Speech by Reg Alcock President of the Treasury Board to the Sixth Annual Convention of the Association of Manitoba Municipalities Check Against Delivery November 24, 2004 Winnipeg Convention Centre Winnipeg, Manitoba Thank you, George (Harbottle), and good day, ladies and gentlemen. I'm pleased to be with you today, even though it has to be a virtual visit. But I couldn't miss this opportunity to congratulate you on your leadership and outstanding service to citizens throughout this province. I was born and raised in Winnipeg. This city, and this province, have helped make me the person I am today. I'm sure each of you feels the same way about your own home town. Vaclav Havel, leader of the Velvet Revolution and former President of the Czech Republic, once observed, "Genuine politics ... is simply a matter of serving those around us: serving the community and serving those who will come after us." That's the story of my professional life. It also sums up the contributions made by this Association. As your description of this convention quite rightly notes, leadership cannot exist without motivation and inspiration. Your members have consistently met that challenge with unwavering personal commitment to the people of Manitoba. Communities are where it all happens. They are the places where national policies touch individual lives. They are the places where we live, go to work and raise our families. Our quality of life is measured on our streets, in our parks, within our neighbourhoods. Canadians want their communities, towns and cities to be great places to live. Communities are key to our social goals and our economic competitiveness. They are the front lines in building a better quality of life. On December 12, 2003, as one of his first acts as Prime Minister, Paul Martin created a Cities Secretariat within the Privy Council Office with the John Godfrey as his Parliamentary Secretary. Last July, the Prime Minister named Mr. Godfrey Minister of State (Infrastructure and Communities), thereby combining the Secretariat for Cities with Infrastructure Canada to form a new ministry. This department gives us a new focal point for coordinating federal support for local improvements. Over the last three years, the federal government has announced over $180 million in infrastructure investments in Manitoba. For example, federal funds have been earmarked for: A recycling facility for Brandon, Wastewater system upgrades in Dauphin, and The Downtown Waterfront Renewal project here in Winnipeg, But we haven't limited this support for infrastructure renewal to the province's larger municipalities. We've also approved projects in Norway House, Ritchot, Morden, Binscarth, and many other towns and rural municipalities. The Prime Minister has committed to give municipalities a stronger voice in decisions that affect them, to assist municipalities in securing stable predictable and long-term funding and to look at opportunities for place-specific agreements. Canada's communities, large and urban, rural and small, face very different challenges and require very different solutions. But both are key if we are to achieve our social goals and ensure our economic competitiveness. And both are facing enormous financial pressures. Healthy, sustainable communities -regardless of whether they're big or small - are essential to Canada's prosperity and sustainable development. That's why the October Speech from the Throne included a New Deal for Cities and Communities. This initiative is all about making the lives of Canadians better by making the places they live better. We will be working with the other levels of government on infrastructure and regional development. We are committed to strengthening our regional resource economies - to ensuring our resource sectors benefit from modern technologies, to building on our core strengths in agriculture, fishing and the range of our natural resources. The New Deal has four key elements: The first is developing a vision of where Canadian cities and communities of all sizes can be in 30 years. No one level of government has the means to address the challenges alone. We need to work together - government, the private sector, and society in general - to ensure that our efforts are complementary, responsive to local needs and consistent with shared objectives. Element number two focuses on synergy for sustainability. There is no "one-size-fits-all solution" to the challenges facing Canada's cities and communities. The New Deal recognizes that each city and community has its own unique challenges and needs. The plain fact is that smaller communities sometimes have big infrastructure needs in important areas. But sometimes the tax base makes it very difficult to afford major projects. That's why we're making sure that smaller communities receive their fair share of infrastructure funds. Our new approach is to look at these programs through a "cities and communities lens" so that we effectively harness existing resources and make them work better on behalf of communities both large and small. Relationships is the third element. Since January 2004, John Godfrey has travelled to every province in the country to meet with municipal leaders, including at least 80 mayors and councilors. He's met with provinces, territories, municipalities and stakeholders on the shape, direction and management of Canada's multi-billion dollar infrastructure program. The consultations and relationship-building focus on improving collaboration between all orders of government and public and private-sector stakeholders involved in municipal affairs. The New Deal for Cities and Communities respects provincial jurisdiction, while recognizing the need to act at every level of government to alleviate the very real stresses facing cities and communities. The Winnipeg Development Agreement, signed on May 20, is a good example of an effective and innovative mechanism for cooperation and coordination between all orders of governments across program areas, while addressing issues unique to the local environment. And we're currently looking to identify opportunities for further tripartite agreements in other large cities. The final key element of the New Deal is stable, long-term funding. As you will recall, since Budget 2004, all municipalities have received 100% of the GST rebate. This is new money, flowing now. It will provide up to $7 billion in unconditional new money directly to municipalities over 10 years. This funding is now benefiting every incorporated municipality in Canada. In addition, the Government of Canada is exploring mechanisms with provincial and territorial partners to ensure that a portion of the gas tax, or an equivalent amount, flows to municipalities for sustainable infrastructure initiatives. This investment will result in a $5-billion boost to cities and communities over five years, starting in 2005 and building up to $2 billion in the fifth year. On November 12, Minister Godfrey met with Provincial and Territorial Ministers responsible for municipal affairs. The meeting produced a general agreement on principles for the distribution of the gas tax and a real desire to get moving quickly on bi-lateral deals. This was a significant meeting, not only because it was the first time in over a decade that a federal Minister was invited to a meeting with his provincial and territorial counterparts, but also because all the provinces and territories unanimously agreed on the general principles guiding the gas tax. The meeting was very constructive, and our goal is to have bi-lateral agreements signed with as many provinces and territories as possible by February so that money can begin to flow in Budget 2005, as we promised during the election. Well-defined agreements with provinces and territories will ensure that this funding is not "clawed back." The funding formula will be simple, transparent and equitable to benefit both large and small cities. We recognize that Manitoba's other municipalities don't always share the same issues as Winnipeg. Priorities such as water-related infrastructure and agriculture as an economic engine are good examples. The need to focus on these key issues is why the Parliamentary Secretaries for Rural Communities and Rural Development are contributing ideas and advice to discussions about the New Deal. Our goal is to ensure that all of Canada's communities are enabled to fulfill their potential. Canada's quality of life depends on strong, vibrant and sustainable cities and communities. With the implementation of the New Deal for Cities and Communities, the Government of Canada is promoting new partnerships among federal, provincial, and municipal governments. Together we can deliver more stable, predictable, long-term funding for cities and communities in urban and rural areas. Last May, the Prime Minster spoke to the AGM of the Federation of Canadian Municipalities in Edmonton. Some of you may have been there. On that occasion, he described meeting a young woman named Hannah. Along with her friends and classmates, Hannah raised more than $50,000 to help the homeless in Winnipeg. Fifty-thousand dollars. And do you know what's even more encouraging? Hannah is only eight years old. She saw a problem and, with the help of others, made her community a better place. The results of her hard work will be felt throughout this city. As the Prime Minister noted in his speech to the FCM, we want a Canada in which the funding burden on our communities is being reduced, not increased. We want a Canada in which our cities are thriving and vibrant, not struggling to keep their infrastructure from crumbling. We want a Canada where our cities and communities play an increased role in the national debate. We believe that the active participation of strong, healthy municipalities will help all levels of government to co-operate to set and attain important new national objectives. The communities you represent are real and mature partners in our nation. They deserve a seat at the national table, when their interests are discussed, because it's in our collective interest. Let me conclude with a thought from Margaret Mead, who introduced many people to anthropology and its holistic vision of the human species. She once observed, "Never doubt that a small, group of thoughtful, committed citizens can change the world." The work you do through the Association of Manitoba Municipalities highlights the power of those words in action. Thanks for helping to make my home town and province such a great place to live. And best of luck in the future as you continue to motivate, inspire and lead. Thank you.