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VIDEO: Sinkhole and scathing report spawns mayor's call for federal money

Ross McDermott, LondonTopic.ca Comment Send to Friend
11/21/2007

London's now infamous sinkhole looms large in the mind of Mayor Anne Marie DeCicco-Best, as she calls on the federal govenment to tap into the federal surplus to address the aging infrastructure problem in Canadian cities.
File photos, LondonTopic.ca
Armed with a scathing report regarding infrastructure costs in Canadian municipalities, London Mayor Anne Marie DeCicco-Best is calling on the federal government to tap into the federal surplus to address the problem.

The report, issued Tuesday (Nov. 20) by the Federation of Canadian Municipalities (FCM), comes on the heels of the now infamous London sinkhole, which opened up at the Wellington Street-Dundas Street intersection, Oct. 31.

Repair work at the London sinkhole is now expected to be completed, and the intersection opened to traffic within three weeks.

DeCicco-Best said with a project such as the London sinkhole, which grew from a watermain break to damage to utility lines and vaults, "there is obviously going to be a higher price tag with that because we're reacting to a situation. Where we want to try to be is being more proactive knowing that we've got sewers that are aging and watermains that are aging. We want to be able to deal with those before we have a disruption which people can't plan for."


She said that cities in Canada have been asking for the equivalent of one-cent of the GST as a starting point of revenues that grow with the economy. If the governments were able to devote about $5 billion a year to deal with infrastructure issues across Canada, for London that would mean about $30 million a year.

Though the $30 million wouldn't solve all of London's infrastructure problems, it would go a long way to help the city start the rebuilding process and could help avoid another sinkhole situation like the one in the core.

"With a federal surplus of $26 billion over the next six years, now is the time for all levels of government to work together to help put infrastructure funding on a sound sustainable basis for the future," said DeCicco-Best.

"The recent watermain break in London is just one sign of a nation-wide problem," she said, adding the city is committed to 20-year plans to address aging sewer and water infrastructure, and also need to focus on road maintenance.

"But we could do so much more to make up for the deficit with the contribution of additional federal and provincial funding."

According to the report issued by the FCM, the cost of repairing or replacing aging municipal infrastructure is skyrocketing across the country, with estimates as high as $123 billion. In addition, the same study estimates that an additional $115 billion is needed to keep up with the growing needs of Canadian communities.

Municipalities receive just eight cents out of every tax dollar collected in Canada, said the FCM study. The other 92 cents goes to the provincial and federal governments.

DeCicco-Best said municipalities like London lack the resources and fiscal tools they need to meet a long list of responsibilities, including infrastructure.

Cities, she said, must rely "too heavily" on property taxes – which have been identified by economists as regressive and non-responsive to economic growth. The mayor said both Prime Minister Stephen Harper and Premier Dalton McGuinty have agreed with leading economists that the principle cities should have access to a share of revenues.

"We're calling on both the federal and provincial governments to immediately lead a long-term effort to eliminate the municipal infrastructure deficit," said Mayor DeCicco-Best.

Similar calls for federal response to the report echoed in Ottawa from Liberal Cities and Communities critic Paul Zed.

"Canadian municipalities face a real need when it comes to infrastructure funding," said Zed. "Our cities are the engine of the Canadian economy and unless they function well Canada can't compete in the global economy of the 21st century."

The FCM report also calls for the establishment of a national plan to eliminate the municipal infrastructure deficit and prepare for effective management of our infrastructure in the future.

"The Liberal Party is committed to working with municipalities and the provincial governments to ensure that long term, stable, predictable funding is provided to our cities," said Zed.


RELATED STORY: Sinkhole pole reveals Londoners' concerns for infrastructure
RELATED STORY: Huge sinkhole cripples London's core

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