News Release

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Canada's new government delivers on commitments to communities

June 2, 2006
Montréal, QC

Prime Minister Stephen Harper today outlined the measures his Government has taken to support Canada’s communities and promised to continue reducing the fiscal imbalance between Ottawa and other levels of government.

In an address to delegates at the annual meeting of the Federation of Canadian Municipalities in Montréal, the Prime Minister pointed out that the recent federal budget provides $16.5 billion in new, long-term funding for local governments.

“There is funding for infrastructure, immigrant settlement, the fight against crime, the environment and affordable housing,” the Prime Minister noted.

He added that the budget also makes significant investments in public transit infrastructure and tax credits, and retains the 5-cent per litre Gas Tax Transfer program and the GST rebate for purchases made by municipalities.

In his remarks, the Prime Minister underlined that the Government is restoring fiscal balance by increasing transfers to the provinces and cutting federal taxes, which creates tax room for other governments. And it will focus on areas within its own jurisdiction and seek guidance from municipalities on federal funding for future infrastructure projects.

“The federal role must be defined to deal with projects of national significance,” Prime Minister Harper said. “Federal funding must be put on a predictable long-term track and we must ensure accountability to Canadians for infrastructure investments by all levels of government.”

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The Prime Minister’s Office - Communications
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