NLIS 1
August 25, 2004
(Municipal and Provincial Affairs)

 

Minister corrects misinformation on federal GST rebate

Jack Byrne, Minister of Municipal and Provincial Affairs, reiterated today that recent reports that the provincial government is clawing back the federal government GST rebate are absolutely false.

"This process has remained the same as it has in previous years," said Minister Byrne. "The only thing different is that the federal government has announced that it will increase the amount municipalities will receive in their rebates. Essentially, municipalities will receive more money than previous years because of this increase."

GST rebates will continue to be offered on the municipalities share of funding for their portions of their individual capital works projects. Municipalities do not get credit for a rebate on the federal or provincial share of costs. This has always been the case, and that has not changed.

"Municipalities receive the full rebate on their actual costs with no clawback whatsoever by the province," said Minister Byrne. "Oliver Langdon, in his release dated August 22, seems to be saying that municipalities should also receive a rebate on money spent by the provincial and federal governments. Municipalities did not get rebates on federal or provincial expenditures when Mr. Langdon was minister and that has not changed. It is incumbent upon elected officials to present accurate information to the public, and I am disappointed that Mr. Langdon chose to do otherwise."

With respect to reports that government has reduced its funding for capital works, Minister Byrne said that this also was incorrect. "In 2003, the department received approval to spend $135 million on capital projects during 2003, 2004 and 2005. This money was intended to cover the period April 1, 2003 to March 31, 2005. By July 2004, or after just 16 months into a 36-month program, the previous administration had committed just about all of the three-year $135 million budget."

Despite the funding limitations, the department has managed to adjust priorities and reallocate funding to permit approval of some new capital projects. "We chose not to cancel every commitment made by the previous administration. If we had, we would have lots of money for new projects," said Minister Byrne. "What we decided was best, was to defer some projects and honour most of the previous government�s commitments."

Media contact: Vanessa Colman-Sadd, Communications, (709) 729-1983

2004 08 25                                        9:30 a.m.


SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement