Canada's Economic Action Plan

Canada's Economic Action Plan

April 23, 2010 16:47 ET

Government Gives $7.5 Million Boost to PEI Municipalities

Gas Tax Funding Payments Accelerated for Second Year in a Row

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwire - April 23, 2010) - The Honourable Gail Shea, Minister of Fisheries and Oceans and Member of Parliament for Egmont, announced today that municipalities across Prince Edward Island are getting an advance payment of $7.5 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.

"Over the past year, our government has taken steps to stimulate our economy and make our country stronger," said Minister Shea. "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, Prince Edward Island municipalities benefited from $15 million in Gas Tax transfers.

These funds are at work across Prince Edward Island:

  • Summerside residents can now benefit from cleaner air and soil thanks to an investment of $4.5 million from the Gas Tax Fund for the new sludge treatment facility that will eliminate sludge transportation to local landfills.
  • Kensington residents now benefit from an environmentally sustainable wastewater treatment plant thanks to a new wind turbine that will provide electricity to the utility.

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 Prince Edward Island. 

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.

TTY (Telecommunications device for the hearing impaired)
This news release is available online at: www.creatingjobs.gc.ca.

Gas Tax Fund: Delivering Results For Canadians – Prince Edward Island

The following table is a breakdown of the Gas Tax Fund allocation to Prince Edward Island between 2005-2014:

Year Allocation
2005-2006 4,500,000
2006-2007 4,500,000
2007-2008 6,000,000
2008-2009 7,500,000
2009-2010 15,000,000
2010-2011 15,000,000
2011-2012 15,000,000
2012-2013 15,000,000
2013-2014 15,000,000
Total 97,500,000

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