Canada's Economic Action Plan

Canada's Economic Action Plan

November 28, 2013 18:54 ET

Minister Lebel Confirms Government of Canada's Commitment to Municipal Infrastructure

OTTAWA, ONTARIO--(Marketwired - Nov. 28, 2013) - The Honourable Denis Lebel, Minister of Infrastructure, Communities, and Intergovernmental Affairs, today discussed the Government of Canada's commitment to municipal infrastructure during a meeting with the Federation of Canadian Municipalities (FCM) Board of Directors.

Talking about the Government's $53 billion New Building Canada Plan, the Minister confirmed that the outstanding parameters for the New Building Canada Fund are currently under development, and will be announced as soon as possible, to ensure project proposals can be considered in 2014. Minister Lebel highlighted that two-thirds of the new funding under the New Building Canada Plan is dedicated exclusively to municipalities.

"The FCM has made important contributions to the success we have achieved. You asked for long-term predictability; we delivered a legislated, permanent program. You asked for more flexibility; we expanded the categories to include projects like sport, culture, recreation and tourism. You asked for indexation; we delivered at 2 percent per year, which amounts to an additional $1.8 billion for municipalities over the next decade," stated Minister Lebel.

The Gas Tax Fund will be indexed at 2 per cent per year, with increases to be applied in $100 million increments, starting in 2014. Including indexation, over the 10-year life of the plan, from 2014 to 2024, the Gas Tax Fund will invest close to $22 billion in infrastructure funding for Canadian municipalities. In addition, the Government has greatly expanded the number of project categories eligible for funding under the Gas Tax Fund, which means that municipalities will have more flexibility and choice in meeting their local infrastructure priorities.

"Through the Gas Tax Fund, municipalities across the country have benefited from close to $13 billion in predictable and flexible funding for local priorities since the program began," said Minister Lebel. "Our Government understands how important this fund is for municipalities and that is why I am very proud of the improvements we have made to this program. We sent the new agreements to the provinces and territories on November 5, 2013. I am now looking forward to signing them so that municipalities can continue to benefit from this important program."

Minister Lebel reiterated that while work is underway for the new programs, existing programs continue to provide significant funding to infrastructure projects across Canada. In fact, there is $6 billion under existing programs that will continue to flow to projects across the country this year and beyond.

Economic Action Plan 2013 builds on our Government's historic infrastructure investments, with $70 billion for public infrastructure, including the $53 billion New Building Canada Plan for provincial, territorial and municipal infrastructure, over the next decade.

The New Building Canada Plan, combined with other federal infrastructure investments, supports Canada's infrastructure advantage, which is a key enabler of economic growth and job creation.

For additional information about federal investments in infrastructure visit Infrastructure Canada or follow us on Twitter at @INFC_eng.

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

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