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Study: Feds Infrastructure Funding Shortfall Limits Growth Prospects

Vaughan, ON, April 17, 2023 (GLOBE NEWSWIRE) -- The federal government is underfunding municipalities and public infrastructure, while reaping the greatest proportion of tax dollars from high-tax policies on homebuilding. Cumulative underinvestment in public infrastructure across all three levels of governments in Ontario reveals the federal government has the greatest capacity to close the gap to the best practice recommendation of 4% of GDP spending on public infrastructure. These are among the ground-breaking findings revealed in an economic analysis report.

The research showed public infrastructure investment is 30% below what economic analysis recommends, while production taxes on new housing construction are the highest of any sector. The research report, "Will Feds Answer the Call? Infrastructure Investment Lags Amidst Highly Taxed Housing Construction" was authored by the Canadian Centre for Economic Analysis and commissioned by the Residential and Civil Construction Alliance of Ontario (RCCAO).   

"The high taxes on housing construction and underinvestment in public infrastructure is a problem the federal government is uniquely positioned to resolve," said Nadia Todorova, Executive Director of RCCAO. "Ontario cannot realize economic and immigration growth goals without the support of the federal government increasing funding for public infrastructure."

In light of the research findings and industry challenges, RCCAO is calling on the Government of Canada to:

Key findings from the report:

RCCAO will continue to work with all three levels of government, representing industry's voice at the table and advocating for action to build the best future possible for Ontario.

Read the full report here

RCCAO Executive Director Nadia Todorova is available for interviews.

Background on RCCAO: The Residential and Civil Construction Alliance of Ontario (RCCAO) is a labour-management construction alliance. Since its formation in 2005, RCCAO has been a leading industry advocate for infrastructure investment. It has commissioned 61 independent, solutions-based research reports to help inform decision makers.


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