News Release

Backgrounder

Final Agreement

April 15, 2005

AGREEMENT SIGNED ON THE
NEW DEAL FOR CITIES AND COMMUNITIES

VANCOUVER, British Columbia - Prime Minister Paul Martin, British Columbia Premier Gordon Campbell, and Aaron Dinwoodie, President of the Union of British Columbia Municipalities (UBCM), have signed an agreement on federal gas tax investments in B.C.’s cities and communities, marking a new relationship among all three orders of government.

The New Deal for Cities and Communities is officially underway, with the Province of British Columbia being the first to sign an agreement in principle.  Taking part in the signing were (left to right): Premier Gordon Campbell, BC Minister of Community, Aboriginal and Women's Services Murray Coell, UBCM President Aaron Dinwoodie, Prime Minister Paul Martin and Minister of State (Infrastructure and Communities) John Godfrey.

Prime Minister Martin stated that, “When I first launched the concept of the New Deal in 2002, it was my hope that all orders of government work in partnership to build sustainable communities, large and small, across the country. The New Deal was a centrepiece of the Budget tabled just seven weeks ago, when we told provinces, territories, and municipalities how much gas tax money they would see.  Today I stand here delivering that promise to B.C.’s communities.”

 “This agreement represents a new way of working together, with all levels of government at the table working in partnership to help communities respond to the issues they face,” said Premier Campbell. “The province is committed to giving our municipalities the tools they need to become truly sustainable, and this agreement builds on the progress we have made over the past four years in B.C.”

The agreement between the Governments of Canada and British Columbia and the UBCM marks their consensus on issues related to how the gas tax funds will be used in B.C. to support environmentally sustainable municipal infrastructure. They have agreed to report regularly on the outcomes achieved. In addition, the agreement also provides a framework for work on other elements of the New Deal, such as a long-term vision to promote the sustainability of Canada’s cities and communities. 

“The Union of British Columbia Municipalities will play a key role in the administration of funds,” said Mr. Dinwoodie.  “I want to thank the federal and provincial governments for their vote of confidence. This agreement will deliver real benefits to all of B.C.’s cities and communities. We didn’t have any of this a year ago.”

“This is good news for B.C. residents,” said Murray Coell, Minister of Community, Aboriginal and Women’s Services. “The three levels of government represented here today have come a long way, very quickly. This shows how committed we are to the sustainability of B.C.'s cities and communities.”

Today’s signing reflects the negotiation efforts underway between the Government of Canada and all provinces and territories to promptly flow the gas tax to Canada’s cities and communities.

John Godfrey, Minister of Infrastructure and Communities, stated that, “While B.C. is first up to bat, I am pleased to report that negotiations with all provinces and territories have been positive.” He noted that in the coming weeks and months, the Government of Canada would be signing a series of agreements from coast to coast to coast.

This builds on the Government of Canada’s commitment to recognize municipal governments as partners in implementing Canada’s national agenda. Budget 2004 gave municipalities the Goods and Services Tax (GST) rebate worth $7 billion over 10 years for their areas of greatest need, and accelerated the $1-billion Municipal Rural Infrastructure Fund. Budget 2005 provided $5 billion over five years in gas tax funds, ramping up to $2 billion in year five and indefinitely thereafter. Gas tax dollars are on top of the Government of Canada’s existing infrastructure programs, which have committed over $12 billion over the last decade to infrastructure projects in communities across the country. Budget 2005 committed to renewing the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Border Infrastructure Fund.

“Canada is a world leader in developing vibrant, creative, prosperous and sustainable communities,” the Prime Minister concluded.  “When you think of how far we’ve come since I made the New Deal a real deal in Budget 2004 – it’s truly a remarkable tribute to the commitment and goodwill of all partners.”

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Contacts:

Prime Minister’s Office
Press Office
(613) 957-5555
www.pm.gc.ca

Carla Ventin
Office of Minister Godfrey
(613) 614-9622
www.infrastructure.gc.ca

Mike Morton
Press Secretary
Office of the Premier
(250) 213-8218
www.gov.bc.ca

Richard Taylor
Executive Director
Union of British Columbia Municipalities
(604) 270-8226
www.civicnet.bc.ca

BACKGROUNDER

The New Deal for Cities and Communities

British Columbia

The Governments of Canada and British Columbia, along with the Union of British Columbia Municipalities, have joined together to move the New Deal forward in B.C.  New relationships have been developed, and new partnerships are at work building sustainable cities and communities – representing the New Deal in action.

As part of its New Deal for Cities and Communities, the Government of Canada is investing more than $635 million in gas tax funding over five years for the benefit of B.C. cities and communities, large and small.  These investments will provide significant environmental benefits, like reduced greenhouse gases, cleaner air and cleaner water.

This transformative commitment is advanced by the agreement signed on April 15, 2005, by Canada, British Columbia and the Union of British Columbia Municipalities, the first signed under the New Deal for Cities and Communities.  And we expect to sign more agreements with other provinces and territories in the coming weeks and months. 

This B.C. agreement signals the willingness of all three parties to work in a true partnership to make cities and communities more sustainable, and it underscores the strong cooperation among the governments of Canada and B.C. and the Union of British Columbia Municipalities.

B.C. and Canada agreed that gas tax money will flow to the Union of British Columbia Municipalities. This is a reflection of the reality that municipalities are mature levels of government fully deserving of a seat at the table. The parties have agreed to establish committees to maximize the effectiveness of this partnership and to ensure that there is accountability for money spent. Canadians will know how this money is invested in B.C.’s cities and communities.

The agreement is built on six principles: respect for jurisdiction, flexibility, equity, transparency, focus on long-term solutions, and regular reporting to Canadians.  This innovative agreement reflects the transformative nature of the New Deal as through this agreement, all signatories commit to working in partnership to make B.C.’s cities and communities more sustainable.

Budget 2005 has delivered long-term, stable and predictable funding as part of the Government of Canada’s commitment to its New Deal for Cities and Communities. Over the next five years, we will provide $5 billion to Canada’s municipalities, large and small, to support environmentally sustainable infrastructure projects.  These investments will provide significant environmental benefits, like reduced greenhouse gases, cleaner air and cleaner water.

British Columbia’s cities and communities will receive $635.6 million in federal gas tax funding over the next five years, starting this year with $76.3 million.  This funding will ramp up until it reaches $254.2 million annually by 2009-10, and will continue at that rate thereafter. 

In addition to the gas tax, the Government of Canada has stepped up to the plate with stable, predictable, long-term funding for municipalities – a GST rebate worth $7 billion over 10 years; $12 billion in infrastructure funding since 1993 (including a $1 billion municipal rural infrastructure fund for smaller areas, and a $4-billion strategic infrastructure fund geared towards large-scale needs); and $300 million provided to enrich the Green Municipal Funds.

These efforts build on a strong history of supporting sustainable community development.  The Vancouver Agreement was signed in 2000 by the Government of Canada, the Province of British Columbia and the City of Vancouver.  Its intent was to develop and implement a coordinated strategy to promote and support sustainable economic, social and community development. 

Other important achievements which have advanced the New Deal:

• In February 2005, Minister Godfrey announced the allocation to provinces, territories and First Nation, of gas tax revenues on a per capita basis, with a targeted allocation for the three territories and PEI. that is greater than their per capita amount.  This recognizes their need for sufficient funds for significant infrastructure investments, and acknowledges the increased costs associated with infrastructure in Northern and remote areas.

• At the same time, Minister Godfrey launched formal bilateral  negotiations with provinces and territories on the New Deal for Cities and Communities, building on year-long work with provinces, territories, the Federation of Canadian Municipalities, mayors and stakeholders.

• The Prime Minister created the Infrastructure and Communities Portfolio, demonstrating the priority the Government places on the cities and communities agenda.  Minister John Godfrey has met with hundreds of mayors, officials and stakeholders from communities large and small – in all 10 provinces and the 3 territories.

• The Prime Minister’s External Advisory Committee on Cities and Communities was formed with a mandate to define a 30-year vision for cities and communities in Canada. The EACCC has held eight meetings focusing on sustainability, financial infrastructure, planning, rural, Aboriginal and remote communities, and culture. The Honourable Mike Harcourt, former Vancouver mayor and British Columbia premier, was appointed by the Prime Minister to chair the committee.

• In partnership with Statistics Canada, research on cities and communities was conducted to guide city planning and policy assessments during the past year.  For instance, reports have been issued on income, health, immigration, the voluntary sector, and urban Aboriginal issues. Vancouver, Abbotsford and Victoria are included in these reports.

• In Budget 2004, funding was accelerated under the new $1-billion Municipal Rural Infrastructure Fund (MRIF) from 10 years to five years, doubling the money to be provided over the short term.  Negotiations are underway with most provinces and territories, and agreements have been announced in six (Ontario, New Brunswick, Manitoba, Saskatchewan, Yukon and Northwest Territories).

Vancouver

• The Government of Canada confirmed its commitment to provide the planned Richmond-Airport-Vancouver transit line with up to $450 million.
  
• The Vancouver Convention and Exhibition Centre project was launched, with the federal government contributing $222.5 million.

Budget Announcement breakdown by province/territory/First Nations

( $ millions)

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