Cities Want Piece of Canada's $14 Billion Budget Surplus

Canada's cities are asking that some of the $14-billion federal budget surplus be directed at them, and at upgrading aging infrastructure, rather than to servicing debt.

1 minute read

October 2, 2007, 12:00 PM PDT

By Michael Dudley


"New figures released yesterday show that in the first four months of the current fiscal year, the federal surplus is already at $7.8-billion, which is about $1-billion higher than it was at this time last year. At a Thursday news conference announcing the surplus, [Finance Minister Jim] Flaherty rejected assertions that debt payments sacrifice spending on cities. He said federal spending on infrastructure is up and listed numerous projects that have received federal money in Toronto.

The multibillion-dollar debt payment is predicted to save Ottawa about $750-million a year, which will be used to fund future tax cuts.

In Toronto, Mayor David Miller was livid over the $14-billion federal surplus. "The existence of that surplus is outrageous," the mayor said. "It is from Torontonians. Almost all of it is our money," he said. Mr. Miller has launched a campaign for Ottawa to give all cities one of the six cents now collected through the federal goods and services tax. That proposal, worth $410-million for Toronto to invest in transit and other infrastructure, has been rejected by Ottawa.

The mayor also challenged other federal parties to speak up for cities, noting his one-cent campaign has been endorsed by other mayors, a Senate committee and will be part of a national lobby effort this fall by the Federation of Canadian Municipalities."

Saturday, September 29, 2007 in The Globe & Mail

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