Roberval, Quebec - 25 June 2014
The Government of Canada is committed to helping Quebec municipalities build and revitalize their public infrastructure with a view to generating jobs, growth and prosperity and well-being in the province. To this end, Prime Minister Stephen Harper today announced with Quebec Premier Philippe Couillard the finalization of the renewal of the Gas Tax Fund Administrative Agreement with Quebec. The Agreement will provide an estimated $5 billion in predictable long-term support over the next 10 years for the province’s municipalities to help them build and revitalize their public infrastructure priorities.
The Gas Tax Fund Administrative Agreement with Quebec sets out the amount of funding to be transferred from the Gas Tax Fund (GTF) to the Government of Quebec, how the Government of Quebec intends to disburse the funding to municipalities and the reporting requirements.
The renewed Agreement is effective as of April 1, 2014 and will be in effect until March 31, 2024. This new agreement replaces the Canada-Quebec Gas Tax Agreement, which covered the period between 2010 and 2014.
The GTF offers a flexible approach to infrastructure financing. Municipalities receive support up-front twice a year through provincial and territorial governments or the municipal associations designated to deliver funding in the province. Communities choose projects locally and prioritize them according to their needs. Smaller municipalities with limited capital infrastructure budgets particularly benefit because funding is delivered before money is spent. This reliable, up-front support provides greater certainty for municipalities to plan and carry out large-scale projects.
GTF allocations are for the most part determined on a per-capita basis for provinces, territories and First Nations communities. For 2014-15 to 2018-19, allocations are based on Census 2011 numbers and allocations will be updated for 2019-2020 to 2023-2024 to reflect Census 2016 data.
To date, over 3,600 municipalities have benefited from the financial support and flexibility the GTF offers. Since its inception, over 15,000 projects across Canada have received funding.
Since 2006, significant improvements have been made to the GTF. It has been extended, doubled, indexed and made permanent. By enshrining these commitments in legislation, provinces, territories and municipalities are assured of an ongoing funding stream to address their municipal infrastructure needs and priorities.
Announced as part of Economic Action Plan 2013, the renewed GTF is the result of consultations with mayors and the Federation of Canadian Municipalities. As a result of their input, eligible categories have been expanded, providing municipalities with more flexibility than ever before to support local infrastructure. The following categories are now eligible for support: public transit; wastewater infrastructure; drinking water; solid waste management; community energy systems; local roads and bridges; capacity building; highways; local and regional airports; short-line rail; short-sea shipping; disaster mitigation; broadband and connectivity; brownfield redevelopment; culture; tourism; sport; and recreation.
Canada’s GTF transfer has provided $13 billion to Canadian communities to date. Over the 10-year lifespan of the New Building Canada Plan (NBCP) from 2014 to 2024, the GTF will provide close to $22 billion in funding for municipalities.
The GTF is the largest component of the historic NBCP, which will provide $53 billion in funding to communities across the country over the next decade. For Quebec, this represents more than $6.7 billion in dedicated federal funding, including more than $1.7 billion under the New Building Canada Fund and an estimated $5 billion under the GTF. Quebec also stands to benefit from the Government of Canada’s following national funding programs:
- $4 billion available across the country for projects of national significance;
- $1.25 billion in additional funding available for P3 projects; and
- $10.4 billion via the GST Rebate, which provides municipalities across the country with additional resources to address their infrastructure priorities.
