Canadian Construction Association: Provincial Highways Budgets to Increase Over 16% in 2008-09

OTTAWA - - Provincial highway capital budgets are set to rise by over 16% in 2008-09, according to data collected by The Road and Infrastructure Program of Canada (TRIP Canada), a Special Committee of the Canadian Construction Association.

Over the first three months of 2008, TRIP Canada collected data from all provincial roadbuilding and heavy construction associations regarding their respective provincial highway capital budgets for 2008-09. When aggregated, provincial highway capital budgets are set to increase from $7.639 billion in 2007-08 to $8.934 billion in 2008-09, an annualized increase of 16.9%. What is perhaps more revealing is that six provinces have unveiled record high provincial highway budgets, and that nine of ten provinces are increasing their highway budgets in 2008-09. Furthermore, these increases are on top of a combined increase of 26% in 2007-08.

When broken down by province, New Brunswick and Quebec will witness the largest increase in budgets, with increases of 87.6% and 60.5% respectively - both record highs. Other provinces that will enjoy record high budgets include Newfoundland and Labrador, Ontario, Manitoba, and Saskatchewan. Only British Columbia is expected to see a decrease in its capital highway budget.

"These figures suggest that provincial governments are recognizing the deficiencies in our highway systems, and are addressing these deficiencies with greater investments," stated Chris McNally, Chairman of the Roadbuilders and Heavy Construction Council of the Canadian Construction Association. "It appears as though the message about the need for better highways in this country is being heard".

"An increase of almost 17% in provincial highway budgets is good news for the individuals and businesses that rely on Canada's highways and related infrastructure for safe, reliable, and efficient transportation of goods, people and services," remarked Jeff Morrison, Executive Director of The Road and Infrastructure Program of Canada. "With greater federal funding soon to be made available, we hope this trend will continue".

PROVINCIAL HIGHWAY CAPITAL BUDGETS; 2007-08 AND 2008-09