April 23, 2010

GAS TAX FUNDING PAYMENTS ACCELERATED FOR SECOND YEAR IN A ROW

Iqaluit, Nunavut – The Honourable Leona Aglukkaq, Minister of Health, announced today that communities across Nunavut are getting an advance payment of $7.5 million in Gas Tax Funding to help them make the most of the spring and summer construction seasons.

For the second consecutive year, the Government of Canada is accelerating its payment of Gas Tax Fund three months early. This is part of the Government’s Economic Action Plan which aims to boost employment and help communities emerge stronger than ever from the economic downturn.

“Over the past year, our Government has taken steps to stimulate our economy and make our country stronger,” said Minister Aglukkaq. “The advance payments of Gas Tax Funds for a second year in a row shows that we have listened to communities who asked us to cut red tape, accelerate infrastructure projects and create jobs.”

Last year, the Government of Canada doubled the Gas Tax Fund to $2 billion. As a result, Nunavut communities benefited from $15 million in Gas Tax transfers.

These funds are at work across Nunavut:

• The city of Iqaluit has implemented a Sludge Management Project and funded upgrades to Sewage Lift Station #1
• The Government of Nunavut has decommissioned the Hall Beach Sewage Lagoon
• Arctic Bay and Kimmirut have funded power supply upgrades to their water pump houses

In addition to accelerating the Gas Tax Fund, the Government of Canada announced that the Fund would become a permanent measure at $2 billion annually after 2014, to provide municipalities with long-term financial support.

The Gas Tax Fund represents stable, long-term, predictable funding that municipalities can pool, bank or borrow against for investments in municipal infrastructure such as drinking water, wastewater, improved roads, bridges, and public transit projects.

In addition to the Gas Tax Fund, the Government of Canada launched the Infrastructure Stimulus Fund in 2009 as part of Canada’s Economic Action Plan, which has resulted in new infrastructure investments across Nunavut.