Canada's Economic Action Plan

Canada's Economic Action Plan

November 14, 2013 12:33 ET

Canada's Gas Tax Fund Helping Nova Scotia Communities

Second installment of annual GTF transfer available for municipal infrastructure

HALIFAX, NOVA SCOTIA--(Marketwired - Nov. 14, 2013) - The Honourable Peter MacKay, Minister of Justice and Attorney General of Canada and Regional Minister for Nova Scotia, 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 Nova Scotia's total allocation this year to close to $56 million.

Gerald Keddy, Parliamentary Secretary to the Minister of National Revenue and for the Atlantic Canada Opportunities Agency and Member of Parliament for South Shore-St. Margaret's, was joined by the Honourable Mark Furey, Minister of Service Nova Scotia and Municipal Relations and Mike Savage, Mayor of Halifax to make the announcement at the Highfield terminal in Halifax.

"Investments through the federal Gas Tax Fund are helping Nova Scotia's communities address their local infrastructure priorities," said Minister MacKay. "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 Nova Scotia which delivers this funding within Nova Scotia. 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 $368.9 million has been made available to Nova Scotia under the current Gas Tax Fund.

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

"The cost of new or upgraded infrastructure can be a significant challenge for municipalities and the Gas Tax Fund makes it possible for many projects to be completed," said Mark Furey, Minister of Service Nova Scotia and Municipal Relations. "The Province of Nova Scotia appreciates the contribution of this funding which helps provide jobs and create economic activity in communities throughout the province."

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 Nova Scotia, please see the attached backgrounder and visit: www.infrastructure.gc.ca/pub/infra/gtf-fte/gtf-fte-2013-eng.html.

For additional information about federal investments in infrastructure visit www.infrastructure.gc.ca or follow us on Twitter at @INFC_eng.

For further information about Canada's Economic Action Plan, visit www.actionplan.gc.ca.

Backgrounder

THE GAS TAX FUND IN NOVA SCOTIA

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 Nova Scotia have benefited from close to $368.9 million in predictable and flexible funding for local priorities since the program began. The Government of Nova Scotia administers the program on behalf of its municipalities.

Results for Nova Scotia

The Gas Tax Fund is providing Nova Scotians 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:

  • Replacing water mains and storm sewers in Springhill, and installing a new ultraviolet disinfection unit at Springhill's wastewater treatment plant, bringing the town's wastewater system up to current environmental standards.
  • Building Digby County's first material recovery facility in Clare, which processes more than 1,000 tons of recycled materials annually.
  • Building a new bus terminal in Dartmouth to expand and improve transit services in the Halifax Regional Municipality.

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 unique 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
    613-943-1848

    Tracy Barron
    Province of Nova Scotia
    902-424-2733
    barrontb@gov.ns.ca

    Infrastructure Canada
    613-960-9251
    Toll free: 1-877-250-7154