Federal Budget 2005, CCA's Summary & Highlights

Impacts for the Canadian Non-residential Construction Industry

Short & Sweet (& some not so sweet)...

Pros: 

Allocation of a portion of the federal gas tax to municipal infrastructure; Renewal and extension of existing infrastructure programs; and Immediate fund injection of $300 million to the Green Municipal Funds.

Cons: 

Federal government will not move more quickly to ramp the gas tax up to 5 cents; and no new funding announcements for the National Highway System.

Extended Version:

Infrastructure Spending:

The federal government will share a portion of its federal gas tax with municipalities for the purposes of investing in “environmentally sustainable municipal infrastructure”.  The amount of this spending will be equivalent to:

• 2005-06: 1.5 cents ($600 million)
• 2006-07: 1.5 cents ($600 million)

2007-08: 2 cents ($800 million)

• 2008-09: 2.5 cents ($1 billion)
• 2009-2010: 5 cents ($2 billion).

Equally important, this level of funding (ie, $2 billion annually) will continue thereafter indefinitely.

Eligible projects will depend on agreements to be signed with each individual province. However, in large urban centres, the federal government will state that investments be targetted to either public transit, water and wastewater, community energy systems, and treatment of solid waste. In smaller communities, there will be a broader definition of eligible projects.

Budget 2005 gave Green Municipal funds an immediate injection of $300 million, which supports investments in green municipal projects. Half of this amount, or $150 million, will be used to assist with the clean-up of qualifying brownfields.

On the subject of existing infrastructure programs (mainly the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Border Infrastructure Fund), the budget stated that, “The Government of Canada intends to renew and extend into the future these infrastructure programs as they expire. Details on the renewal of these programs will be included in future budgets”.

Tax Changes:

The 1.12% corporate surtax will be eliminated in 2008. Furthermore, the general corporate income tax rate will be lowered from 21% to 19% by 2010. However, the 21% rate will be in place until 2008, and will begin to fall to 19% starting in 2008.

Employment Insurance:

The Budget announced a new rate-setting process for 2006 that will permit a new Employment Insurance Commission to set EI rates. However, the Government of Canada could override the rate set by the Commission if in the public interest to do so.

In order to provide some certainty, the Budget states that the EI rate for the next 2 years will not exceed $1.95.

Workplace Skills Strategy:

An additional $125 million will be made available over the next three years under the Workplace Skills Strategy. These funds will be made available to provincial governments, colleges and training institutions, business and labour, and individuals, for initiatives intended to ensure workers acquire the skills needed to succeed. This would include initiatives to:

• Strengthen the apprenticeship system in Canada.

• Create a Workplace Partners Panel to foster ongoing dialogue and provide advice.

• Act in key areas of federal responsibility, with the example of facilitating Aboriginal participation in apprenticeship programs and facilitating the transition of military tradespersons to civilian skilled trades.

Expenditure Review:

The Budget incorporates the first phase of a series of recommendations from the Cabinet Expenditure Review Committee. These include new procurement strategies that appear to be those advanced in the Procurement Review Task Force Concept Paper released in September 2004, although no further details were revealed. These measures also include the adoption of more efficient federal real property management approaches. The Budget states that these expenditure review package measures will be implemented by the Treasury Board.

(Information provided by Canadian Construction Association, www.cca-acc.com).

Back to Top

Five New Power  Plants

Northwestern Ontario

SynFuel Technologies Inc has plans to build five new power plants in Northwestern Ontario, beginning Spring 2005. Over the next four years, $2 billion will be spent on the five plants and their related infrastructure. The project will create many opportunities in construction of which each of the five will take an approximate sixteen months to construct within a three year project time frame. The heavy industrial construction will involve 9,000 tons of steel per five required plants.

The first of these five new power plants will be constructed in Thunder Bay, Ontario, on Cascades Fine Paper property. Other locations are yet to be announced.

The Cascades Plant, with a $150 million price tag, will produce 105 MW of energy in the form of synthetic gas, steam, and power. It will be constructed on seven acres of land, with most of the equipment situated outdoors, looking more like a refinery rather than the conventional power plant. Generators will however be located indoors.

Several of the other four power plants will produce 105 MW each. Others will produce 210 MW each, cost over $250 million each and take 300 person-years to const (equal to 200 people working full-time, 5 days/week for 16 months). Ron Forbes, Project Manager for Synfuel Technologies Inc, (owners of the new power plants), quoted in Construction Northwest (2004-2005) magazine, (official publication of the Construction Association of Thunder Bay), commented that the site will be 100% unionized, based on a site agreement the owners have with the NW Ontario Buildings Trade Association. Eighty-eight Thunder Bay companies will be involved in the project, including local engineers, manufacturers, suppliers and contractors. The main local engineering team for mechanical design is Cook Engineering and for the electrical design is KMH Engineering.  

This technology was first developed at the turn of the 20th century. Since then, it has advanced to the point where the new power plants only produce 10 per cent of emissions produced by older plants still in operation. Some of these plants have been slated to close by Ontario by the end of 2007; in response, Ontario's provincial government requested proposals from private companies to build new power plants to operate in partnership with industry to reduce the demand on the public Hydro One grid.

Natural gas and electricity is now also the main expense for mills. The new power plants will create money saving opportunities for them and alleviate expenses for the industry in those areas.

(More information on this project was published in "Construction Northwest", 2004-2005 edition.)

Back to Top

Manitoba Construction Safety Association

Safety Conference 2005

The 16th Annual Manitoba Construction Conference, held February 1 & 2, 2005, at the Winnipeg Convention Centre, proved the contrary to the old adage that "things just can't get any better."

Attendance at this year's conference was up once again to 1,383 participants this year from 1,175 in 2004. Total attendees including Corporate Sponsors, Exhibitors (more than doubled!), Instructors, Conference Partners, Organizing Committee and Participants totalled 1589 for 2005, (was 1347 in 2004).

Congratulations to the Passport Prize Draw Winners who each took home a Mountain Bike:  Paul Perchaluk (Local 254 Piping Industry Training Committee), John Torfason (Transportation & Government Services), Abe Wiebe (Transportation & Government Services), and George Titley (City of Winnipeg, Traffic Services).

Both WCA and MCSA would like to thank all those involved in making the Manitoba Construction Conference 2005 a success.

Construction Safety Officer (CSO)

The first class to graduate as Construction Safety Officers (CSO) received their designation on January 7, 2005.  MCSA's own training officers, Tara Zukewich (she's back!) and Bob Bloomer were part of this first class to receive the recognition of a certified CSO, (see picture below).

WCA and MCSA is pleased to announce and congratulate the first graduating class of Construction Safety Officers.  

Back Row: Dick McCallum; Roy Cook; Sean Scott; Rick Penner

Front Row: Phil Felicia; Brandy Jones; George Galatis; Bob Bloomer 

Missing: Tara Zukewich

The objective of the Construction Safety Officer (CSO) program is to provide verification of a nationally recognized level of competency in relation to construction safety. The CSO program will provide practical training in various construction safety management skills and principles.

Persons who achieve the CSO designation will have a combination of formal training and practical field experience; providing a valuable resource to management in the administration and implementation of a company's safety program.

Compulsory Courses include: Principles of Safety Management Leadership for Safety Excellence, Safety Auditor Training (plus completion of an internal audit), Train the Trainer in either: WHMIS or Lock-Out/Tag-Out or Hearing Conservation Program, and Prime Contractor, Safety Administration, Claims Management, First Aider I / CPR, and Confined Space.

Candidates are also required to complete any two of the following Elective Courses:  Transportation of Dangerous Goods, Legislation 101, Level 1 Safety & Health Committee/Worker Safety Representative (with WSH Division), and/or:  CD ROM Courses (any two of the following will equal one elective course):  CSTS – Construction Safety Training System, Fall Protection, Forklift Operator, Electrical Safety, Confined Space, Hearing Conservation.

Upon completion of the mandatory courses and an equivalent of 2 elective courses, an individual may apply to the Manitoba Construction Safety Association to obtain the standing of Construction Safety Officer.

If you are interested in attaining your nationally recognized standing of Construction Safety Officer, please contact the MCSA office.

Q: What's up next for MCSA?

A: The Manitoba Construction Safety Association Conference in Brandon on March 9, 2005.

(Statistics and information provided by the Manitoba Construction Safety Association, www.constructionsafety.ca.)

Back to Top

CCA News, "Building Canada’s Future"
Issue #67 February 2005: (in this issue)

In this month's issue:

• Report calls for Substantive EI Reforms, House of
  Commons Standing Committee on Human Resources releases report calling for a number of substantive reforms to the Employment Insurance (EI) system.
• New CCDC 23 “A Guide to Calling Bids and Awarding Construction Contracts”, CCDC 23 is now completed and will be published in February, 2005.
• Construction Activity Update, by Informetrica
• MRIF Agreements Coming Into Force Across Canada, Federal Government's Municipal Rural Infrastructure Fund (MRIF)
• Inter-Agency Procurement Services Office of the United Nations  Development Programme, Looking for Expressions of Interest
• Future Exporters Taking on the export challenge: www.edc.ca/cca

Read all about it at: www.cca-acc.com, Canadian Construction Association, 400 - 75 Albert St., Ottawa, ON K1P 5E7
Tel: (613) 236-9455, Fax: (613) 236-9526

Back to Top

WCA Annual General Meeting (for the year 2004)

Winnipeg Construction Association held its Annual General Meeting for the year 2004 at the Canad Inn Polo Park on February 15, 2005. WCA member and guests enjoyed the opportunity to meet some new faces and the chance to renew acquaintances. 

Of note, WCA would like to once again acknowledge the Volunteer of the Year 2004, Steve Johnston (Di-Tech International Inc), Chairman, Industry Promotion Committee for WCA, for his instrumental role in promoting careers in the donstruction industry through the creation of the “Trade Up - Careers in Construction” CD and website.

WCA would also like to welcome two new Board Members for 2005, Kevin Skinner of PCL Constructors Canada Inc and Will Slota of Concord Projects Ltd. WCA would also like to acknowledge the work of retiring Board members, Gary Johnson of Gardon Construction Ltd and Alfred Schleier of PCL Constructors Canada Inc.

Back to Top

WCA Membership & Education News

From March 1 to 3, 2005, WCA will be advising students, job seekers and career advisors (to name but a few) how to Trade UP! to careers in Manitoba construction at this year's Rotary Career Symposium, held at the Winnipeg Convention Centre. The Trade Up! CD-Rom is ready for distribution along with other informative materials. Drop by or tell an interested party to go see Kelly Pochuk, WCA Membership Services & Education Co-Ordinator, and her volunteers for some invaluable information that could lead to a promising future in the construction industry.

*Watch for "WCA Education News", updated on a daily basis and containing new and current course and seminar information. For further information please visit our website address:  www.wpgca.com and click on "Current Events" or call Kelly at the WCA office at (204) 775-8664.

Back to Top

Edited by Jackie Petrus, WCA Construction News Reporter.

Comments or questions? 

Email: wca@wpgca.com

Visit our full website at www.wpgca.com

Copyright of Winnipeg Construction Association © 2005.

290 Burnell Street, Winnipeg, MB R3G 2A7

(204)775-8664