Feds to create Cdn$4-billion fund for infrastructure improvements

The Canadian government is poised to create a new Cdn$4-billion Infrastructure Stimulus Fund as part of its 2009 federal budget, Transport Minister John Baird has indicated to the Canadian Press.
The money is part of Cdn$7-billion in infrastructure spending to be announced as part of the Jan. 27 federal budget, the news agency reported Baird as saying.
“We did not start this economic crisis, but we will take steps to protect Canada and Canadians from it,” Mr. Baird said, noting the money would be for projects that take place over the next two years.
Baird didn’t give specific project details, but he told media the money would be earmarked for ready-to-go provincial and municipal projects, including the construction and repair of roads, bridges and water and sewer systems.
Baird is quoted as saying he expected other levels of government to match the infrastructure funds pledged in the federal budget.
Insurers have been calling for infrastructure improvements across Canada for some time. The issue became particularly acute for insurers in 2008, after record amounts of rainfall and snowfall caused extensive property and flood damage last year due to sewer backup (basic homeowners’ policies in Canada do not cover overland flooding).
Federally regulated insurers paid out Cdn$2.75 billion in personal property claims over the first nine months of 2008, according to data available from the Office of the Superintendent of Financial Institutions (OSFI).
Insurers have indicated that much of the property damage was due mainly to water and winter storm damage.