Toronto: The Canadian Taxpayers Federation (CTF) today commented on the meeting of Canada's 22 largest cities, the Big City Mayors' Caucus of the Federation of Canadian Municipalities (BCMC). In June, municipal leaders demanded Ottawa hand them a slice of GST and income tax revenues. The Prime Minister said no.

"Municipalities must learn to stick to the basics, prioritize their spending and live within their means," stated CTF Ontario Director Neil Desai. "Giving municipalities larger cash transfers or more taxing powers will only encourage more imprudent spending on non-essentials. Canadians are already paying too much tax. Most do not want to pay more tax to another level of government."

The Federation of Canadian Municipalities has sought new ways to raise more tax revenues and points to the Ontario government's Stronger City of Toronto Act, which gives Toronto new taxing power, as evidence that municipalities are cash-strapped.

"Fiscally reckless Toronto should not be a model for how to deal with cities, big or small," said Desai. "Toronto's fiscal woes are a direct result of their fiscal irresponsibility with non-essential spending such as funding for a private soccer stadium and pay increases for the mayor and city councilors."

The BCMC policy statement does not provide any safeguards against municipalities increasing their scope into non-essential areas should they receive new taxing powers. "Municipal governments should have the authority to act within its financial mandate that is not expressly excluded from its responsibility." This open ended policy statement provides taxpayers absolutely no assurance that municipalities will not dabble in non-essential spending or create new taxes should they be extended similar powers to those given to the city of Toronto.

"Cities have already received help from Ottawa. The 2006 federal budget included $16.5-billion in infrastructure spending over the next four years, which includes the ongoing $5-billion gas tax transfer to municipalities," added federal director John Williamson. "The whining from cities is becoming tiresome. The prime minister addressed the majors in June and said Ottawa will not provide tax room to municipalities nor will it provide any addition cash. That speech should be reviewed by the mayors."