Canada's Economic Action Plan

Canada's Economic Action Plan

November 29, 2014 14:00 ET

Minister Gail Shea Outlines Benefits of $53B Infrastructure Plan to Prince Edward Island Municipal Leaders

ABRAM-VILLAGE, PRINCE EDWARD ISLAND--(Marketwired - Nov. 29, 2014) -

The Honourable Gail Shea, Minister of Fisheries and Oceans, Regional Minister for PEI and Member of Parliament for Egmont, spoke today to the Federation of Prince Edward Island Municipalities regarding the New Building Canada Plan and how it is benefitting municipalities across the province.

Building on historic infrastructure investments, the Government of Canada will be investing $70 billion for public infrastructure over the next decade, including the $53-billion New Building Canada Plan for provincial, territorial and municipal infrastructure.

As part of the New Building Canada Plan, the renewed federal Gas Tax Fund provides predictable, long-term, stable funding for Canadian municipalities to help them build and revitalize their local public infrastructure while creating jobs and long term prosperity.

For Prince Edward Island, the New Building Canada Plan represents approximately $440 million in dedicated federal funding, including more than $277 million under the New Building Canada Fund, with approximately $28 million dedicated to the Small Communities Fund, and an estimated $163 million under the federal Gas Tax Fund.*

PEI will also benefit from the $5.6 billion announcement for federal infrastructure made by the Prime Minister on November 24. This funding will help repair, modernize and build important federal assets, create jobs, support services to Canadians, including food safety, and contribute to Canada's long-term economic prosperity. On Prince Edward Island, that will result in additional funding for repairs to Province House as well as for small craft harbours and federal laboratories.

Quick Facts:

  • The $53 billion New Building Canada Plan provides stable funding for a 10-year period, and includes:

    • The Community Improvement Fund, consisting of the Gas Tax Fund and the incremental Goods and Services Tax Rebate for Municipalities, which will provide over $32 billion to municipalities for projects such as roads, public transit and recreational facilities, and other community infrastructure.

    • The $14-billion New Building Canada Fund, which consists of:

      • The $4-billion National Infrastructure Component, which will support projects of national significance; and

      • The $10-billion Provincial-Territorial Infrastructure Component, which will support projects of national, regional and local significance. Of this amount, $1 billion is reserved for projects in communities with fewer than 100,000 residents through the Small Communities Fund.

    • An additional $1.25 billion in funding for the Public-Private Partnerships (P3) Canada Fund administered by PPP Canada; and,

    • $6 billion in funding that continues to flow across the country this year and beyond under existing infrastructure programs, ensuring that communities have the resources they need to put every construction season to good use.

  • Since 2006, significant improvements have been made to the Gas Tax Fund. It has been extended, doubled, indexed and made permanent, and the eligible categories have been expanded, providing municipalities with more flexibility than ever before to support local infrastructure. By enshrining these commitments in legislation, municipalities are assured of an ongoing funding stream to address their municipal infrastructure needs and priorities.

*NOTE: Gas Tax funding by jurisdiction for the first five years (2014-2019) is based on 2011 Census data. Gas Tax funding for 2019-2024 will be based on 2016 Census data. For illustrative purposes, Census 2011 data has been used for all 10 years. Due to the indexation of the Gas Tax Fund, funding for 2019-2024 is expected to be at least equal to Gas Tax funding for the first five years.

Quotes:

"Thriving, dynamic communities are what make up this nation. Through our historic infrastructure investments, our Government is supporting communities and their development right here and across the country. In the short-term, investments in infrastructure result directly in job creation and in the long-term they lead to improvements in our province's quality of life and our place on the world stage."

- The Honourable Gail Shea, Minister of Fisheries and Oceans, Regional Minister for PEI and Member of Parliament for Egmont

"FPEIM is grateful to the federal and provincial governments for helping cities, towns and communities by investing in municipal infrastructure projects that wouldn't otherwise be possible. These investments create jobs, stimulate the economy and make the places we call home better places to live. We're very pleased with the federal government's decision to make the Gas Tax Fund permanent and to index it so it grows as the cost of infrastructure rises."

- FPEIM Vice-President Diane Griffin

Additional information:

- The New Building Canada Plan

- Federal Gas Tax Fund

- Gas Tax Fund Agreement: Canada-Prince Edward Island

Contact Information

  • Vincent Rabault, 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
    613-943-1838

    John Dewey, Executive Director
    Federation of PEI Municipalities
    jdewey@fpeim.ca
    (902) 566-1493
    (902) 566-2880 (FAX)

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