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November 22, 2005
For immediate release

PEI Communities to Receive $37.5 Million Through the New Deal for Cities and Communities

Community and Cultural Affairs

Canada and Prince Edward Island today signed an agreement that will result in $37.5 million of federal gas tax revenues invested in communities across Prince Edward Island.

Joining the Minister of Atlantic Canada Opportunities Agency (ACOA), Joseph McGuire, there on behalf of Minister of State (Infrastructure and Communities) John Godfrey, and the Premier of Prince Edward Island, Pat Binns, at the signing ceremony were Shawn Murphy, Parliamentary Secretary to the Minister of Fisheries and Oceans, and Elmer MacFadyen, Minister of Community and Cultural Affairs. Stan Campbell, President of the Federation of Prince Edward Island Municipalities, witnessed the signing.

“Today’s signing demonstrates the Government of Canada’s commitment, through the New Deal for Cities and Communities, to provide PEI municipalities with stable and predictable funding,” said Minister McGuire.

“One of the Government of Prince Edward Island's fundamental principles is that strong and vibrant communities are key to future prosperity. I am pleased to partner on an initiative which supports Island communities and their infrastructure needs,” said Premier Pat Binns.

Parliamentary Secretary Murphy noted that, “This agreement will support environmentally sustainable municipal infrastructure in communities throughout PEI, helping ensure that they are vibrant and prosperous.”

“The New Deal builds on successful infrastructure programs already providing tremendous benefits to Island communities by supporting environmental enhancements. This program will also enable projects which improve roads and bridges, that lead to environmental outcomes, like cleaner air, cleaner water, or reduced greenhouse gas emissions,” said Minister MacFadyen. “Through the collaborative efforts of all levels of government, this New Deal will provide necessary assistance for important infrastructure improvements to both incorporated and unincorporated communities in the province for many years to come.”

The New Deal is about building new relationships, including those with the Federation of Prince Edward Island Municipalities, which played a key role in reaching this agreement. President Stan Campbell commended the initiative, noting that, “We are extremely pleased about the genuine partnership that has evolved amongst all orders of government, which provides a municipal voice in these important infrastructure decisions that affect us all. This substantial investment by Canada into the province's municipal infrastructure will benefit all communities and residents of PEI.”

Gas tax funds will be invested in environmentally sustainable municipal infrastructure. Eligible project categories include public transit, community energy systems, water, wastewater treatment and storm sewer drainage systems, solid waste management, and roads and bridges, where it can be demonstrated that they will enhance environmental sustainability outcomes. Funding can also be used by incorporated and unincorporated communities to help them develop long-term plans for improving the quality of life of residents.

These investments will result in significant environmental benefits, such as cleaner air, cleaner water and reduced greenhouse gas emissions. A Management Committee, with representatives from the federal and provincial governments and the Federation of PEI Municipalities, will monitor the program and develop new directions and initiatives.

The New Deal promotes the economic, social, environmental, and cultural sustainability of Canada’s cities and communities. It is focused on establishing a long-range vision for Canada's communities, building new relationships among all orders of government and other partners, strengthening the connections among federal programs that benefit cities and communities, as well as helping municipalities secure predictable and stable long-term funding.

Federal gas tax funding builds on other Government of Canada infrastructure funding, including the Canada Strategic Infrastructure Fund (CSIF), the Border Infrastructure Fund (BIF), and the Infrastructure Canada Program (ICP). The Federal 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 (MRIF). Budget 2005 provided $5 billion over five years in gas tax funds, ramping up to $2 billion in year five and indefinitely thereafter. In addition, Budget 2005 committed up to $800 million over the next two years for transit funding, of which PEI’s share is over $3.45 million. Budget 2005 also committed to the future renewal of CSIF, BIF and MRIF.

As of today, 11 gas tax agreements have been signed, representing 95% of the Canadian population.

“This is an important day for PEI cities and communities, large and small, urban and rural,” Minister Godfrey stated, “and is an example of the New Deal at work. Indeed, I am proud to work with our partners across Canada to strengthen the economic, environmental, social and cultural base for all of the nation’s communities.”



• The Government of Canada’s Budget 2005 delivered long-term, stable and predictable funding as part of the New Deal for Cities and Communities. Over the next five years, $5 billion in federal gas tax funding will be shared with Canadian municipalities, both small and large.

• Prince Edward Island’s share of the $5 billion over five years of federal gas tax funding will be $37.5 million. When fully ramped up in year 5, the province’s communities can expect to receive $15 million, continuing at that rate thereafter.


2005-2006 -- $ 4,500,000

2006-2007 -- $ 4,500,000

2007-2008 -- $ 6,000,000

2008-2009 -- $ 7,500,000

2009-2010 -- $ 15,000,000

TOTAL (2005-1010) -- $ 37,500,000

• Eligible project categories include public transit, drinking water, wastewater, active transportation infrastructure, and roads and bridges where sustainability outcomes can be demonstrated.

• These investments will result in significant environmental benefits, such as cleaner air, cleaner water and reduced greenhouse gas emissions.

• The provincial government will administer the distribution of the federal funds. The province is also committed to continuing to invest in municipal infrastructure.

• A Management Committee in PEI, with representatives from the provincial and federal governments and the Federation of Prince Edward Island Municipalities, will monitor the program and develop new directions and initiatives.

• Community and regional sustainability planning is crucial in PEI. The gas tax agreement will build on provincial and local initiatives that encourage environmental, economic, social and cultural sustainability and the collaboration of all governments to strengthen community capacity.

• The governments of Canada and Prince Edward Island will collaborate with municipalities to enhance community sustainability, and to encourage cooperation in infrastructure projects among municipalities and between municipalities and First Nations on reserve.

• In Prince Edward Island, a “one-committee, three-program” approach has been adopted for the next five years. The Governance Framework endorses a locally based and responsive management structure for the following three infrastructure programs: the Canada-Prince Edward Island Municipal Rural Infrastructure Fund (CPEI-MRIF), the Canada Strategic Infrastructure Fund (CSIF), and the sharing of federal gas tax funds under the New Deal for Cities and Communities. It outlines an integrated approach to the overall administration of these programs, taking into account local factors, conditions and priorities.


Water Infrastructure:

• Drinking water supply systems, treatment, pumping and distribution systems, and water infrastructure management systems

Wastewater Infrastructure:

• Wastewater treatment and pumping systems, sanitary sewer systems, storm sewer drainage systems and facilities

Solid Waste Infrastructure:

• Waste diversion, material recovery facilities, organics management, collection depots, waste disposal landfills, thermal treatment, and Regional Waste Management systems

Community Energy Systems:

• Retrofits of local government-owned buildings

• Energy systems such as renewable energy, including wind power, combined with heat and power (CHP), cogeneration and district energy

• Street lighting

Public Transit:

• Rapid transit, such as ferries, park and ride facilities and grade separated bus lanes

• Transit buses: bus rolling stock and transit bus stations

• Technologies to improve transit priority signaling, traffic information and transit operations

• Public transit facilities including garages, maintenance facilities, and terminals

• Public transit for persons with disabilities

Other Transportation Infrastructure:

• Construction, reconstruction and rehabilitation of roads, bridges, and railways that enhance environmental sustainability outcomes

• Sidewalks, commuter bikeways, lighting, traffic control signals, pedestrian signals, storm drainage and utility relocations

Capacity Building:

• Collaboration: building partnerships, strategic alliances, participation, consultation and outreach

• Knowledge: use of new technology, research, monitoring and evaluation

• Transportation studies and municipality-wide or regional transportation planning studies

• Integration: integrated sustainability planning, Infrastructure planning, policy development and implementation (e.g. environmental management system, life cycle assessment, area road and transportation planning)

Media Contact: Jennifer MacLeod
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