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January 4, 2002

Municipalities enlist help in fight for infrastructure funding

Proposes alternative to per-capita distribution.

DENISE RIDEOUT

The Nunavut Association of Municipalities, which represents municipal governments in the territory, just got a helping hand in its efforts to lobby the federal government for more infrastructure money for Nunavut.

Its parent organization, the Federation of Canadian Municipalities, has taken up Nunavut's fight with the federal government to get a bigger share of the infrastructure dollars.

The federation's action will go a long way toward bringing national attention to Nunavut's infrastructure woes, said David General, executive director of the Nunavut Association of Municipalities.

"The FCM is a pretty powerful organization. It has the ear of many of the federal ministers," General said. "In fact, it was mentioned in the federal budget speech. So, they do carry quite a bit of weight."

General said the Nunavut Association of Municipalities is counting on FCM's clout with the federal government.

Nunavut's mayors need the extra cash for things like road paving, new water-supply lines, sewage lagoons and bigger dumps.

The communities depend largely on the Nunavut government for money. The territorial government plans to spend about $335 million on infrastructure and other municipal projects over the next five years.

But instead of lobbying the territorial government for more capital dollars, the mayors - through the Nunavut Association of Municipalities - have turned their attention in the past six months to lobbying the federal government directly.

General said things are looking up now that the Federation of Canadian Municipalities is supporting Nunavut's cause.

At its national meeting in Dawson City, Yukon, on Dec. 1, the FCM passed a resolution urging the federal government to adopt a new method for allocating infrastructure money to the three northern territories.

Under the current funding program, called the Canada Infrastructure Program, the federal government divides the $1.97 billion it gives provinces and territories based on their population. That leaves the three northern territories - combined - with less than 4 per cent of the total funding.

With its population of about 26,000 people, Nunavut doesn't get a big share - about $2.1 million. And that money doesn't go far, considering it would cost about $1.5 million to build a sewage treatment plant in Cambridge Bay, or $7 million to install an incinerator at Iqaluit's dump.

The Federation of Canadian Municipalities plans to lobby the federal government to move away from the per-capita funding formula, and come up with something that takes into account the higher cost of building infrastructure in the territory.

Following General's recommendations, the FCM will ask that each of the 13 jurisdictions in Canada get a minimum of one per cent of the total money available. The remaining 87 per cent could then be distributed using the per capita funding.

Under the proposal, Nunavut's share would increase from $2.1 million to $21.6 million.

"That about 10 times more than what Nunavut gets now. That'll make a big difference," General said.

The territory got some good news recently regarding federal money. On Dec. 6, Premier Paul Okalik signed the Canada-Nunavut Infrastructure agreement with the federal government.

It means the territory will get $4 million over the next two years for "green," or environmentally friendly, municipal infrastructure.




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