News Release

Backgrounder

Final Agreement

September 23, 2005

Nova Scotia communities to receive more than $145 million through the New Deal for Cities and Communities

SYDNEY, Nova Scotia – Prime Minister Paul Martin and Premier John Hamm were in Sydney today for the signing of an agreement that will result in $145.2 million of federal gas tax revenues invested in communities across Nova Scotia.

Joining the Prime Minister and the Premier at the signing ceremony were the Minister of State for Infrastructure and Communities, John Godfrey, Fisheries and Oceans Minister Geoff Regan, and Service Nova Scotia and Municipal Relations Minister Barry Barnet.

The signing was officially witnessed by the president of the Union of Nova Scotia Municipalities (UNSM), Charles Crosby, on behalf of Nova Scotia’s 55 municipalities. The municipalities will receive $145.2 million over five years, for environmentally sustainable municipal infrastructure. 

“Today’s agreement will help ensure the long-term sustainability and vitality of cities and communities in Nova Scotia,” said Prime Minister Martin.  “We have made the New Deal a top priority, and these gas tax funds demonstrate our commitment to ongoing infrastructure improvement to meet Nova Scotia’s priorities, while achieving national goals.”

“This is good news for all Nova Scotia municipalities, both big and small,” said Premier Hamm.  “This agreement is a major investment in strong communities, in opportunities for Nova Scotians.  It will help ensure better infrastructure for today and in the future.  Together, we are helping Nova Scotia communities prepare for future development and prosperity.”

“This is an important day for Nova Scotia cities and communities, large and small, urban and rural,” Minister Godfrey stated, “and is an example of the New Deal at work.  I am proud to work with our partners to strengthen the economic, environmental, social and cultural base for all of Nova Scotia’s communities.”

The New Deal is about building new relationships, including with the UNSM, which played a key role in reaching this agreement.  President Charles Crosby commended the initiative, noting that, “The New Deal funding will benefit all communities throughout Nova Scotia.  It will help ensure that we will have more efficient, effective and environmentally sustainable infrastructure.”   

Gas tax funds will be invested in environmentally sustainable municipal infrastructure.  Eligible project categories include public transit, community energy systems, water, wastewater management, solid waste management, and roads and bridges, where it can be demonstrated that they will enhance environmental sustainability outcomes.  Funding can also be used by municipalities to help them develop long-term plans for improving local quality of life.

These investments will result in significant environmental benefits, such as cleaner air, cleaner water and reduced greenhouse gas emissions.  An Oversight Partnership Committee, with representatives from the federal and provincial governments and the municipal sector, will monitor the program and develop new directions and initiatives.

The provincial government will administer the distribution of the federal funds to municipalities and has committed to continuing to invest its own money into municipal infrastructure.  Funds from municipalities will be allocated for eligible projects according to a formula based on population, the number of dwellings in the municipality and municipal expenditures.  A municipality must enter into an agreement with the province and submit a capital budget before funds are released, and municipalities will be able to carry over gas tax funds to future fiscal years.

The New Deal promotes the economic, social, environmental, and cultural sustainability of Canada’s cities and communities. It is focused on establishing a long-range vision for Canada's communities, building new relationships among all orders of government and other partners, strengthening the connections among federal programs that benefit cities and communities, as well as helping municipalities secure predictable and stable long-term funding. 

Federal gas tax funding builds on other Government of Canada infrastructure funding, including the Canada Strategic Infrastructure Fund (CSIF), the Border Infrastructure Fund (BIF), and the Infrastructure Canada Program (ICP).  The Federal 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 (MRIF).  Budget 2005 provided $5 billion over five years in gas tax funds, ramping up to $2 billion in year five and indefinitely thereafter.  In addition, Budget 2005 committed up to $800 million over the next two years for transit funding, of which Nova Scotia's share is over $23.4 million.  Budget 2005 also committed to the future renewal of CSIF, BIF and MRIF.

As of today, eight gas tax agreements have been signed, including British Columbia, Alberta, Yukon, Ontario, Quebec, Nunavut and Saskatchewan. The Government of Canada expects to sign agreements with remaining jurisdictions in the coming weeks and months. 

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For further information contact:

New Deal for Cities and Communities
Gas Tax Funding for Nova Scotia Municipalities
Backgrounder

• The Government of Canada’s Budget 2005 delivered long-term, stable and predictable funding as part of the New Deal for Cities and Communities.  Over the next five years, $5 billion in federal gas tax funding will be shared with Canadian municipalities, both small and large.  
• Nova Scotia’s share of the $5 billion over five years of federal gas tax funding will be $145.2 million. When fully ramped up in year 5, the province’s municipalities can expect to receive more than $58 million, continuing at that rate thereafter.  
• The provincial government will administer the distribution of the federal funds to municipalities following a distribution formula proposed by the Union of Nova Scotia Municipalities (UNSM).
• An Oversight Partnership Committee in Nova Scotia, with representatives from the provincial and federal governments and the UNSM, will monitor the program and develop new directions and initiatives. 
• Eligible project categories include public transit, water, wastewater management, solid waste management, community energy systems, municipal capacity building, and roads and bridges, where it can be demonstrated that they will enhance environmental sustainability outcomes.
• These investments will result in significant environmental benefits, such as cleaner air, cleaner water and reduced greenhouse gas emissions.
• Funds for municipalities will be allocated for eligible projects according to a formula based on population (25%), the number of dwellings in the municipality (25%), and municipal expenditures (50%).  A municipality must enter into an agreement with the province and submit a capital budget before funds are released.   Municipalities can carry over gas tax funds to future fiscal years. 
• Community and regional sustainability planning is crucial in Nova Scotia.  The gas tax agreement will build on provincial and local initiatives that encourage environmental, economic, social and cultural sustainability and the collaboration of all governments to strengthen community capacity.
• The governments of Canada and Nova Scotia will collaborate with municipalities, to enhance community sustainability, and to encourage cooperation in infrastructure projects among municipalities and between municipalities and First Nations on reserve.

Allocation of over $145 million in federal gas tax revenues to Nova Scotia

Examples of Eligible Projects

Water Infrastructure:

• Drinking water supply systems, treatment and distribution systems, and water metering systems

Wastewater Infrastructure:

• Sanitary sewer systems and storm water systems

Solid Waste Infrastructure:

• Waste diversion, material recovery facilities, organics management, collection depots, waste disposal landfills, thermal treatment, and landfill gas recuperation

Community Energy Systems:

• Cogeneration or combined heat and power projects (where heat and power are produced through a single process)
• District heating and cooling projects where heat or cooling is distributed to more than one building.

Other Transportation Infrastructure

• Local roads, bridges and tunnels that enhance environmental sustainability outcomes
• Active transportation infrastructure, such as bike lanes

Capacity Building

• Collaboration: building partnerships, strategic alliances, participation, consultation and outreach
• Knowledge: use of new technology, research, monitoring and evaluation
• Integration: planning, policy development and implementation, such as environmental management systems and life cycle assessment

Public Transit

• Rapid transit such as light rail, ferries and park and ride facilities
• Buses, and transit bus stations
• Technologies to improve transit, priority signaling and traffic information and transit operations

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