Municipal and Intergovernmental Affairs
July 9, 2014

Building Strong Communities

New Gas Tax Funding Available for Newfoundland and Labrador Communities

The Honourable Clyde Jackman, Minister of Municipal and Intergovernmental Affairs, and the Honourable Rob Moore, Minister of State for the Atlantic Canada Opportunities Agency, celebrated today an agreement for the renewed federal Gas Tax Fund that provides predictable, stable funding for municipal infrastructure across Newfoundland and Labrador.

“Through the federal Gas Tax Fund, municipalities and Inuit Community Governments across Newfoundland and Labrador have been able to build, renew and upgrade infrastructure to make communities better places for residents and families. This new agreement, worth over $155 million in the next five years, will allow communities to continue to identify key projects each year, which will deliver real and tangible benefits to residents. In addition, through this agreement we will continue to support the ongoing work of the Newfoundland and Labrador Provincial Waste Management Strategy. ”
- The Honourable Clyde Jackman, Minister of Municipal and Intergovernmental Affairs

The federal Gas Tax Fund provides municipalities and Inuit Community Governments with the flexibility to choose and plan infrastructure projects based on their specific priorities. The renewed agreements will govern the flow of federal funds to each province and territory over the next 10 years, from 2014-15 until 2023-24.

Since 2006, significant improvements have been made to the Gas Tax Fund. It has been extended, doubled, indexed and made permanent. By enshrining these commitments in legislation, provinces, territories, municipalities and Inuit Community Governments are assured of an ongoing funding stream to assist in addressing their municipal infrastructure needs and priorities.

This funding adds to significant investments announced as a result of Budget 2014: Shared Prosperity, Fair Society, Balanced Outlook. The Provincial Government has committed $200 million for a three-year provincial program for municipal infrastructure projects.

“Our government’s commitment to communities has never been stronger. Through our unprecedented financial support for municipal infrastructure, we are ensuring communities across the country enjoy a high standard of living, new economic opportunities, and a safe, healthy environment. We are proud to support economic growth across Newfoundland and Labrador by supporting your infrastructure priorities through the federal Gas Tax Fund. We are very pleased to have reached an agreement with Newfoundland and Labrador, which will make this important funding available and allow communities to address their specific infrastructure priorities.”
- The Honourable Rob Moore, Minister of State (Atlantic Canada Opportunities Agency)

Under the renewed Gas Tax Fund, eligible categories have also been expanded, providing municipalities and Inuit Community Governments with more flexibility than ever before to support local infrastructure.


  • Representatives from the Provincial and Federal Governments today announced the renewed Gas Tax Fund Agreement which will provide over $155 million in funding to the province in the next five years.
  • More than 1,000 projects benefited from funding from the last Gas Tax Fund Agreement in Newfoundland and Labrador. For example, during the last construction season, the federal Gas Tax Fund supported:
    • Advanced Drinking Water System for the Town of Isle aux Morts;
    • Waste management projects such as the new Central Newfoundland Waste Management Facility, located in Norris Arm;
    • New Material Recovery (recycling) Facility at Robin Hood Bay in St. John’s;
    • Phase 44 of water and sewer upgrades for the Town of CBS.
  • Eligible investment categories under this fund include: drinking water; wastewater and solid waste; public transit; local roads and bridges; community energy systems; capacity building; disaster mitigation; broadband connectivity; highways; short-line rail; short-sea shipping; brownfield redevelopment; regional and local airports; and projects supporting culture, tourism, sport and recreation.

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Media contacts:

Hugh Donnan
Director of Communications
Department of Municipal and Intergovernmental Affairs
709-729-1983, 725-6511
Vincent Rabault
Press Secretary
Office of the Minister of Infrastructure, Communities and Intergovernmental Affairs and
Minister of the Economic Development Agency of Canada for the Regions of Quebec
Infrastructure Canada
Toll free: 1-877-250-7154

2014 07 09                               9:35 a.m.