Canada's Economic Action Plan

Canada's Economic Action Plan

November 14, 2013 12:30 ET

Canada's Gas Tax Fund Helping Yukon Communities

Second installment of annual GTF transfer available for municipal infrastructure

WHITEHORSE, YUKON--(Marketwired - Nov. 14, 2013) - The Member of Parliament for Yukon, Ryan Leef, 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 Yukon's total allocation this year to close to $15 million.

Ryan Leef, Member of Parliament for Yukon, and the Honourable Senator Daniel Lang, were joined by Brad Cathers, Minister of Community Services for Yukon and Dan Curtis, Mayor of Whitehorse, to make the announcement at the Yukon Legislative Assembly.

"Investments through the federal Gas Tax Fund are helping Yukon's communities address their local infrastructure priorities," said MP Ryan Leef. "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 Yukon, which delivers this funding within Yukon, in collaboration with the Association of Yukon Communities and the Council of Yukon First Nations. 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 Yukon under the current Gas Tax Fund.

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

"The Gas Tax Fund provides Yukon with long-term funding to build and enhance infrastructure that meets the challenges faced by our northern communities spread across a vast landscape," said Minister of Community Services Brad Cathers.

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 Yukon, 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, communities across Yukon have benefited from close to $97.5 million in predictable and flexible funding for local priorities since the program began. The Government of Yukon administers the program, in collaboration with the Association of Yukon Communities and the Council of Yukon First Nations, on behalf of Yukon communities.

Results for Yukon

The Gas Tax Fund is providing Yukoners 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:

  • Building a sustainable, centrally-located recycling centre in Mayo that promotes community engagement and preserves the area's rich natural surroundings.

  • Constructing an energy-efficient multi-purpose public safety building in Whitehorse, where the primary fire station, bylaw services department and emergency operations centre are located.

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

    Ben Yu Schott
    Director, Communications
    Community Services
    Yukon Government

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