BurlOak
Senior Member
Is the Federal Government obligated to paying half the cost of all Provincial transit/infrastructure projects ?
This is the full paragraph
All projects funded through the BCF–CC are cost-shared, with the maximum federal contribution to any single project being 50 percent. Municipal projects are cost-shared on a one-third basis—the maximum federal share is limited to one-third, with a matching contribution from both the province and municipality. For projects where the asset is owned by a private sector entity, the maximum federal contribution is 25 percent. Within the program's stacking provisions, municipalities may use funding received through the Gas Tax Fund to increase the federal share to 50 percent of total eligible project costs.
It looks like, I haven't seen anything saying otherwise. The only other restrictions are
No restrictions for the provinces
- Municipal projects = 1/3 but municipalities may use funding received through the Gas Tax Fund to increase the federal share to 50 percent of total eligible project costs.
- Private projects =25% (explaining why the Montreal REM only got $1.3B on a $6B project) The asset belongs to CDQ
So what is going on here.There is something very entitled about a Province saying the Federal contribution must go from 33% to 50%,
One can assume that Ottawa would not fund fewer absolute dollars to an incoming PC regime than it has promised to its Liberal predecessor, for the same projects that had been approved previously. But a Province saying, hey we are paying 50%, so you Ottawa have to pay that also, doesn't sound compelling to me.
I can agree that the PC sleight of hand might actually download cost to cities. But thinking that they will pry more money out of Ottawa by changing their contribution and then re-intepreting the fine print of the infrastructure fund rules is not a wise bet.
- Paul
The perception was (during the 2015 campaign) that the federal government will pay a 50% of all transit costs.
The quote above says that BCF-CC will be funded up to 50% - but that fund is not bottomless. Likely as soon as a non-Liberal government is in power provincially, the willingness to pay will disappear from the federal government.