Transportation Key to Growth and Trade

Effective, efficient and up-to-date transportation networks are critical to economic growth and development, Premier John Hamm told a meeting of provincial and territorial leaders Thursday.

During a presentation at the Annual Premiers' Conference in Victoria, Premier Hamm said transportation is integral to Canada's status as a major global trading nation and crucial for the development and prosperity of rural and remote communities.

"International and interprovincial trade has been and will continue to be our foundation for economic growth," said the premier, who also sounded the alarm over Canada's failure to maintain and upgrade its transportation networks.

"I fear that because Canada has stood still in modernizing our transportation networks we have slipped backwards. The further we lag behind, the more difficult it becomes to ship our manufactured goods, resources and agricultural products abroad, and the more difficult it becomes to attract tourists."

The premier addressed all modes of transportation and their impact on the provincial and national economy, particularly citing the inadequacy of Canada's national highway system.

"Province to province, the decline and decay in the national highway system is more than apparent, and it is affecting our ability to do business," added Premier Hamm. "Inadequate highway systems create delays due to congestion. Highways in poor condition cost business in both time and money because shipments are delayed, and transfer fleets suffer more damage and require more maintenance."

The premier called upon the federal government to seriously consider the recommendations of the Canada Transportation Act Review Panel regarding highway infrastructure funding, which noted that the federal government collected far more road-related revenue than it reinvested. He said the federal government brought in $4 billion every year in road-related revenues but reinvested just five per cent.

Globalization is also placing greater pressure on the international marine shipping industry to operate increasingly larger container vessels, noted the premier. As Halifax is Canada's only East Coast port with the infrastructure and positioning to service this industry trend, he urged the federal government to ensure that this changing environment is reflected in future transportation policies and programs.

The premier also stressed that federal transportation policy must take into account the interests of Canada's many rural and remote communities. He recommended that:

• in the air sector, the federal government address the problem of operating funds for small airports;

• federal measures be adopted to ensure more choice and better service in the airline industry; and

• governments need to review the impact of the current policy on rail-line abandonment and address ways to ensure regional inequities are not neglected in an attempt to promote the viability of the rail industry.

"Any new transportation vision and policy for Canada should adopt as a precept that no one region will assume a disproportionate burden or disadvantage within the federation because of crumbling infrastructure," concluded the premier. Nova Scotia is currently one province that is experiencing such a disadvantage, and we must begin to address this very serious problem with expediency.

"We must work constructively to ensure that the policies and programs we agree upon and implement today will serve the future transportation needs of all Canadians and the economy they are trying to build."