INDEPTH: BUDGET 2004
Issues: Cities
CBC News Online | March 23, 2004
In February's throne speech, Prime Minister Paul Martin promised a "new deal" for Canadian cities that included a full rebate on the GST municipalities pay for goods and services.
Tuesday's budget included that rebate, which will cost an estimated $7 billion over the next decade.
The rebate, which will be for all the GST municipalities pay in providing municipal services and community infrastructure, began Feb. 1, 2004 and will amount to $580 million in 2004-05 and $605 million in 2005-06.
Last year's budget committed $1 billion to developing municipal and rural infrastructure over the following 10 years. Tuesday's budget cut that time frame in half, giving municipalities access to the federal funds over the next five years.
Although there was much discussion in the run-up to the budget about whether the federal government would share a portion of the revenues from the gas tax with the cities, Goodale's budget was vague. It said only that Ottawa would launch discussions and further consult with the provinces and municipalities about his idea.
The Martin government, Goodale said in his budget speech, "remains committed to working with the provinces to share with municipalities a portion of gas tax revenues or to determine other fiscal mechanisms which achieve the same goals."
Cities are also home to more than 90 per cent of immigrants arriving in Canada. To help them overcome difficulties in finding work because of language barriers, last year's budget allotted $5 million a year to support pilot projects to help new immigrants learn the language skills necessary for employment.
Tuesday's budget earmarked an additional $15 million annually to expand these pilot programs.
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