Open and shut: the case for public investment in public services

There’s no question it’s needed. It’s a matter of how to do it. Canada’s public infrastructure — both facilities and services — is in need of a major overhaul. The challenge facing governments is to reject private sector pitches to fund and control these projects. Instead of this shortsighted approach governments must take a leadership position by publicly financing infrastructure, fending off further privatization of public services and retaining ownership and control of services for future generations.

Health care, schools, child care, clean water, good roads, public transit, utilities and affordable housing are all important public services that meet a range of social needs. Often taken for granted, these services are part of the infrastructure that underpins a healthy society.

Public infrastructure keeps Canada’s economy working, providing services everyone — including businesses of all sizes — needs. Public infrastructure, including services, enhances the quality of life of all Canadians. Public services are particularly essential to the health and welfare of low income individuals and families. The steady decline in real incomes makes the provision of affordable, quality public services more important than ever.

Public spending on programs and investment in public infrastructure have dropped since the early 1980s. The most drastic public sector funding cuts have occurred at the federal level, where government spending has been cut by 13 per cent over the past decade, compared to an annual average growth rate of over two per cent in the preceding decade.

Investment in public infrastructure has also suffered. There was a striking decline in the level of investment in public infrastructure (structures and equipment) in the 90s compared to the 80s. The average annual increase in investment in publicly owned structures and equipment has fallen considerably over the past decade.