News Release

Atlantic Mayors Congress Calls for Immediate Negotiations on Fuel Tax

(Summerside, PEI, September 20, 2003) - The mayors of the Atlantic Mayors Congress have unanimously called on the federal government to immediately begin negotiations to apportion a part of the gas tax to meet urgent municipal needs.

The Atlantic Mayors Congress, meeting here in Summerside, are continuing their efforts to advance regional cooperation at the municipal level.

"At the annual conference of the Federation of Canadian Municipalities last May, federal Liberal leadership candidate Paul Martin asked Canadian municipal leaders to consider his proposal concerning a portion of the federal fuel tax and decide if it could help alleviate some of the challenges facing municipalities", said Halifax Regional Municipality Mayor Peter Kelly, Chair of the AMC.

"The Atlantic Mayors have examined Mr. Martin's proposal and believe it can work for the region's municipalities. Therefore, we are signalling our preparedness to participate in discussions with the FCM and the government to make it happen," Mayor Kelly said.

The Martin proposal would see five cents per litre of the federal fuel tax go to municipal governments to help meet local priorities.

"The need for action in this matter is urgent", said Summerside Mayor Basil Stewart, host of the AMC meeting. "Like other municipalities across the country, the Atlantic Canadian municipalities are finding it increasingly difficult to meet the needs of their communities."

" Decaying infrastructure and growing social pressures are common challenges for municipalities", said Stewart, "and this proposal would help, as long as the provincial governments cooperate and do not attempt to claw back this incremental source of municipal financing."

Other business conducted at the AMC meeting included:

· Agreement to initiate planning for a Regional Municipal Tourism cooperation initiative;
· Resolution proposing municipalities receive 100% GST refund;
· Discussion of best practices for economic development at the municipal level;
· Analysis of Atlantic Canadian climate change issues facing municipal governments;
· Municipal infrastructure planning and funding issues; and
· Proposals for forward agenda business items.

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Mayor Peter Kelly
Halifax Regional Municipality
(902) 222-9999

Mayor Basil Stewart
City of Summerside
(902) 432-1244