The next edition of the Ottawa Report is scheduled to be sent Monday, May 6.
Latest News
Finance Minister Freeland Presents 2024 Federal Budget
On Tuesday, April 16t, Finance Minister Chrystia Freeland presented the 2024 federal budget. With an election set to occur no later than next year, the Government of Canada is projecting a deficit of $40 billion in 2023-24, down 1.4 per cent of GDP from the $40.1 billion predicted in Budget 2023. It projects a deficit of $39.8 billion in 2024-25, declining to $20 billion in 2028-29.
Debt-to-GDP remains the fiscal anchor of the government, a metric which the government says is “key not only for fiscal sustainability, but also to preserve Canada’s AAA credit rating, which helps maintain investors’ confidence and keeps Canada’s borrowing costs as low as possible. Fiscal prudence supports a macroeconomic environment in which the Bank of Canada is able to bring down interest rates as soon as possible.”
The headline fiscal measure in this budget, however, is a tax increase on capital gains on “the wealthiest 0.13 per cent” as well as corporations and trusts.
- CAPITAL GAINS: the inclusion rate—the portion of capital gains on which tax is paid—for capital gains for individuals with more than $250,000 in capital gains in a year will increase from one-half to two-thirds. Individuals will continue to only pay tax on 50 per cent of any capital gains up to $250,000 per year. The inclusion rate will also increase to two-thirds for all capital gains realized by corporations and trusts. The new rules will apply to capital gains realized on or after June 25, 2024. Selling your principal residence will continue to be exempt from capital gains taxation.
In addition, there were several measures of interest to the public works community:
- COMMUNITY CENTRES: Budget 2024 proposes to provide $500 million over five years, starting in 2024-25, to Infrastructure Canada to support more projects through the Green and Inclusive Community Buildings program.
- EXTREME WEATHER: Budget 2024 proposes to provide $6.9 million over five years, starting in 2024-25, with $1.4 million ongoing for the Meteorological Service of Canada’s early warning system for extreme weather events, with a focus on floods and storm surges.
- FLOOD INSURANCE: As announced in Budget 2023, the government intends to deliver a flood reinsurance program and a separate insurance subsidy for households at high risk of flooding.
- Budget 2024 announces the government’s intention to establish a subsidiary of the Canada Mortgage and Housing Corporation to deliver flood reinsurance.
- To advance this commitment, Budget 2024 proposes to provide $15 million to the Canada Mortgage and Housing Corporation (CMHC) in 2025-26 to advance implementation of a national flood insurance program by 2025.
As a “sneak peek” in advance of presenting the full budget, Prime Minister Trudeau had already announced a number of housing-related initiatives under the title, Solving the Housing Crisis: Canada’s Housing Plan. Most important for PUBLIC INFRASTRUCTURE, this includes:
- Launching a new $6 billion Canada Housing Infrastructure Fund to accelerate the construction and upgrading of critical housing infrastructure. This includes water, wastewater, stormwater, and solid waste infrastructure to support the construction of more homes. This fund will include:
- $1 billion available for municipalities to support urgent infrastructure needs that will directly create more housing.
- $5 billion for agreements with provinces and territories to support long-term priorities. Provinces and territories can only access this funding if they commit to key actions that increase housing supply.
- Provinces will have until January 1, 2025, to secure an agreement, and territories will have until April 1, 2025. If a province or territory does not secure an agreement by their respective deadline, their funding allocation will be transferred to the municipal stream. The federal government will work with territorial governments to ensure the actions in their agreements are suitable to their distinct needs.
- Announcing that, to access long-term, predictable funding for public transit through the federal government’s forthcoming public transit fund, municipalities will be required to take action that will directly unlock housing supply. This includes measures to:
- Eliminate all mandatory minimum parking requirements within 800 metres of a high-frequency transit line.
- Allow high-density housing within 800 metres of a high-frequency transit line.
- Allow high-density housing within 800 metres of post-secondary institutions.
- Complete a Housing Needs Assessment for all communities with a population greater than 30,000.
- Topping-up the Housing Accelerator Fund with an additional $400 million, so more municipalities can cut red tape, fast-track home construction, and invest in affordable housing.
- Launching a modernized Housing Design Catalogue to standardize up to 50 efficient, cost-effective, and liveable home blueprints. With $11.6 million in Budget 2024, this will include frames for modular homes, row housing, and fourplexes—that housing manufacturers, provinces, territories, and municipalities will be able to use to simplify and accelerate their housing approvals and construction timelines.
Linked to Canada’s Housing Plan, Prime Minister Trudeau also announced in advance new WORKFORCE DEVELOPMENT measures, including:
- $90 million for the Apprenticeship Service, creating apprenticeship opportunities to train and recruit the next generation of skilled trades workers.
- $10 million for the Skilled Trades Awareness and Readiness program to encourage high school students to enter the skilled trades—creating more jobs and opportunities for the next generation of workers to build Canada up.
- $50 million in the Foreign Credential Recognition Program, with a focus on residential construction to help skilled trades workers get more homes built. Like the previous $115 million investment, this funding will remove barriers to credential recognition, so workers spend less time dealing with red tape and more time getting shovels in the ground.
Parliamentary Business
House Environment Committee Continues Key Studies
The House of Commons Standing Committee on Environment and Sustainable Development has continued its work both on its broad study of “Freshwater,” as well as on Private Member’s Bill C-317, An Act to establish a national strategy respecting flood and drought forecasting. The committee will publish recommendations to the government at the conclusion of the studies, which CPWA will share with members.
Federal Funding Awarded
Greener Community Facilities in British Columbia
The retrofit of four community facilities on Vancouver Island will improve energy efficiency and building accessibility, after a combined investment of nearly $5.2 million from the federal and local governments. Announced by the Honourable Jonathan Wilkinson, these projects will support critical infrastructure upgrades that will lower energy costs and reduce environmental footprints, but also create more pleasant interior environments for residents to learn, explore, and play together in our communities.
In the District of Saanich, the Cedar Hill Recreation Centre is undergoing a series of upgrades to the HVAC system, lighting, and building envelope. Once completed, the improvements to the Cedar Hill Community Centre are expected to reduce the facility’s energy consumption by up to 40% and greenhouse gas emissions (GHG) by 80 tonnes annually. Serving also as an Emergency Operations Centre for the community new automatic door openers and renovated reception counters will also ensure improved accessibility.
Meanwhile, in Port Hardy’s Tsulquate Reserve, the retrofit of Wakas Hall in the Gwa’sala-‘Nakwaxda’xw Nation is currently underway, which includes installing solar panels and upgrading LED lighting, HVAC, insulation, faucets, and accessibility features, such as washrooms, stair lifts, and warning signage.
In Lake Cowichan, the Ts’uubaa-asatx Nation Community Centre is adding solar panels and storage batteries to save energy and reduce their environmental footprint. Similarly, the Chilton Arena in the Regional District of Mount Waddington is also adding solar panels and retrofitting a battery storage system.
These investments were made through the Green and Inclusive Community Buildings (GICB) program, which helps ensure community facilities are inclusive, accessible, and have a long service life, while also helping Canada move toward its net-zero objectives by 2050.
