Government chooses Westside to sign funding agreement

By Jason Luciw - Kelowna Capital News - March 19, 2008

Skewered fruit in a rainbow of colours was plated perfectly, royal blue bottles of sparkling water were lined in rows and the bright Okanagan sun shone through the windows of a grand room with lofted wood beams. The stage was set for three levels of government to make their funding announcement to the province from a hotel conference room in Westside on Monday morning. It turned out the money aspect, a four-year, $1 billion extension of the Gas Tax Fund in B.C., wasn’t new. It was the actual signing of the agreement that turned out to be the news.
Federal Public Safety Minister and Okanagan-Coquihalla MP Stockwell Day, B.C. Community Services Minister Ida Chong and president of the Union of B.C. Municipalities Susan Gimse took centre stage at the Cove Lakeside Resort’s Grand Reserve Room to sign their names to a deal that would extend gas tax revenues from 2010 to 2014.B.C. is the first province to sign on to the extension deal, according to the trio.

Gimse, who represented local governments, said the tripartite agreement would give municipalities the guarantees they needed to plan major infrastructure projects for the next six years. Day made that the central point of his speech to the crowd of 100 gathered to witness the signing. “We wanted to make sure, for building and planning purposes, that this funding is long term and sustainable, regarded as permanent.” In order for local governments to plan major projects, they need the assurances that the extension agreement provides, stated Day. “The key is predictability and the long term aspect and that is what we signed on to today.” Day was asked if a future government had the ability to scrap the deal however, should the minority Conservatives be forced to call a snap election, potentially changing the nation’s political landscape.

The federal minister said the deal was “set in stone.” “I mean future governments, I suppose, could try and change it. But it would be a huge political risk.” And Gimse said the deal was signed by three levels of government and therefore it would require the consent of all of the parties to terminate the Gas Tax Fund extension. “No one government can cancel the agreement.” The funding must be used on projects that reduce greenhouse gas emissions and promote sustainability. Chong highlighted the green aspect of the funding in her speech. “I’m sure (by 2014) we’ll have seen some significant projects, that citizens will actually really see the benefits of cleaner water, cleaner air and lower green house gas emissions for generations to come.” Examples of projects the gas tax revenues can be used toward include transit expansion, roundabouts to reduce idling at intersections, geothermal heating in public buildings and cycling trails. The money is doled out using a formula that gives all municipalities a base amount and then a supplemental grant based on a percentage of their population within their respective regional districts. Here in the Central Okanagan, Kelowna will receive $11.7 million under the four year expansion agreement. Westside will be given $3.1 million. Peachland’s take will be $725,000, while Lake Country will get $1.2 million and the Central Okanagan Regional District will receive $1.7 million.