Federal Finance Minister Jim Flaherty believes pension plans and the private sector must play a bigger role in making investments in Canada’s infrastructure.
“It’s time to tap into the wealth of experience, knowledge, capital that is accumulated in the private sector and not only strictly in the private sector but also of course in our public pension plans, the expertise of those who have designed, constructed and financed some of the most complex and successful infrastructure projects around the globe,” he said in a speech at the Annual Conference on Private-Public Partnerships in Toronto on Monday.
Flaherty said that public-private partnerships(P3s)have been used on a limited scale here in Canada and it’s time to open the door to greater possibilities.
The federal government has committed a total of $33 billion over the next seven years for roads, bridges, water systems, public transit and international gateways. When contributions by other levels of government and the private sector are taken into account, there will be a more than a $100-billion-dollar investment in infrastructure over the course of the next seven years.
“Substantial investment is required in our country’s infrastructure to achieve growth in our productivity and in our standard of living,” he added. “We know that P3s can help provide infrastructure faster and at lower cost in some cases. Pension fund managers want to invest in infrastructure projects in Canada.”
For more about infrastructure click here to read our special section, A Trustee’s Guide to Alternative Investments.
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