QUESTION PERIOD — Infrastructure, Communities and Intergovernmental Affairs
Gas Tax Fund
March 11, 2020
Honourable senators, my question is for the Government Representative in the Senate. In the last federal budget, the government recognized the need to quickly address the municipal infrastructure maintenance deficit with a one-time doubling of the Gas Tax Fund. Unfortunately, the government insists on excluding municipal properties from the program. A municipality cannot modernize its firehouse, city hall or municipal garage with gas tax revenue. This situation is causing problems for small municipalities.
What’s more, unlike bigger cities, small municipalities cannot transfer money to other projects to make the most of the Gas Tax Fund. This initiative for municipalities creates a lot of problems for small municipalities, and municipal officials would like to be able to decide for themselves which investment projects take priority.
The government already has a lot on its plate right now with the coronavirus, reconciliation with First Nations and a teetering global economy. Shouldn’t the government leave it up to the municipalities to freely establish their priorities for the Gas Tax Fund?
Thank you for the question. It’s an important question, especially for the municipalities, and I understand their concerns.
As you said, between 2005 and 2014, the purpose of the Gas Tax Fund was to support the municipalities. The previous government had added five new categories to the fund in 2014, and we added another 18 categories of projects. The eligible categories are extensive. They include a number of things, such as public transit, roads, local bridges, drinking water and wastewater infrastructure, recreation facilities, disaster mitigation, capacity building, and so on.
Unfortunately, city halls and municipal garages are not eligible, because as I mentioned, the fund is not intended to pay for basic municipal operating costs. It’s also worth noting that Quebec is also responsible for administrating the federal Gas Tax Fund through its own gas tax program. In fact, Quebec’s department of municipal affairs is responsible for the municipalities in such a context.
