Address to Federation of Canadian Municipalities Convention

Ladies and gentlemen: Hans Cunningham, your soon-to-be FCM President!

Hans had a great year as First VP. His Kootenay Ice did pretty well too, out in the Western Hockey League.

I may be a bit fixated on hockey today. And still mourning the Habs. But remember: there are 38 Canadian players in the Stanley Cup final … and we don’t have to stop reminding our American friends who won that Olympic Gold Medal!

Let’s also hear it for your President: Summerside Mayor Basil Stewart!

Congrats to Basil—to all of you, and to Basil’s beloved Summerside Western Capitals—for a great year!

I’m truly impressed by your growth. 1,800 members! The FCM now represents more than 90% of Canadians. That’s a testament to your outstanding staff —from Brock Carlton right on down the line. It’s a testament to the growing need for your strong, national voice. And that need is what I’m here to talk about today.

Local governments matter more than ever in people’s daily lives. But I’ll be blunt today: your very relevance can be exploited by federal governments—and new threats are looming. So I’ll also talk about how New Democrats can help you counter those threats and find a full-time place at the nation-building table.

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There’s a reason I spent 20 years in municipal politics in Toronto. It know it’s the same for most of you.

Local government is a remarkable opportunity to connect with people’s lives. Your work is never just about line items. Your work is the difference between safe roads and preventable tragedies. Between engaged kids and directionless ones. Between vibrant, healthy cities … and stalled, polluted ones.

Being on the frontlines means you can tailor policies to local realities. And you’re perfectly placed to read how people are coping.

The FCM embraces that monitoring role with the Quality of Life Reporting System. It’s a world class tool that lets check the patient’s pulse, cholesterol, PSA count...

Lately, I’ve been reflecting on my good fortune for having a family doctor — 4 million still don’t. Without that access to primary care, I wouldn’t know I have treatable cancer. It would be growing quietly inside me.

The FCM is the primary care physician to Canada’s cities and communities. Sober. Talented. Needed. Because 15 years ago, a Liberal government deployed the worst program cuts in a generation. Undercut health care and post-secondary funding. Signed the death warrant on cost-sharing for social assistance. Hacked EI rules to disqualify most workers. (And they’d already axed the housing program.)

You’ve been charting the human costs of cuts ever since. And the latest FCM thematic report brings things into the sharpest focus yet. Is Canada’s traditional social safety net fraying? Absolutely. Predictably. And you’re showing how—meticulously.

Ask folks who’ve waited years for affordable housing, for childcare. Ask working-poor families facing declining qualities of life. Exposing the human costs of federal cuts is a public service that you provide.

You picked up the ball on subsidized housing and childcare, on emergency shelters. You took the lead on improving libraries, public transit, recreation programs. Nobody ordered you to become champions of social infrastructure.

But here’s how our friend Basil Stewart put it: “From their position on the front line, municipal governments cannot turn away from need in their communities. Other governments have a choice … Much depends on their choices.”

Yes it does.

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So there’s a reason I entered local politics. And when I went federal in 2003, there was a reason for that too.

By then, the effects of cuts were compounding. People were hurting. Cities were scrambling to fill the gaps, with no new resources. Somehow, we had to fund our new roles. We did it through property taxes, and by short-changing physical infrastructure.

So federal downloading was shifting social services from a progressive fiscal base to a regressive one…and spawning that gaping $123-billion infrastructure deficit. This was a historic national problem requiring historic national solutions.

By the time I became FCM president in 2001, we were calling for a New Deal for cities to match our expanding roles. And this year, we’re marking the fifth anniversary of that New Deal’s first step! That’s worth celebrating! But let’s also remember two things about that achievement.

First, remember how hard we laboured. The minority government that finally delivered also resisted to the end. (That’s why I went federal—to press for national leadership.)

Second, GST rebates and Gas Tax transfers were to be the first of many steps to re-empower municipalities. Instead of being grateful when governments don’t cancel those early gains, it’s time to expect more.

You’ll need to be assertive. Because you still don’t have a proactive partner in the federal government. And as welcome as the federal economic stimulus has been, even that hides a cautionary tale.

As late as Fall 2008, the prime minister was still denying the existence of an economic crisis in Canada — much less one that communities could help solve. It took a mortal threat to his government to spark action. Then his ministers ignored your advice against delaying action with project-by-project approvals and matching-funds rules.

On Friday, Mr. Harper could have taken responsibility for last summer’s debacle of stillborn projects. He could have extended that March 2011 deadline, so communities aren’t left holding the bag for project costs.

No dice. And no sense that the stimulus is a downpayment on longer-term solutions. We’ll have to fight for that. And the downloading that left cities gasping? We see signs that Round Two is coming.

There are at least two ways to read the federal budget. One is with relief that city revenues weren’t simply cut. The other is with alarm that they’re pushing through massive corporate tax cuts.

This government is now borrowing billions to finance unconditional tax giveaways that do nothing to spark jobs, innovation or productivity. By 2012, their giveaways will cost $15-billion each year in lost fiscal capacity. The phase-in costs alone are $60-billion—half the entire infrastructure deficit!

Imagine what they could accomplish by making better choices. And remember what the feds did the last time they ran up a huge deficit.

If you’re counting on federal goodwill to save cities from new downloading... Come back here in a month, when the G20 comes to town. They’re spending a billion dollars to lock down my city. They’re shutting down Blue Jays games. The University of Toronto. Even banishing bikes from downtown. Residents and merchants are bracing.

So who’ll handle the huge costs they’re imposing on this city? Not Ottawa. Downloading and unilateralism are in this federal government’s genes.

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We can’t afford another 1990s disaster, with deficits downloaded onto property tax bills, with social services tragically cut.

But that doesn’t mean I’m urging you to go on the defensive. On the contrary! There’s a better way to prevent more of the same. It’s time for municipalities to claim a seat at the table, as a full partner with other levels of government.

You’ve earned that seat at the table. You’ve earned it by picking up the balls others dropped. With your innovation and flexibility. With that can-do attitude that says, “cutting people adrift is simply not an option.”

New Democrats want to help you claim that rightful place at the table. Why? Because as social democrats, we see ourselves as part of a broad movement for a better society ... and we see you on that movement’s front lines.

I understand the gist of Mr. Harper’s talk here on Friday was this: “we spent 62 billion on cities;. our strategy for the recession is working.” Good so far! But then he dropped the bomb. “No more funding.”

You'd think he'd want to make “the best strategy,” the one that's working, a permanent part of building our communities for the future.

I understand he also tried to tell you how to keep your finances in order. Imagine! Lecturing people who are successfully making tough choices to balance their books—by law —while he’s running up the biggest deficit in history. You’ve got to admire the man’s chutzpah.

Did Mr. Harper acknowledge that cities and provinces together contributed more stimulus funds than he did? Did he talk about either order of government as financial partners for the road ahead? No.

What he needs to understand is that cities aren’t looking for a hand out—they're looking for a hand shake. The fact is, cities have always come to the table with money. That's what good partners do.

Canada can be a world leader on economic growth, but only if the feds and cities work together. Conversely, Canada stands to lose billions in private investment globally by not investing in cities now—in infrastructure, housing, energy efficiency, renewables—all areas where FCM members are showing global leadership.

We're already falling behind the US and European cities in this race. But we can turn this around, one step at a time. And here’s where New Democrats would start.

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The federal partnership with municipalities needs to be enshrined in legislation — fully respecting provincial jurisdictions, of course, with asymmetry as needed for Quebec.

This includes urban, rural and green infrastructure legislation .A framework for permanent funding. Let’s get it done.

Ottawa should also share another cent of the gas tax for transit. It’s a green investment that also helps you ease urban commutes. Let’s get it done.

There’s also Denise Savoie’s Commuter Choices Bill. This will empower employers to offer tax-free benefits for transit, bicycle commuting and carpooling. Let’s get it done.

Let’s also pass Libby Davies’ bill to re-establish a national housing strategy. Ottawa abandoned cities to the housing crisis; it’s time to forge a new partnership.

Let’s pass Olivia’s National Childcare Act. It’s the leadership that was missing in 2005, when Ottawa left provinces vulnerable with one-off deals. We’re legislating a permanent pan-Canadian program — so cities don’t have to go it alone anymore.

Now, let’s talk about wastewater treatment. To meet Ottawa’s new standards, you’ll have to replace or rebuilt one- in four wastewater systems, and they’ve left you holding the bag. Let’s legislate the funding you need to get the job done.

Then there’s Tony Martin’s push for a comprehensive anti-poverty plan, including renewed leadership on housing, welfare and child benefits.
A concrete example is our legislation to fix Employment Insurance. Because It’s wrong to ask cities to mop up the social mess caused by this broken federal program.

As you know, Climate Change Accountability Act recently passed in the House! I’m especially proud of this one. Getting this bill through the Senate will give Canada the world-class emissions targets we so urgently need!

Ottawa’s next step should be to partner with you on a national climate change strategy. Municipalities influence activities that generate nearly half of all emissions ... and you’re already leading the way to cutting them.

The FCM Green Municipal Funds are an inspiring model of national leadership. Now it’s Ottawa’s turn to lead—by legislating a full cap-and-trade carbon pricing system. We can generate billions to invest in your ready-to-go green projects on a mass scale.

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Finally, New Democrats will fight to have municipalities at the table as an order of government when it comes to planning national priorities and budgets.
Municipalities are where change happens. Where markets are developed. Where lives are lived well—or less so. Where immigrants come to stay—or stay away.

In a more globalized 21st century, we’ll be talking less about Canada competing with China or the US … and we’ll be talking more about Toronto or Montreal competing with Hong Kong or Singapore. Competing for investment. For market share. For tourist dollars. For top talent.

Building a stronger country means building vibrant, safe cities. And a revitalized rural Canada. With world class infrastructure. Effective settlement services. Exceptional learning opportunities. A compelling quality of life.

I was attracted to local politics for a reason, and drawn to federal politics for a reason, and in many ways I’ve come full circle.

I’m with you: it’s healthy partnerships between orders of government, on all kinds of levels, that’ll move this country forward. You can count on New Democrats to keep fighting for your rightful seat at the table.

Thank you.