Inaugural meeting regarding gas tax

Jack Byrne, Minister of Municipal and Provincial Affairs, announced today that senior department officials will be meeting with the federal Cities Secretariat this month in St. John�s to begin to work out details of the recently announced federal gas tax commitment.

"This infusion of money is great news for municipalities. I am eagerly awaiting these discussions so that we can get more details on how this funding will benefit our municipalities," said Minister Byrne. "It is extremely important that any decisions that are made must include the Newfoundland and Labrador Federation of Municipalities which is why I have asked them to join us at the table. Together, we can work towards establishing an allocation model and setting priorities and directions for the investment of these new monies."

The federal government announced in its recent budget that the country�s municipalities would receive $5 billion over five years which translates into $82.3 million for Newfoundland and Labrador�s municipalities. The first installment of this money was announced in the recent federal budget. For the 2005-06 fiscal year, this province can expect to see approximately $10 million of the announced $600 million commitment. The federal government has identified this funding for environmentally sustainable infrastructure.

Deputy Mayor Herbert Brett, president of the Newfoundland and Labrador Federation of Municipalities said that they are pleased to be included in the early stages of these talks. "The federal government has committed these funds for the development of municipal infrastructure and as a federation, we look forward to representing our members and having meaningful input into the negotiation of this important funding agreement."

The provincial government considers capital works a high commitment. In November 2004, Minister Byrne announced $140 million of new funding for capital works programs. This commitment will result in 90,000 person weeks of employment ensuring an important role in the growth of the province�s economy.

"The federal government had been promising for some time that it would share a portion of the federal excise tax on gasoline and I am pleased that they followed through on this promise. Our infrastructure needs are great and every dollar counts to improving the way of life of Newfoundland and Labrador�s residents. I am looking forward to these discussions with the federal government and the NLFM to work out the best possible deal for our cities and towns," added Minister Byrne.

Media contact:

Vanessa Colman-Sadd, Communication, Municipal and Provincial Affairs, (709) 729-1983 or (709) 682-6593

Craig Pollett, Executive Director, Newfoundland and Labrador Federation of Municipalities,
(709) 753-6820

2005 03 09 11:40 a.m.