Premier, Winnipeg mayor hopeful promises in federal budget translate to boost for Manitoba economy

Winnipeg’s mayor says he is hopeful increased spending on infrastructure, housing and defence promised in the latest federal budget will be a boost to the city and its economy. 

“There’s certainly a couple of lines here that I’m really pleased to see,” Mayor Scott Gillinghman told reporters at city hall on Tuesday, after the federal Liberal government released its latest budget, and the first under Prime Minister Mark Carney.

The budget calls for a total of $141 billion in new spending over the next five years, which the feds say will partially be offset by some $51.2 billion in cuts and other savings.

Gillinghman said he was happy to see that the budget promises $51 billion for infrastructure projects that the federal government hopes will spur development.

Though the city's North End sewage treatment plant is not specifically referenced in the budget, Gillingham says it's crucial that some of that infrastructure money be used to fund the final phase of the plant's upgrades.

“That project is so critical to the future of Winnipeg,” he said. “It’s critical for us to be able to add more housing at a time when we need more housing, and it’s critical to our future economy. 

“There is a capacity issue there, so for us to open up Winnipeg’s economy in the future, we need to get that third phase built.”

The total cost for the upgrades is expected to be around $3 billion.

Gillingham said getting the third phase of the project — which would remove nutrients from the wastewater — completed will also be "critical to keeping water and sewer rates affordable for Winnipeggers."

The mayor says he recently had a meeting with federal Housing Minister Gregor Robertson, where he made the case for the further federal funding for the upgrades. 

Gillingham is also hopeful that federal money for infrastructure can be utilized to fund other major projects in the city, including a planned expansion and widening of Kenaston Boulevard and the replacement of the St. James Bridge, as well as a planned westward extension of the Chief Peguis Trail.

"Those are two very important infrastructure projects in the city of Winnipeg that are related to our city’s economy, related to trade, and are important to Winnipeg’s future," he said.  

The budget also includes previously announced plans to dramatically scale up home construction through a new federal agency called Build Canada Homes.

With an initial budget of $13 billion over five years, the government is projecting tens of thousands of units will be built through the agency.