Thank you, Mr. Chair. I'm pleased to be here today on behalf of Mayor Peter Kelly, who was unable to attend this session.
Thank you for the opportunity to discuss Halifax Regional Municipality's current economic and financial situation and our growing relationship with the Government of Canada.
As a regional municipality, we have a rich history and culture. We are unique in many respects. We are Canada's largest municipality, covering more than 5,600 kilometres, an area larger than the province of Prince Edward Island.
Halifax is the business and financial capital of the Atlantic region. While it has roughly 40% of the population, it accounts for nearly half of the provincial GDP. The 5.3% unemployment rate is below provincial and national averages.
I wanted to take the opportunity today to talk to you about what we see as the fiscal imbalance, some of the initiatives HRM has under way, and our key needs as you begin to plan for the next federal budget.
The Council of the Federation recently argued that there is a vertical fiscal imbalance in the country, with the federal government having more fiscal resources than it requires relative to its spending responsibilities, and the provinces having the reverse. This situation has become even more difficult at the municipal level.
In a province such as Nova Scotia, the difficulties are compounded. While HRM is the fastest-growing municipality in the region, it is simply not large enough to function without strong links to the federal and provincial governments. Other major cities have the benefit of other types of taxation--an example is transfer of fuel taxes--and greater cost-sharing from their respective provincial governments; Halifax is not in that position. Greater federal investments in municipalities are much needed and much appreciated.
In order to ensure we are a continually progressive, responsive, and responsible organization, HRM has taken on many initiatives of strategic importance for our community: for a decade HRM has had one of the leading solid waste collection systems in the world; in partnership with the provincial and federal governments, we have undertaken the harbour solutions project.
Since 1999, HRM has decreased outstanding debt by 20%, exceeding the goals of our debt reduction plan. HRM has an A rating with Standard & Poor's and continues to adhere to our own multi-year financial strategy.
We continue to build on these successes through initiatives such as our recently adopted regional plan, which lays out an integrated approach over the next 25 years to development in a sustainable and environmentally friendly manner. It's estimated that the regional plan will have a financial benefit of approximately $250 million in cost avoidance over that time period.
We have recently undertaken a new municipal tax reform initiative. We also now have a cultural plan that establishes our mandate in this area and we are proud to have just begun the implementation of the region's first economic strategy.
As of last year, our council adopted a municipal vision for immigration in our community and an immigration action plan to guide our organization in being even more welcoming to all. We have as well undertaken a new infrastructure planning process to guide infrastructure investment within the region. Like many Canadian cities, HRM is striving to keep its aging infrastructure in adequate working condition.
Here are some considerations I would like to throw out as you consider the 2007-08 federal budget; I would urge you to consider them.
Regarding the 2014 Commonwealth Games, continued all-government support, both political and financial, will be key to our success.
With regard to infrastructure funding support, continued reinvestment in federal infrastructure funding programs such as the gas tax, revenue sharing, MRIF, CSIF, and strategic transit are of paramount importance to HRM and other Canadian cities. Without such funding, municipalities would not be able to make many of the investments that have been made to date in aging municipal infrastructure. However, much more work remains to be done.
Another thing we'd like you to consider is the Halifax Atlantic gateway support. The Halifax gateway accounts for $1 billion in wages each year. Greater investment, integration, and partnership are required to grow the gateway and to ensure it is recognized and promoted as the east coast logistics hub.
There is also the community energy project. There is a unique opportunity in HRM to make a significant impact on cleaner air, as well as to enhance energy security through the community energy project. Federal support to implement the project is imperative. To match the provincial commitment, $20 million in federal funding is required to bring this project and its substantial environmental, financial, and social benefits to fruition.
Federal funding for law enforcement is another important consideration. HRM continues to look forward to the federal funding for additional law enforcement officers for municipal police agencies that was announced in last year's federal budget.
As for the DND Standing Contingency Task Force, as the Department of National Defence continues to progress toward the establishment of a Standing Contingency Task Force, HRM will remain supportive and urge financial support to ensure its success.
