STATEMENT BY FCM PRESIDENT HANS CUNNINGHAM ON TODAY'S FEDERAL UPDATE ON
ECONOMIC AND FISCAL PROJECTIONS

OTTAWA, Oct. 12 /CNW/ - The following statement was released today by the President of the Federation of Canadian Municipalities Hans Cunningham following the economic update released today by the federal Minister of Finance Jim Flaherty:

"Today municipalities welcomed the Government of Canada's commitment to continue investing in Canada's long-term infrastructure needs.

In his remarks, Finance Minister Jim Flaherty recognized that infrastructure investments are not only an essential part of Canada's short-term, recession-fighting strategy, but a cornerstone of its long-term economic growth. We agree.

In the last few years, all orders of government have worked together to start reinvesting in Canada's aging roads, bridges, public transit and water systems. When stimulus spending ends in 2011, we must continue working together to protect these investments from budget cuts and downloading.

New funding will be scarce as governments balance their budget deficits during the next few years. They must use these lean years to plan the next generation of federal infrastructure investments. We must be ready to make strategic investments as the economic outlook improves. Otherwise three or four years of fiscal restraint could lead to a lost decade for our infrastructure and our communities.

We look forward to continuing to work with the federal government. Together we will put every single stimulus dollar to work, protect taxpayers as governments balance their books, and prepare to build on recent infrastructure investments as the fiscal outlook improves."

For further information:

FCM Media, 613-907-6395