Canada's Economic Action Plan

Canada's Economic Action Plan

April 23, 2010 16:30 ET

Government Gives $15.6 Million Boost to Newfoundland and Labrador Municipalities

Gas Tax Funding Payments Accelerated for Second Year in a Row

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - April 23, 2010) - The Honourable Peter MacKay, Minister of National Defence, announced today that municipalities across Newfoundland and Labrador are getting an advance payment of $15.6 million in Gas Tax Funding to help them make the most of the spring and summer construction seasons. 

For the second consecutive year, the Government of Canada is accelerating its payment of Gas Tax Fund three months early. This is part of the Government's Economic Action Plan which aims to boost employment and help communities emerge stronger than ever from the economic downturn.

"Our federal government has taken specific steps to stimulate the economy and make our country stronger over the last year," said Minister MacKay. "The advance payments of Gas Tax Funds for a second year in a row shows that we have listened to municipalities who asked us to cut red tape, accelerate infrastructure projects and create jobs."

Last year, the Government of Canada doubled the Gas Tax Fund to $2 billion. As a result, Newfoundland and Labrador municipalities benefited from over $31 million in Gas Tax transfers.

These funds are at work across Newfoundland and Labrador:

  • As part of Newfoundland and Labrador's waste management strategy, the city of St. John's has used over $210,000 in Gas Tax funds for a curbside recycling program, and Gander has used over $203,000 for waste management engineering and planning projects.

In addition to accelerating the Gas Tax Fund, the Government of Canada announced that the Fund would become a permanent measure at $2 billion annually after 2014, to provide municipalities with long-term financial support.

The Gas Tax Fund represents stable, long-term, predictable funding that municipalities can pool, bank or borrow against for investments in municipal infrastructure such as drinking water, wastewater, improved roads, bridges, and public transit projects.

In addition to the Gas Tax Fund, the Government of Canada launched the Infrastructure Stimulus Fund in 2009 as part of Canada's Economic Action Plan, which has resulted in new infrastructure investments across Newfoundland and Labrador. 

To learn more about Canada's Economic Action Plan, visit www.actionplan.gc.ca.

IF THERE IS A DISCREPANCY BETWEEN ANY PRINTED VERSION AND THE ELECTRONIC VERSION OF THIS NEWS RELEASE, THE ELECTRONIC VERSION WILL PREVAIL.

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This news release is available online at: www.creatingjobs.gc.ca.

Gas Tax Fund: Delivering Results For Canadians – Newfoundland and Labrador

The following table is a breakdown of the Gas Tax Fund allocation to Newfoundland and Labrador between 2005-2014:

Year Allocation
2005-2006 9,870,000
2006-2007 9,870,000
2007-2008 13,160,000
2008-2009 16,450,000
2009-2010 32,900,000
2010-2011 31,166,000
2011-2012 31,166,000
2012-2013 31,166,000
2013-2014 31,166,000
Total 206,914,000

For more information please visit: http://www.buildingcanada-chantierscanada.gc.ca/

Contact Information

  • Office of Canada's Transport and Infrastructure Minister
    James Kusie
    613-991-0700
    or
    Infrastructure Canada
    613-948-1148