Construction of Penobsquis Regional Water Supply System Begins through Gas Tax Funding

Penobsquis, New Brunswick, August 19, 2008 - Residents of Penobsquis will have access to safe drinking water through a new regional water supply system. Today, the governments of Canada and New Brunswick proceeded with the official sod-turning to mark the beginning of construction of the new system.

The Government of Canada is contributing $7,795,000 and the Government of New Brunswick is contributing $205,000, for a total contribution of $8 million, under the Canada-New Brunswick Agreement on the Transfer of Federal Gas Tax Revenues and the Provincial Gas Tax Transfer Top-up Fund. The Potash Corporation of Saskatchewan (Potash Corp) is contributing $1.3 million to the project, which total estimated cost is $9.3 million.

Mr. Rob Moore, Member of Parliament for Fundy–Royal, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and Premier Shawn Graham took part in the sod-turning event in Penobsquis.

“Today is a great day as we take this important step towards safer drinking water for residents of Penobsquis,” said MP Moore. “By committing to make the Gas Tax Fund permanent as of 2014, our Government is taking action to ensure that New Brunswickers can count on healthier and more prosperous communities.”

“Today’s milestone event is an important day for the residents of Penobsquis,” said Graham. “Our government is committed to working with communities to ensure safe and adequate community infrastructure for all New Brunswickers, including residents of Penobsquis.”

The new water supply system consists of approximately 12 kilometres of pipe to distribute the water to the residents. The system will also include a well house where chlorination will be introduced and an above ground water reservoir for water storage.

New Brunswick municipalities will receive $116.1 million from the Gas Tax Fund from 2005 to 2010, to which the Government of New Brunswick will add $30 million. Following Budget 2007, a further $178.5 million in gas tax funding will flow to New Brunswick communities from 2010 to 2014, for a total of $294.6 million in federal funding over nine years.

The Penobsquis Regional Water Supply project is part of a five-year Capital Investment Plan developed for Unincorporated areas by the Department of Local Government of New Brunswick under the Gas Tax Revenue agreement.

In December 2007, the governments of Canada and New Brunswick announced the signing of the Building Canada Framework Agreement. With this agreement, the Government of Canada committed to an investment of more than $541 million towards infrastructure needs in New Brunswick from 2007 to 2014. In addition, in Budget 2008, the Government of Canada announced that the Gas Tax Fund will become permanent from 2014, at $2 billion per year. This will facilitate long-term planning by municipalities.

Karine White
Press Secretary
Office of the Minister of Transport, Infrastructure and Communities
613-991-0700

Daniel Lessard
Public Affairs Officer
Department of Local Government
Province of New Brunswick
506 444-4693

Infrastructure Canada
Communications
613-948-1148