Infrastructure Canada

Infrastructure Canada

April 03, 2009 09:02 ET

Federal Gas Tax Funding to Double and Payments to be Accelerated.

OTTAWA, ONTARIO--(Marketwire - April 3, 2009) - John Baird, Canada's Transport and Infrastructure Minister, announced today a shot in the arm for municipal infrastructure which will help keep our economy moving. Ongoing federal gas tax transfers to the provinces and territories for municipal infrastructure doubled on April 1, 2009 to a total of $2 billion a year. The federal government is accelerating the first payment of the Gas Tax Fund, making up to $1 billion available to municipalities almost three months early.

"By doubling the gas tax fund and accelerating the payments by three months, our government is showing that it means business when it comes to creating jobs for Canadians and making our country stronger and more prosperous," said Minister Baird. "We are working together with all levels of government to stimulate regional economies, cut red tape, get shovels in the ground sooner, and get Canadians back to work."

The Gas Tax provides funding for projects such as drinking water, wastewater, local roads and public transit. Gas tax funding is being used for initiatives such as from the TransLink public transportation system in the South Coast British Columbia, bridge improvements in Huron East, Ontario, major wastewater infrastructure improvements in Chelsea, Quebec, and upgrading the Canada Games facilities on Prince Edward Island. Projects such as these will continue to generate significant economic benefits and improve municipal infrastructure across Canada.

The Gas Tax Fund is part of the Government of Canada's commitment to stimulate the economy and create jobs through investments in public infrastructure.

Last year, in response to ongoing requests for stable, long-term funding, the Government announced in Budget 2008 that the Gas Tax Fund will be extended at $2 billion per year beyond 2013-14 and become a permanent measure. This will allow all municipalities, both large and small, to better plan and finance their infrastructure needs. A permanent $2-billion-per-year Gas Tax Fund will also help deliver action on infrastructure which will help to create jobs in every region of the country.

The Government of Canada's Economic Action Plan is launching one of the largest infrastructure building projects in our country's history by accelerating and expanding the existing federal investment of $33 billion in infrastructure with almost $12 billion in new infrastructure stimulus funding over two years.

Backgrounders are available at the following addresses:

Gas Tax Fund: Delivering Results for Canadians


Contact Information

  • Office of the Minister of Transport,
    Infrastructure and Communities
    Chris Day
    Press Secretary
    Infrastructure Canada