February 10, 2010

Alberta Budget 2010

Provincial construction industry buoyed by continued infrastructure spending

RICHARD GILBERT

staff writer

The 2010 Alberta Budget will sustain investment in the construction of basic infrastructure in a tough economic climate, by increasing the government’s deficit and spending savings.

“On balance for the construction industry this is a good news budget,” said Bill Stewart, vice president of Merit Alberta. “We did pick up a bit of a hair cut in infrastructure spending from about $8 billion in the previous plan to $7.2 billion.

“But we are still happy with that number, because they will try to sustain as much infrastructure spending as possible.”

Finance Minister Ted Morton released the budget on Feb. 9, with adjustments being made for a second year in a row due to the ongoing recession and an increasing deficit.

About $7.2 billion has been set aside for capital projects in 2010-11 and more than $20 billion between 2010 and 2013.

The four year capital plan includes a $3.1 drop in total investment, but the revised dollar figures still met the approval of the construction industry.

“In the past infrastructure has always taken a bite during a recession,” said Stewart. “It always seemed that infrastructure was the easiest and the first to cut. But, this budget does not do that.”

Others agree.

Building trades pleased

“From the perspective of the building trades, we are pleased with the budget and that infrastructure spending will continue,” said Building Trades Alberta executive director Ron Harry.

“We are pleased to see there were not any tax increases, which will assist in moving construction and infrastructure projects forward.”

The capital plan is aimed at completing previously announced projects.

In addition, the government is estimating that 70,000 jobs will created this year.

The job creation and the subsequent apprenticeship opportunities are a significant part of the budget to some.

“It is important to continue to have apprenticeship seats available during an economic correction,” said Harry. “Spending on advanced education remains as it is, because it helps support the apprenticeship system.”

Spending on roadways, infrastructure

The Alberta government will continue spending on roadways, municipal projects, schools, health and water treatment facilities.

The government will be spending $1.9 billion on transportation corridors in 2010-11, such as the northwest segment of the Edmonton Anthony Henday ring road and the Calgary Stoney Trail ring road, which are scheduled to be completed in fall 2011 and 2013 respectively.

The government plans to spend $1.6 billion on municipal infrastructure projects in 2010-11.

About 360 municipalities are forecast to receive at least $1.2 billion for more than 2,200 active capital projects including from the construction or rehabilitation of roads and bridges, as well as work on water, sewer and storm drainage lines.

Notable projects include LRT extensions in Edmonton and Calgary, and some 65 resource road projects.

Schools, health a priority

The government plans to spend $718 million on schools, which includes the construction of 10 new facilities, eight additions and replacements, and the modernization of 24 more.

Phase Two of the Alberta Schools Alternative Procurement project will move forward, with a design-build contract in place and detailed design work started on high schools in Calgary, Edmonton, Sherwood Park and Spruce Grove. Work on another 10 elementary and middle schools in Edmonton, Calgary, Langdon and Okotoks is expected to begin in spring 2010.

Healthcare facilities remain a priority and the province is investing $310 million.

This year, an addition to the Peter Lougheed Centre in Calgary, the new East Edmonton Primary Care Centre and the new Primary Care Clinic in the Sheldon M. Chumir health centre are scheduled for completion.

Money for water and wastewater treatment

Regional water and wastewater treatment projects throughout the province are on tap for an investment of $325 million. This includes the rehabilitation of the main canal and construction of the new Travers Inlet and Little Bow Dam East Dyke structures of the Carseland-Bow River Headworks System.

“This infrastructure spending will create thousands of new jobs in construction at time when unemployment is high and costs are low,” said Morton in the budget speech. “Lower building costs mean we get more bang for our buck.”

Budget 2010 forecasts a deficit of $4.7 billion for 2010-2011, $1.1 billion in 2011-2012 and a return to a balanced budget with a modest surplus of $505 million for 2012-13.

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