News Releases
Minister Welcomes Federal Gas Tax Announcement
YELLOWKNIFE (February 2, 2005) -The Minister of Municipal and Community Affairs Honourable Michael McLeod is very pleased with the federal government’s announcement that it plans to negotiate the New Deal for Cities and Communities and will specifically allocate a portion of the gas tax to community governments
“The announcement shows the Honourable John Godfrey, Minister of State for Infrastructure and Communities, recognizes the unique needs of our northern communities,” said Minister McLeod.
Minister Godfrey has received a negotiating mandate to allocate the $5 billion in funding from the gas tax that is slated to benefit Canadian municipalities over the next five years.
The announcement provides the Northwest Territories (NWT) with a base amount equal to .75% of the total funding available. This will result in new infrastructure funding for Northwest Territories community governments of $37.5 million over the five-year period beginning in 2005, with on-going funding of $15 million annually after that.
The Government of Canada’s announcement stipulates that funds from the gas tax will be directed at environmentally sustainable municipal infrastructure, such as public transit, water and wastewater systems, community energy systems, solid waste management, rehabilitation of roads and bridges, and capacity building.
The Government of the Northwest Territories will negotiate a bilateral agreement with the Government of Canada for allocation of the funding to NWT communities. “I am committed to working in partnership with the Northwest Territories Association of Communities to determine the fairest, most appropriate method of allocating this funding to our communities,” said Minister McLeod.
For more information, contact
Megan Munro
Communications Assistant
Cabinet Communications
Phone: (867) 669-2302