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OP-ED COLUMN

Week of June 29, 2009

Federal Gas Tax Fund returns money for local infrastructure investment

By Garry Breitkreuz, M.P.
Yorkton-Melville

The Federal Gas Tax Fund is actually a refund that is helping to improve our towns and cities and creating jobs.

The Federal Gas Tax Fund will contribute $10.9 million directly into the riding of Yorkton-Melville over a five-year period from 2005 to 2010. The money coming into our riding from the fund will total $4.4 million next year, which is more than three times the $1.3 million we received in 2005 under the former Liberal government.

The annual amount allocated to the province of Saskatchewan and Yorkton-Melville has increased steadily since the Gas Tax Fund began in 2005. In 2010, the amount the province receives will be stabilized at $56 million annually.

The Gas Tax Fund provides predictable and long-term infrastructure money to Canadian cities and towns. The money will be invested in water and sewer infrastructure, solid waste management and local roads and bridges in our riding.

While the existing Canada-Saskatchewan Gas Tax Agreement will expire in 2010, an extension of this agreement has been signed. Now we are sure that an additional $224.2 million will flow to the province between 2010 and 2014.

This additional funding will allow our riding to continue to benefit from infrastructure investments that will improve our roads, drinking water and waste management facilities, as well as create local employment.

The Federal Gas Tax Fund has been doubled from $1 billion to $2 billion across the country to help all communities with job creation and water, sewer and roads infrastructure. The fund is part of an ongoing commitment from the federal government to stimulate the economy by investing in modernizing important services.

Beyond 2014, the government plans to make the Gas Tax Fund a permanent measure, providing stable funding for long-term infrastructure priorities at a rate of $2 billion per year. The combination of predictable, long-term funding and local decision-making and planning enables municipalities to build and rehabilitate their core public services.

Providing stable funding to improve our local communities with a gas tax rebate is one of the biggest changes our government has made.

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The audio version of Garry's June 29, 2009 op-ed column can be heard by clicking here