Pool recieves $105,000 boost from PM Martin

Chris Clegg
South Peace News

Prime Minister Paul Martin has delivered a $105,000 financial boost for the High Prairie indoor swimming project in a roundabout way.

When Martin announced Feb. 2 in the Throne Speech he was excusing all municipalities from paying the full seven per cent GST it meant a savings of $105,000 on the indoor pool construction.

The Town of High Prairie and M.D. of Big Lakes are building the pool, estimated at $3.5 million. Since the town and M.D. already receive a four per cent rebate on GST, the remaining three per cent at $3.5 million totals $105,000.

The news was welcomed by both M.D. and town officials.

"That's good, it makes it a little more feasible," says High Prairie Mayor John Brodrick.

"I'd say thank-you to Mr. Martin," says M.D. manager John Eriksson.

The money could easily double to $210,000 if it's used for matching grants to build the pool.

The GST rebate also means a considerable savings to both the town and M.D. in total operations.

"Based on last year's figures we'll save about $300,000," says Eriksson.

However, with this year's M.D. budget being smaller the figure will decline.

The town will save about $40,000, says Brodrick.

"I'm glad (Martin) recognizes that municipalities are a form of government," says Brodrick. "We're at the bottom rung of the ladder."

Jack Hayden, president of the Alberta Association of Municipal Districts and Counties, says the Throne Speech commitment that municipalities will no longer pay GST is a significant step forward.

"This is something we've been working on for a long time now," says Hayden. "We've always said that you don't pay taxes with taxes."

Across Canada the total municipalities will save totals $580 million each year. For Alberta municipalities, this means a savings of some $70 million per year.

"GST relief will go a long way to improving our financial situation," says Hayden. "Rural municipalities are large purchasers of goods and services, especially in the area of construction and maintenance of roads."

Martin's announcement is part of a new deal for municipalities. The new deal includes commitments to target municipal infrastructure and provide reliable long-term funding to local governments.

According to the Throne Speech, the federal government will work with the provinces to share a portion of fuel tax revenues with municipalities, or determine other ways to achieve the same goal.

"At the Federation of Canadian Municipalities table we've worked long and hard to get fuel tax revenues for municipal transportation needs," says Hayden. "As the largest road authority in Alberta, we look forward to working with the Martin government on the fuel tax issue."

Hayden is pleased with the efforts of the new prime minister.

"Judging by the Throne Speech. . .Martin has listened and responded," says Hayden. "It's positive that they're talking about making progress on the fuel tax issue and I look forward to seeing a further commitment to GST relief in the upcoming federal budget."

The AAMD&C represents 68 rural municipalities in Alberta. Alberta's municipal districts and counties own and maintain some 130,000 kilometres of roads, or about three quarters of the province's total road network.