The Insurance Bureau of Canada (IBC) has lauded a joint federal and municipal investment totalling over $700 million aimed at upgrading Toronto’s crucial Black Creek sewer system, calling it a "critical step" toward both unlocking new housing and building resilient communities.
The announcement on Wednesday, which saw the Government of Canada commit $283 million to the project, was quickly welcomed by the insurance industry. The City of Toronto, under Mayor Olivia Chow's leadership, is contributing over $425 million.
Liam McGuinty, vice-president, federal affairs for the IBC, commended the national government and the city's significant contribution.
“IBC and its member companies welcome (the) announcement by the Honourable Gregor Robertson and the Government of Canada regarding investments in housing-enabling infrastructure, including a $283 million commitment to upgrade Toronto’s Black Creek sewer system,” McGuinty said.
Acknowledging that Canadians “are in a housing crisis,” the Government said that with the launch of Build Canada Homes, it has “stepped up with a bold new approach and unprecedented investments” to construct 63,000 new homes.
Built in the 1960s, the Black Creek trunk sewer currently serves over 350,000 residents. The insurance industry views its overhaul as a key piece of a broader strategy against climate-related damage.
The funding will support the construction of 17 kilometers of new sewer infrastructure, which has been stretched beyond its limits by population growth, leading to flooding and blocking approval of new housing developments, the Government admitted.
McGuinty underscored the dual benefit, noting, "These investments are a critical step toward unlocking needed housing supply and importantly, reflects a growing recognition that resilient infrastructure is foundational to resilient communities."
The IBC has been a vocal proponent of risk-informed development. The organization sees the government’s action as aligning with its own mandate, citing its "Three-Point Resilience Plan," which urges governments to prioritize smart development that protects Canadians from the rising impacts of natural disasters.
The announcement “is a strong signal that the federal government understands the importance of ensuring homes are built in the right places and in the right ways,” McGuinty stated.
Looking ahead to the next federal budget, the IBC is pressing for continued focus on disaster resilience.
McGuinty added: "As Budget 2025 approaches, IBC urges federal, provincial, and municipal leaders to continue prioritizing disaster resilience in housing and infrastructure planning.”
“We look forward to working with Build Canada Homes and all levels of government to ensure that new housing developments are resilient."
