Government of Canada announces support for Nunavut infrastructure - water quality and housing top priorities

• Backgrounder

Rankin Inlet, Nunavut, October 5, 2003 - Minister of Industry and Minister responsible for Infrastructure, Allan Rock, and Andy Mitchell, Secretary of State (Rural Development) (Federal Economic Development Initiative for Northern Ontario), together with Steve Mahoney, Secretary of State responsible for Canada Mortgage and Housing Corporation, and Nancy Karetak-Lindell, Member of Parliament for Nunavut, today announced a series of Government of Canada contributions totaling $55 million towards infrastructure improvements in Nunavut.

The Government of Canada will provide $20 million in funding for larger-scale priority water and wastewater projects in communities across the Territory from the $2 billion Canada Strategic Infrastructure Fund announced in Budget 2001. Another $20 million will go towards the provision of housing for low-income singles, seniors and families. This investment will be made under the $2 billion top-up to the Canada Strategic Infrastructure Fund announced in Budget 2003.

Nunavut will also receive over $15 million from the Government of Canada's new Municipal Rural Infrastructure Fund (MRIF), for municipal-rural infrastructure priorities to be negotiated between the Governments of Canada, Nunavut and municipalities.

"Today's announcement represents an important step towards ensuring access to safe water, supporting sustainable urban development and achieving infrastructure goals in the North. These are all priorities that will directly benefit Canadians," said Minister Rock. "These significant investments in northern infrastructure underscore the Government of Canada's commitment to see all Canadians benefit from infrastructure investments, regardless of where they live."

The Government of Nunavut is expected to match the Government of Canada's contribution to the strategic water-wastewater and housing infrastructure initiatives. Today's announcement complements the $120 million announced by Minister Rock since Friday, October 3, 2003, for infrastructure priorities in the Northwest Territories and Yukon. It also comes in addition to more than $150 million announced by Minister Rock for broadband Internet access for northern and remote communities during today's Nunavut visit.

"The Government of Canada is committed to the creation of affordable housing and continues to provide additional funds to achieve that goal," said Secretary of State Mahoney. "The funding announced today will not only generate economic benefits for the Territory, it also represents a significant investment in the lives of Nunavummiut that will contribute to their health and quality of life."

"Canada's rural and remote communities face challenges that differ from their urban counterparts," said Secretary of State Mitchell. "The Municipal Rural Infrastructure Fund will allow us to address these challenges while working in partnership with the provinces, territories and municipalities."

"I am pleased that the Municipal Rural Infrastructure Fund will benefit communities in Nunavut," said Robert Nault, Minister of Indian Affairs and Northern Development. "Through this Fund, the Government of Canada reiterates its long-standing commitment to foster economic development opportunities and improve quality of life of Aboriginal people."

"Vibrant, healthy communities are built on a foundation of strong infrastructure," said Nancy Karetak-Lindell. "The important water and wastewater infrastructure projects announced today will ensure communities across Nunavut have access to clean, safe drinking water, and help protect the environment. The investments announced today in housing are also great news for Nunavut residents and will greatly improve their quality of life, and demonstrate that the Government of Canada has listened to the concerns of Nunavummiut."

For further information contact:

Mylène Dupéré
Office of Allan Rock
(613) 995-9001

Christine Aquino
Office of Andy Mitchell
(613) 759-1087

Infrastructure Canada
Communications and Promotion
(613) 948-1148

Alastair Mulin
Office of Robert Nault
(819) 997-0002

Susan Scullion
Office of Nancy Karetak-Lindell
(613) 992-2848

Chris Vivone
Office of Steve Mahoney
(613) 990-1707

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Backgrounder

Nunavut communities benefit from Government of Canada Infrastructure investments

Water and Wastewater Projects

Communities in Nunavut are currently experiencing significant growth, and their water and wastewater needs are increasing accordingly. In order to help relieve pressure on the existing infrastructure, the Government of Canada will contribute up to $20 million towards water and wastewater infrastructure projects in a number of Nunavut communities, including:

• Cape Dorset Sewage Treatment Facility
  Design and construction of a new sewage treatment system.
• Kugluktuk Sewage System
  Construction of sewage lagoon and associated drainage works.
• Rankin Inlet Sewage Treatment Facility
  Design and construction of wastewater treatment plant, re-using the existing building and configuration of existing facility.

Further details regarding other community water and wastewater infrastructure projects to be funded by the Government of Canada in Nunavut will be made available in the near future.

Housing Projects

In order to address the significant housing needs of Nunavummiut, the Government of Canada will contribute up to $20 million toward the provision of social housing for singles, seniors and families with household incomes at or below the applicable Housing Income Limits (HIL) under the CMHC-Nunavut Social Housing Agreement. Combined with the Government of Nunavut's contribution, 160 new housing units could be constructed over a two-year period, with all 25 communities in Nunavut benefiting from these funds. Innovative building technologies will be investigated that could reduce the high cost of construction in the North, providing for additional units to be constructed. This funding will come from the $2 billion top-up to the Canada Strategic Infrastructure Fund announced in Budget 2003. Further details on this initiative will be made available in the near future.

In order to respond to the unique infrastructure needs of the North, a northern infrastructure category was introduced in the Budget 2003 $2 billion top-up of the Canada Strategic Infrastructure Fund. This category will provide the Government of Canada with more flexibility in identifying strategic projects in the North eligible for funding under CSIF. Today's announcement of funds for housing projects in Nunavut is the first example of a project approved under this category.

The Government of Canada has previously announced an allocation of $4.9 million, matched by funding from the Government of Nunavut, to increase the affordable housing supply in Nunavut under the Canada-Nunavut Affordable Housing Agreement. This is part of the $680 million announced in the 2001 federal budget to create additional affordable housing across Canada. An additional $320 million for affordable housing was announced in 2003. In addition, the Government of Canada provides over $50 million in annual grants, contributions and subsidies to reduce housing costs and repair substandard housing.

Government of Canada Infrastructure Funding Sources

Through the Canada Strategic Infrastructure Fund, the Government of Canada works with provincial, territorial and municipal governments, as well as with the private sector, to meet strategic infrastructure needs throughout the country. Initially funded at $2 billion, CSIF supports large-scale strategic infrastructure projects that improve quality of life and further economic growth. In 2003, the Government of Canada provided an additional $2 billion for the Fund to support program priorities including water quality and access, trade corridors, broadband connectivity, sustainable urban growth and northern infrastructure.

Nunavut will also receive $15 million from the Municipal Rural Infrastructure Fund (MRIF), announced on August 20, 2003. The $1 billion MRIF will respond to the specific needs of Canada's municipalities and rural and remote areas.

MRIF will have a green infrastructure focus and will target projects such as water and wastewater treatment infrastructure, municipal environmental energy improvements, public transit infrastructure and solid waste treatment infrastructure. Other eligible categories under this Fund are cultural, tourism and recreational infrastructure, local roads and broadband connectivity.

In the Speech from the Throne of September 30, 2002, the Government of Canada committed to an additional 10-year involvement in public infrastructure. Its Budget 2003 re-affirmed this long-term commitment and provided an additional $3 billion in infrastructure support, thus bringing the Government of Canada's contribution to infrastructure to $12 billion since 1993.