Gas Tax News Welome

Federal money welcome, but more help needed

Jun 1, 2020 | 12:46 PM

PRINCE GEORGE – The federal government has announced the expedited issuance of the gas tax for municipalities that are struggling because of the COVID-19 pandemic. It is a total of $2.2 billion that will be sent out to local governments in a one-time sum rather than two installments. The money can only be used for capital projects, though.

“It’s a modest proposal. It’s a start. Preliminary. And [Prime Minister Justin Trudeau] even said ‘We will look at ways to work with you in the future.’ But we have identified that there is $10 to $15 billion that we need for operating money,” says City Councillor Garth Frizzell, speaking as the 1st Vice President of the Federation of Canadian Municipalities.

The City of Prince George is looking at losses of nearly $1 million per month because of things like the closure of recreational facilities, civic facilities and the Treasure Cove Casino. The later alone has created a void of $250,000 per month in the City’ coffers.

While BC is still in Phase Two of the Restart Plan, some services are starting to return. Transit, for example, has resumed charging fares. But while that will help in some small part, municipalities are still reeling.