Easing of the way for stimulus funding pleases municipalities

John Baird, the federal Minister of Transport, Infrastructure and Communities, has allayed fears among engineers, contractors and municipalities about the economic stimulus plan and how it will work in practice. There were concerns in the construction industry about the scheduling related to the $12 billion stimulus fund for “shovel-ready” projects.  People felt it was not leaving enough time for projects to be completed by the deadline and that as a result they might start a project but then not receive the funding.

However, the Minister said in June that the government will pay its full one-third share of any costs incurred on municipal stimulus projects before April 1, 2011.  As Jean Perrault, president of the Canadian Federation of Municipalities put it in his response, “This puts to rest municipal concerns that failure to complete a stimulus project by that date would result in a 100% claw back of federal funding.”

The municipalities are also pleased to see red tape and approvals minimized. The federal government says it will not require any additional federal approvals for a project once its funding approval is announced.