Thursday, March 21, 2019 ~ BC.
~ West Shore Voice News
Mayors across Canada seem pleased with the one-time doubling of Federal Gas Tax funds for eligible infrastructure projects as announced by Finance Minister Bill Morneau in Budget 2019 on March 19.
Delivery of federal funds into infrastructure projects across the country has been a challenge in the past four years, despite federal efforts. One glitch in delivering federal funding that was earmarked for infrastructure projects seemed to be in the requirement for municipalities to have funding partnerships with provincial governments, which takes time. Also, municipal budgets don’t always allow for the preparation of projects (through design and zoning/planning) to have shovel-ready projects available and waiting for funding.
The funds will now go directly to municipalities without having to be distributed through a provincial government. This likely speeds up delivery of the funds and sidesteps potential conflicts over project priorities, but could also put more strain on municipalities if they end up carrying the funding load themselves. But projects may become activated sooner, and that is the overall goal in the interest of supporting Canadian communities.
“People depend on every order of government to work together to deliver the infrastructure projects they need – from expanding highways, to improving public transit, to building new recreational centres,” it was stated today in a news release from the Prime Minister’s office.
Today Prime Minister Justin Trudeau promoted the municipal infrastructure component of his Liberal government’s budget with a news event in Mississauga, Ontario. “The Municipal Infrastructure Top-Up announced in Budget 2019 will double the amount of money that municipalities get through the gas tax transfer for 2018-19, and give much needed support for local priorities,” it was stated in a release.
There will be a one-time transfer of $2.2 billion through the federal Gas Tax Fund to address short-term priorities in municipalities and First Nations communities.
“Municipalities and First Nations communities will be able to use the funds to complete projects currently underway, create good, well-paying jobs, and make their communities better places to live. The funds will help address the short-term priorities of municipalities, including repairing roads, expanding bus fleets, and building water treatment facilities.”
“Since 2016, we have invested in thousands of infrastructure projects that have helped improve the lives of people in communities across the country,” said Trudeau. “With the Municipal Infrastructure Top-Up, we are taking real, concrete steps to directly provide cities and towns with more funding so they can invest it where people need it the most.”
Projects under this fund can be used for the following:
o Productivity and economic growth – including highways and local roads, public transit, and regional and local airports
o Clean environment – including drinking water, wastewater, and community energy systems
o Strong cities and communities – including sport and recreation, cultural and tourism, and capacity building
The Mayor of Mississauga, Bonnie Crombie, said that city building is nation building and thanked the federal government for recognizing the role that cities play in empowering the nation. She identified projects like aging infrastructure and build new transit, roads, and cycling infrastructure. “The federal government recognizes that cities have the local expertise to deal with local matters, and we need direct funding and tools to ensure we can build stronger, more prosperous communities.”
Overall, the government says their budget is a plan to create more good well-paying jobs, put homeownership within reach of more Canadians, help working people get the training they need to succeed, support seniors, and lay the foundation for national pharmacare.
Related:
Mayors on South Vancouver Island comment on the doubling up of the federal Gas Tax Fund (March 20, 2019)
Budget 2019 includes ‘something for everyone’ (March 19, 2019)