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Nunavut communities get $70 million for improvements

Gas tax, infrastructure funds will flow into water reservoirs, sewage lagoons

SARA MINOGUE

CLICK PHOTO TO ENLARGE
Almost $70 million changed hands when Johnny Ningeongan, president of the Nunavut Association of Municipalities, signed a funding agreement this past Wednesday. He is flanked by federal Transport Minister Jean Lapierre, Nunavut MP Nancy Karetak-Lindell, and Levinia Brown, Nunavut's minister of Community and Government Services. (PHOTO BY SARA MINOGUE)

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Water reservoirs and sewage lagoons across Nunavut could be getting a makeover thanks to a $70 million investment in municipal infrastructure announced in Iqaluit this past Wednesday.

The money is part of the New Deal for Cities and Communities, a major platform of the Liberal minority government's 2003 election campaign.

Municipal leaders in Nunavut have anticipated the funding since February, when the federal government announced Nunavut's share of the federal gas tax - $37.5 million.

The rest of the money is part of the Municipal Rural Infrastructure Fund, to which the federal government and the Government of Nunavut each contribute $16 million.

Johnny Ningeongan, president of the Nunavut Association of Municipalities, was happy to see Nunavut get a fair share of the $5 billion in gas tax money that the federal government plans to spend on municipal infrastructure, in spite of its tiny population.

"Today, Nunavut communities applaud the federal government for abandoning the traditional per capita allocation approach to determining infrastructure program fund allocations to the territory," he told a gathering of politicians and bureaucrats at Nunavut's legislative building.

Under the old per capita allocation, Nunavut would have received just $2.5 million from Infrastructure Canada.

In 2002, the Federation of Canadian Municipalities recommended a change to the funding formula by providing a base distribution of one per cent to each province and territory, in addition to per capita allocations.

This resulted in an increase from the traditional per capita allocation of $2.5 million to $20 million.

"The federal government has shown Nunavut that it continues to apply improved calculations to Nunavut municipal construction and operating challenges," Ningeongan said.

The $37.5 million will be spread out over five years, providing $4.5 million to municipalities in the first year and ramping up to $15 million in year five.

Back in February, the Government of Nunavut and the Nunavut Association of Municipalities formed a group called the community infrastructure advisory committee to decide how to spread the wealth.

Federal Transport Minister Jean Lapierre was in Iqaluit on Wednesday to formalize the agreement.

"This is not a short-term fix," he told the small crowd. Instead, he said, the money is designed to provide "stable, predictable and long-term funding for municipalities."

The gas tax funds are pegged for water, wastewater management and solid waste management projects, and capacity building - that is, training for people working in those areas.

The other $32 million will go towards repairs and improvements in water and wastewater infrastructure, recreational facilities such as arenas, and other community infrastructure including tourism and cultural projects. At least 40 per cent, or $12.8 million, of this money must go towards "green" projects that enhance or improve the environment.

Also on hand at the legislative assembly building were Nunavut MP Nancy Karetak-Lindell and Levinia Brown, Nunavut's minister of Community and Government Services.

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