For Canada to succeed, the major cities have to succeed…
- David Miller, Mayor of Toronto
David Miller said this a few days ago. But it could have come from any big city mayor as well as dozens of people and organizations, including the Conference Board of Canada, now recognizing how vital Canada’s major cities have become to the national economy.
51% of Canada’s GDP is generated in cities (considering Canada’s is an oil exporter — the USA’s largest supplier — this is a very large number indeed). Sorry – I don’t have a figure for the USA, but I would expect an even larger percentage there.
65% of new jobs created over the past 10 years were generated in Canada’s 10 largest cities. Over the next 10 years the economic importance will grow as innovation and knowledge industries become cornerstones of Canada’s economy.
The problem is Canada’s cities face a debilitating infrastructure deficit. Roads, transit, bridges and other infrastructure is decaying. Quality of life is declining as a result (at least in part). Because city governments rely primarily on property tax and parking tax for revenues, raising the billions needed is impossible without handouts from other levels of government.
Fortunately for Toronto and the country, the federal government came through this week with a $1.5 Billion funding announcement designed to improve Toronto’s environmental quality by helping the region reduce greenhouse gas emissions. $1 Billion is for Toronto’s transit system. The goal will be to extend the metro system into new areas including York University, thereby allowing thousands to get away from their cars. Some of the money is coming from an “eco trust” fund. But better transit will make Toronto more competitive and as the financial and head-office center for the country, should help Canada’s competitiveness as well as hopefully improve the air quality.
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The title: “For Canada to Succeed, The Major Cities Have to Succeed” comments from David Miller are interesting, (in my view) it suggests that Major Cities deserve bigger per capita subsidies than the smaller ones. Interesting. By the way, thanks for contributing to http://www.davidwcampbell.com, recently.
Actually, the Conference Board argues for that very point — that cities should be treated unequally. Canada’s major cities they insist should receive disproportionately more support from federal and provincial governments. Based on studies in other countries particularly the UK, the Conference Board insists that this generates more wealth in the hinterlands and smaller cities than treating all cities equally.
They also suggest considering extra treatment for Toronto, Montreal and Vancouver — Canada’s global cities. They use London as an example, which receives considerable special treatment in the UK, but also attracts global investment for the country.
Not sure how well unequal treatment will go over — but I think, quietly, the federal government is doing it. Vancouver and now Toronto have received extra funds for transit, roads, the 2010 Olympics, restoring Stanley Park, etc.