Doer gives highways $300M infusion

Manitoba Premier Gary Doer announced a major increase tothe province's highways budget on Monday, as part of a multi-year plan to address the problem ofcrumbling roads.

Doer said the province is adding $20 million from its "rainy day fund" to the $257 million already budgeted for road construction and maintenance.

"Today I'm pleased to announce that in the next two budget years we will be adding an additional $300 millionto highway capital and highway construction," Doer said Monday.

The $300 million, tobe split over the next two years,will bring the province's annual spending on roads to about $400 million a year for the next two years, a 50 per cent increase. In total, the province will spend nearly $2 billionon roads over the next five years.

The new funding will allow crews to repair trouble spots on Provincial trunk highways 75, 59, 16 and 9, as well as the Trans-Canada Highway. The funding will also ensure the projects can go on despite rising construction costs.

"I've seen first-hand the challenges that Manitoba's extreme weather poses to our roads," Doer said in a news release Monday.

"Manitobans say, 'fix them.' I agree and we will be doing this by building on the investments we've made so far into our transportation infrastructure."

Doer said a long-term plan for redeveloping Manitoba's highways will come out later this fall.

As required by Manitoba law, every cent collected through gas tax in Manitoba must be invested in roads and transit. However, unlike the federal gas tax, the province's revenue does not increase along with rising gas prices.

The province says that, in the last two years alone, it has spent about $180 million more thanit has collected.