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Big-City Mayors Urge Federal Government to Share One Cent of the GST

Posted on: Thursday, 3 May 2007, 21:00 CDT

By TOBI COHEN

TORONTO (CP) - Canada's big-city mayors have boarded the Toronto bandwagon to collectively press Ottawa for a one-cent share of the GST.

The unanimous decision by the mayors of Canada's 22 largest cities comes just two months after Toronto Mayor David Miller unveiled a similar campaign urging the federal government to provide permanent funding for cities by giving them one cent of every six cents collected through the GST.

The mayors say property taxes are not enough, and consistent funding is crucial if Canadian cities are to improve things like infrastructure and public transit and if they are to attract business and remain competitive.

"We appreciate the support that this federal government has already provided to cities through programs such as the GST rebate and the sharing of the federal gas tax and the agreement to extend that formula beyond what it was," Brampton, Ont., Mayor Susan Fennell said Thursday following a meeting of the Big City Mayors' Caucus in Toronto.

"However, the cities are looking for an updated fiscal arrangement that will really provide predictable and long-term and sustainable funding for the future for Canadian communities."

Calgary Mayor David Bronconnier said the money would yield $5 billion per year for all municipalities in Canada, or about $2 billion for the group's member cities.

"Sharing in this revenue will allow cities to make crucial developments in the quality of their spaces and places, but most importantly, to deal with the core infrastructure deficit that exists in this country," he said.

The infrastructure deficit for Canadian municipalities is now pushing $100 billion, Miller said, noting it's a $40-billion increase over earlier figures released by the Federation of Canadian Municipalities.

Montreal Mayor Gerald Tremblay said his city stands to get about $275 million out of the deal, which would go a long way towards improving some of the city's six priorities.

"The citizens were very clear. They want a clean city, they want the best possible infrastructure, they want good service from the 29,000 city staff, they want affordable social housing, they want a decent public transit system and finally they want to sacrifice some energy to create jobs in Montreal," he said.

"All we're asking is just give us a little bit so we can create new wealth."

While St. John's Mayor Andy Wells admitted his comparatively small Newfoundland community doesn't stand to get the big bucks, he said one cent of the GST will help modernize the city.

"We got traffic lights that we bought from some city on the mainland 15 years ago and we're still using them because we don't have the money to replace them in the context of other priorities," he said.

"It can make a big difference to us in terms of improving the quality of our infrastructure."

The mayors stressed the proposal, which was submitted to the federal government Thursday, has nothing to do with partisan politics, but nonetheless vowed to solicit support for the idea among residents of their communities in the run-up to elections.

The mayors also said they'd continue pressing for a national transit strategy and the realignment of roles and responsibilities between all levels of government.

In the House of Commons, Transport, Infrastructure and Communities Minister Lawrence Cannon said Thursday that the Conservatives are investing $8.8 billion in gas-tax funds into communities.

He said the federal government is also planning a new design for the Building Canada Fund that "Canadians will be able to use to their best benefit."

Liberal Leader Stephane Dion has said he would make permanent the current five-year deal that transfers a portion of the gas tax to municipalities if elected, but has stopped short of agreeing to the one-cent GST demand.

Source: Canadian Press

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