CTF Report

Regina: The Canadian Taxpayers Federation (CTF) today launched its 5th annual Gas Tax Honesty Campaign (GTHC), a public awareness campaign aimed at encouraging the federal government to return a portion of fuel tax revenues back to municipalities for roads.

Along with a news conference, the CTF released its 5th annual GTHC report entitled Filling the Infrastructure Gap.

The report's key recommendations include:

Directing $2.2 billion in federal gas taxes to a Municipal Roadway Trust;
Immediately injecting $12-19 million into road projects in Regina and Saskatoon and $29 million for other cities, towns and RMs in Sask ($61 million total);
Cutting the excess federal gasoline tax from the pump price;
"The simple fact is the federal and provincial governments are gouging Canadians at the pump," said CTF provincial director David MacLean. "The federal government rips you off every time you fill up your gas tank. We're getting ripped off because the federal and provincial governments siphon billions from our communities, but barely return a chemical fraction to municipalities for infrastructure."

Municipal Roadway Trust
" Last year Ottawa raked in over $4.7 billion in gas and excise tax revenues but only returned a paltry three per cent in the form of transfers for provincial roadway development. Even if all infrastructure funding mechanisms are added in, Ottawa is still returning less than 25% of its tax take from motorists at the pumps," said MacLean.

The CTF proposes a Municipal Roadway Trust program that would devote $2.2 billion of federal gas tax revenues annually for three years (renewable by Parliament) for municipalities to draw upon for roadway expenditures. Accountability would be maintained with annual reports from municipalities, verifiable by the federal Auditor General with opportunity for provincial piggy-backing efforts.

"Our proposal would mean steady, predictable, sustained support for our communities to help us catch up on the millions of dollars in infrastructure deficits we've accumulated as a result of federal and provincial downloading," said MacLean.

In Saskatchewan, the Municipal Roadway Trust would provide $61 million per year for roads and highways, including $12-19 million each for Regina and Saskatoon, and $30 million for the other cities, towns, and rural municipalities in the province.
CTF invites Canadians to nominate Canada's Worst Highway.

Taxpayers have the opportunity to nominate Canada's worst highway on the CTF's website www.taxpayer.com under the "Highway from Hell" icon and in May/June edition of The Taxpayer magazine. Entries will be collected throughout the summer months; Canada's Worst Highway will be announced in September 2003 with winners receiving a free wheel alignment.