Mr. Speaker, I want to remind the hon. member that highways, including those segments which make up the Trans-Canada Highway, fall under provincial jurisdiction. Both the existing and proposed Fredericton to Moncton highways are the responsibility of the province of New Brunswick. This means that the Government of New Brunswick decides on their alignment, design, construction standards, tendering process, financing, as well as subsequent operations and maintenance.
The decision to establish tolls on these highways is exclusively a provincial decision.
The federal government had co-funded some of the completed work under existing federal-provincial cost-shared agreements. The total federal contribution toward the completed work was $32 million. Of this, $16 million was spent on the 23 kilometre section between Riverglade and Moncton, which will become part of the toll highway.
New Brunswick has not included the federal contribution in the cost base that was used for establishing tolls and the annual provincial payment for the remaining capital cost. In effect, the federal funds have reduced the capital cost of the total project.
The federal government entered into cost shared federal-provincial highway agreements because it wished to accelerate the construction of safer and more efficient highways, and this objective was met.
Once project construction is completed to the satisfaction of both parties, the federal role ceases.
Past and current agreements contain no provisions preventing the establishment of tolls or requiring the agreement of the federal government. The government has no legal basis to prevent provinces from imposing tolls on provincial highways, including those which have received federal contributions.