Nunavut receives $4.5 million in Federal Gas Tax Funding for infrastructure

Nunavut, August 28, 2006 - The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, the Honourable Levinia Brown, Nunavut Minister of Community and Government Services, and Elisapee Sheutiapik, President of the Nunavut Association of Municipalities (NAM), announced today that Nunavut has received $4.5 million in federal gas tax funding for infrastructure projects and municipal capacity building.

"We are pleased to see these funds flowing to Nunavut to address the local infrastructure investment needs through stable and predictable funding," said Minister Cannon. "Through this agreement, we are working in partnership to help ensure that all of Nunavut's communities enjoy improved quality of life, more economic opportunities, a healthier environment, and safety and security."

The $4.5 million transferred today by the Government of Canada to Nunavut represents the second half of Nunavut's 2005-06 gas-tax allotment and the first half of their 2006-07 allotment. Nunavut will flow the money to communities within the territory. Over five years, gas tax funding of $37.5 million will be shared with communities across Nunavut.

"The Government of Nunavut is committed to improving the infrastructure and quality of life of residents within Nunavut communities," said Minister Brown. "This current funding agreement with the Federal Government is a good start to that end and we look forward to their continued support and cooperation in the future."

Canada's new government is committed to sharing federal gas tax revenues - $5 billion over five years - with cities and communities across Canada. Gas tax funds support environmentally sustainable municipal infrastructure and will result in such environmental benefits as cleaner air and cleaner water in Nunavut. Eligible project categories in Nunavut include water, solid waste and wastewater systems. Funding can also help Nunavut communities build capacity for planning more sustainable communities.

"We are extremely pleased about the funding and the recognition of the infrastructure needs in Nunavut's municipalities," said Her Worship Mayor Sheutiapik. "This funding will make a real difference and we look forward to being full participants in the project identification and approval process."

Nunavut receives more than its per capita share of the total gas tax funding available for provinces and territories, in recognition of the need for less-populated jurisdictions to have sufficient funds to invest in infrastructure and of the greater costs of infrastructure in the North. Within Nunavut, gas tax funding is allocated to communities under a flexible approach, as close as possible to a per capita basis, in respect of the need to adjust for the smallest jurisdictions. This allocation formula was negotiated between Canada, Nunavut and the Nunavut Association of Municipalities prior to concluding the Agreement.

For further information contact:

Natalie Sarafian
Press Secretary
Office of the Honourable Lawrence Cannon,
Minister of Transport, Infrastructure and Communities
Tel: (613) 991-0700

Napatchie Kolola
Communications
Government of Nunavut
Tel: (867) 975- 6049

Infrastructure Canada
Communications
Tel: (613) 948-1148