06/01/2005

Toronto, Ont., June 1, 2005 – AMO President Roger Anderson today applauded Federal Infrastructure and Communities Minister John Godfrey’s announcement that the Government of Canada will provide $800 million in new funding for municipal transit.
The funding will be across Canada over the next two years, honouring a commitment Prime Minister Paul Martin made to NDP Leader Jack Layton in May.

“This is good news for the more than 80 municipalities in Ontario that provide transit services,” said AMO President Roger Anderson. “The additional Federal funding for transit also recognizes the responsibility of the Federal Government to help municipalities make investments that reduce gridlock and greenhouse gas emissions and improve air quality in our communities.”

Godfrey’s announcement confirmed that in 2005/06 and 2007/08, Ontario’s portion of the $800 million would be a total of $310 million.

This new funding is in addition to the $1.9 billion that Ontario municipalities would receive over the next five years through the Federal commitment to share 5-cents-per-litre of Federal gas tax with municipalities. The initial $1.9 billion is intended to provide municipalities with assistance for a range of environmentally sustainable municipal infrastructure investments. AMO has been working to ensure that the 5 cent-per-litre gas tax allocation is distributed on a per capita basis so that all Ontario municipalities and all Ontarians benefit from it equitably.

Federal funding for the original 5-cents-per-litre gas tax revenue and from today’s announcement is subject to the passage by Parliament of Bill C-43 and Bill C-48 respectively.

“Creating sustainable communities is a responsibility shared by all three orders of government,” said Anderson. “Canada’s commitment to invest an additional $800 million in municipal transit infrastructure is another important step in the federal New Deal for municipalities.”

AMO is a non-profit organization representing almost all of Ontario’s 445 municipal governments. AMO supports and enhances strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario and Canada’s political system.

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