(Quebec) There will be additional funds to build more housing in the fall “mini-budget”, but there will be no more transfers to municipalities in the next fiscal pact, declared François Legault before hundreds of mayors gathered in congress on Friday.
The Prime Minister, however, dangled possible additional transfers if the government manages to increase electricity production and, thus, attract more private investment, an issue which will provoke discussions “not always easy with certain communities”. including First Nations.
In interview at The Press Earlier this month, Finance Minister Eric Girard signaled his intention to announce additional funding for housing in his economic update. Friday, François Legault took advantage of his visit to the Fédération québécoise des municipalities (FQM) congress to officially confirm that in the “mini-budget”, “there will be additional amounts for housing”.
However, he lowered the expectations of mayors in the context of negotiations on the next fiscal pact.
“There is no question of cutting, no question of going backwards” on the gains included in the current fiscal pact, including the transfer to municipalities of the growth in revenues derived from one QST point. But “it’s certain that if we talk about progress, I’m going to be honest with the rest of you, there is no room for maneuver in Quebec,” he told municipal officials. “There is no question of increasing taxes”; and despite the reduction in the tax burden announced this year, “we are still within the ceiling when we compare ourselves to our neighbors”.
The day after the announcement of the Northvolt project, François Legault returned to the development of the green economy and tried to rally mayors to his project aimed at producing more electricity.
“We announced 15 billion investments in the green economy”, especially for the battery sector. “We have another 15 billion which should be announced soon. It’s going to use up all the electricity we have. »
“We are going to need a debate in Quebec” with a view to “developing more electricity,” he added. “It starts with wind power”, but the Prime Minister has already said that he wants to build new dams. Hydro-Québec is studying a new structure on the Petit Mécatina river (Côte-Nord).
“There will be discussions that are not always easy with certain communities, First Nations, but we will have to ask ourselves the question: do we want to continue to develop additional capacity to be able to attract businesses that will create paying jobs, wealth, which will eventually allow us to transfer more money to municipalities? » launched François Legault, triggering laughter and murmurs in the room.
Its Minister of Economy and Energy, Pierre Fitzgibbon, will table later this fall a highly anticipated bill affecting Hydro-Québec and the Régie de l’Énergie and aimed in particular at regulating the development of clean energy.
Following the Prime Minister’s speech, the president of the FQM, Jacques Demers, maintained that his main objective had been achieved, that of “protecting the fiscal pact”.
“We wanted to ensure that the gains that were made in the last pact, that we did not put them back on the table to shuffle the cards, remove some to replace them differently. For me, advancement will be found with the QST point. This year, it’s 445 million and in 2030, that point, it’s a billion” in additional revenue for municipalities.
Other “interesting elements” were found in Mr. Legault’s speech, according to him.
For example, the Prime Minister assured that he will keep his promise to give 470 million to small municipalities to allow them to maintain local services (shops, grocery stores and convenience stores, for example). And he indicated that cellular coverage will be completed by 2026, in line with his commitment.