An example of the rebalancing in action came in September at a ministerial meeting in Ottawa. By the third day of talks, the amount coming from the federal government for health care had

Measuring Productivity According to Performance and Potential 2004-05: How Can Canada Prosper in Tomorrow's World?, published in October 2004 by the Conference Board of Canada, on average, Canadian labor productivity in the business sector was 82 per cent of the U.S. level in 2001. But while the U.S. led Canada in five of the seven sectors examined, the percentages varied widely. In computers and electronic products, Canadian industry productivity was only 46 per cent of the U.S. industry in 2002, while in wood products manufacturing, the Canadian level was 131 per cent of the U.S. industry. Canadians slightly outperformed U.S. operations in the chemicals sector, and were at 52 percent of the U.S. productivity level in electrical equipment manufacturing, 63 percent in machinery manufacturing, 96 percent in the oil and gas sector, and 83 percent in retail.

tripled. Many hope the same holds true for transport infrastructure.
      "Estimates of the infrastructure gap for Canada as a whole range from a low of CA$50 billion [US$39.7 billion] to a high of CA$125 billion [US$99 billion]," reads a Conference Board report, making note of the need to share the burden. One expected method will be the remittance of 0.5 points of the federal general sales tax and a portion of provincial fuel tax revenues to municipalities. Meanwhile, Ontario officials have developed a long-range plan for the Golden Horseshoe area of Greater Toronto and beyond.
      "Essentially it predicts that over the next 30 years, we'll have an additional 4 million people move into this area, and 2 million jobs will be created," says Cordiano. "We are ensuring we have a provision for greenspace, employment lands, where people will live. To a certain extent, I think people are looking to live where they work, and not necessarily moving too far afield. [The plan addresses] getting people around efficiently, tying residential lands to employment lands, making provisions for rapid transit that ties all of this together, and moves goods across this region in an efficient manner. Work is also proceeding with the additional roads that will be required."
      Cordiano stresses that no additional fees or taxes are envisioned for this work, although a two-cents-per-liter from the existing gas tax will provide the rapid transit funding. In the meantime, up to US$766 million in low-cost, longer-term loans is being made available to help 90 municipalities renew their public infrastructure. The Ontario and federal governments have announced billions of dollars in funding for public transit in Ottawa, Kitchener and Toronto, as well as the Windsor Gateway Action Plan at the U.S. border.