Speech

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Prime Minister Stephen Harper speaks to the International Conference on Gateways and Corridors

May 6, 2007
Vancouver, British Columbia

Good morning ladies and gentlemen.

Thank you David Emerson for your kind introduction.

I'm very pleased to have the opportunity to speak to this distinguished group of transportation and trade experts from across Canada and around the world.

And I'd like to thank the University of British Columbia's Sauder School of Business for organizing this event as part of our Government's Asia-Pacific Gateway and Corridor Initiative.

It's hard to overstate the importance of Asia-Pacific trade to Canada's economic future.

The Gateway Initiative is obviously critical to realizing our potential as a country.

But as important as it is, it's only a part of our Government's larger economic vision for Canada.

At the heart of that vision is our view of Canada as an economic union of provinces and territories that must thrive in global markets and open trade.

The key to our long-term prosperity lies in making sure the economy in every part of the country is firing on all cylinders.

It's true that in a large, diverse country like Canada, regional economies reflect the ebb and flow of both the local and global economy.

But all too often, Ottawa's policies have tended to exacerbate those fluctuations instead of mitigating them.

This has been particularly true during the last decade or so, when the federal government was routinely racking up enormous surpluses, while lower levels of government were struggling to maintain core services and assets without going into debt.

Canada's New Government has made the restoration of fiscal balance a centrepiece of our national economic policy.

We recognize that for Canada to succeed, every part of the country must succeed – by having the resources they need to achieve their potential.

That's why, in our most recent budget, we have committed some $40 billion in additional resources to the restoration of fiscal balance in Canada.

We are putting all the major fiscal transfers from Ottawa to the provinces and territories on a stable, reliable, long-term track.

It is unfortunate that virtually all of the focus has been on the enhancement that has been made to the equalization formula.

This is, of course, understandable, in that equalization is an issue on which the provinces have sharply divided opinions.

But the fact of the matter is that the enhancement to equalization is a relatively small portion of the resources committed to ending the fiscal imbalance.

A much bigger element – indeed the largest element – is our new investments in infrastructure.

In fact, the combined funding in our first two budgets, plus our extended GST rebate for municipalities, will provide $33 billion – new dollars – for investment in infrastructure over the next seven years.

In effect, we are embarking, in collaboration with the other levels of government, on the largest infrastructure development program in this country in over half a century.

This is a massive undertaking. It amounts to a coast-to-coast overhaul of the foundations of our economy.

And this long-overdue rehabilitation of our national economic infrastructure will do far more to restore equality of opportunity to every region of this country.

Because even though we are rich in products and services in high demand in today's international markets, their real value lies in delivering them to customers around the world as quickly and cost-effectively as possible.

Which, of course, is the challenge you folks have been tackling here this week.

It's fitting that Canada is hosting this International Conference on Gateways and Corridors.

We pioneered the development of inter-modal container shipping, the technology that revolutionized global commerce and transformed conventional ports into Gateways.

The world's first container ship, the Clifford J. Rogers, was built in Montreal in 1955.

It was owned by the same company that operated the White Pass and Yukon Railway between Skagway and Whitehorse.

The company also built railcars and trucks designed for containers, and thus created one of the world's first inter-modal transportation systems right here in Western Canada.

Today, efficient gateways and corridors are indispensable for any country that competes in the global economy.

Canada's Asia-Pacific Gateway and Corridor Initiative encompasses all modes of transportation.

It involves the ports of the Lower Mainland and Prince Rupert, the major road and rail lines across Western Canada, our key border crossings with the United States, and all major Canadian airports.

I was pleased to launch the Initiative here in Vancouver last October.

And much progress has been made since then.

We are pursuing new air transport agreements with key trading partners that will increase passenger and cargo traffic.

We are bringing port authorities together to improve efficiency and make it easier for them to obtain financing for expansion and improvements.

We are modernizing the Canada Transportation Act to ensure regulatory stability.

We are streamlining the environmental assessment process and, together with the port authorities, taking action to protect and improve the local environment.

We are boosting Asia-Pacific Gateway marketing through ministerial missions and hundreds of trade commissioners based in the U.S. and Asia.

And we are financing most of the major Gateway-related infrastructure through public-private partnerships. For every dollar Ottawa's investing, our partners are contributing roughly six.

Our Government has now committed over $1 billion to this Initiative.

Of this, the lion's share, roughly $800 million, will be spent right here in British Columbia.

Today, I am pleased to announce that we have reached decisions on ten more projects that will be funded under the Asia-Pacific Gateway and Corridor Initiative.

All are designed to enhance the efficiency, safety and security of the transportation system.

Six are located in B.C. The details will be released in the weeks ahead by Minister Emerson and our B.C. government partners.

But I can tell you the projects will greatly improve traffic flow on several major roadways and rail lines that are integral parts of the Gateway transportation system.

Both shippers and residents in communities throughout the region will benefit from these improvements.

Also, as Minister Strahl announced yesterday, we will be making a substantial contribution to the Fraser River channel Maintenance Program that ensures deep-sea vessels can access our ports.

While most of our investment is concentrated on the West Coast ports and their ancillary facilities, the Prairie Provinces will also see improvements to roadways that form their links in the North American supply chain,

Because securing a larger share of the Asia-Pacific container traffic will only happen if we can demonstrate to our international customers the ability to move their products efficiently into the heartland markets of North America.

The Gateway initiative here on the West Coast will teach us lessons that can be applied in other parts of the country.

In keeping with our national approach to economic policy, Budget 2007 created a nearly $9 billion Building Canada Fund that will support a wide range of infrastructure projects, including investments in gateways and border crossings, from coast to coast.

The budget committed a further $2.3 billion over seven years to help the provinces upgrade trade-related transportation infrastructure.

Among the priority projects benefiting from these measures will be a new border crossing between Windsor and Detroit, the main artery for Canada-U.S. trade.

And in the longer term, we intend to develop an Atlantic Gateway on the East Coast.

These are all bricks-and-mortar initiatives, but there are other things we can and should do to build a stronger economic union in Canada.

They include working towards the removal of internal trade barriers, increasing labour mobility and creating a common securities regulator.

The provinces are already moving in this direction. Just last month the B.C.-Alberta Trade, Investment and Labour Mobility Agreement came into effect.

This is a bold step that has been undertaken by two forward-looking provinces committed to successfully competing in global markets.

And I believe their success will set an example other provinces will find hard to resist.

Ladies and gentlemen, it's hard not to be very bullish about Canada's near and long-term economic prospects.

Global demand for Canadian energy and minerals is expected to remain robust for the foreseeable future.

Prices are rising for most agricultural commodities, led by the soaring demand for corn. That too looks like a long-term trend.

Our economy has been producing strong job creation numbers this year, led by gains in Quebec and here in the West.

Capital spending projections are up in every province except Newfoundland and Labrador.

And our real estate markets remain very healthy in most parts of the country.

The most recent forecast by the Royal Bank predicts economic growth in Canada will be more balanced across the country during the coming year.

Which suggests that our Government's focus on fiscal and economic balance is already starting to pay off.

Ladies and gentlemen, our great country has been built through the clarity of vision and leadership of those who came before us.

People who understood the importance of national purpose and acted with determination to build a stronger, better Canada.

They included former Prime Minister Louis St. Laurent, who took on the challenge of building the St. Lawrence Seaway half a century ago.

It was the massive national infrastructure project of its day, and it helped open the world's markets to Canada and deepen the bonds of trade and friendship with the United States.

They also included former Prime Minister John Diefenbaker, who built "Roads to Resources" as part of his Northern Vision to unlock the energy and mineral treasures of Canada's north.

Now, at the dawn of the 21st century, no country in the world is better positioned than Canada to prosper in the emerging global economy.

If we properly balance the role of government and the relationships between governments.

And if we combine that balance with a historic effort to rebuild our national infrastructure, the potential of our great country truly knows no bounds.

Over a hundred years ago, Prime Minister Wilfrid Laurier famously predicted the 20th century would belong to Canada.

I submit to you that he was right, just a century too soon.

And now it's up to us to make his prediction this century's reality.

Thank you.

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The Prime Minister's Office - Communications
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