Thank you, Mr. Chair.
Thank you, Madam Minister, for joining us today. I think that this marks the second time, at least as part of similar studies, that we've had the opportunity to meet with ministers. Whether you're responding to one of my questions or to another member's question, perhaps you can shed some light on the specific structure of your department and on your exact responsibilities.
My questions for you include an issue that significantly affects the gas tax and rural municipalities. That's your file. I've had the opportunity to ask your colleague, Ms. McKenna, Minister of Infrastructure and Communities, this question several times. I was quite disappointed with her response, but perhaps you'll be more encouraging.
Your government recently decided to tighten up the criteria for the federal gas tax fund. As a result, many municipalities have been unable to invest in their city halls, fire halls, garages and warehouses. For the big cities, this isn't a major issue, since they have other options. That said, I think that a number of those cities would have preferred to maintain the flexibility that they had in the past. The big cities have so many projects and are so large that they can invest the money in other places. However, for smaller municipalities, this creates an issue. These municipalities rarely have the luxury of being able to use the money received through the federal gas tax fund for anything else. Once the eligible work is complete, they can no longer use the money.
In the past, when municipalities needed money to invest in their city halls, fire halls, warehouses or garages, they could invest the money wherever they wanted. Often, in small municipalities, there isn't a huge amount of infrastructure. The amount is quite limited. When an urgent need arises in one place, the money must be used there. Sadly, sometimes, the municipalities simply can't use the money. It goes back into the public purse, and the municipalities lose track of it.
I guess that you're aware of this, but smaller municipalities often have much greater financial challenges than some of the larger municipalities. Smaller municipalities have a fairly limited tax base.
Do you consider that the restrictions imposed by your government unfairly penalize small municipalities?
What are your thoughts as Minister of Rural Economic Development?