Issue link: http://read.dmtmag.com/i/114548
Markets ("Ontario Infrastructure Engine Chugging, But Feebly" continued from page 26) Ajax Demolition Tools are manufactured from high grade impact alloy, engineered specifically to maximize performance for any application. SPECIAL APPLICATION POINTS AVAILABLE • Post Driver • Deck Buster • Frost Wedge • Tamping Tool • Special Length 800-323-9129 Fax: 847-455-9242 www.ajaxtools.com have written to federal Finance Minister James Flaherty and Transport, Infrastructure and Communities Minister Denis Label requesting a renewed commitment to national infrastructure upgrades. Failure to do so, the AED members stated, will harm the nation's long-term economic vitality and competitiveness. AED has suggested laying a federal foundation for an annual investment of at least $5.75 billion, along with indexing the gas tax to keep pace with inflation. AED's latest intervention comes with announced expiry of Building Canada, an $8.8 billion fund for construction projects, looming in 2014. Working with the Canadian Chamber of Commerce, AED hopes to raise visibility of the "critical need" for sustaining Canada's infrastructure networks. The FCM and AED are both drawing attention to a new study from the Canadian Centre for Policy Alternatives, pointing out that infrastructure in the country is chronically underinvested. The cumulative effect is that $145 billion worth of infrastructure hasn't been designated, says study author Hugh Mackenzie, a CCPA research associate. "That's a lot of new roads, bridges and buildings we're missing… not to mention missing maintenance on our existing infrastructure." Contentions of the three organizations are affirmed by a Canada West Foundation study demonstrating the strong link between sound public infrastructure spending and long-term economic growth. The foundation recommends sustained and strategic infrastructure investments that enhance economic performance; innovative approaches to infrastructure design; and existing infrastructure renewal given equal consideration to new projects. Out of Touch? The rosy picture painted by the Throne Speech inside the confines of the legislature contrasted to turmoil in the streets where building contractors have been protesting the latest provincial irritant destined to increase their expenses. It's Ontario's new Bill 119 permitting the Workplace Safety and Insurance Board (WSIB) to levy mandatory worker coverage and monthly premiums on 90,000 independent contractors involved in various aspects of residential and commercial construction. In a soft economy, the measure, introduced Jan. 1, has been greeted with outright hostility and – rare for the Canadian construction industry – protest marches. Contractors have taken to the streets to condemn the bill they claim could cost them up to $15,000 a year per worker. There have been protests in Ottawa, Canada's capital city, with more to follow in Toronto and in other parts of the province. Opponents see mandatory coverage as a "tax grab" to help the WSIB climb out of a $14 billion spending hole – larger than the entire current provincial government deficit. Wynne's new Labor Minister Yasir Naqvi has been asked to repeal the law; his quick reply was that Bill 119 protects workers, which is his primary mandate. Building contractors say they'll have no choice but to raise the cost of services, impacting the price of new homes, with consumers forced to pay the difference in an already flat real estate market. It seems setbacks to the construction industry never end in the province once known as Canada's engine of economic growth, the instigator of massive projects creating jobs and opportunities for suppliers of equipment and other goods and services. While some infrastructure and other projects are underway, over the past decade that engine has sputtered, due primarily to the real and perceived repercussions of what is now a $12 28 | www.cedmag.com | Construction Equipment Distribution | March 2013 26_Ontario_feature_KP.indd 28 2/27/13 3:05 PM