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Section B: Building Modern Infrastructure

Ontario’s continued investments in infrastructure have helped to make the  province one of the best places in the world to live, work and invest. Since 2003,  Ontario has invested nearly $100 billion in hospitals, schools and transportation  infrastructure, which has made Ontario a safer, more competitive and more  productive province, and resulted in a large and diverse provincial 

infrastructure system. 

Since 2003, the Province’s infrastructure investments have supported an average  of 100,000 jobs each year, in construction and related industries. These strategic  investments, focused in areas consistent with the Province’s long‐term 

infrastructure plan, Building Together, have resulted in: 

 100 major hospital projects built or underway, including 23 new hospitals; 

 Nearly 650 new schools opened, planned or under construction; 

 More than 27,000 school renewal projects completed or underway,  including replacing leaky roofs, drafty windows and old boilers in schools  across the province; 

 Over 7,900 kilometres of new or repaired provincial highways — more than  twice the driving distance between Toronto and Calgary, including over  4,000 kilometres in Northern Ontario; 

 More than 950 new or repaired bridges on provincial highways, which  represents 34 per cent of all provincial bridges and structures; 

 An overall increase of 63 per cent in the GO Transit fleet size, including  more than 200 new GO Transit commuter rail cars and 47 new double‐deck  GO buses; and  

 Five new consolidated courthouses, providing easier access to courts. 

2014 Ontario Budget 

Even with all these investments, the Province recognizes that challenges lie ahead. 

As suggested in Ontario’s Long‐Term Report on the Economy, the Province’s  projected population growth will result in significant demand for all types of  infrastructure, including transportation, health care and education. That is why  the Province has introduced a new 10‐year economic plan to invest over 

$130 billion in public infrastructure. World‐class infrastructure drives economic  growth and prosperity and enhances Ontarians’ quality of life by: 

 Directly supporting jobs today in construction and indirectly through  related industries; 

 Creating jobs in the future by attracting private‐sector investment;  

 Reducing business costs by making the movement of goods more efficient;  

 Allowing firms to access more talented employees; 

 Helping manage congestion and commute times by providing more  transportation choices;  

 Providing a modern and efficient health care system that meets the needs  of an aging population; 

 Building schools, colleges and universities to support an educated  workforce; and 

 Making Ontario’s communities better for families and individuals. 

Underinvesting in public infrastructure in times of strong economic growth has  made investing in more challenging times more difficult. 

Investing in infrastructure through Ontario’s new 10‐year economic plan will  continue to help stimulate the economy, create jobs, and increase prosperity  and fairness for Ontarians. Ontario’s planned infrastructure investments  would support over 110,000 jobs on average each year in construction and  related industries. 

Ontario’s commitment to support long‐term infrastructure planning and a  stronger economy will go even further. The Province has introduced Bill 141,  the Infrastructure for Jobs and Prosperity Act, 2014, which, if passed, would  set out principles and criteria to help improve infrastructure planning and  prioritization, promote high‐quality infrastructure design, and enhance the  involvement of apprentices in certain provincial infrastructure projects.  

Public Infrastructure Investments Benefit Ontario’s Economy A growing body of research demonstrates the significant economic benefits of public infrastructure.

A 2013 Conference Board of Canada report cited Ontario’s current and planned real infrastructure investments from 2006 to 2014, and estimated that:

each $1 invested in public infrastructure in Ontario raises gross domestic product by $1.14 in the near term; and

public infrastructure spending adds over $1,000 to the average annual income of Ontarians in 2014 and lowers the unemployment rate by about one percentage point compared to what it would have been in the absence of these investments.

A 2009 Statistics Canada report estimated that on average roughly 50 per cent of Canada’s multifactor productivity growth, representing about 10 per cent of labour productivity growth overall, in the private sector between 1962 and 2006 was the result of growth in public infrastructure.

Between 1995 and 2006, U.S. business sector productivity growth outpaced that of Canada and Ontario by about 20 per cent in total. This occurred while the stock of U.S.

infrastructure rose by almost 25 per cent compared to a 3.5 per cent decline in Canada.

2014 Ontario Budget 

By making long‐term investments in infrastructure, Ontario will maintain its status  as one of the best places in the world to live, work and invest. The Province will  continue to ensure that Ontarians have the best quality of life possible and that  businesses can be as productive as possible to succeed in the global economy.  

 

Note: Annual average investment amounts are net of third-party contributions and are presented on a nominal basis. Starting in 2002–03, infrastructure investments include the cost of tangible capital assets acquired by the Province and consolidated government organizations.

Starting in 2005–06, the provincial reporting entity was expanded to include colleges, school boards and hospitals.

Sources: Statistics Canada, Ontario Ministry of Infrastructure and Ontario Ministry of Finance.

Dollars Per Capita

Annual Average Provincial Infrastructure Investment Per Capita

CHART 1.7

$250

$830

0 100 200 300 400 500 600 700 800 900

1994–95 to 2003–04 2004–05 to 2023–24

Highlights of Infrastructure Projects Completed or Underway

CHART 1.8 Northern Ontario

Southern Ontario

2014 Ontario Budget 

Making Strategic Investments in Roads, Bridges