News Release

• Agreement - Gas Tax
• Agreement - MRIF (PDF Version)

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August 3, 2005

NUNAVUT’S MUNICIPALITIES BENEFIT FROM $69.5 MILLION FOR INFRASTRUCTURE UNDER THE NEW DEAL FOR CITIES AND COMMUNITIES

IQALUIT, Nunavut - Two agreements that will see Nunavut municipalities receive $69.5 million for infrastructure projects and municipal planning were announced today. Participating in the announcement were Transport Minister Jean C. Lapierre, Community and Government Services Minister Levinia Brown, Member of Parliament Nancy Karetak-Lindell, and the President of the Nunavut Association of Municipalities (NAM) Johnny Ningeongan. Minister Lapierre attended the announcement on behalf of Minister of State for Infrastructure and Communities, John Godfrey, and Minister of Indian Affairs and Northern Development, Andy Scott.

“The Government of Canada is committed – through the New Deal for Cities and Communities – to provide municipalities with stable and predictable funding,” said Minister Lapierre. “Today marks a new partnership that will provide Nunavut’s municipalities with opportunities to grow stronger, to be more sustainable and to ensure a higher quality of life.”

The first agreement provides $37.5 million in federal gas tax funding over five years for Nunavut municipalities. The second agreement details the Municipal Rural Infrastructure Fund (MRIF), providing $16 million from the Government of Canada and $16 million from the Government of Nunavut. The agreements were witnessed by NAM.

“These funds will have a tremendous positive and almost immediate impact by providing much-needed infrastructure to all Nunavut communities,” said Minister Brown. “The Government of Nunavut has empowered Nunavut’s municipalities by involving them directly in the capital planning process. I look forward to working collaboratively with Nunavut’s municipalities as we move forward to complete municipal infrastructure projects.”

Gas tax funding should start to flow this fiscal year, providing Nunavut municipalities with $4.5 million in the first year and ramping up to $15 million in year five, continuing at that level thereafter. The funds will support environmentally sustainable municipal infrastructure to help ensure cleaner air, cleaner water and reduced greenhouse gas emissions. Eligible project categories include water, wastewater management, and solid waste management. Funding can also help Nunavut communities build capacity for planning to achieve sustainability.

M.P. Karetak-Lindell remarked, “Today’s announcement is good news for the health and prosperity of our communities. This is one of the Government of Canada’s top priorities and I am happy to be here, delivering on our commitment. The New Deal is about federal and territorial governments working in partnership with municipalities and municipal associations, and about providing them with a voice in decisions that affect them.”

Nunavut will receive more than a per capita share of the total gas tax funding available for Canada’s provinces and territories, recognizing the need for less-populated jurisdictions to have sufficient funds to invest in infrastructure and the increased costs for infrastructure in the North. Within Nunavut, gas tax funding will be allocated based on population, while respecting the need to adjust for the smallest hamlets.

Under MRIF, Canada and Nunavut will each contribute 50 percent of the costs of approved projects. Forty percent of the fund in Nunavut has been reserved for “green” projects. Communities can propose a variety of projects that will support repairs and improvements to water, wastewater, recreational and other basic community infrastructure, including support for tourism and cultural projects. Infrastructure Canada will collaborate with Indian and Northern Affairs Canada in the delivery of the program.

A Nunavut Community Infrastructure Advisory Committee, with representatives from the Government of Nunavut and NAM, will develop long-range community infrastructure plans, and advise on priorities for infrastructure funding. The advisory committee will work with Nunavut’s communities.

“I am extremely pleased with the newly created role for Nunavut’s municipalities through the advisory committee,” said President Ningeongan. “This substantial investment by Canada and Nunavut into the territory’s municipal infrastructure is most welcome and needed.”

These agreements build on investments under the Government of Canada’s New Deal for Cities and Communities including the Goods and Services Tax rebate of $7 billion over 10 years; $5 billion over five years in gas tax funding across Canada; and up to $800 million over two years for public transit. The New Deal promotes the economic, social, environmental, and cultural sustainability of Canada’s communities. It is focused on establishing a long term vision for Canada's communities, building new relationships among all orders of government and with other partners, providing predictable and stable long-term funding, and strengthening the connections among federal programs that benefit cities and communities.

Under the Canada Strategic Infrastructure Fund, the Government of Canada is providing Nunavut with $20 million for larger-scale priority water and wastewater projects, another $20 million for social housing, and close to $8 million in support of the QINIQ network, which connects 25 Nunavut communities to each other and the Internet backbone via satellite.

Johnny Ningeongan, President of the Nunavut Association of Municipalities, signs the Municipal Rural Infrastructure Fund and federal gas tax funding agreements announced August 3, 2005, in Iqaluit, as federal Transport Minister Jean C. Lapierre, Nunavut's Community and Government Services Minister Levinia Brown and Member of Parliament for Nunavut Nancy Karetak-Lindell look on.

Contacts:

Carla Ventin
Director of Communications
Office of Minister of State (Infrastructure and Communities)
(613) 948-2688

Shawn Maley
Assistant Deputy Minister
Department of Community and Government Services
(867) 645-8101

Lynda Gunn
Nunavut Association of Municipalities
(867) 979-3111