Canada's Economic Action Plan

Canada's Economic Action Plan

November 14, 2013 11:00 ET

Canada's Gas Tax Fund Helping Nunavut Communities

Second installment of annual GTF transfer available for municipal infrastructure

IQALUIT, NUNAVUT--(Marketwired - Nov. 14, 2013) - The Honourable Leona Aglukkaq, Minister of the Environment, Minister of the Canadian Northern Economic Development Agency, Minister for the Arctic Council and Regional Minister for the North, 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 Nunavut's total allocation this year to close to $15 million.

"Investments through the federal Gas Tax Fund are helping Nunavut's communities address their local infrastructure priorities," said Minister Aglukkaq. "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 Nunavut for municipal infrastructure projects within the Territory. 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 $97.5 million has been made available to Nunavut under the current Gas Tax Fund.

The Gas Tax Fund has funded numerous initiatives across Nunavut that support infrastructure for water, wastewater, solid waste, as well as capacity building.

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 Nunavut, 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 NUNAVUT

The federal Gas Tax Fund makes capital investments in important community infrastructure. Eligible investments in Nunavut currently include infrastructure for water, wastewater, solid waste, as well as capacity building. It provides predictable, stable funding, allowing communities to choose and plan the infrastructure priorities in their community.

Through the Gas Tax Fund, communities across Nunavut have benefited from close to $97.5 million in predictable and flexible funding for local priorities since the program began. The Government of Nunavut administers the program on behalf of its communities.

Results for Nunavut

The Gas Tax Fund is providing Nunavummiut 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:

  • Constructing a new water treatment plant in Taloyoak incorporating environmental sensitivity through a reduction in fossil fuel use and using sun-tracking solar panels and a wind turbine to power its operation.

  • Launching an Integrated Community Sustainability Plans (ICSPs) Web-based Toolkit, which will help with the maintenance of these plans, and assist communities in developing even more comprehensive strategies that reflect changes in demographics, economic goals and each community's specific realities.

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
    613-943-1848

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