SHARING THE RESPONSIBILITY

Current investment needs point to the creation of a long-term transportation investment program funded by the most obvious choice-federal fuel tax revenues.

Provinces and territories recognize that the federal government has existing programs to be funded by fuel tax revenues. Funds should not be diverted from these programs. However, the federal government still has considerable revenues derived from transportation sources that are not being reinvested in the transportation sector.

Using Statistics Canada data, based on revenues collected during the past five years, federal revenues from fuel taxes are estimated to total $48.67 billion over the next 10 years. Current federal commitments on sharing the fuel tax with municipalities will amount to $15 billion over the same period. The 2005 transit funding commitment amounts to another $800 million. Therefore, the unallocated portion of the fuel tax over 10 years is $32.87 billion.

The provinces and territories believe that the unallocated funds from the federal fuel excise taxes must be committed to a Strategic Transportation Infrastructure Fund and distributed on an equitable basis, to provide a stable and adequate core funding source for capital infrastructure investments. The funding formula must respect jurisdictions and allow for flexibility and autonomy in investment decisions that provinces and territories will make to prioritize projects based on their individual needs.

The proposed funding levels will not meet all the requirements of the national transportation system. Renewal and expansion of existing federal infrastructure programs will still be required in partnership with large investments from provinces, territories, municipalities and the private sector.