Thank you, Mr. Speaker. Mr. Speaker, I am pleased to share with my colleagues details of recent commitments by the federal government that will support community governments and their infrastructure needs. The signing of the Municipal Rural Infrastructure Fund Agreement between our government and the federal government, along with announcements regarding the allocation of $5 billion in federal gas tax revenue funding under Canada’s new deal for cities and communities, are welcome news in the Northwest Territories.

The municipal rural infrastructure fund will provide an investment of $16 million in infrastructure funding to the communities of the Northwest Territories over the next four years.

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This funding is a positive movement for both the federal and territorial governments to help address the needs of our communities in the areas of water, wastewater and solid waste. As a result, this will help improve the quality of life for our residents. I would like to take this opportunity to share with Members some of the highlights of the agreement.

The municipal rural infrastructure fund will be allocated on the basis of 55 percent to the non-tax-based communities and 45 percent to the tax-based communities, which is consistent with the previous Canada-NWT infrastructure fund.

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The federal contribution of $16 million will be matched by our government, along with an additional $7 million from the tax-based communities. The federal budget address earlier this week committed to renewing the municipal and rural infrastructure fund when the current five-year program has ended.

In addition, earlier this week, Canada announced how it plans to allocate the $5 billion in gas tax revenue funding among all provinces and territories. The federal government will provide the Northwest Territories with a targeted amount equal to 0.75 percent of the total funding available. This will result in new infrastructure funding for

Northwest Territories community governments of $37.5 million over the five-year period beginning in 2005.

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Northwest Territories communities will receive $4.5 million in 2005-06 and 2006-07. That amount will increase to $6 million in 2007-08 and jump to $7.5 million in 2008-09. The program will reach its ongoing stable funding base of $15 million annually in 2009-10.

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I am pleased to report that MACA officials began discussions yesterday with Infrastructure Canada towards negotiating the bilateral agreement with Canada for allocation of the funding to the Northwest Territories communities.

The allocation of the federal gas tax revenue reflects the efforts and lobbying of the three territories, who took a pan-territorial approach to the federal government’s new deal for cities and communities. In partnership with the Northwest Territories Association of Communities, we supported a funding allocation that reflects those unique needs and pressures of northern and remote communities.

We are all acutely aware of the infrastructure deficit facing Northwest Territories community governments and the department is aggressively exploring options to assist communities to identify and leverage funding for community infrastructure. We welcome the infusion of additional funding for community infrastructure by the federal government because it supplements the limited own-source revenues to which community governments have access. Both of these recent commitments by the federal government are positive steps that will certainly assist our government and community governments to address current needs and shortfalls in infrastructure. I look forward to continuing work with the Northwest Territories Association of Communities on implementing these two commitments in a manner that is fair, transparent and meets the needs of community governments. Mahsi, Mr. Speaker.

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