Federal Gas Tax Funding to Double and Payments to be Accelerated

• Backgrounder

Ottawa, Ontario, April 3, 2009 – John Baird, Canada’s Transport and Infrastructure Minister, announced today a shot in the arm for municipal infrastructure which will help keep our economy moving. Ongoing federal gas tax transfers to the provinces and territories for municipal infrastructure doubled on April 1, 2009 to a total of $2 billion a year. The federal government is accelerating the first payment of the Gas Tax Fund, making up to $1 billion available to municipalities almost three months early.

“By doubling the gas tax fund and accelerating the payments by three months, our government is showing that it means business when it comes to creating jobs for Canadians and making our country stronger and more prosperous,” said Minister Baird. “We are working together with all levels of government to stimulate regional economies, cut red tape, get shovels in the ground sooner, and get Canadians back to work.”

The Gas Tax provides funding for projects such as drinking water, wastewater, local roads and public transit. Gas tax funding is being used for initiatives such as from the TransLink public transportation system in the South Coast British Columbia, bridge improvements in Huron East, Ontario, major wastewater infrastructure improvements in Chelsea, Quebec, and upgrading the Canada Games facilities on Prince Edward Island. Projects such as these will continue to generate significant economic benefits and improve municipal infrastructure across Canada.

The Gas Tax Fund is part of the Government of Canada’s commitment to stimulate the economy and create jobs through investments in public infrastructure.

Last year, in response to ongoing requests for stable, long-term funding, the Government announced in Budget 2008 that the Gas Tax Fund will be extended at $2 billion per year beyond 2013–14 and become a permanent measure. This will allow all municipalities, both large and small, to better plan and finance their infrastructure needs. A permanent $2-billion-per-year Gas Tax Fund will also help deliver action on infrastructure which will help to create jobs in every region of the country.

The Government of Canada’s Economic Action Plan is launching one of the largest infrastructure building projects in our country’s history by accelerating and expanding the existing federal investment of $33 billion in infrastructure with almost $12 billion in new infrastructure stimulus funding over two years.

For more information, visit www.buildingcanada.gc.ca.

For further information contact:

Chris Day
Press Secretary
Office of the Minister of Transport, Infrastructure and Communities
613 991-0700

Infrastructure Canada
613 948-1148

Backgrounder
Gas Tax Fund: Delivering Results For Canadians

On April 1st, 2009, the federal Gas Tax Transfers to the provinces and territories for municipal infrastructure doubled to $2 billion annually. The Gas Tax Fund (GTF) will remain at that level beyond 2014, when the Government makes it a permanent measure, providing municipalities with stable funding for their long-term infrastructure priorities. The federal government is accelerating the first payment of the Gas Tax Fund, making up to $1 billion available to municipalities almost three months early.

The Gas Tax Fund is part of an ongoing commitment from the Government of Canada to create jobs and stimulate the economy through modern public infrastructure. It is also an example of all levels of government working together to improve infrastructure and the quality of life of Canadians.

The GTF makes capital investments in water, wastewater and solid waste infrastructure, public transit, community energy systems, and local roads and bridges. The Gas Tax Fund combines predictable, long-term funding with local decision making and planning to enable municipalities to build and rehabilitate their core public infrastructure. The first payment will be made in April, in the past, payments have been made in July and then November.

Gas tax funding is provided through negotiated bilateral agreements, between the Government of Canada and each province and territory, as well as the City of Toronto. The money is allocated based on population, with set amounts for Prince Edward Island and the territories to ensure they have access to sufficient funds for significant projects. The Association of Municipalities of Ontario and the Union of British Columbia Municipalities are the delivery partners in their two provinces.

Gas Tax Fund Allocations by Province/Territory

Gas Tax Fund Allocations by Province/Territory between 2008-2010:

For more information please visit:
http://www.infc.gc.ca/ip-pi/gtf-fte/gtf-fte-eng.html