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Executive summary

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The overall growth of government-owned infrastructure has been very similar across most regions over the past 44 years. With the exception of the Atlantic Provinces, the range of average annual capital growth from one region to the next has been very narrow, falling between 1.8% and 2.2% since 1961, according to a new study released in September 2007 in the Canadian Economic Observer.

However, the growth of infrastructure capital varied considerably by region for different periods, different levels of government and different types of assets.

Government-owned infrastructure capital constitutes an array of structures and networks that are needed for economic growth and are essential to our lifestyle. Its role is to enable people, goods and ideas to circulate or to ensure access to everyday essentials, such as good water, security and recreation facilities.

Since 2000, governments have increased their infrastructure capital more than at any time since the 1960s and 1970s. However, the growth has not been strong enough to prevent signs of wear in our infrastructure (the data are net of depreciation and in constant 1997 dollars). This is due to cuts in the 1990s when governments were grappling with significant budgetary deficits, as well as many of the assets built in the post-war infrastructure boom reaching the end of their life span.

Infrastructure growth differed across regions in terms of the type of assets. These differences were sharpened after 1980 when the funds available for infrastructure slowed. Every region showed differences in spending by asset type because their distinct economies, cultures and values had different needs and priorities: British Columbia focused on the environment, as well as recreation and engineering works in view of the upcoming Olympic Games; culture and security were a priority in Quebec; sports complexes, water and roads featured in Ontario; marine construction (such as irrigation) was given attention in the Prairies; and institutional buildings (such as training centres) featured in the Atlantic Provinces.

Roads and bridges made up the bulk (39.9%) of the government-owned stock of infrastructure. The stock of road infrastructure per capita increased significantly between 1960 and 1980, but has been eroding since then. Governments boosted the flow of investment in roads from $4.3 billion in 1998 to $7.3 billion in 2005, but this has barely offset the ongoing erosion of the road system.

Quebec's road capacity grew rapidly during the 1960s and 1970s, but also dominated the decline in subsequent years. Lower investment spending and steady depreciation resulted in a significant decline in its net capital stock in roads over the following two decades, far more than in any other part of the country. In terms of bridges and overpasses, Quebec invested so little that its capital stock fell in absolute terms, tumbling from the most in Canada in the late 1970s to approximately the same level as that in British Columbia and the Atlantic Provinces, and even below that in the Prairies. The average age of bridges and overpasses in Quebec has also risen constantly since 1976, becoming older than those of any of the other provinces. Since 2001, its capital stock in roads has started to recover slowly.

Ontario was the only part of the country where the capital stock in roads continued to rise throughout all four decades. The Atlantic Provinces stood out as strong investors in their road system, perhaps because of the importance of tourism. Their per capita road infrastructure was well ahead of the other regions.

British Columbia had the most government-owned infrastructure per capita related to the environment, while Quebec had the least. The Atlantic Provinces invested the most in waste management per capita.

Sports facilities and cultural capital were the asset types that increased the fastest in percentage terms, rising 3.7% and 3.8% respectively per year from 1961 to 2005. Overall, however, sports facilities represented a relatively small portion (5.5%) of total infrastructure capital. The dollar amounts were higher out West, reflecting recent events such as the 1988 Olympic Games in Calgary. Moreover, the Vancouver Games have already started to boost spending in British Columbia.

From 1961 to 2005, culture was (with office buildings) the only area of government investment for which Quebec was well ahead of the growth in government-owned capital infrastructure in the rest of the country. Quebec increased its investments in cultural facilities much more than in sports facilities, the opposite of most other regions in Canada. Nonetheless, culture was only a small share of government-owned capital in Quebec, as elsewhere. Culture capital for public libraries, museums, theatres and historical sites was approximately $100 per capita (in 1997 dollars). After 2000, the growth of culture capital fell behind roads in Quebec.

Security-related assets include penitentiaries, detention homes and courthouses. They represented only 3.1% of the value of total government-owned infrastructure. However, for all provincial and federal governments combined, security-related capital has been the third largest contributor to overall growth since 1961, after roads and office towers.