EN FR

Some help for our roads

Author: Adrienne Batra 2006/01/12
"To harness our economic potential, Canada must address its national infrastructure deficit."

Those were Stephen Harper's words earlier this week, announcing the Conservative Party's plan to fix our crumbling infrastructure. If elected, a Harper government would create a $2 billion Highways and Borders Infrastructure Fund and maintain previously signed commitments. However, there is one drastic change from the Liberals' plan: the Conservatives would expand the new deal to allow all cities and communities to use gas tax dollars to build and repair roads. The current deal does NOT allow cities with populations of 500,000 and over to spend the money to fix potholes.

Simply put, the City of Winnipeg would be able to use federal gas tax money to fix the crater sized potholes that send our vehicles to the local garage every few months.

You may recall when the new deal was signed by the three levels of government in Manitoba it was decreed that the gas tax money transferred to Winnipeg would have to be used on "green" projects as part of the federal government's futile attempts to meet our Kyoto obligations.

This edict from the federal government left our city officials contorting themselves like pretzels and essentially laundering funds from one civic department to another in order to put money into road repair. But Winnipeg is not alone in its struggle with poor roads; the situation has gotten so bad in Lunenburg County, Nova Scotia that one citizen has resorted to filling his own potholes and billing the government.

For years, the Canadian Taxpayers Federation and other organizations like the Manitoba Heavy Construction Association (MHCA) have been demanding the federal government transfer gas tax dollars to municipalities to fill the infrastructure gap. MHCA President Chris Lorenc stated this week that "the new gas tax agreements and existing federal infrastructure programs are wholly inadequate."

But while badly needed investments in roads is laudable, the Conservatives disappoint when it comes to gas taxes. Ottawa collects over $4.68-billion from motorists across Canada. GST revenues will add another $1.35-billion. Once the gas transfer is deducted Ottawa will be left with $5.4-billion. Even after Ottawa transfers a generous $2-billion to cities in 2009 more than $4-billion will remain in the government's kitty. All told, Ottawa will relocate $5-billion to municipalities over the next five year and collect an eye popping $30-billion from motorists. The difference between gas revenues and the gas tax transfer is a staggering $25-billion.

According to Statistics Canada, Canadian municipalities spent $6.4-billion building and maintaining roads in 2003. More than 80 per cent of all roads in Canada are municipal roads. Whether it's health care, education, or transportation, the movie is the same: the responsibilities lie with the provinces and the municipalities, yet the money is in Ottawa.

Harper's pledge to put more money into road and bridge construction and maintenance is welcome news for taxpaying motorists. The status quo took a wrong turn long ago and if he manages to obtain the keys to 24 Sussex Drive, hopefully his commitment will be honoured, along with a reminder of the tax burden on motorists. Failure to do so will continue to leave taxpayers running on empty and fuming.


A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<