road.

It's no wonder then that no specific amount was mentioned by the Province nor what its percentage would be of the total cost of the road. No point being trapped when you are playing a game of taxpayer money poker.

I wonder if the Senior Levels are going to put in a kind of money needed for a DRIC road, $1.6 billion or is it just going to be the really "cheap" solution like I-696 in the end. As I have said before that is not a real number but based on MTO guidelines. It could be much more once it goes out to tender. Perhaps, since the Fedss have only put in $400 million, the Province may only put in $400 million. That would really get Eddie mad now wouldn't it.

You know the old saying: the City whose Mayor hesitates is lost.

Instead of stalling and delaying, perhaps he should have been negotiating to get that road finalized already and set in stone (or is it asphalt or concrete).


As well, perhaps next time, Eddie will not snub Dwight's pre-Budget session, even if he just had to go at taxpayer expense, along with Ms Nazzani, to Germany to meet a start-up!

The only good that may come out of this is that the Mayor will not spend thousands of taxpayer dollars on an advertising blitz for Greenlink that will accomplish nothing. Perhaps we can buy a few Library books with the money saved.

There is no doubt that Greenlink will never be built because tunnels are a hazard both from the point of view of accidents taking place within the tunnel and deliberate action designed to slow down the movement of traffic across the border. Then there is the cost and the precedent set.

It is lucky for the Senior Levels, and the Province in particular, that Matty Moroun knows how to operate a bridge. Again as I have said before, ironically, he is his own worst enemy. Because he operates the border so well, we don't have the massive tieups that would have required Government action long before now. He allowed them to buy time and not spend any money.

Instead the Senior Levels can fool around as the Minister of Finance did a few years ago with his colleague, the Infrastructure Minister with his $500 million Gong Show money. Moreover, they also have the time to try to put him out of business as his reward for his deed of keeping trade between Canada and the US moving so well.

It would appear to me that the Province probably doesn't have any money to invest in the border road at this time. If you will remember, that $500 million was not going to be available until after 2010.

Here is what the Budget Backgrounder stated:
  • "Ontario will fully fund its share of the costs of the final proposed road link between Highway 401 and the new border crossing. Sufficient funds to cover the costs of the project are built into the government’s 10-year infrastructure plan."

You tell me when the Funds are available. When in that 10 year period?

It is becoming more and more apparent that this entire DRIC process is a complete farce, especially because the economy is tanking on both sides of the river and no one can afford to spend the kind of sums necessary to build what DRIC has been proposing.

Look for a compromise after the Wilbur Smith traffic projections confirm truck traffic numbers are down badly. That will be the justification for the DRIC solution being tabled for some time down the road, the Enhancement Project being built and a road to the Ambassador Bridge being constructed at cost of probably not more than $1 billion (Dwight's $500 million matched by the Feds). This will all be called the "intermediate" solution and financed under the Border Infrastrucutre Fund program.

The only other solution that I can see with respect to the border road that may make some sense to the Province is turning the DRIC road into a toll road in a P3 partnership. That was something the Province said that they would NOT do. That would open up all kinds of headaches especially for Windsor as it makes us non-competitive with the other border crossing points. I can just see the lawsuits starting over that one too.

Here again is what was said in the Budget materials with respect to the border:

BACKGROUNDER
WINDSOR BORDER

International trade is integral to Ontario’s and Canada’s economic prosperity. The McGuinty government is committed to ensuring efficient and uninterrupted trade with the United States through Ontario’s borders, gateways and trade corridors.

The province is working with federal and U.S. partners on a strategy to develop a new border crossing and associated infrastructure at the crucial Windsor-Detroit Gateway Ontario will fully fund its share of the costs of the final proposed road link between Highway 401 and the new border crossing. Sufficient funds to cover the costs of the project are built into the government’s 10-year infrastructure plan.

Investing in Economic Infrastructure

Windsor Border

International trade is integral to Ontario’s and Canada’s economic prosperity. The government is committed to ensuring efficient and uninterrupted trade with the United States through Ontario’s borders, gateways and trade corridors.

The government is working with federal and U.S. partners on a strategy to develop a new border crossing and associated infrastructure at the Windsor–Detroit Gateway. This initiative, the Detroit River International Crossing Study, is expected to provide recommendations in the spring of 2008 on a new transportation system to provide safe, efficient, secure and uninterrupted movement of people and goods across the Canada–U.S. border. This would support the local economy of the Windsor–Essex region, the provincial and state economies of Ontario and Michigan, and the national economies of Canada and the United States.

The recommendations are expected to address the location and design of a new river crossing, access road and customs plaza. The federal government is leading the development of the new river crossing and customs plaza and has earmarked an initial $400 million towards a commitment to fund 50 per cent of the total eligible capital costs of the access-road projects.

As part of the environmental assessment process, the work to select a preferred alternative for the access road is about to conclude. It is anticipated that construction will begin in 2009. Ontario will fully fund its share of the costs of the final proposed road link between Highway 401 and the new border crossing. Sufficient funds to cover the costs of the project are built into the government’s 10-year infrastructure plan. Construction on the project, which is the most important infrastructure undertaking in Canada and the United States, will also create thousands of jobs in Windsor. Further details will be announced in coming weeks.

This project will include unprecedented features to enhance the quality of life for people in the Windsor–Essex region while ensuring that traffic keeps moving.

Supporting Ontario’s Infrastructure

The federal government must partner with Ontario to invest in infrastructure projects that support economic growth in its communities, such as MoveOntario2020, the Windsor border, the Ontario–Quebec Continental Gateway and Trade Corridor, and infrastructure in rural and northern Ontario.

DWIGHT'S SPEECH

Perhaps our most important infrastructure undertaking is a new border crossing at Windsor.

As part of the environmental assessment, the Detroit River International Crossing Study is expected to provide recommendations very soon on a new crossing and access road.

Ontario will fully fund its share of the costs of the final proposed road link between Highway 401 and the new border crossing. Sufficient funds to cover the cost of the project are built into the government’s 10-year infrastructure plan.

Business and union leaders and others from right across the province want to get on with this project. Mr. Speaker, so do we. Construction is scheduled to begin in 2009 and is anticipated to be concluded in 2013.

At a time when they are most needed, this project will create thousands of jobs in Windsor.

Ontario Budget 2008: Chapter I: A STRONGER ONTARIO

Major Investments in Infrastructure
This Budget is announcing $1 billion in new municipal infrastructure investments in 2007–08.

For Ontario to be competitive in the global economy and achieve its full potential, it must have modern infrastructure that makes business productive, helps move people and goods faster, and contributes to a high quality of life for all Ontarians. That is why investing in infrastructure is part of Ontario’s five-point economic plan. For more details, see Section B: Stronger Communities: Investing in Municipal Infrastructure and Communities.

The government is modernizing Ontario’s infrastructure through ReNew Ontario, its five-year, $30 billion infrastructure investment plan. ReNew Ontario provides for major investments in areas that are of primary importance to Ontarians: transportation, health, education and economic prosperity. The government will implement a new $60 billion infrastructure plan over 10 years, once ReNew Ontario is completed.

Infrastructure investments create jobs, improve access to markets, and support business investment. They deliver immediate benefits through job creation and form the foundation for long-term economic growth, as modern infrastructure is a major factor in attracting private investment and world-class businesses.

The Province, in cooperation with municipalities, calls on the federal government to invest in Ontario’s infrastructure, specifically the government’s $17.5 billion MoveOntario 2020 plan, the Windsor border, the Ontario–Quebec Continental Gateway and Trade Corridor, and strong community infrastructure.