Toronto: The Canadian Taxpayers Federation (CTF) responded to today's announcement by Prime Minister Paul Martin that Ontario will receive $1.8 billion from the gas tax over five years. These funds are earmarked for transit and 'environmentally sustainable projects', but not for road and highway repair.

"Gas taxes should go to fix the roads drivers use, plain and simple," said CTF Ontario Director Tasha Kheiriddin. "Gas taxes are not environmental taxes, or transit taxes."

Of the $4.5-billion collected nationally in federal gasoline and diesel taxes in 2004-2005, Ottawa returned a paltry 7.2 per cent or $324-million back in provincial transfers for road and highway development. Only a fraction of that money is spent on Ontario roads. Ontario's infrastructure deficit is estimated to be between $7 and $20 billion, according to the 2004 Ontario's Worst Roads Campaign. Eighty per cent of roads are municipal responsibilities, yet under today's announcement Ontario cities and towns will not receive the necessary funds to repair them.

According to CTF federal director John Williamson, "This latest agreement fails to acknowledge the burden Ontario cities face with road construction and maintenance or the importance of using gas taxes to mend roads. Instead, gas tax money will go to garbage collection, sewer systems, subways and information technology."

Since 2002, the CTF has been advocating for the creation of a Municipal Roadway Trust, a practical model for returning half of the federal gas tax revenues directly to municipalities to spend on roads and highway development and maintenance. It is similar to the National Highway Trust model successfully used in the United States since 1956 to maintain that nation's highways.

"Transit vehicles use the roads too. So you'll have new buses driving over potholes, breaking down at every turn. How much will that cost taxpayers " asked Kheiriddin. "Poorly maintained roads are also a cause of environmental degradation. They slow traffic, which increases idling and pollution. They cause added wear and tear on vehicles, necessitating earlier replacement and additional repairs, using more energy and materials than would otherwise be necessary."