Borrowing to pay for infrastructure is right move, says CEA

The government of Alberta released its Budget for 2013 last week, bringing some relief to consulting engineers in that province.

The budget maintained its $900-million funding for the Municipal Sustainability Initiative that is used for infrastructure priorities.

Consulting Engineers of Alberta president Sheldon Hudson issued a statement March 15 about the budget saying they agreed with the government’s decision to borrow money to fund the needed infrastructure:

“The Consulting Engineers of Alberta believe the Alberta Government is on the right track with the funding of infrastructure,” said Hudson. “We have reviewed the budget and have concluded that borrowing money to fund needed infrastructure is a positive decision. Infrastructure is just too important and vital to our economic well-being to let it suffer. Cancelling or postponing infrastructure projects at either the provincial or municipal level could have a devastating long-term negative financial impact on Alberta….”

Hudson continued: “We understand and appreciate the need for the Alberta Government to reduce spending. We agree that it is not in the long-term best interest of our province to borrow money for day-today operational expenditures. Infrastructure on the other hand is much like a home purchase — it is typical to finance such purchases if the financial arrangements make sense.”

The government said it will be doing more to encourage public-private partnership to invest in affordable housing and that announcements regarding seniors lodges and social housing facilities will be coming in the next few weeks.

The government also committed to spending $10 million per year in Metis settlements.

To see the CEA press release, click here.

http://www.cea.ca/publications-a-resources/industry-news/year-2013