Canada's New Government Invests Gas Tax Funds in British Columbia's Cities and Communities

British Columbia, July 28, 2006 - The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, the Honourable Ida Chong, B.C. Minister of Community Services, and Marvin Hunt, President of the Union of British Columbia Municipalities (UBCM), are pleased to announce that British Columbia's local governments have received their first of instalment of Year 2 federal gas tax payments. Over $29 million in federal gas tax funds were distributed today to 151 local governments outside of the Greater Vancouver area and to the Greater Vancouver Transportation Authority (GVTA). This is in addition to $60 million that BC's cities and communities received last year.

"We are very pleased to deliver these gas tax funds to BC's communities," said Minister Cannon. "This funding will result in improvements to the Greater Vancouver's transit system by enabling the purchase of 225 new buses, the construction of infrastructure priorities such as cycling lanes and improvements to municipal water treatment. This will not only result in environmental improvements but will make a noticeable contribution to BC's communities by allowing them to invest in the infrastructure priorities that they have identified."

"We welcome this payment under the Gas Tax Transfer. It is good news for local governments and their communities," said Minister Chong. "By working with the Union of B.C. Municipalities, we came up with a unique made-in-B.C. approach which will see stronger and healthier communities with cleaner water, cleaner air and better transit."

The UBCM is a signatory to this agreement, and has played a lead role in the implementation of the agreement, including the delivery of funds to individual local governments and the GVTA.

"We can now see that federal gas tax funds are leading to investments in important projects that have a positive impact on our communities," said President Hunt. "This transfer will help ensure that all of British Columbia's cities and communities enjoy a high quality of life, economic opportunity and a healthy environment."

Canada's new government is committed to sharing gas tax revenues - $5 billion over five years - with cities and communities across Canada. For B.C. alone, this initiative is worth over $635 million over five years. Local governments are able to use their gas tax funds for environmentally sustainable infrastructure projects. Eligible project categories include water and wastewater, solid-waste management, public transit, community energy systems and local government capacity building. Decisions on how these funds are invested will be made locally in a way that responds to the infrastructure needs of each community and results in environmental benefits such as clearer air, cleaner water and reduced greenhouse gas emissions for all British Columbians.

Individual local government share of the first payment from the
2006-2007 Federal Gas Tax Allotment

For further information contact:

Natalie Sarafian
Press Secretary
Office of the Minister of Transport,
Infrastructure, and Communities
(613) 991-0700

Sarah Harrison
Communications Director
Ministry of Community Services
Province of British Columbia
(250) 953-3677

Infrastructure Canada
Communications Directorate
(613) 948-1148

Brenda Gibson
General Manager, Gas Tax/Public Transit Management Services
Union of BC Municipalities
(250) 356-0862