Newfoundland and Labrador cities and towns to
receive over $82 million through federal gas tax funding

Minister of Fisheries and Oceans Loyola Hearn and Newfoundland and Labrador Municipal Affairs Minister Jack Byrne were in St. John�s today for the signing of an agreement that will see more than $82 million in federal gas tax revenues invested in communities across Newfoundland and Labrador.

The signing was officially witnessed by the president of the Newfoundland and Labrador Federation of Municipalities (NLFM), Wayne Ruth, on behalf of Newfoundland and Labrador�s municipalities. With this four-year funding agreement, the municipalities will receive $82.3 million, for environmentally-sustainable municipal infrastructure. The agreement is retroactive to 2005, meaning Newfoundland and Labrador will immediately receive $19.8 million in funding from the first two years of the agreement.

"The signing of this agreement demonstrates Canada�s new government�s dedication to making Canadian communities better places to live, to work, to learn and to grow," said Minister Hearn, who signed today on behalf of Lawrence Cannon, Minister of Transport, Infrastructure and Communities. "Through this agreement, we are working in partnership to help ensure all Newfoundland and Labrador cities and communities enjoy a high quality of life, economic opportunity, a healthy environment, and safety and security."

"The gas tax agreement is good news for all Newfoundland and Labrador municipalities," said Minister Byrne. "It will be a significant addition to other provincial and federal funding programs that help our municipalities meet their infrastructure needs. I am pleased to see that the Government of Canada recognizes the importance of stable, long-term funding."

The provincial government worked in close cooperation with the Newfoundland and Labrador Federation of Municipalities throughout the gas tax negotiations. The NLFM supported the decision to dedicate $21.9 million in gas tax funding towards implementing the province�s solid waste management strategy. The NLFM was also instrumental in bringing forth an allocation formula to distribute the remaining $60.4 million in funding among municipalities.

Newfoundland and Labrador�s Federation of Municipalities President Mayor Wayne Ruth commended the agreement, noting that, "It is a great day for the people of Newfoundland and Labrador. We are excited with the conclusion of this deal, as it will help ensure that we will have more efficient, effective and environmentally-sustainable infrastructure. I would like to congratulate the federal and provincial governments on reaching an agreement and for responding to the needs we articulated as municipal leaders.  We look forward to working as a team to implement the deal."

With the signing of this agreement, gas tax funds can now flow to all of Canada�s cities and communities. Before entering into gas tax negotiations, Newfoundland and Labrador successfully negotiated an agreement on the Municipal Rural Infrastructure Fund in November of 2005.

Federal gas tax funding builds on the Government of Canada�s other infrastructure programs. In Budget 2006, federal support for provincial, territorial and municipal infrastructure totalled $16.5 billion over the next four years, an unprecedented level of support for infrastructure in Canada.

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BACKGROUNDER
Gas Tax Funding for Newfoundland and Labrador Municipalities

• Budget 2006 affirmed Canada�s new government�s commitment to sharing $5 billion, over a five-year period, in federal gas tax funding for Canadian cities and communities.
   
• With today�s announcement, all provinces and territories have now signed agreements with the Government of Canada to share federal gas tax funds with municipalities. Negotiations are currently underway to complete an agreement with First Nations as soon as possible. The full first year allocation has already been received by 11 provinces and territories.
   
• Newfoundland and Labrador�s share of the federal gas tax funding will be $82.25 million, over four years.
   
• Gas tax funds will be invested in environmentally-sustainable municipal infrastructure. Eligible project categories include water, wastewater management, solid waste management, public transit, community energy systems, municipal capacity building, and roads and bridges, where it can be demonstrated that they will enhance environmental sustainability outcomes.
   
• These investments will result in significant environmental benefits, such as cleaner air, cleaner water and reduced greenhouse gas emissions.
   
• The intra-provincial allocation formula will provide $21.88 million for the implementation of Newfoundland and Labrador's Regional Waste Management Strategy. The remainder of funds will be distributed on a per capita basis, while also providing $6.03 million to ensure a base level of funding for the smallest jurisdictions.
   
• A municipality must enter into an agreement with the province and submit a capital investment plan before funds are released. Municipalities can carry over gas tax funds to future fiscal years.
   
• An Oversight Committee, with representatives from the provincial and federal governments and the Newfoundland and Labrador Federation of Municipalities (NLFM), will monitor the program and develop new directions and initiatives.
   
• The governments of Canada and Newfoundland and Labrador will collaborate with municipalities, to enhance community sustainability, and to encourage cooperation in infrastructure projects among municipalities and between municipalities and First Nations on reserve.
   
• Agreements with the provinces and territories all specify that there will be no claw back of funds. All provinces and territories have stated their support for this.

Water Infrastructure:

Wastewater Infrastructure:

Community Energy Systems:

Other Transportation Infrastructure

Capacity Building

Public Transit

2006 08 10                              10:00 a.m.