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Resort not anticipating federal stimulus money handout

FCM delegates voice frustration at slow flow of stimulus dollars

Whistler's Mayor is not holding his breath when it comes to getting money from the federal government's stimulus package.

"We did apply but we don't hope to get any," said Ken Melamed.

"The frustration is real at the municipal level."

Melamed is not alone in his dissatisfaction in the way money is passed through the levels of government and it became evident at the Federation of Canadian Municipalities (FCM) conference held here last weekend.

"My philosophy is that this is endemic of the flaw in the way governments in Canada relate, this almost patronizing, patriarchal relationship," said Melamed.

"Constitutionally the government went to a de-centralized Canada but they haven't been willing to part with the control of the money and I don't know how many more years we have to go along with the failed examples of how this system works, and this is another one."

Under the current system the federal government gets 52 per cent of tax dollars, the provinces get 40 per cent and the municipalities get 8 per cent.

And, said Melamed, an FCM found that of all the billions of federal dollars available about 90 per cent of it goes east of B.C.

But, added Melamed, "I have to acknowledge that Whistler has done well for itself in the years leading up to the Games...and we have got some money."

The FCM has calculated that there is about a $160 billion infrastructure gap across the country.

In January, Ottawa announced a $40 billion fiscal stimulus package, $12 billion of which is for new infrastructure spending. Of that $4 billion is to be allocated by March 2011.

At the closing of the conference John Baird, federal minister of transportation, infrastructure and communities said that the federal government would pay a full-one-third of infrastructure project costs incurred before April 1, 2011

Whistler has applied for some of the stimulus money for the Alta Lake Sewer Project, a sports field at Cheakamus Crossing, and the Re-Build-It Centre.

Though the federal government has promised access to the $12 billion in stimulus funding, cities and towns have not seen one penny of it despite getting federal and provincial approval for some of their spending plans for infrastructure.

Vancouver has put in for $600 million, one-third of which is targeted for social housing.

"We are seeing it held up between the federal and provincial governments," said Vancouver Mayor Gregor Robertson, speaking after the mayors of 22 of Canada's largest cities met to discuss this and other issues in advance of the FCM.

"It is not clear exactly what the blockage is."

Robertson has spoken to B.C. premier Gordon Campbell about the issue.

"He assures me that they are working out the kinks and the funding will flow. But it hasn't yet and we need it ASAP. We need to tell a better story on homelessness and housing especially going into 2010.

"The world will come and there is no doubt people will ask questions about the state of our city and we need a story about how we are addressing these problems."

Surrey has asked for $400 million. Of that $5 million has been announced but the city still doesn't have the money.

"The stimulus package was put forward so Canadians were able to get back to work and that is what we want right now," said Mayor Dianne Watts.

Under the Conservative plan the money must flow to the Province then get passed onto cities.

While the mayors welcomed the stimulus package they agreed that its end date of March 2011 deadline was now unreasonable as projects are unable to start due to lack of funding, making it likely that this construction season may be lost.

"Our shovels are ready and w are simply waiting for the money," said Big City Mayors' caucus chair Carl Zehr, Mayor of Kitchener, Ont.

"Cities play a crucial role in the most important economic issues facing our country and we are essential to the success of the government's economic strategies."

The conference also saw the adoption, by a narrow margin, of a controversial resolution barring U.S. companies from bidding on contracts in Canadian municipalities.

It also gives Canadian trade officials 120 days for more negotiations on the issue before municipalities take any action.

The move was a response to the $787 billion US stimulus package announced in February which includes a provision that public works projects such as infrastructure improvements should use iron, steel and other goods made in the United States, as long as that did not contravene commitments to trade agreements.

The FCM resolution calls for city contracts to go only to companies from nations that do not impose restrictions on Canadian firms.

"Canada's cities and communities joined the federal and provincial governments in a common front to try and stop American protectionism," the association said in a written statement.

"We stand united in the belief that fair trade and an even playing field are in the best interest of our country, our communities and our citizens."

Opponents the on both sides of the border say the "Buy U.S." package will cost jobs in both countries.

The United States and Canada are each other's largest trade partners, with close to $600 billion in total two-way trade of goods in 2008. Key areas of trade include oil and gas, agriculture, vehicles and machinery. Canada sends about 75 percent of all its exports to the United States.