Building Canada: Canada and Yukon Sign Infrastructure Agreement

Support for Municipal Infrastructure Improvements in the City of Whitehorse through Gas Tax Funding

Whitehorse, Yukon, March 17, 2008 - The governments of Canada and Yukon today announced the signing of a Framework Agreement under Building Canada, the Government of Canada’s new long-term infrastructure plan. This investment will help address public infrastructure needs and priorities in Yukon.

The Honourable Gordon O’Connor, Minister of National Revenue, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, with the Honourable Dennis Fentie, Premier of Yukon, and the Honourable Glenn Hart, Minister of Community Services, Minister responsible for the Public Service Commission, and Minister responsible for French Language Services for the Government of Yukon, participated in today’s announcement worth $242.91 million.

The governments of Canada and Yukon also indicated that the City of Whitehorse will be able to invest in nine infrastructure projects ranging from a water sampling station and sidewalks upgrades to city wide compost program improvements thanks to more than $16 million from the Canada-Yukon Gas Tax Agreement.

"The signing of a Framework Agreement between the Government of Canada and the Government of Yukon will result in significant infrastructure initiatives that will strengthen Yukon’s economy and communities, and contribute to a cleaner environment," said Minister O’Connor. "The support for municipal infrastructure improvements in Whitehorse announced today is a concrete example of our collaborative approach in our desire to modernize public infrastructure in Yukon and across Canada. Further, these investments support the Canada’s Northern Strategy."

"Yukon is pleased to be signing onto the Building Canada Fund," Premier Fentie said. "This Agreement will allow Yukon to leverage significant federal dollars into the territory to meet long-term territorial infrastructure priorities. This Framework also allows us to extend the Gas Tax Fund Agreement an important program for Yukon communities."

Through combining the Building Canada Fund and $25 million per year in Base Funding (provided to each province and territory), an allocation of $182.91 million will be available through to 2014 to help address core infrastructure priorities at both the territorial and community level, including First Nations. An additional $60 million will flow to Yukon communities through the extension of the Gas Tax Fund Agreement from 2010 to 2014, bringing the total infrastructure funding under the agreement to close to $243 million.

The Canada-Yukon Framework Agreement outlines how the Building Canada plan will be implemented in the territory. The two governments agree that community infrastructure will be one of the investment priorities. They will work together to address infrastructure priorities, such as water, wastewater, green energy, regional and community airports, and safe roads. Through the Agreement, the two governments will also report to Canadians on the results of these investments.

Gas Tax funding, which was made permanent in Budget 2008 at $2 billion per year beyond 2014, is available to local governments for environmentally sustainable projects that lead to the reduction of greenhouse gas emissions, cleaner air or cleaner water. The Gas Tax Agreement is administered in Yukon by the Department of Community Services and representatives of Yukon First Nations, who are members of the Gas Tax management committee.

Through its unprecedented $33-billion Building Canada infrastructure plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada. Building Canada will support a stronger, safer and better country.

(See Background Information for projects details)

Read the Framework Agreement >>

For media inquiries contact:

Karine White
Press Secretary
Office of the Minister of Transport, Infrastructure and Communities
613 991-0700

Roxanne Vallevand
Communications Advisor
Cabinet of the Premier
Government of Yukon
867 633-7949

Infrastructure Canada
613 948-1148

Backgrounder

Gas Tax Investment