• Taxpayers react swiftly to Transport Minister's musings on new gas taxes
  
• Ottawa already pockets $5 billion annually by ripping off motorists at the pumps
  
• CTF proposes (again) Municipal Roadway Trust formula to meet cities' needs

OTTAWA: The Canadian Taxpayers Federation (CTF) today reacted to media reports that federal Transport Minister David Collenette is supportive of raising gas taxes to meet and finance major infrastructure needs in Canada's cities.

In addressing the issue at Couchiching Conference on Cities and Globalization, Mr. Collenette stated: "The bottom line is that more money has to flow to deal with the problems of cities. However we do it is fine with me."

Transport Minister should check his figures -
"While we appreciate that Minister Collenette and his Toronto area cabinet colleagues are under the gun for their utter incompetence in addressing Toronto-specific - and more generally - urban issues over the last decade, that's no excuse to make all Canadians pay for their political failings," stated CTF federal director Walter Robinson.

"The bottom line is that any talk of new gas taxes to meet urban needs is irresponsible and hypocritical coming from our present federal government," added Robinson.

Ottawa already has money for cities!
"Last year alone, Ottawa raked in over $4.8 billion in gas and excise tax revenues but only returned a paltry 2.4% or $113 million in the form of transfers for provincial roadway development. Even if all federal infrastructure funding is added in, Ottawa still returns less than 20% of its tax take from motorists at the pumps," said Robinson. "In other words, Ottawa pockets $4 billion into general revenues each and every year courtesy of Canadian motorists."

Municipal Roadway Trust could help cities
In May, as part of its annual Gas Tax Honesty Day, the CTF proposed a Municipal Roadway Trust program that would devote $2.2 billion of gas tax revenues annually for three years (renewable by Parliament) for urban regions to draw upon for roadway expenditures.

This would allow municipalities to redirect more of their current budgets to other priorities such as transit and waterworks initiatives. Accountability would be maintained with annual reports from municipalities, verifiable by the federal Auditor General with opportunity for provincial piggybacking efforts.


"Our model provides immediate cash for stretched urban regions and provides federal accountability for spending of federal tax dollars. Annual oversight, and penalties if appropriate, would ensure that municipal governments would build real infrastructure instead of bocce ball courts, canoe museums and riverfront fountains," asserted Robinson.

Wanted: Federal leadership -
"We've often stated that Ottawa doesn't have a revenue problem, it has a spending problem. It's apparent that the folks around the federal cabinet table also have a creativity problem," said Robinson. "Adopting our Municipal Roadway Trust model, which is similar to an approach employed by the Americans to fund their interstate system, would constitute an act of federal leadership on the crucial urban issues file."

"Last year Canadian motorists paid an average of 42% in taxes each time they filled up at the pumps," concluded Robinson. "We already pay our fair share in gas taxes and then some. It's time the feds looked at their own bank account for money before stealthily picking our pockets through increased taxes at the pumps."