Liberals would make gas tax dollars for cities permanent

Last Updated: Sunday, January 15, 2006 | 9:52 PM ET

CBC News

Liberal Leader Paul Martin has promised legislation to make permanent the gasoline tax transfers for municipal infrastructure and public transit.

During a campaign stop in Laval, Que., on Sunday, Martin said he wanted to "build upon the success" of the New Deal for Cities and Communities.

The Liberals have been turning over 1.5 cents a litre of the gas tax to municipal governments for infrastructure projects. They were to increase the transfer to five cents a litre by 2010.

Paul Martin speaks at a news conference at City Hall in Laval, Que. on Sunday. (CP Photo)

Martin said his new plan would ensure that municipalities continue to receive the maximum $2-billion transfer annually.

The Liberal leader said he would also create a new five-year, $350-million fund for building local sports facilities.

The NDP has promised to increase the federal gas tax transfer to municipalities to five cents per litre immediately.

The Conservatives have said they would create a $2 billion Highways and Borders Infrastructure Fund, while maintaining all existing infrastructure commitments.