NEW BRUNSWICK COMMUNITIES TO RECEIVE OVER $116 MILLION THROUGH THE NEW DEAL FOR CITIES AND COMMUNITIES AND $30 MILLION FROM NEW BRUNSWICK

FREDERICTON, New Brunswick - John Godfrey, Minister of State (Infrastructure and Communities), and Minister of Environment and Local Government designate Trevor Holder were in Fredericton today for the signing of an agreement that will see more than $116 million in federal gas tax revenues, as well an additional $30 million from the province, invested in communities across New Brunswick over five years for environmentally sustainable municipal infrastructure.

The signing of the gas tax sharing agreement was witnessed by representatives of the Union of Municipalities of New Brunswick, the Francophone Association of Municipalities of New Brunswick, and the Cities of New Brunswick Association,

“The signing of this agreement demonstrates our commitment to provide cities and communities, both large and small, with stable and predictable funding,” said Minister Godfrey. “We are happy that all of New Brunswick’s municipalities got the investments they wanted, and that our collective priorities are being reinforced with over $116 million in new federalfunding over five years. Through this agreement, we are working in partnership to ensure all New Brunswick communities are sustainable, vibrant places.”

“With this New Deal, all New Brunswickers get their fair share of gas tax revenue. We believe that if New Brunswickers from all regions of the province pay gas taxes then they are entitled to the tax, wherever they live,” said Premier Bernard Lord. “This way we will ensure that larger populated municipalities will get a share of the tax and the smaller populated Local Service Districts (LSDs) will get their share. This was the right thing to do and it was a matter of fairness.”

“We have made the New Deal a top priority,” stated Federal Minister Responsible for New Brunswick Andy Scott, “and these federal gas tax funds demonstrate our commitment to ongoing infrastructure improvement to meet New Brunswick’s priorities, while achieving national goals.”

“We have been working hard with the municipal associations to ensure that all New Brunswickers get to benefit from this program,” said Minister Holder. “As a result of these discussions, the Province has agreed to top up the fund with an additional $30 million. By topping up the fund, municipalities and LSDs will have access to additional funding to build more green infrastructure.”

The New Deal is about building new relationships, including those with the Union of Municipalities of New Brunswick, the Francophone Association of Municipalities of New Brunswick, and the Cities of New Brunswick Association, which played an important role in reaching this agreement. Lorne Mitton, past-president of the Cities of New Brunswick Association, Karen Titus, president of the Union of Municipalities of New Brunswick, and Jean Lanteigne, president of the Francophone Association of Municipalities of New Brunswick, commended the initiative.

“It is a great day for the people of New Brunswick,” said Mr. Mitton. “We will be able to fix aging infrastructure and have sustainable communities. I would like to thank Minister Godfrey and Premier Bernard Lord for making this happen and we look forward to working as a team to implement the deal.”

“We are pleased that we came to a consensus,” said Ms. Titus. “We are pleased to see the money will flow to the municipalities.”

“We are excited with the conclusion of this deal,” said Mr. Lanteigne. “We would like to congratulate the federal and provincial governments on reaching an agreement.”

Gas tax funds will be invested in environmentally sustainable municipal infrastructure. Eligible project categories include public transit, community energy systems, water, wastewater treatment and storm sewer drainage systems, solid waste management, 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 or reduced greenhouse gas emissions. An Oversight Committee, with representatives from the federal and provincial governments, will monitor the implementation of the agreement and develop a plan for the next phases of the New Deal.

The Government of Canada and the Government of New Brunswick have agreed to negotiate a Final Agreement on Transfer of Funds for Public Transit for the benefit of New Brunswick transit systems. New Brunswick’s share of the $800 million identified for public transit will total $18.8 million.

This funding will support the environmental objectives of reduced greenhouse gas (GHG) emissions and cleaner air.

The Government of Canada and the Government of New Brunswick agree that the allocation of public transit funds in New Brunswick will be based primarily upon ridership and allocated to the cities of Fredericton, Moncton and Saint John, using the most recent publication of the Canadian Urban Transit Association operating data. A portion of funds may also be used for a transit pilot project in Bathurst.

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 to provide $800 million over the next two years for transit funding, of which New Brunswick’s share will be $18.8 million. Budget 2005 also committed to the future renewal of CSIF, BIF and MRIF.

Allocation of over $116 million in federal gas tax revenues to
New Brunswick (by fiscal year)

Fiscal year	Canada’s Contribution
2005-2006	$ 13,927,000
2006-2007	$ 13,927,000
2007-2008	$ 18,570,000
2008-2009	$ 23,212,000
2009-2010	$ 46,424,000
TOTAL	$ 116,060,000