Gas Tax Deal Announced By Ottawa

June 17, 2005

Gas Tax Deal Announced By Ottawa
$3.9 million to Flow to Halton Hills and $30.4 million to Flow to Halton Region to Help Pay for Roads and Bridges

OTTAWA – Michael Chong, Member of Parliament for Wellington-Halton Hills welcomed today's announcement that the federal government is finally signing an agreement with the province and municipalities of Ontario to share $1.9 billion in gas tax revenue. Over the next five years, Halton Hills will receive $3.9 million and Halton Region $30.4 million.

Michael Chong stated, "The Conservative Party has long pushed the federal government to transfer the gas tax to the provinces and municipalities to address Canada's infrastructure deficit. It's been 3 1/2 years since Paul Martin originally promised to deliver gas tax money to the municipalities. As he admitted at the announcement, it probably wouldn't have happened without the tremendous pressure from municipalities and the opposition. I’ve raised this issue numerous times in the last year, both inside and outside of the House, so I’m glad to see the government’s response.”

The Conservative Party voted on June 15, 2005 to support Bill C-43 which authorizes the government to spend the money promised in this deal. Additionally, any future Conservative government will match or exceed the current Liberal plan to transfer $5 billion over 5 years from the gas tax to support infrastructure, and that the gas tax transfer will reach the equivalent of 5 cents per litre by 2009-10.

Michael added that, "We see this as a good first step. However, we will continue to work with our municipal and provincial partners to improve upon this deal and to ensure that not only Ontario, but all of Canada gets the best deal possible.”

Michael also praised the government for adopting the per capita distribution formula, because he believes that smaller municipalities deserve money for infrastructure just as the big cities do. He added, “I’ve argued over the last year that the fairest way to distribute this money is on a per capita population based formula. Rural communities, with their scattered populations and their huge infrastructure, face the same kinds of challenges on a per capital basis that are faced by more densely populated areas. That’s why smaller communities deserve money for infrastructure just as the big cities do.”
 

Interactive/comments ...