Increased Federal Funding Needed for Provincial Highways

TRANSPORTATION/PUBLIC WORKS--Increased Federal Funding Needed for Provincial Highways

Nova Scotia continues to look for a better return on federal funding for highways.

Transportation and Public Works Minister Ron Russell said he most recently raised this matter, among other important transportation issues, with his federal counterpart, Transport Minister Tony Valeri, in person on April 13 and in a letter on March 5.

"In my correspondence and in person I continue to push for a significant and stable long-term cost-shared funding program for our highways," said Mr. Russell.

The federal government collects about $140 million a year in federal motive fuel taxes and since 1999 returned about $5.4 million a year. Mr. Russell said that works out to less than four per cent per year and Nova Scotians deserve a more meaningful investment from Ottawa.

Nova Scotia expects to collect about $255 million in fiscal year 2004-05 in provincial motive fuel taxes and expects to spend about $261 million on its road network.

"We want what's fair and just," said Mr. Russell. "Ottawa takes the money from motorists using our transportation network, and we want to reinvest those dollars into our roads".

"The province has increased its spending, but we have a hard time getting Ottawa to reinvest the dollars they take from our motorists," said Mr. Russell. "We want them to do the right thing and spend the fuel tax money here".

Mr. Russell hopes for a positive announcement in the near future.

A federal-provincial cost-shared agreement-in-principle was announced in April 2003 for work on Highway 101 and Highway 104. Mr. Russell hopes to expand that agreement.