Canada's Gas Tax Fund supports local infrastructure priorities throughout the Territory
August 12, 2014 – Yellowknife, Northwest Territories – Infrastructure Canada
The Honourable Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development Canada and the Honourable Jackson Lafferty, Deputy Premier, Minister of Education, Culture and Employment, and Minister Responsible for the Workers' Safety and Compensation Commission for the Northwest Territories, celebrated today an agreement for the renewed federal Gas Tax Fund that provides predictable, stable funding for public infrastructure to municipal governments across the Northwest Territories.
The Gas Tax Fund Administrative Agreement with the Northwest Territories sets out the amount of funding to be transferred from the federal Gas Tax Fund (GTF) to the Government of the Northwest Territories, as well as how the Government of the Northwest Territories intends to disburse the funding to local governments and the reporting requirements.
The Agreement provides communities in the Northwest Territories with support to undertake priority public infrastructure projects, which create jobs, and contribute to economic growth and improving the quality of life for families in communities across the territory.
The GTF provides municipalities with the flexibility to choose and fund infrastructure projects based on their specific priorities. The renewed agreements will govern the flow of federal funds to each province and territory over the next 10 years from 2014-15 until 2023-24.
Starting this year, the renewed federal Gas Tax Fund is being indexed at two per cent per year, which means that it will grow by $1.8 billion over the next decade. In addition, the number of eligible investment categories has doubled, providing municipalities with more flexibility than ever before to support local infrastructure.
Announced as part of Economic Action Plan 2013, the renewed GTF is the result of consultations with mayors and the Federation of Canadian Municipalities.
- Canada's Gas Tax Fund transfer has provided $13 billion to Canadian communities to date. Over the 10-year life of the New Building Canada Plan from 2014 to 2024, the Gas Tax Fund will provide close to $22 billion in funding for municipalities.
- In total, the New Building Canada Plan will provide $53 billion in funding to communities across the country over the next decade. For the Northwest Territories, this represents approximately $421 million in dedicated federal funding, including more than $258 million under the New Building Canada Fund and an estimated $163 million under the federal Gas Tax Fund*.
- The Northwest Territories 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 public-private partnership (P3) projects,
- $10.4 billion via the GST Rebate, which provides municipalities across the country with additional resources to address their infrastructure priorities.
- Since the beginning of the program, 240 projects have benefitted from funding under the Gas Tax Fund in the Northwest Territories. For example, the GTFsupported the following projects in the Northwest Territories:
- A local youth centre solar power initiative in Paulatuk;
- New Water Treatment Plant in Yellowknife;
- Utilidor replacement in Inuvik;
- All 33 NT communities completed their Integrated Community Sustainability Plans (ICSP).
- Eligible investment categories under the GTF include: drinking water; wastewater and solid waste; public transit; local roads and bridges; community energy systems; capacity building; disaster mitigation; broadband connectivity; highways; short-line rail; short-sea shipping; brownfield redevelopment; regional and local airports; and projects supporting culture, tourism, sport and recreation.
[*]NOTE: GTF funding by jurisdiction for the first five years (2014-2019) is based on 2011 Census data. GTF funding for 2019-2024 will be based on 2016 Census data. For illustrative purposes, Census 2011 data has been used for all 10 years. Due to the indexation of the GTF, funding for 2019-2024 is expected to be at least equal to GTF funding for the first five years.
Vincent Rabault
Press Secretary
Office of the Minister of Infrastructure, Communities and Intergovernmental Affairs and
Minister of the Economic Development Agency of Canada for the Regions of Quebec
613-943-1838
Erica Meekes
Press Secretary
Office of the Minister of Aboriginal Affairs and Northern Development
819-997-0007
David Maguire
Communications/Web Advisor
Municipal and Community Affairs
Government of the Northwest Territories
867-920-3092
Infrastructure Canada
613-960-9251
Toll-free 1-877-250-7154
Email: media@infc.gc.ca
Twitter: @INFC_eng
Website: Infrastructure Canada
