Ottawa speeds up release of gas tax fund money

Nunavut will receive $16.5 million from the federal gas tax fund for the 2020–21 fiscal year early, to fund its most “pressing infrastructure needs,” Infrastructure Canada said on June 11.

“Our government is making immediate investments in infrastructure that will play a vital role in helping communities revive their economies, and will improve the lives of Canadians, especially in Nunavut,” said Catherine McKenna, the federal infrastructure and communities minister, in a news release.

“As a first step, we are accelerating this year’s payment through the federal gas tax fund. This will put $16.5 million in the hands of communities in Nunavut, to improve local infrastructure like drinking water systems and green projects that protect the local environment—and we will get northerners back to work.”

The gas tax fund money means an additional $16.5 million for the territory, consisting of $13 million for the Government of Nunavut, $2.45 million for the City of Iqaluit, and the remainder for administrative and capacity-building funding.

Recent projects that have benefited from the fund in Nunavut include a new wastewater treatment facility in Kimmirut.

Upgrades are slated for the drinking water system in Pond Inlet, to ensure the community receives a regular supply of safe drinking water, and a new landfill site for large scrap metal is planned for Arviat.

“We appreciate the decision by the Government of Canada to expedite the release of gas tax funding as a way of supporting municipalities in Nunavut and addressing the ongoing impacts of the pandemic,” said Lorne Kusugak, Nunavut’s community and government services minister.

“This is a good example of collaborative action/collaboration between our governments as that will help Nunavummiut to return to normality with increased confidence.”