NEWS RELEASE

Standing Committee on Finance

(Thursday, December 6, 2007) - The following is notes for remarks by CAO Dan English to the Commons Standing Committee of Finance at the Westin Hotel in Halifax this morning.

Introduction:

• Good afternoon, my name is Dan English, CAO of HRM.
• I am pleased to be here today on behalf of Mayor Peter Kelly, who is unable to attend today's session.
• Thank you for the opportunity to discuss the priority issues facing HRM, and highlight areas where collaboration with the federal government is needed.
• I have brought copies of our submission, in an effort to stay within the presentation time limit, you may find the submission has greater detail on some of the topics I will refer to today.
• The four priority issues that I will discuss today are:
  - Fiscal Imbalance;
  - Infrastructure Funding Support;
  - Environment; and
  - Public Safety & Crime Prevention
  
  Fiscal Imbalance:

• First and foremost is the fiscal imbalance facing municipalities. Most Canadian municipalities are highly dependent on property taxes.
• HRM has relatively low residential taxes compared to other Canadian cities but services have often suffered as a result.
• The Big City Mayors Caucus continues to recommend that the Federal Government permanently share the equivalent of one cent of the GST annually with the cities. This would translate into $5 billion for Canadian municipalities.
• The funding would be sustainable and predictable, allowing cities to plan and finance major infrastructure projects. It would also be strategic, as the GST grows with the economy.
• Along with continued federal investments such as the gas tax, GST rebate, infrastructure, and a new national transit strategy, municipalities would be able to diversify their revenue base beyond property taxes. This is similar to initiatives underway in the US and Europe, where governments are providing their municipalities with new financing tools and revenue-sharing opportunities.

Infrastructure Funding Support:

• As one of the older cities in Canada, HRM faces significant pressures regarding the age of its infrastructure compared to much of the rest of the country.
• HRM has an annual infrastructure funding gap of $50 million. Continued federal funding programs for infrastructure are of paramount importance to HRM. The recently-announced Building Canada Plan is a step to assist municipalities.
• Please consider some of the following projects HRM has underway:
  
  Atlantic Gateway: The Atlantic Gateway is positioned to become to Halifax what the Pacific Gateway is to Vancouver, and to establish Canada as the bridge between Asia, Europe and the US. It accounts for $1 billion in wages each year in HRM. Greater investment, integration and partnership is needed to ensure the Atlantic Gateway grows and is recognized and promoted as the East Coast logistics hub for North America
  
  Stormwater and Wastewater Infrastructure: Existing stormwater and wastewater infrastructure in HRM is in a deteriorated condition. Over $500 million is required over the next 25 years just to maintain the status quo. Increased federal investment is key to ensure these systems are kept consistent with today's standards and avoid negative impacts on public health and the environment.
  
  Transit: HRM has implemented the jointly funded project MetroLink, a bus rapid transit program, which reduces over 400 car trips per day. Building on this, the planned HarbourLink Fast Ferry project would have further environmental and economic benefits. HRM urges continuation of such funding to support strategic transit usage.
  
  Recreation Facilities: HRM is faced with an aging recreation infrastructure, combined with population growth and increasing demand for services. Investment is needed to maintain and expand community recreation facilities. The 2011 Canada Winter Games provides an excellent opportunity to support greater recreation investment in our community.
  

Environment:

• HRM is a Canadian leader in environmental sustainability. It has significantly reduced greenhouse gas emissions, implemented one of the first pesticide bylaws in Canada, and is working on the Harbour Solutions Project which will be the largest clean-up of a saltwater body in Canada.
• Although often not municipal mandates, HRM is working on a number of clean air, land, water and energy initiatives. They represent vital human health and environmental protection issues.
• Enabling funding from the Federal government will help boost many projects that assist in reducing greenhouse gases and meet federal, provincial and local goals.

Public Safety and Crime Prevention:

• The Mayor's Roundtable on Violent Crime is nearing completion. As a next step, HRM plans to develop a strategy that has all levels of government working together to reduce crime and improve quality of life for HRM residents.
• HRM continues to look forward to federal funding aimed at adding law enforcement officers for municipal police agencies.

• In closing, I would like to mention that Halifax is the business and financial hub of Atlantic Canada. It is Canada's largest municipality, covering over 5,600 kilometers.

• Halifax has roughly 40% of Nova Scotia's population, yet accounts for half the provincial GDP.

• HRM is the fastest growing municipality in the Atlantic region, but it is not large enough to function without strong links to the Federal and provincial governments.

• While other major cities benefit from diverse types of taxation and greater cost-sharing from their provincial governments, Halifax is not in that position. Greater federal investment is much needed and appreciated.

• Thank you again for the opportunity to speak with you today.
  

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John O'Brien
Manager, Corporate Communications
(902)490-6531