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Federal Government Doubles Gas Tax Transfer Monday, 06 April 2009 On April 1st, 2009, the Government of Canada doubled the federal Gas Tax Transfer to the provinces and territories to $2 billion annually. The Gas Tax Fund primarily benefits municipalities and will provide a significant, stable and flexible source of funding to local communities. It is used to make capital investments in water, wastewater and solid waste infrastructure, as well as public transit, community energy systems and local roads and bridges.

Although the increase was first announced in the 2008 federal budget, the 2009 budget accelerated the payment as part of the stimulus measures designed to get Canadians working. Municipalities will be getting their first instalment in April instead of June this year so that they can take better advantage of the construction season.

"This is good news for the people of Vancouver Island North," said local Member of Parliament John Duncan. "Because the federal government is doubling and accelerating the Gas Tax Fund this year, local governments will be better able to undertake infrastructure projects and take advantage of matching funds from provincial and federal stimulus programs. It is all part of the Canadian government's ongoing commitment to stimulate the economy, create jobs and build for the future."

The Gas Tax Fund will remain at about its present funding level until 2014, though the Government of Canada has also announced its intention to make the Gas Tax Fund a permanent measure. This will provide municipalities stable and predictable funding for their infrastructure priorities.

"This is critical," said Duncan. "Municipalities need stable funding to build necessary infrastructure, and they need flexible funding that allows them to pursue their priorities and adapt to changing circumstances. The Gas Tax Fund offers this."

The Gas Tax Fund transfer will impact the following communities:

Municipality                                             2008-2009                         2009-2010
Alert Bay                                                         $50,285                                $74,584
Campbell River                                              $621,469                           $1,263,891
Comox                                                          $277,974                              $548,673
Comox Valley RD & Strathcona RD                $694,376                           $1,415,698
Courtenay                                                     $445,586                              $897,672
Cumberland                                                    $91,811                              $161,049
Gold River                                                       $66,091                               $107,496
Mount Waddington RD                                  $121,724                              $223,333
Port Alice                                                         $61,724                                $98,403
Port Hardy                                                    $126,999                               $234,317
Port McNeill                                                     $94,516                               $166,682
Sayward                                                         $46,265                                 $66,215
Tahsis                                                             $49,937                                 $73,859
Zeballos                                                          $42,961                                 $59,335
Total (Vancouver Island North):            $2,791,718                          $5,391,207

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