Canada's Economic Action Plan

Canada's Economic Action Plan

November 14, 2013 10:37 ET

Canada's Gas Tax Fund Helping New Brunswick Communities

Second installment of annual GTF transfer available for municipal infrastructure

FREDERICTON, NEW BRUNSWICK--(Marketwired - Nov. 14, 2013) - The Honourable Rob Moore, Regional Minister for New Brunswick and Minister of State (Atlantic Canada Opportunities Agency), announced today that the Government of Canada is making available the second installment of its annual $2-billion federal Gas Tax Fund allocation for municipal infrastructure, bringing New Brunswick's total allocation this year to close to $44.6 million.

"Investments through the federal Gas Tax Fund are helping New Brunswick's communities address their local infrastructure priorities," said Minister Moore. "Our Government is proud to support infrastructure projects that create jobs, promote productivity and support economic growth."

Canada's Gas Tax Fund provides predictable, long-term funding for Canadian municipalities to help them build and revitalize their local infrastructure while creating jobs and long-term prosperity. Funding is provided up front, twice a year to the Government of New Brunswick, which delivers this funding within New Brunswick. Projects are chosen locally and prioritized according to the infrastructure needs of each community. Municipalities can pool, bank and borrow against this funding, providing significant financial flexibility. To date, close to $267.5 million has been made available to New Brunswick under the current Gas Tax Fund.

The Gas Tax Fund has funded numerous initiatives across New Brunswick that support water and wastewater infrastructure, local roads, public transit, solid waste, community energy systems, active transportation and capacity building.

"Helping communities to improve their infrastructure is an important step toward their long-term sustainability," New Brunswick Environment and Local Government Minister Danny Soucy said. "This funding has helped many of our communities since the beginning of the program."

The Government of Canada has extended, doubled, indexed and made permanent the Gas Tax Fund. These improvements will see Canada's Gas Tax Fund grow from its current $2 billion per year while providing provinces and municipalities with predictable funding to deliver on local infrastructure priorities.

To read more about the Gas Tax Fund in New Brunswick, please see the attached backgrounder and visit:

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The federal Gas Tax Fund makes capital investments in important community infrastructure. Eligible investments currently include water, wastewater and solid waste infrastructure, public transit, community energy systems, local roads and bridges, and capacity building. It provides predictable, stable funding, allowing municipalities to choose and plan the infrastructure priorities in their community.

Through the Gas Tax Fund, municipalities across New Brunswick have benefited from close to $267.5 million in predictable and flexible funding for local priorities since the program began. The Government of New Brunswick administers the program on behalf of its municipalities.

Results for New Brunswick

The Gas Tax Fund is providing New Brunswickers with stable funding that will have a tangible impact on their quality of life and the long-term sustainability of their communities. The Gas Tax Fund has provided funding towards various projects, including:

  • Achieving a silver certification for Leadership in Energy Efficient Design for Sackville's new Emergency Response Services and Town Hall, a facility that brings the Town Hall, fire department and RCMP together under one roof for the first time.
  • Improving Dieppe's bustling Paul Street by widening it between Route 15 and Sunset Street and adding dedicated turning lanes, helping keep people and goods moving efficiently.
  • Creating a new multipurpose complex in the Village of Grand Manan, which provides important services and community space to the island's residents.

How the Gas Tax Fund Works

Canada's Gas Tax Fund has provided $13 billion to Canadian communities to date. The funding allocation is based on population for most jurisdictions. In recognition of their population size, Prince Edward Island, Yukon, Northwest Territories and Nunavut receive amounts equal to 0.75 percent of the total annual national allocation, allowing them to also make meaningful investments in infrastructure. Funding is provided up front, twice a year to provincial and territorial governments or to the municipal associations which deliver this funding within a province, as well as to the City of Toronto. Projects are chosen locally and prioritized according to the infrastructure needs of each community. Municipalities can pool, bank and borrow against this funding, providing significant financial flexibility.

On April 1, 2009, Gas Tax Fund payments doubled to $2 billion annually. In 2011, legislation was passed to make funding under the Gas Tax Fund permanent at $2 billion per year.

As announced in Economic Action Plan 2013, the eligible categories for the Gas Tax Fund will be expanded and the Fund will be indexed at 2 per cent a year in $100-million increments, starting in 2014, allowing municipalities even more flexibility to focus on their infrastructure priorities. The expanded categories include:

  • projects supporting culture, tourism, sport and recreation;
  • disaster mitigation;
  • broadband communication systems;
  • highways;
  • short-line rail;
  • short-sea shipping;
  • brownfield redevelopment; and
  • local and regional airports.

Over the 10-year life of the New Building Canada Plan from 2014 to 2024, the Gas Tax Fund will provide close to $22 billion in funding for municipalities.

The Government of Canada is working with its provincial and territorial partners to ensure a seamless transition to the new funding.

Contact Information

  • Marie-Josee Paquette, 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

    Kelsie Corey
    Communications Advisor
    Office of the Minister of State
    Atlantic Canada Opportunities Agency

    Lisa Harrity
    Director - Communications
    Environment and Local Government

    Infrastructure Canada
    Toll free: 1-877-250-7154