Dalton & Dave botched Huron Central application, feds say

Ottawa has responded to a news release issued yesterday by Sault MPP David Orazietti.

In the release , Orazietti and Algoma-Manitoulin MPP Mike Brown urge the federal government to help save the Huron CentralrRail line between the Sault and Sudbury. SooToday.com has received a copy of the following letter and backgrounder sent by federal Minister of Transport, Infrastructure and Communities John Baird to Ontario's infrastructure minister:

****************************** February 12, 2010

Honourable Brad Duguid Minister of Energy and Infrastructure Hearst Block 4th Floor, 900 Bay Street Toronto, ON M7A2E1

Dear Minister Duguid:

I understand that Sault Ste. Marie MPP David Orazietti and Algoma-Manitoulin MPP Mike Brown have recently announced that the Province of Ontario is willing to commit funding for infrastructure on the Huron Central Rail line, should the federal government be willing to provide its share.

A joint call for proposals from Canada and Ontario was made pursuant to the Infrastructure Stimulus Fund (ISF), for which the Huron Central Rail line applied.

I would note that in reviewing the applications submitted for short-line rail projects, Ontario did not indicate an interest or priority in funding such projects, including the Huron Central Rail's call for funding under that program.

As such, I am puzzled by this recent press release by Mr. Orazietti, which is speaking on behalf of the province.

The ISF is no longer able to make new commitments.

However, should Ontario now chose to support this project, I am happy to inform you that the Government of Canada is indeed prepared to support this initiative, provided that Ontario submits it for funding under the Provincial-Territorial Base Fund.

As you know, we have been negotiating a Canada-Ontario Provincial-Territorial Base Fund agreement since 2008, most recently with the view to fully accelerating Ontario's entire allocation over fiscal years 2009-10 and 2010-11 as part of Canada's Economic Action Plan.

We provided a draft of the agreement to you in August 2008 and did not receive initial comments until one year later in August 2009.

Ontario remains the only jurisdiction in Canada without an agreement in place to access their allocation of $175 million.

I recommend that we move swiftly to sign the Canada-Ontario Provincial-Territorial Base Fund agreement, which could be the source of funds for infrastructure on the Huron Central Rail line initiative, and for other infrastructure priorities across Ontario.

We understand that the Huron Central Rail initiative would proceed between now and 2015, and therefore this could have an impact on the extent to which Ontario's Provincial-Territorial Base Fund can be accelerated this year and next.

I would also note, in closing, that the Government of Canada has fully matched Ontario's contribution to work on this process, with each level of government already having provided $1.5 million to date to this initiative. 

Sincerely,

- John Baird, P.C., M.P., Minister of Transport, Infrastructure and Communities  ************************* Accelerating provincial/territorial base funding for infrastructure

Through Canada’s Economic Action Plan, the Government of Canada is prepared to accelerate the remaining provincial/territorial base funding for infrastructure.

Canada’s Economic Action Plan includes up to $1 billion in accelerated payments under Building Canada’s Provincial-Territorial Base Fund to expedite “ready-to-go” infrastructure projects.

About the program

The $2.275 billion Provincial-Territorial Base Fund was established to provide each province and territory with predictable funding of $25 million per year, over seven years, for a total of $175 million per jurisdiction by 2014.

When matched by the provinces and territories, the Provincial-Territorial Base Fund will invest at least $4.5 billion in core infrastructure.

Instead of providing provinces with $25 million per year, the Government of Canada is prepared to provide to each province and territory any remaining funding up to the full $175 million from 2009 to 2011, subject to matching contributions.

To address pressing infrastructure needs, the Government of Canada will also make this funding more flexible, to allow provinces and territories to repair bridges, local roads and secondary provincial highways.

How it works

Provinces and territories submit an annual capital plan with a list of initiatives for federal cost sharing.

The plan includes a brief description of each initiative, the eligible category of investment and the total eligible cost.

The federal government contributes 50 percent of the plan’s eligible costs.

Who is eligible?

Provinces and territories that have signed provincial-territorial base fund agreements with the Government of Canada and submitted an annual capital plan are eligible.

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