Federal Gas Tax for Communities

Let's look at how Newfoundland and Labrador will net benefit or lose from this Federal Initiative.

See the News Release

Fiscal Year Canada's Contribution

2006-2007	$19,740,000
2007-2008	$13,160,000
2008-2009	$16,450,000
2009-2010	$32,900,000
TOTAL	$82,250,000

Examples of Eligible Projects

Water Infrastructure:

Drinking water supply systems, treatment and distribution systems, and water metering systems

Wastewater Infrastructure:

Sanitary sewer systems and storm water systems

Solid Waste Infrastructure:

Waste diversion, material recovery facilities, organics management, collection depots, waste disposal landfills, thermal treatment, and landfill gas recuperation

Community Energy Systems:

Cogeneration or combined heat and power projects (where heat and power are produced through a single process)

District heating and cooling projects where heat or cooling is distributed to more than one building.

Other Transportation Infrastructure

Active transportation infrastructure (e.g. bike lanes), local roads, arterial roads, regional roads and bridges that enhance sustainability outcomes, including construction, reconstruction, and rehabilitation of roads, bridges and other ancillary works, parks or sidewalks, lighting, traffic control, various signals and so forth.

Capacity Building

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

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

Integration: planning, policy development and implementation, such as environmental management systems and life cycle assessment

Public Transit

Rapid transit such as light rail, ferries and park and ride facilities

Buses, and transit bus stations

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

Let's start from here.
First what has been the windfall from the stock of Hibernia for the feds this year?
The 8.5% share is valued at a minimum of 800 million and with the price of oil today over a billion.
The money made by the feds on this gushing Newfoundland and Labrador treasure would pay for the Atlantic Regional component of the Federal Gas Tax program every year.
How about the feds let go of this money maker, they have recovered all their investment in Newfoundland and Labrador and have had years of profit. This is the national government, they should contribute investment to regions for diversification and project developments like Hibernia. Unlike Hibernia and more like Bombardier, they should stop gouging from our resources after the investment has been paid back. Actually Quebec interests don't have to pay it back do they?
Now that's what I call gas (oil) tax.
Loyola can you get the PM to give the Premier what he has asked for - the 8.5% interest in Hibernia? Then we can take care of our own municipal funding. Ottawa makes a fortune on all of our offshore now - as much as we do, do they really need the extra benefit of the 8.5% stake in Hibernia. When will they stop taking? Loyola here's a specific question for you - Have you even muttered the words, "I would like to transfer the 8.5% share in Hibernia, held by the Canada Hibernia Holding Corporation under the umbrella of The Canada Development Investment Corporation for the feds, to Newfoundland and Labrador."
Don't deliver peanuts when we deserve caviar even if it's no longer from our fish.
To make matters worse, ACOA which is an important agency relative to municipal projects in our province has seen a budget adjustment, downward.
Below please review the details for yourself.

Atlantic Canada Opportunities Agency
Ministry Summary
Vote		(thousands of dollars)		2006–2007		2005–2006		Difference
				Main Estimates		Main Estimates
		Atlantic Canada Opportunities Agency
		Department
1		Operating expenditures		82,785		78,811		3,974
5		Grants and contributions		290,391		350,119		(59,728)
(S)		Contributions to employee benefit plans		8,572		8,912		(340)
		Items not required
–		Minister of Atlantic Canada Opportunities Agency –
		Salary and motor car allowance		. . . . .		70		(70)
		Total Department		381,748		437,912		(56,164)
		Enterprise Cape Breton Corporation
10		Payments to the Enterprise Cape Breton Corporation		8,650		8,645		5
		Total Agency		8,650		8,645		5
Note: The Minister's salary and motor car allowance is now displayed under Foreign Affairs and International Trade.

Atlantic Canada Opportunities Agency
Department

Strategic Outcome

Enterprise Development – Improved growth and competitiveness of Atlantic small and medium-sized enterprises (SMEs), leading to increased productivity, earned incomes and job creation.

Program Activity Descriptions

Fostering SME Development and Regional Economic Capacity Building

To improve the region's capacity for economic growth through a variety of mechanisms including: assistance to small and medium-sized enterprises to help them start, expand or modernize their business; partnering with universities and other institutions to increase the Region's research and development capacity, commercialization and productivity; and, to promote and participate in the region's transition to the knowledge economy.

Access to Business Information

Providing counselling, mentoring, information referrals to Atlantic Canadians.

Strategic Outcome

Community Development – Improved community economic infrastructure and strategic planning capacity leading to improved employment opportunities and economic growth in the Atlantic region.

Program Activity Descriptions

Community Economic Development

Projects which help communities build their capacity and confidence in order to identify and coordinate the implementation of priorities for economic development in their region. These projects would be supported via community economic development organizations who, in turn: provide financial and technical assistance to businesses and communities; conduct strategic planning; coordinate economic development; and implement a range of self-sustaining development projects under strategic community economic development initiatives. Community economic development organizations can be any organization which supports projects at a local, community and sub-community or municipality level.

Special Adjustment Measures

Supports initiatives designed to address the specific economic adjustment needs of Atlantic Canadian communities.

Infrastructure Programming

Programming designed to renew and build infrastructure in rural and urban municipalities in Atlantic Canada.

Atlantic Canada Opportunities Agency
Department

Strategic Outcome

Policy, Advocacy & Co-ordination – Strategic, researched policy positions that reflect the region's potential; influence on national policies and programs that affect Atlantic development and interests; and co-ordination of other federal departments' policies and programs within the region to form integrated approaches to development leading to strenthened Atlantic economic development.

Program Activity Descriptions

Policy Research

Carrying out policy analysis and research to determine the areas in which the Agency will act to most effectively carry out its mandate.

Advocacy

Advocating the interests of Atlantic Canada to make new government initiatives more responsive to the needs of Atlantic Canada.

Coordination

Engaging economic partners in addressing the Atlantic region's strategic economic priorities.

Program by Activities
(thousands of dollars)				2006–2007 Main Estimates						2005–2006
				Budgetary				Total		Main
		Operating		Grants		Contributions				Estimates
						and other
						transfer
						payments
Fostering SME Development and Regional Economic
Capacity Building		65,482		1,000		214,476		280,958		264,141
Access to Business Information		2,774		. . . . .		. . . . .		2,774		2,824
Community Economic Development		11,288		1,000		30,511		42,799		75,886
Special Adjustment Measures		. . . . .		. . . . .		24,500		24,500		26,225
Infrastructure Programming		864		. . . . .		13,000		13,864		52,143
Policy Research		5,067		. . . . .		5,904		10,971		11,005
Advocacy		4,050		. . . . .		. . . . .		4,050		3,866
Coordination		1,832		. . . . .		. . . . .		1,832		1,822
		91,357		2,000		288,391		381,748		437,912

Atlantic Canada Opportunities Agency
Department
Transfer Payments
(dollars)		2006–2007		2005–2006
		Main Estimates		Main Estimates
Grants
Fostering SME Development and Regional Economic Capacity Building
Grants to non-profit organizations to promote economic cooperation and
development		1,000,000		1,000,000
Community Economic Development
Grants to non-profit organizations to promote economic cooperation and
development		1,000,000		1,000,000
Total grants		2,000,000		2,000,000
Contributions
Fostering SME Development and Regional Economic Capacity Building
Contributions under the Business Development Program		123,376,000		108,660,000
Contributions for the International Business Development Program		2,200,000		. . . . .
Contributions for the Atlantic Innovation Fund		65,000,000		74,731,000
Contribution for Trade, Investment, Entrepreneurship and Business
Skills Development		23,900,000		25,253,000
Community Economic Development
Contributions under the Business Development Program		8,248,000		22,767,000
Contributions under the Community Futures Program		12,263,000		8,800,000
Contribution for the Innovative Communities Fund		10,000,000		. . . . .
Special Adjustment Measures
Contribution for the Saint John Shipyard Adjustment Initiative		24,500,000		22,000,000
Infrastructure Programming
Contributions to the Atlantic provinces under the Infrastructure Canada
Program		13,000,000		51,168,000
Policy Research
Contributions under the Business Development Program		5,004,000		5,580,000
Contributions under the Atlantic Policy Research Initiatives		900,000		600,000
Total contributions		288,391,000		319,559,000
Items not required
Contributions under the Federal-Provincial Cooperation Program		. . . . .		900,000
Contribution for the Strategic Community Investment Fund		. . . . .		27,660,000
Total items not required		. . . . .		28,560,000
Total		290,391,000		350,119,000

Please note I have highlighted the total red.

As you review this years estimates from last you will note overall significant decreases in funding. Our province and municipalities will absorb a portion of this. You think this might negate the new Federal Gas Tax to municipalities for the same program and infrastructure development delivery?

Neither the Liberals or NDP nor the Federation of Municipalities have addressed this to date.
The government just ignores it.
Do you think they would hold a News Conference to celebrate a reduction in ACOA funds? NO
Do you think they would hold a News Conference to announce new funding? YES
They can however represent the same money.