As population grows, 63% of Canadians doubt government can fund infrastructure without raising taxes
Canadians have growing concerns about the state of the country’s infrastructure as population demands increase, according to a recent survey by Abacus Data on behalf of The Canadian Council for Public-Private Partnerships (CCPPP).
The findings, released at the P3 2024 Infrastructure Conference, reveal a lack of confidence in the government's ability to finance essential infrastructure needs without raising taxes, prompting widespread support for public-private partnerships (P3s).
The survey shows that only 31 percent of Canadians rate their communities' publicly-owned infrastructure—such as roads, hospitals, water systems, and recreational facilities—as being in good or excellent condition.
Canadians hold a largely pessimistic view, with 88 percent expressing concern that infrastructure will deteriorate further, requiring significant repairs and upgrades.
Additionally, 92 percent believe the rapidly growing population will increase the demand for new and improved public infrastructure, further straining resources.
According to CCPPP president and CEO Lisa Mitchell, Canadians “see trouble on the horizon for our country's infrastructure.”
With inflation impacting household budgets, Canadians appear open to “a more pragmatic approach,” which includes greater collaboration between public and private sectors.
The survey reveals that 63 percent of Canadians doubt that governments alone can bear the financial burden of building and maintaining the necessary infrastructure without raising taxes.
This lack of confidence is particularly notable among older Canadians, women, Conservative and NDP voters, and those living in rural areas.
A substantial portion of Canadians, 47 percent, prefer that governments share the financial cost and risk of infrastructure projects with private companies, while 24 percent would rather the government proceed independently, and 29 percent are unsure or have no preference.
Support for P3s spans across political lines, with 48 percent of Liberal voters, 49 percent of Conservative voters, and 52 percent of NDP voters favouring partnerships to manage infrastructure costs.
Furthermore, the survey shows that 49 percent of respondents endorse the use of P3s to fund, operate, and maintain public infrastructure, a figure that rises to 60 percent when P3s are described as utilizing both government and private investment resources.
David Coletto, Abacus Data’s founder and CEO, noted that a “scarcity mindset” is prevalent among Canadians who experience rapid population growth without seeing corresponding improvements in infrastructure and services.
Coletto suggests that this issue will continue to impact politics and society for years to come, as Canadians recognize the urgency of addressing the infrastructure gap.
The survey findings support recent CCPPP recommendations, including policy and research reports such as Modernizing Canada’s Approach to P3s and Empowering Municipalities: Unlocking the Potential of P3s.
These reports advocate for increased private sector involvement in infrastructure projects to help stretch tax dollars and meet Canadians' growing needs.
