AGREEMENT SIGNED ON NEW DEAL FOR CITIES AND COMMUNITIES

VANCOUVER – Prime Minister Paul Martin, British Columbia Premier Gordon Campbell and Aaron Dinwoodie, President of the Union of British Columbia Municipalities (UBCM), have signed an agreement on federal gas tax investments in B.C.’s cities and communities, marking a new relationship among the three orders of government.

“When I first launched the concept of the New Deal in 2002, it was my hope that all orders of government work in partnership to build sustainable communities, large and small, across the country,” said Prime Minister Martin. “The New Deal was a centrepiece of the budget tabled just seven weeks ago, when we told provinces, territories and municipalities how much gas tax money they would see. Today I stand here delivering that promise to B.C.’s communities.”

“This agreement represents a new way of working together, with all levels of government at the table working in partnership to help communities respond to the issues they face,” said Premier Campbell. “The Province is committed to giving our municipalities the tools they need to become truly sustainable, and this agreement builds on the progress we have made over the past four years in B.C.”

The agreement between the Governments of Canada and British Columbia and the UBCM marks their consensus on issues related to how the gas tax funds will be used in B.C. to support environmentally sustainable municipal infrastructure. They have agreed to report regularly on the outcomes achieved. In addition, the agreement also provides a framework for work on other elements of the New Deal, such as a long-term vision to promote the sustainability of Canada’s cities and communities.

“The Union of British Columbia Municipalities will play a key role in the administration of the funds,” said Dinwoodie. “I want to thank the federal and provincial government for their vote of confidence. This agreement will deliver real benefits to all B.C.’s cities and communities. We did not have this a year ago.”

“This is good news for all British Columbians,” said Murray Coell, Minister of Community, Aboriginal and Women’s Services. “The three levels of government represented here today have come a long way very quickly. This shows how committed we are to the sustainability of B.C.’s cities and communities.”

Today’s signing reflects the negotiation efforts underway between the Government of Canada and all provinces and territories to promptly flow the gas tax to Canada’s cities and communities.

Infrastructure and Communities Minister John Godfrey stated that, “While B.C. is first up to bat, I am pleased to report that negotiations with all provinces and territories have been positive.” He noted that the Government of Canada would be signing, in the coming weeks and months, a series of agreements from coast to coast to coast.

This builds on the Government of Canada’s commitment to recognize municipal governments as partners in implementing Canada’s national agenda. Budget 2004 gave municipalities the Goods and Services Tax (GST) rebate worth $7 billion over 10 years for their areas of greatest need, and accelerated the $1-billion Municipal Rural Infrastructure Fund. Budget 2005 provided $5 billion over five years in gas tax funds, ramping up to $2 billion in year five and indefinitely thereafter. Gas tax dollars are on top of the Government of Canada’s existing infrastructure programs, which have committed over $12 billion over the last decade to infrastructure projects in communities across the country. Budget 2005 committed to renewing the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Border Infrastructure Fund.

“Canada is a world leader in developing vibrant, creative, prosperous and sustainable communities,” the Prime Minister concluded. “When you think of how far we’ve come since I made the New Deal a real deal in Budget 2004 – it’s truly a remarkable tribute to the commitment and goodwill of all partners.”

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A copy of the New Deal agreement is available online at: www.mcaws.gov.bc.ca/lgd

1 factsheet(s) attached.

Media

contact:

Carla Ventin

Office of Minister Godfrey

613 614-9622

Mike Morton

Press Secretary

Office of the Premier

250 213-8218

Richard Taylor

Executive Director

UBCM

604 270-8226

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