The UMQ sets its sights on the federal contribution of the gas tax

Nelson Sergerie, LJI Journalist

Québec Municipalities (UMQ) is asking the Government of Canada to substantially increase its contribution to the Gas Tax and Quebec Contribution Program (TECQ). 

The UMQ is drawing attention to the nearly 30% per region in the federal envelope compared to the previous period. 

“We have the Quebec government, which has increased its contribution in contrast to the old program. Unfortunately, what we’re denouncing today is that the federal government’s contribution has been reduced by $338 million. We’re calling on the federal government to accede to and respect its commitments to increase its contributions in a context of adaptation to climate change, which is the challenge of the hour,” noted UMQ President Martin Damphousse, following the organization’s Board of Directors meeting in Gaspé on September 20, a first in its 103-year history. 

The total contribution from provincial and federal governments is $3.2 billion. 

“It is the most appreciated program in the municipal sector because it affects underground infrastructure and, in the context of climate change, it is the most important and necessary program,” adds the UMQ President. 

For the Gaspé Peninsula, the reduction will have an impact of $4.9 million, with $2.5 million for the Town of Gaspé alone, according to the UMQ. 

The federal government’s view differs. Recently, Member of Parliament (MP) Diane Lebouthillier sent a communication to the media confirming that for the five-year cycle that started in 2024, the federal government is transferring $2.81 billion to Quebec. 

“This is an increase of almost 10% compared to the previous cycle ($2.57 billion),” she wrote. 

“On the one hand, it seems that the difference of $600 million (between the $2.8 billion I am talking about and the $2.2 billion announced by the Quebec government) is intended for a program for public transit infrastructure, as was the case in the previous cycle. In terms of percentage, the federal government’s contribution ($2.2 billion: 70%) remains at the same level compared to that of the Quebec government ($1 billion: 30%),” says Ms. Lebouthillier. 

“What is fascinating is that we see that the MPs are trying to convince us that they are right.” But the reality is that we have a report that clearly states the amount we will receive individually: the Quebec portion and the federal portion. And each time, everyone unanimously says that we are in deficit compared to the old program. I am certain that the UMQ’s data is correct,” replies Mr. Damphousse. 

The MP for the Gaspé Peninsula and Magdalen Islands adds that to address the challenges associated with the pandemic, the federal government transferred additional funds to municipalities, namely $504 million in 2019-20 and $495 million in 2020-21, for a total of nearly one billion dollars. 

“Although the TECQ administrative vehicle was used to facilitate the transfer from Ottawa to the municipalities, it was not a recurring increase in the program envelope,” the minister explained. 

“The federal government added amounts, but we are not talking about these amounts. There is no reference to these amounts. These are amounts that were granted in a specific context. They are not considered when comparing the two former programs. They are removed. Despite everything, by removing them, we arrive at a deficit of $338 million,” explains Mr. Damphousse. 

In 2023, the deficit for water infrastructure reached $45 billion, compared to $38 billion in 2022, according to the municipal union. 

The battle is being waged at all levels in hopes that the federal government will listen to reason. 

 

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