The Board of Trade of Metropolitan Montreal
welcomes the signing of a new financial partnership agreement
between the Government of Quebec and Montreal
Montreal, April 27, 2006 The Board of Trade of Metropolitan Montreal is delighted by the agreement for a new fiscal and financial partnership between the Government of Quebec and the municipalities to be effective between 2007 and 2013. The Board of Trade is pleased to note that, with this new agreement, the Quebec government is committing to making cities its special partners in the development of the province.
For several years now, the Board of Trade has stressed the important role played by cities in economic growth. The signing of an agreement providing an increased and recurring source of financial assistance to municipal governments represents a significant contribution to their ability to create wealth within their territories. This agreement also confirms the establishment of a model of cooperation between these two levels of government that is not only efficient, but also better adapted to today's urban realities, declared Isabelle Hudon, president and CEO of the Board of Trade.
In particular, the Board of Trade is pleased by the agreement to refund to municipalities the sales tax they pay to Quebec (QST) on their purchases of goods and services. This refund, to be implemented progressively between 2007 and 2013, will provide municipalities with predictable financial support enabling them to increase their investments. According to the City of Montreal, for example, the municipal administration paid some $80 million in QST to the Quebec government in 2005.
For the Board of Trade, the funding of cities should be commensurate with both the vitality and economic growth they generate and the specific challenges faced by major urban centres such as Montreal in terms of sustainable urban development and infrastructure. The Board of Trade thus sees this new fiscal deal as an important step toward improving Montreal's financial situation, but also believes there are additional steps to be taken, starting with the implementation of a new framework for the funding of public transit, concluded Hudon.
The Board of Trade of Metropolitan Montreal has some 7,000 members. Its mission is to represent the interests of the business community of Greater Montreal and to provide individuals, merchants and businesses of all sizes with a variety of specialized services to help them achieve their full potential in terms of innovation, productivity and competitiveness. The Board of Trade is the largest private organization in Quebec dedicated to economic development.
Coordinator, Media Relations
Board of Trade of Metropolitan Montreal
Tel.: (514) 871-4000, ext. 4015