Dateline: 01/28/04
The mayors of large Canadian cities want a new partnership with the federal and provincial governments. As well as wanting acknowledgement of the importance of Canadian municipalities to the economic well-being of Canadians, the mayors have some very specific requests.
At the end of a summit in Toronto January 22-23, 2004 the mayors asked that the federal Speech from the Throne opening parliament February 2, 2004 and the budget expected soon after include:
- a rebate of all Goods and Services Tax (GST) paid by municipalities and their agencies. John Godfrey, the parliamentary secretary responsible for cities, has indicated that the federal budget may include a $521-million GST rebate for municipalities.
- speeding up payment of $2 billion from the federal government for infrastructure. The mayors want the money now from existing programs, rather than spread over 10 years.
By the end of 2004, the big city mayors also want a "new deal" through partnership agreements that would include:
- five cents per litre from the existing federal fuel excise tax
- a share of locally generated tax revenues that grow with the economy, such as income taxes and federal and provincial sales taxes
- investment in municipal transit and transportation infrastructure to match that of the United States and western European countries
- the involvement of major Canadian municipalities in federal and provincial policy, program and budget deliberations on issues that have an impact on them
- an improvement in affordable housing programs
- regulatory changes to support cities, such as amending the income tax act to make employer-provided transit passes a tax-exempt benefit
Canada's major hub cities are Vancouver, Edmonton, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City and Halifax. These cities and their regions generate 50 percent of Canada's GDP.
Prime Minister Paul Martin has said he wants to bring Canadian municipalities to the national decision-making table. With the announcement of his first cabinet in December 2003, Martin appointed John Godfrey as his parliamentary secretary with special responsibilities for cities to focus on implementation of a "new deal" and created a Cities Secretariat in the Privy Council Office to improve coordination and provide a focal point. The Prime Minister has, however, cautioned that money is tight, and municipal funding will have to be phased in gradually.
