Infrastructure Minister Chuck Strahl responds during Question Period in the House of Commons on Sept. 20, 2010.Adrian Wyld/The Canadian Press
The federal government says it will be flexible with its funding for troubled stimulus projects on a case-by-case basis, but only if provincial governments can justify the leniency in detail.
Infrastructure Minister Chuck Strahl says most provinces don't have a huge need for Ottawa to loosen the rules and extend payments for stimulus-related building projects beyond the March 31 cut-off date.
But he says Quebec - where reports of projects way behind schedule run rampant - has not provided enough details to warrant federal reconsideration.
"In the end, if there are other projects that just can't make it for some reason, then give me the details … and then we'll be fair and reasonable," Mr. Strahl said in an interview.
He said he can't simply give a blanket extension to anyone who asks. Ottawa needs to know exactly which projects are in trouble, how deep the trouble is, why there is trouble, and how it can be fixed.
"It's the province's obligation to do this. They're the ones who have to report. It's hard for us to say 'I've got the answer,' because I don't know the problem."
Municipalities and some provincial governments have complained for months that federal rules meant they would be left in the lurch after March 31. That's because some projects are way behind schedule, but until now Ottawa has indicated federal funding would not cover any costs incurred after that date, leaving other governments or contractors to pick up the tab.
The Parliamentary Budget Officer has estimated that almost 1,000 projects in the government's key Infrastructure Stimulus Program are at risk of not being finished by March 31. That would imply a lapse of almost $300 million in federal funding, in a $4-billion fund.
One suggestion from some provinces is for Ottawa to take that extra unspent money, put it in a trust fund, and let the provinces continue to disburse it to troubled projects after the federal deadline passes.
But Mr. Strahl said most of the provinces have told him they have only a few troubled projects and won't need a large amount of flexibility.
The Maritime provinces are "98 per cent certain" that everything is on track, and the Western provinces have all told him their projects are "looking good."
Even Saskatchewan, where flooding delayed construction this summer, will be able to get its projects back on track as long as winter holds off for a few weeks, Mr. Strahl said.
Newfoundland and Labrador was already given an extension after Hurricane Igor ripped through the province last month.
Most projects in Ontario are also thought to be on schedule - although data on the Ontario government's website suggests many, many projects are only in the beginning stages.
For the troubled projects, the federal government is working with its provincial and municipal partners to scale them back or transfer funding to other projects that are more likely to meet Ottawa's time frame, Mr. Strahl said.
He did not say what else he would do if major projects aren't finished before March.
But the Quebec government has not responded with adequate detail for Ottawa to hash out a solution, Mr. Strahl said.
"Have you done an analysis? Is this like everywhere? Somewhere? Occasionally? Now and again? What is it? For us to make a decision, we want to be fair and reasonable. But to be fair and reasonable, provinces have to give us that detail," Mr. Strahl said.
"There's still time," he added.
Municipal officials in Quebec estimate that up to a third of the infrastructure projects are at risk of not finishing before the funding cutoff. Now, they say they're fodder in a senseless jurisdictional fight between the federal and provincial governments.
"The feds say it's the fault of Quebec; Quebec says it's the fault of Ottawa. But everyone will end up punishing the municipalities," said Joel Belanger, an official at the Union des municipalites du Quebec.
His research suggests at least $100-million in construction work will not be done before the deadline.
Provincial officials did not immediately respond to inquiries.
Many of the projects are funded jointly by federal, provincial and municipal governments. The Quebec government has indicated that it is willing to continue paying for building costs after the March deadline.
The federal Tories are spending billions to cushion the blow from the global recession, committing to a stimulus effort that they say is "timely, targeted and temporary."
They are highly motivated to ensure the funding ends on March 31, partly because they signed contracts with municipalities and provinces to that effect, and partly because they have vowed to start paying off the deficit after that date.
The federal Auditor-General is watching closely to make sure Ottawa lives up to its commitments.
In her first investigation into the stimulus program, released this week, she gave the government "high marks" for following the rules it set out for itself in distributing $47-billion.
A second instalment from the auditor is expected in a year, which will look at how well the money was put to use.