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June 13, 2014
For immediate release

Federal funding now available for Prince Edward Island communities

Transportation and Infrastructure Renewal

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Canada’s Gas Tax Fund supports local infrastructure priorities throughout Prince Edward Island

The Honourable Gail Shea, Minister of Fisheries and Oceans, and Member of Parliament for Egmont, and Robert Vessey, Prince Edward Island Minister of Transportation and Infrastructure Renewal, signed today an agreement for the renewed federal Gas Tax Fund that provides predictable, stable funding for public infrastructure across the Province of Prince Edward Island.

The federal Gas Tax Fund provides municipalities with the flexibility to choose and plan infrastructure projects based on their specific priorities. The renewed agreements will govern the flow of federal funds to each province and territory over the next 10 years, from 2014-15 until 2023-24.

Since 2006, significant improvements have been made to the Gas Tax Fund. It has been extended, doubled, indexed and made permanent. By enshrining these commitments in legislation, provinces, territories and municipalities are assured of an ongoing funding stream to address their municipal infrastructure needs and priorities.

Under the renewed Gas Tax Fund, eligible categories have also been expanded, providing municipalities with more flexibility than ever before to support local infrastructure.

With this agreement the Government of Canada is ensuring a seamless transition to the New Building Canada Plan, the largest long-term federal commitment to investing in Canada’s public infrastructure in our nation’s history.

Quick Facts

• Canada's Gas Tax Fund transfer has provided $13 billion to Canadian communities to date. Over the 10-year life of the New Building Canada Plan from 2014 to 2024, the Gas Tax Fund will provide close to $22 billion in funding for municipalities.

• In total, it will provide $53 billion in funding to communities across the country over the next decade. For Prince Edward Island, this represents approximately $440 million in dedicated federal funding, including more than $277 million under the New Building Canada Fund and an estimated $163 million under the federal Gas Tax Fund*. Prince Edward Island also stands to benefit from the Government of Canada’s following national funding programs:

o $4 billion available across the country for projects of national significance,

o $1.25 billion in additional funding available for P3 projects,

o $10.4 billion via the GST Rebate, which provides municipalities across the country with additional resources to address their infrastructure priorities.

• More than 250 projects benefitted from funding from the last Gas Tax Fund Agreement in Prince Edward Island. For example, during the last construction season, the federal Gas Tax Fund supported:

o The Loane and Canoe Cove bridges;

o Public transit projects like two new buses to Transportation West in Alberton; and

o Water and wastewater projects such as the new North Rustico water and wastewater servicing system.

• Eligible investment categories under this Fund include: drinking water; wastewater and solid waste; public transit; local roads and bridges; community energy systems; capacity building; disaster mitigation; broadband connectivity; highways; short-line rail; short-sea shipping; brownfield redevelopment; regional and local airports; and projects supporting culture, tourism, sport and recreation.

• In PEI, the Government of Canada provides GTF funding up front twice a year to the provincial government, responsible for delivering the Fund. The province distributes them according to the terms and conditions set out in their respective funding agreements with municipalities.


“Our Government’s commitment to communities has never been stronger. Through our unprecedented financial support for public infrastructure, we are ensuring communities across the country enjoy a high standard of living, new economic opportunities, and a safe, healthy environment. The agreement signed today will provide stable, predictable funding to help Prince Edward Island municipalities build and revitalize their public infrastructure, while creating jobs and long-term prosperity. This Gas Tax Fund funding flows directly to communities, to use on their infrastructure priorities.”

The Honourable Gail Shea, Minister of Fisheries and Oceans, and Member of Parliament for Egmont, on behalf of the Honourable Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec

“Our communities need services such as clean drinking water, reliable wastewater facilities, and a safe and efficient transportation network if they are to prosper and grow. We are thankful to our federal partners for making a significant amount of funding available to help us to address our municipalities’ critical infrastructure needs. ”

The Honourable Robert Vessey, Prince Edward Island Minister of Transportation and Infrastructure Renewal

“The Federation of PEI Municipalities is very pleased to see the Gas Tax Fund Agreement in place. I'm delighted that the Government of Canada has made this fund permanent and indexed it by two percent per year so it will keep its value as infrastructure costs rise. This outstanding program is making a difference in our cities, towns and communities through predictable long-term infrastructure funding. These investments in the places we call home benefit all Islanders and help grow our local economy. ”

Bruce MacDougall, President, Federation of PEI Municipalities

Associated Links

The federal Gas Tax Fund

The new Canada–Prince Edward Island federal Gas Tax Fund agreement.

*NOTE: GTF funding by jurisdiction for the first five years (2014-2019) is based on 2011 Census data. GTF funding for 2019-2024 will be based on 2016 Census data. For illustrative purposes, Census 2011 data has been used for all 10 years. Due to the indexation of the GTF, funding for 2019-2024 is expected to be at least equal to GTF funding for the first five years.

Media Contact: Brad Chatfield
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