News Release
Kelly Urges Agreement to be Signed on Gas Tax Plan
(Wednesday, June 15/05)-- Now that the federal Budget has been approved by Parliament, Mayor Peter Kelly today urged the Nova Scotia government to sign an agreement with Ottawa to enable the flow of the long-promised share of the Gas Tax revenues to municipalities.
Mayor Kelly said the Union of Nova Scotia Municipalities (UNSM) and the Province of Nova Scotia have already agreed to a formula and this should be formalized with the federal government as quickly as possible to ensure these funds flow in a predictable manner.
The Federation of Canadian Municipalities, as well as the Big City Mayors’ Caucus, have taken the position that any new revenues promised from the federal share of the Gas Tax should be passed along to Canadian municipalities, who would then decide how and where the funds would be spent, depending on program criteria.
Mayor Kelly said these funds will enable municipalities throughout in the country to begin long-awaited environmental and transportation projects.
Mayor Kelly said the Martin government has committed to ensure the Gas Tax monies go to Canadian municipalities, to address their needs-- not to be intercepted and meted out by the provinces. The federal government has said it will not allow the provinces to claw back other revenues to municipalities, based on what they receive in new Gas taxes revenues.
“The federal share of the Gas Tax represents a significant new source of revenue for municipalities. In HRM’s case, it will mean about $7 million this year and ramp up to about $25 million in the fifth year of the program, “ he said “This money, along with the recently announced $800 million over two years for new transit projects, will enable Canadian municipalities to begin tackling the tremendous infrastructure gap that has reached about $60 billion today.”
(Nova Scotia’s share of the $800 million transit project over two years will be about $24 million. If based on ridership, HRM should receive the lion’s share of that money.)
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Mayor Peter Kelly
(902) 490-4010
