Huntsville Forester
Current distribution of provincial gas tax revenue unfair: Miller
by Carlye Malchuk
May 07, 2008

<<>>Private member’s bill to change regulations defeated>

<<> /><<>>The way in which provincial gas tax funding is doled out in the province of Ontario is unfair to rural municipalities who do not have a transit system, said Parry Sound-Muskoka MPP Norm Miller.>

<<>>Unfortunately, he added, a private member’s bill attempting to open the coffers to all municipalities was defeated last week in the provincial legislature.>

<<>>“Currently in the province the gas tax (revenue) only goes to municipalities that have transit systems,” he told this newspaper on Monday. “Which is quite different from the federal government, which gives a share of the gas tax . . . to all municipalities.”>

<<>>Bill 38, a private member’s bill introduced by Renfrew-Nipissing-Pembroke Conservative MPP John Yakabuski, would have made the provincial system similar to Ottawa’s. However, it was defeated Thursday morning by the majority Liberals.>

<<>>“Even the rural (Liberal) members who, you would think, would support this voted against it, which means the vote was whipped. The government didn’t want to see it passed,” said Miller.>

<<>>In a press release issued last week, Yakabuski said he was disappointed the bill was defeated. >

<<>>“Some Liberal MPPs who supported the bill when it was debated in an earlier parliament, voted against this bill,” he said in the release. “This is an issue of fairness for rural Ontario. Municipalities all across the province have been asking the government for sustainable, predictable funding, rather than depending on the current end-of-year slush fund of which they may or may not get a share.”>

<<>>Miller said an example of the current situation was the Township of Whitestone in Parry Sound, where a project to rebuild a small bridge has been put on hold after the township as unsuccessful at securing funding through a “lottery-style” grant program.>

<<>>He added Bill 38 would have made sense because it would have made it “so municipalities, especially the small rural ones, can plan out their infrastructure work.”>

<<>>Since the establishment of the provincial gas tax program, Huntsville has been the only municipality in this riding that has qualified for the funding. However, Miller said Parry Sound may be receiving some this year.>

<<>>Elsewhere in Muskoka, Bracebridge is currently in the process of doing a $33,000 study to investigate the possibility of establishing a public transit system for the municipality.>

<<>>In 2006, Gravenhurst town council approved a trial transit program, which was cancelled after a few months of dismal rider ship numbers.>

<<>>According to the 2008 final budget for the Town of Huntsville, about 35 per cent of the operating costs for the transit system — which operates Monday to Friday, excluding holidays and makes over 20 stops — will come from the provincial gas tax grant.>

<<>>Additionally, another 12 per cent comes from a provincial transit grant, while 2 per cent comes from a federal transit grant.>

<<>>According to the budget, $21,000 is anticipated in revenue from fares.>

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